2016-06-30 flanges petition volume i

7/25/2019 2016-06-30 Flanges Petition Volume I

1/144

June

30,

2016

VIA

ELECTRONIC

FILING

&

HAND DELIVERY

The

Honorable

Penny

Pritzker

Secretary

of

Commerce

Attention:

Enforcement

and

Compliance

APO/Dockets

Unit, Room

18022

U.S.

Department

of Commerce

14th Street

and

Constitution

Avenue, NW

Washington,

DC

20230

MAYER.BROWN

Mayer Brown LLP

1999

K Street, NW

Washington, DC

20006-1

101

Main Tel +1 202 263

3000

MainFax+l

2022633300

www.mayerbrown.com

Matthew

J.

McConkey

Direct Tel +1 202 263

3235

Direct Fax 202-263 5365

mmcconkev@ maverbrown.com

VIA HANI)

DELIVERY

The Honorable

Lisa

R.

Barton

Secretary

U.S.

Intemational

Trade

Commission

500

E

Street, SW

Room,

lI2A

V/ashington,

DC 20436

DOC

Inv.

Nos.

A-533-871,

A-475-835,

A-469

-81

5

and C-533

-87

2

USITC Inv.

Nos.:701-TA- /731-TA-

Total

Pages: 3078

Investigation

PUBLIC VERSION

Business

Proprietary

Information

Deleted

at

Pages:

I-3,

I-

I 3-I- 15, I-23, I-24, I-26,

I-

27, r-29, I-31,

II-1, rr-2, rr-4, II-5,

II-6,

ITT-2,

IIT-4-III-6, III-9,

IV-2,

IV-5, thc

Exhibit Lists for Volume

III

and

IV and

Exhibits I-Il,I-12,I-15,

I-15, II-1, 11-5b,

II-5c,

II-8, II-1I,lI-I2, III-1, III-8, III-11-

III-13,

TTI-17,

ITI-23, IIT-24,

IV-l,

IV-sb,

IV-8, IV-9,

IV-l3

and

IV-l9.

Petitions

for

the

Imposition of Antidumping

Duties

on

Imports

of

Finished

Carbon

Steel

Flanges

from

India,

haly

and Spain

and Countervailing Duties

on

Imports

from

India

Dear

Secretary

Pritzker

and

Secretary Barton:

On behalf

of

Weldbend

Corporation

( 'Weldbend )

and

Boltex Mfg. Co.,

L.P.

( Boltex )

(collectively

the

petitioners ),

we

respectfully

submit to the

U.S. Deparlment

of

Commerce

( the

Mayer Brown LLP operales

in combination with other Mayer

Brown entities with offices in Europe

and

Asia

and

is

associated with Tauil & Chequer Advogados,

a Brazilian law

partnership.

1208298'79

Re


2/144

The Honorable

Penny

Pritzker

The Honorable

Lisa Barton

June

30, 2016

Page

2

Department )

and

the

U.S. International

Trade

Commission

( the

Commission )

the enclosed

petitions for

the

imposition of

antidumping

duties on U.S.

imports

of

finished carbon steel

flanges

from

lndia,

Italy

and

Spai4

and countervailing duties

on imports

from lndia. \Meldbend

and

Boltex

are engaged in

the manufacture arid

production

of

the

domestic

like

product

in the United States

and

thus

are

interested

parties

withinthe

meaning of

19 U.S.C.

1677

(9XC).

The

petitions

are

organized

as

follows:

o

Volume

I

-

General

Information

and

Injury;

:

Volume II

-

Antidumping Allegations for

India;

Volume

III

-

Antidumping Allegations for ltaly;

Volume

IV

-

Antidumping

Allegations

for Spain;

Volume V

-

Corurtervailing

Allegations

for

India.

:

Pursuant

to

section

35t.202(c)

of

the Department's

:

regulations

and section 207

.10(a)

of

the

Commission's

regulations, we

certiff that the

petitions

and

j.

all

required

copies were

filed

today

with

both

the Department

and the

Commission.

Volumes

I thru

Volume

IV of the

petitions

are being

filed

electronically on the Department's ACCESS filing

system.

However,

Volume

V

and

the

accompanying exhibits

are

being

filed

manually

with the

.:

Department.

An original

and

nine

paper

copies

of

the business

proprietary

version and

an original

plus

two

paper

copies

of

the

ipublic

version of the

narrative portions

of

each

volume along, with

CDs containing

the associated business

proprietary

and

public

version exhibits,

are

being filed

manually

at

the Commrsslon.

o

a

720829879


3/144

The Honorable Penny

Pritzker

The Honorable

Lisa

Barton

June 30, 2016

Page

3

Request

for

Confide{rtial Treatment:

Pursuant

to

paragraphTTT(b)(l)

of the

Tariff

Act

of

1930, as amended,

19 U.S,C.

1677(bxl),

sections

351.105(c),351.202(d)

and

351.304

ofthe

Department's regulations, and

201.6

of

the

Commission's

regulations,

petitioners

request

':

proprietary

treatment

for

certain

information

in

the

petitions,

which

we

designate

by

placing

it

within

brackets.

The nature

of

the

information,

and

the

basis

for

this

request

is as

follows

All

of the

above information

is

proprietary

and

not otherwise

available

to the

public,

or

is

..:

information that directly would

lead to or

disclose

proprietary

information.

V/e

tther

represent

Paee

or

Exhibit

Nature

of Information

VOLUME

I

_

COMMON

ISSUES AND

INJURY

Pages

3,

13, 14, 15,

23, 24,

26,

27,

29,31, Exhibits l-ll,l-12;

I-14, I-15,

I-15-A.I-15-8.

Domestic

Industry

Operations,

Trade and

Financial

Data

VOLUME

II. ANTIDUMPING

ALLEGATIONS

FOR

INDIA

Pages I,2,4,5,6,

Exhibits

II-1,

il-

5b,II.5c, II-8,

II-l I,lI-12.

Confidential Sources of Information

VOLUME

III

-

ANTIDUMPING

ALLEGATIONS

F'OR

ITALY

Pages

2,4,5,6,

Exhibit

List;

Exhibits

III-1,

ilI-8,

III-11, lIl-12,

III-23.

Confidential

Sources

of

Information

Exhibits III- 1

3,

lll-17,

III-24

Information

Related to

Production Costs

VOLUME

IV

-

AITIDUMPING

ALLEGATIONS

FOR

SPAIN

Pages 1,

5,

Exhibit List,

Exhibits

IV-

1,IV-sb,IV-8.

i

Confidential

Sources

of Information

Exhibits

IV-9,

IV-13,

IV-19.

Information

Related

to Production

Costs

7208298'.79


4/144

The Honorable Penny Pritzker

The Honorable Lisa Barton

June

30,2016

Page 4

that disclosure

of

such

infonnion

would

cause

substantial harm to the

competitive

position

of

the

'

petitioners,

and

would

impair the

ability

of

the Department and

the

Commission

to obtain

comparable information

in

the

future

in

fulfillment

of their statutory

functions.

A

public

version

of

:

the

petitions

has

been

prepared

and

is being

filed simultaneously

with

this submission

pursuant

to

section

351.304(c)(l)

of the

Department's

regulations

and

section

201.S(d) of the

Commission's

regulations.

:

i

Pursuant to

paragraph

351.304(bxlxi)

of the Department's

regulations,

the

petitioners

agree

.:

to

permit

disclosure

of all

proprietary

information

under an

properly

executed

administrative

protective

order

("APO').

The

petitioners, however, reserve the

right to comment

on all

APO

applications

prior

to

any requested

disclosure, or

to

withdraw

information

in the event that

the

agency

declines

to

afford

proprietary

treatment

to any

information.

]

Certifications: V/elattach

to

this

letter

all

appropriate certifications

required by the

regulations.

These

include

the

verification

that

information

substantially identical to

the above-

:'

claimed

proprietary information is

not

available

to

the

public

in

accordance with

19

C.F.R.

$

201.6(bx3)(iii),

or

would otherwise

reveal

proprietary

information.

Also attached

are the

requisite

company and counsel certifications

regarding the

completeness and accuracy

of

the

information

,.

contained

in the

petitions.

,

r

720829879


5/144

The Honorable Penny

Pritzker

The Honorable Lisa Barton

June 30, 2016

Page 5

:

If

you

have any

qugstions

congeming

these

petitions,

please

contact

the undersigned,

Respectfrrlly

BROWN LLP

999K

Sfeet,

NW

Washington,

DC 20006

202)263-3000

Counsel

for

Weldbend

Corportion

and

Boltex lt4fg. Co. L.P.

720829879


6/144

CERTIFICATIO

OF'COI]NSEI,

I, Matthew

J.

McConkey

of

Mayer Brown

LLP, counsel to V/eldbend Corporation

and

Boltex

Mfg.

Co.,

having

been

duly

sworn

on

this

30th

day

of

June, 2016, do hereby

certify,

pursuant

to

19 C.F.R.

201.6(bx3xiii) of

the Commission's rules,

that

to

the best of

my

knowledge

and

beliet

information

substantially

identical to that for

which

proprietary

treatment

has been

requested in

this

submission

is

not available to the

general public.

Further,

in

accordance

with

19 C.F.R.

207.3(a), I hereby certify

that

(1)

I have read

the

attached submission, and

(2)

to

the

best

of my knowledge,

the information

contained in

this

document

is

accurate

and complete

J.

McConkey

MAYER

BROWN LLP

1999

K

Street,

NVy'

'Washington,

DC2

District of

Columbia:

SS

Subscribed and swom before

me

this

30th day

of

June, 2016

V

otary

Public

My

Commission

expires

I

:.,

t.r

rr

720829879


7/144

REPRESENTATIVB

CERTIFICATION

I, Matthew McConkey,

with Mayer

Brown LLP, counsel to Weldbend

Corporation

and

Boltex Mfg. Co., certify

that I

have

read

the attached June

30,

2015 Petitons

for

the Imposition

of

Antidumping

Dutes on

Imports

of

Finished

Carbon Steel

Flangesfrom India,

Italy

and Spain

and

Countervaling Dutes on Imports

from

India

Inv.

Nos.

A-533-871

,

A-475-835,

A-469-815

and

c-s33-812)..

In my capacity

as

counsel

of

this submission, I

certify

that

the

information

contained

in

this

submission is accurate

and

complete to

the best

of

my

knowledge.

I am

aware that U.S.

law

including,

but

not

limited to,

l8

U.S.C.

1001) imposes

criminal

sanctions

on

individuals who

knowingly

and willfully

make

material

false

statements to the

U.S.

Government.

In addition,

I

am aware that, even if this submission

may be withdrawn from the record

of

the

AD/CVD

proceeding,

the

U.S.

Department of

Commerce

may

preserve

this

submission,

including

a

business

proprietary

submission, for

purposes of determining the accuracy of

this certification.

I certify that

a

copy of

this signed

certification

will

be filed

with this

submission

to

the

U.S.

Department

of

Commerce.

Dated:

June

30,2016

Matthew

M

720829879


8/144

COMPANY

CERTIFICATION

I, James

J. Coulas,

Jq

prsident, currently employed

by

Weldbend

Corporation,

certify

that I

prepared

or

otherwise supervised

the

preparation

of

the

attachcd

June 30,

2015, Pelilions

r

the

Impostion

of ntidumpng

Dutes

on

Imports

of Finished

Carbon

Steel

Flangesfrom India,

Italyand

Span and CountervailngDuties

on

Importsfrom Inda

(Inv.

Nos.

A-533-871, A-475-

83s, 4469-81

5 and C-533-872).

I certiff

that the

public

information and

any

business

proprictary inforrnation

of

Wetdbend

containcd

in

this

submission

is accurate

and

cornplete to the best

of

my

knowledge.

I

am aware that the

information

contained

in

this submission

rnay be subject to

verification or

.

corroboration

(as

appropriate)

by

the U.S.

Department

of

Commerce.

I

am also aware that

U.S.

law (including,

but

not

limited

to,

l8

U.S.C.

l00l)

imposes

criminal

sanctions

on

individuals

who knowingly

and

willfully make material false

staternents

to

thc

U,S.

Governmcnt.

In

addition,

I am awarc that, even

if this

submission

may be

withdrawn

from

the record

of the

AD/CVD

procccding,

the

U.S.

Department of

Commerce

may

preserve

this

submission,

including

a

business

proprietary

submission, for

purposes

of

determining

the accuracy

of

this

certification.

I

certify

that a

copy of this signed

certification

will

be

filcd

with

this

submission

lo

the

U.S- Departmcnt

of

Commerce.

Signaturc

Datc:

June 30,

2016

7l0l{29879


9/144

COMPANY CER

TIF I

CTIO

N

I,

Frank Bemobich,

president, cumently

employed

by

Boltex Mf. Co.,

certify

that

I

prepared

or

othsnvise

supen/isecl the

preparation

of

the attached

June

30,

2015 Petitons

r

the

Imposition

of

Antdumping Dutes

on

Imports

of Finishert Carbon

Steel Fkutges

fi ont

Inrla,

Italy

anrl Spain

und

Cottntervailing Dutes

on

hnporfrom

Intlitr(lnv. Nos,

A-533-871,

A-475-835,

A-

469-81

5

and

C-533-872).

I certify that

the

public

information

and any business

proprietary

information

of Boltex

contained

in

this subrnission is

accurate

and

complete to

the best of

my

knowledge.

I

am alvare

that

the

information contained

in

this subrirission

may

be

subject

to

verification

or coroboration

(as

appropriate) by

the

U.S.

Department of

Commerce.

I am

also aware

that U.S.

law

(including,

but not lirnited

to, 18

U.S.C.

1001)

imposes

criminal

sanctions on

individuals

who

knowingly

and willfully make material

false

statements

to

the U.S.

Government.

In

addition,

I am av/are

that,

even

if this

submission may

be

withdrarvn

from the recorcl

ofthe

AD/CVD

proceeding, the

U.S. Dcparrment

of

Comrnerce may

peserve

this

submisson,

including

a

business

proprietary

subrission, for

purposes

of

determining

the

ccuracy of this certification-

I

cerlify that

a

copy of

this

signed

certification will o-e filed

with

this submission

to

the

U.S. Department

of

Comnerce.

Sign

Date: June

30,

2016

1208218,19


10/144

BUSINESS

PROPRIETARY

DOCUMENT

MAY BE RELEASED UNDER

APO

BEFORE

THE

INTERNATIONAL

TRADE

ADMINISTRATION OF

THE

U.S.

DEPARTMENT

OF

COMMERCE

AND

THE

U.S.

INTERNATIONAL

TRADE COMMISSION

ANTIDUMPING

AND

COUNTERVAILING

DUTY

PETITIONS

,

VOLUME

I

:

COMMON ISSUES AND

INJURY

FINISHED

CARBON

STEEL FLANGES FROM

INDIA,ITALY,

AND SPAIN

PETITIONERS:

WELDBEND CORPORATION

BOLTEX MFG.

CO., L.P.

PUBLIC VERSION

DOC Investigation

Nos.

A-533-871,

A-475-835,

A-469-815 AND

C-533-872

ITC

Investigation

Nos.701-TA-

,

and

731-TA-_

Total

No.

ofPages:

135

AD/CVD

Operations

Petitioners' Business Proprietary

Information for

Which

Proprietary

Treatment

Has

Been Requested

Deleted

at

Pages:

I-3, I-13-I-15,1-23,I-24,1-26,1-27,

I-29 and I-31

and

at

Exhibits l-ll,l-12,I-14

and

I-15

Simeon

M.

Kriesberg

Matthew

J.

McConkey

Fabian

Rivelis

Sr.

International

Trade

Advisor

MAYER BROWN LLP

1999

K

STREET,

N,W.

Washington,

D.C,20006

(202)263-3000

Counsel

to

l(eldbend Corporation

Boltex

Mfg.

Co.,

L.P.

June

30,2016

71990s499


11/144

TABLE

OF CONTENTS

Page

I.

COMMON

ISSUES

A.

Contact

Information for

the Petitioners (19

C.F.R.

351.202(bX1)....'

B.

Identity

of the

Industry on

Whose

Behalf the Petitions

Are

Filed

(19

C.F.R.

207.11(bx2)Xii);

le

C.F.R.

351.202(bX2)

C.

Information Relating

to Industry

Support

for the Petitions

(19

C.F.R.

4

J

J

D.

Previous

Requests for

Import Relief

for

the

Merchandise

(19

C.F.R.

3

s

r

.202(b)(4))

...,.......

1. Section

201 Proceedings....

)

Section 701

and 731

Proceedings

3.

Other Forms

of

Import Relief

............

E. Description of the

Merchandise

and

Requested Scope

of

Investigation

(19

c.F.R.

3s1.202(bxs))

Requested

Scope

of

Investigations

Technical

Characteristics,

Production

Process, and

Uses............,.....

U.S.

Tariff

Classification

.......,.....

The Names of

the Subject

Countries

and the Name

of

Any

Intermediate

Country

Through

Which

the

Merchandise

Is Transshipped

(19

C.F.R.

3s 1.202(bX6))...,...,.......

G.

Producers and

Exporters of

the Subject

Merchandise

(19

C.F.R.

3st.202(b)(7xixA))

.,.,,.,...

12

H.

Volume

and,Value

of

Imports

(19

C.F.R.

351.202(bX8)

.............'12

.1

1(b)(2)(iii);

13

T.

INFORMATION

RELATED

TO

SALES

AT

LESS

THAN FAIR

VALUE

AND

COUNTERVAILABLE

SUBSIDIES

I4

III

THE

DOMESTIC

FLANGES

INDUSTRY

HAS BEEN

MATERIALLY

INJURED

BY

REASON

OF

LINFAIRLY

TRADED IMPORTS

OF

FLANGES

FROM

INDIA,ITALY

AND

SPAIN.......

2

)

1

2

J

4

4

6

6

6

6

7

I

F

I.

I

.11

A.

B.

C.

D.

Names

and

Addresses

of U.S.

Importers

(19

C.F.R.

207

c.F.R.

3s1.202(bxe))

.l

Introduction,..........

The Domestic

Like Product

Mirrors

the

Scope

of the

Petition........

The Domestic

Industry

Consists

of

All

U.S.

Producers of

Flanges.

Subject

Imports

Surpass the

Statutory

Negligibility

Threshold ......

l4

t4

t6

t8

l8

71990s499


12/144

}

E

TABLE OF CONTENTS

(continued)

Page

The

Commission

Should Cumulate

Imports From

the

Three Subject

Countries

In Analyzing the

Effects

of

the

Unfair

Imports.....

a.

.

Imports

From All Subject

Countries

Are

Fungible......................

19

b.

,

All

Subject

Imports

Compete

in

the

Same

Geographic

Markets

c.

Subject

Imports Are Sold

Through

the

Same

Channels of

Distribution

....

d. Subject

Imports

Are Simultaneously

Present in the U.S

Market..

e.

Conclusion

Cumulated

Imports

From the Subject Countries

Are

Causing

Material

Injury

to

the

Domestic Flange

Industry

1. The

Volume of

Imports From the Subject

Countries

Is Significant

,, 19

20

F

20

2t

, ,,.,,.. ,,22

22

23

23

Import

Prices

of

Flanges Have Declined Over

the

POI

and

Have

Undersold

Domestically-Produced

Flanges by

Substantial

Margins

...............23

..,,21

20

24

and Increasing ..................

a.

The

Volume of

Imports Is Significant

and

Increasing

in

Absolute

Terms....

b Subject

Imports

Have Increased

Significantly

as a Share

of

the U.S.

Market......

2. Unfairly

Traded

Imports from

the Subject Countries

Have Had

an

Injurious

Impact on Domestic

Producer Prices

for

Flanges

a.

b.

Unfairly

Traded

Imports

Have Caused

Suppression and

Depression of U.S.

Prices

of Flanges......

c.

Identification of

Flange Products

for Which

Petitioners

Request

Collection

of

Price Data..

3.

Unfairly Traded

Imports Have Had an

Injurious Impact on the

Domestic

Flange

Industry..

Declines

in

Domestic

Industry Production,

Capacity

Utilization, and

U.S.

Shipments.

Petitioners

Declining

Operating

Income Demonstrates

the

Injurious

Impact of the Substantial

Volumes

of

Low-Priced

Imports

from

Subj

ect Countries................

Imports

from

the

Subject countries...

25

25

a.

:

b.

26

..27

1l

719905499

c.

,,28


13/144

G.

Subject

Imports

Threaten

Additional

Material

Injury

to the Domestic

Industry

........................

1. The

Commission

Should Cumulate

Subject

Imports

for Purposes

of lts,Threat

Analysis

2. Subject

Imports

Threaten

Domestic

Producers

with Additional

Material Injury.

a.

,

The Domestic

Flange

Industry

Is

Vulnerable

to

Material

Injury

from

the Subject

Imports.....

b.

The

Subject

Imports

Have

Significantly

Increased in

Volume and

Market

Share

4.

f.

CONCLUSION

TABLE OF CONTENTS

(continued)

Page

Conclusion

.29

.29

.30

.30

.3l

.31

The

Subject

Imports

Have Demonstrable

Adverse

Price

Effects

That

Are Likely to Continue................

..........32

The Subject

Country of

India

Encourages

Exportation

of

Subj

ect

Merchandise Through Countervailable

Subsidies ..........

32

Subject

Producers Have Significant

Volumes of

New

and

Unused Capacity,

Indicating

the

Likelihood

of Substantial

Increased

Imports.....

.33

Summary...

34

34

c.

d.

e.

IV

n9905499

lll


14/144

PUBLIC VERSION

These

petitions

are

filed

on behalf of

the U.S.

industry

producing

finished

carbon

steel

flanges

( flanges ). The

petitioners

in this

case

are Weldbend

Corporation

( 'Weldbend ) and

Boltex Mfg.

Co.,

L.P.

( Boltex )

(collectively

Petitioners ).

These

two companies

account

for

the

majority of

flange

production

in

the

United

States

and, therefore,

represent the

U.S.

industry

producing

flanges

within

the

meaning

of

sections

702(c)(a)

and732(c)(4)

of

the

Tariff Act of

1930,

as

amended

(the

Act ).1

Petitioners

allege that

flanges, which

are

more fully described

in

Section

1.E.,

infra,

from

India, Spain and

Italy

are

being, or

are

likely

to be, sold

in the United

States

at less

than

fair

value within the

meaning

of

section

73

1

(

I

)

of the

Act.2

Petitioners

further allege

that the

Government

of

India

is

providing

countervailable

subsidies

with

respect to the

manufacture,

production,

and

export

of flanges

within

the

meaning

of

section

701(a)(1)

of the Act.3

Petitioners also allege

that the

unfairly

traded

imports are

a

cause

of

material

injury to the

U.S.

industry

producing flanges and threaten

to cause

further

material

injury

if

remedial

action is

not

taken.

Petitioners, therefore,

request

that

antidumping

duties

be

imposed on flanges

from

India,

Spain and

Italy

in

an

amoirnt equal

to the amount

by which the

normal

value

exceeds the

export

price

or constructed export

price

of the

merchandise.

Petitioners also

request that

countervailing

duties

be imposed on

imports of

flanges from

India

in

an amount

equal

to the net

countervailable

subsidy.

These

petitions

set

forth

relevant

information

reasonably available

to

Petitioners

and are

filed

in

conformity

with

the requirements

of section35l.202

of

the

regulations of the

U.S.

l9

U.S.C.

$$

1671a(cX4), 1673a(c)(4).

19 U,S.C.

$

1673.

Se

also,

Exhibit I-15.

le

U.S.C.

$

1671(aXl).

2

1

719905499


15/144

PUBLIC

VERSION

Department

of

Commerce

(i'6.*erce

or the

Department ) and

section

207

.ll of

the

regulations

of

the

U.S.

International

Trade Commission

(ooITC

or

o'Commission ).4

I.

COMMON

ISSUES

A.

Contact

Information

for

the

Petitioners

(19

C.F.R.

$

351.202(bxl))

Petitioners

are

companies

that

produce

the

domestic

like

product

in

the

United

States.

Petitioners are

therefore domestie

interested

parties

with

the

meaning

of

19

U.S.C.

$

1677(9) and

19

C.F.R.

$

351.102(b).

The

two

Petitioners

in this

case are:

Weldbend

Corporation

6600 South

Harlem Ave.

Argo,IL

60501-1930

Boltex

Mfg.

Co.,

L.P.

4901Oates

Road

'Weldbend

purchases

flange

forgings that

it

then

processes

into finished

flanges,

while

Boltex

produces

its

own

flange forgings,

which

it

then

either

processes into

finished

flanges or sells

to

.

other

U.S.

companies that

process

the flange

forging

into finished flanges.

The

only

other

domestic company

that

is'known to

have any

meaningful

domestic

flange

forging

operations

is

Ameri-Forge.

See

Exhibit

I-15.

As

such,

the

rest

of

the domestic

industry

primarily

purchases

flange

forgings

and

processes

them

into

finished

flanges.

Neither Weldbend

nor

Boltex

imports the subject

merchandise,

nor are

either

of them

affiliated

with any

importers

or exporters

of

the subject

merchandise.

4

2

7r990s499

l9

C.F.R.

$$

351.202;and207,ll


16/144

PUBLIC VERSION

B.

Identty

of the

Industry

on

\ilhose

Behalf

the

Petitions

Are Filed

(19

C.F.R.

$

207.11(bX2)Xii);

le

c.F.R.

$

3s1.202(bX2))

These

petitions

are

filed

on behalf

of the U.S,

industry that

produce

flanges.

Exhibit

I-1

contains contact

information

for known

flange

producers

in the

United States.

The

list

of

domestic

producers

of

flanges is based on

general industry knowledge,

Internet

research,

and

the

declarations of the

presidents

for both

Weldbend and

Boltex.

See

Exhibit

I-2.

Based on the best

:l

information

available

to

Petitioners,

Exhibit

I-1 identifies

all

known

producers

of

the domestic

like

product

in

the United States.

C.

Information

Relating

to

Industry

Support

for

the

Petitions

(19

C.F.R.

4

3s1.202(bX3))

The statute requires that the domestic

producers

or workers

who

support the

petition

account

for

at

least 25

percent

of

the

total

production

of the

like

product.5 In

addition, the

statute

requires that

the

domestic

producers or workers

who

support

the

petition

account

for

more than

50

percent

of

the

production

of the domestic

like

product produced

by

the

portion

of the

industry

expressing support

for

or opposition to

the

petition. 6

Petitioners,

as U.S.

producers

that are

known to

be in support

of

the

petition,

surpass both

the

25

percent

and

50

percent

thresholds

for

industry

support

established

in

the

statute.

The

combined volume of

Petitioners'

production

of

flanges

in

2015 was

[

]

pounds.

As

identified in

Exhibit

I-1 there arc

12

additional

domestic

producers

of

flanges.

However,

company-specific

production

data

for those

12 additional domestic

producers

are

not

available

to

Petitioners,

nor

do

Petitioners know

of

any

source

of

information

(public

or otherwise)

for that

data.

However, as set

forth in

the affidavits

at

Exhibit I-2, Petitioners are

quite

confident that

le U.S.C.

$

167Ia(c)G)(AXi)

and

19

U.S.c.

$

1673a(cXaXAXi).

le U.S.C.

$

1671a(cXa)(AXii)

and

le

U.S.C.

$

1673a(c)(a)(Axi.

5

6

J

'n9905499


17/144

PUBLIC VERSION

they

represent more than250/o

of

total

domestic

production

of

flanges.

See

also

Exhibit I-15 for

a

calculation of

how Petitioners meetthe

25

and

50

percent

rules.

Indeed,

as set

forth in Exhibit

I-15,

Petitioners easily met

both

the 25 and 50

percent

rules.

Previous

Requests

for

Import

Relief

for

the

Merchandise

(19

C.F.R.

3s1.202(bX4))

1.

Section

201

Proceedings

The

domestic

industry

previously

sought

relief

from

serious

injury suffered

as

a

result of

surges

in

imports

of

certain steel

products,

including

carbon

and alloy

steel

flanges,

pursuant

to

section 201

of

the Trade

Acl

of

1974

( Section 201 )

(19

U.S.C.

2251).

On June

22,200I,,.the Commission

initiated

a

safeguard

investigation

under section

201,

following

receipt

of a request

from

the

USTR

covering certain

steel

products,

including

carbon

and alloy

steel

flanges. On

July

26,200I,the

Commission

also

received

a

resolution

adopted

by

the Committee

on Finance

of

the

U.S.

Senate

( Finance

Committee )

requesting that the

Commission

investigate certain

steel

imports

under

section

2017 The

Commission

consolidated

the

investigation requested

by the

Finance Committee

with

the

Commission's

previously

instituted

investigation.

s

On

Decem ber

20,2001,the Commission

issued its determination

and

remedy

recommendations.

The

Commission

reached

an

affrrmative

determination

with respect to

certain

steel

products,

including flanges.e

It

recommended

an additional

13

perce

nt

ad valorem

duty

on

flanges

in

the

first

year

of relief, to

be reduced

to

a

10

percent ad

valoremduty

in

the

second

?

Consolidation of

Senate Finane

Committee

Resolution

Requesting

a

Section

201

Investigation

with

the

Investigation

Requested

by

the

United

States

Trade Representative

on

June

22. 2001, 66

Fed. Reg. 44,158

(USITC

Aug,22,2001).

I

See id.

e

See

Steel,Inv, No.

TA-201'-7'3,USITC

Plb.3479

(Dec,2001),

Vol.I at

l.

D

4

7t9905499


18/144

PUBLIC

VERSION

year

of

relief,

7

percent

ad valorem

dty

in

the

third

year

of

relief,

and

4

percent

ad

valorem

duty

in

the

fourth

year

of

relief.lo

.'

On

March

5,2})2' Frsident

George

W.

Bush

announced

safeguard measures

covering

10

different

product

categories

---

including

flanges

-

for which

the

Commission

made

affirmative determinations

or

was evenly

divided.

Presidential ProclamationTS2gimplemented

the

safeguard measures,

principally in

the

form of

tariffs and

tariff-rate

quotas, effective March

20,2002,which

were originally

intended

to

last for

a

period

of three

years

and one

day.lr

The President also

instructed the

Secretary

of the

Treasury

and the Secretary

of

Commerce

to establish

a system

of

import

licensing

to facilitate the

monitoring

of

imports

of

certain steel

products.12

The

purpose

of the

import monitoring

system

was

to

provide

steel

producers,

consumers,

importers,

and the

general

public

with accurate

and

timely

information

on

anticipated

imports of certain steel

products.

The

system

required licenses

for imports

of certain

steel

products

that

were covered

under the

President's safeguard

action.l3

On December

4, 2003,

President Bush terminated the

increased

tariffs

under the

safeguard measure.la

The

import

licensing

system,

however, remained

in

place

through

March

21,2005,

and

continues

in

modified

form

at this time.ls

'

ro

ft.

at2. ,

i

tr

ld.

t2

The Department

of

Commerce

published

regulations

establishing

such a

system on

December

31,2002.

t'

See

Steel

lmport Mo4itorine and

Analysis

System.

70 Fed.

Reg. 12,133

(Dep't

Commerce

Mar. 11, 2005).

t4

See Presidential

Proclarnation

7741

of

December

4. 2003. To Provide

for

the

Termination

of

Action

Taken

With

Regard

to

Imports

of

Ce4ai

Steel

Products 68

Fed. Reg. 68,483, 68,484

(Dec.

8,

2003).

rs

See

Steel Import

Monitoring and

Analysis System. 70

Fed. Pieg.72,373

(Dep't

Commerce

Dec.

5,

2005).

5

719905499


19/144

PUBLIC

VERSION

2,

Section

701

and

731 Proceedings

To

Petitioners'

knowledge, carbon

steel

flanges

have not been

subject

to

previous

antidumping

and/or

countervailing duty

investigations under

sections

702 and732

of

the Trade

Act

of

1930, as amended

(the

Act )

(19

U.S.C.

$$

1671a and

I673a).

As

such,

currently,

there

are

no

antidumping

duty

orders on carbon

steel flanges

from India,

Spain and

ltaly, and

no

countervailing duty

order on carbon

steel

flanges

from

India.

While there

are orders

against

various

fitting

products,

including

Carbon

Steel

Butt-V/eld

Pipe Fittings,

fittings

are different

products,

and

have different

uses

from the

flanges that are

covered by these

petitions.

Put

simply,

a

weld

fitting

is

a

connection

joined

by the

process

of

welding the

ends

of the

fitting

to

pipe

or any

other type

of

structure

that

needs a

solid connection.

A

flange

is

only

welded

in

one

area.

However,

the

biggest difference

is

that

flanges

have

holes

in

the

flange

portion

of the

product

that

is to be

joined

with another

flange

or valve

or other type

of connection

with

the same

bolting

pattem.

3.

Other

Forms of

Import

Relief

Petitioners

have not sought

import

relief

under

section 337

of the

Act

(19

U.S.C.

$

1337),

'

section 232 of the

Trade Expansion

Act

of

1962

(19

U.S.C.

$

1862),

or

section 301

of

the

Trade

Act

of

lg74

(Ig

U.S.C.

$

2411),

with

respect

to the merchandise

that

is the subject

of these

petitions.

E.

Description

of the

Merchandise

and

Requested Scope

of

Investigation

(19

c.F.R.

$

3s1.202(bxs))

l.

Requested Scope

of

Investigations

The

imported merchandise

that Petitioners

intend to cover

in these

investigations

are

:l

finished carbon

steel

flanges,

which are classified

in the

HTSUS

under subheadings

7307.9L 5010

and7307.91.5050.

A full

description

of the scope

of these

investigations

is

6

719905499


20/144

PUBLIC VERSION

contained

in Exhibit

I-3. As

noted,

the

product

covered

is carbon

steel

flanges.

Flanges

can

also be

made

of alloy

steel, stainless

steel and

other types

of

metals,

but those

are

not covered

by

:

these

petitions.

,

,

2.

Technical Characteristics,

Production

Process,

and

Uses

A flange

is a

product

for

connecting

pipes,

valves,

pumps

and

other

equipment to

form a

piping

system. It also

provides

easy

access

for

cleaning,

inspection or

modification.

Flanges

are

usually

welded or screwed. Flanged

joints

are

made

by bolting

together

two

flanges

with a

gasket

between

them

to

provide

a

seal.

The

material of

a

flange

is

basically

dictated

by the

choice

of

the

pipe,

as

in most

cases

a

flange is

of

the

same

material

as

the

pipe.

As such,

this

makes,

for

example,

alloy

steel

flanges

different

from

carbon steel

flanges,

or

stainless

steel

flanges.

Although

the

word

flange

generally refers

to the

actual

raised rim or

lip of

a

fitting,

many flanged

plumbing

fittings are themselves

known

as

'flanges,'

The

basic

types

of

flanges

are

o

i

Weld

neck

V/eld

neck flanges

are

circumferentially

welded at the neck

where the

integrity

of

the

butt

welded

area can

be easily examined by

radiography.

The

bores

of

both pipe

and

flange

match,

which

reduces turbulence

and

erosion

inside the

pipeline.

The

weld

neck

is

therefore

durable

in,critical applications.

It

is

designed

to be

joined

to a

piping

system

by butt

welding.

It

is

preferred for

high

stress

applications.

The

neck, or

hub,

transmits

stresses

from the base of the

h-ub

to the

wall

thickness at the

butt

weld,

providing

important

reinforcement of

the flange.

7

'n9905499


21/144

PUBLIC

VERSION

Slip-on

Slip-on

flanges are fitted over the

pipe.

Slip-on

flanges are easy

to

use

in

fabricated

applications.

Therflange

is

slipped

over the

pipe

and

then welded

both inside

and

outside

to

provide

sufficient:strength and

prevent

leakage.

o

Socket

Weld

This is

similar to

a

slip-on

flange, but the bore is counter-bored to accept

pipe.

The

diameter

of

the rernaining bore

is

the

same as

the

inside diameter of the

pipe.

The flange

is

attached

to

the pipe by

a

fillet

weld

around

the hub

of

the

flange. An

optional interval

weld may

be

applied

in high

stress

applications. This flange s

biggest

use

is

in high

pressure

systems

suh

as hydraulic

and steam

lines.

a

Threaded

Threaded flange are,referred

to as

either threaded or

screwed.

They are

used

to connect

other threadedcomponents

in low

pressure,

non-critical applications.

This

is

similar

to

slip-on flanges, buf

lhe

bore is threaded,

thus

enabling assembly

without welding.

The

lack

of

welding

limits

this flange s

application

to

relatively low

pressure

piping

systems.

I

719905499


22/144

PUBLIC

VERSION

a

Lap Joint

A lap

joint

is

used

in low

pressure

applications

because

it is easily assembled

and aligned.

A

lap

joint

is similar to

a

slip-on

flange, but

it has

a

radius at the

intersection

of

the

bore

and the

flange face

to

accommodate

alap

stub end. The

face

on the

stub end

forms the

gasket

fce

on the

flange.

This

type

of

flange

is used in applications

where sections

of

piping

systems

need

to be

dismantled

quickly

and

easily for inspection

or replacement.

o

Blind

Blind flanges are

used

to

blank off

pipe

lines, valves

and

pumps.

They

can also

be

used

as an inspection

cover.

This

is

a

flange

without a

bore and

is

used

to shut off a

piping

system

or

vessel opening.

It

also

permits

easy

access

to

vessels or

piping

systems

for

inspection

purposes.

Blind

flanges

can

be

supplied

with

or

without

hubs at

the

manufacturers option. It

is

sometimes

referred

to

as a

blanking

flange.

a

:;

Ring type

joint

flanges are used to ensure a

leak-proof

flange connection

at high

pressures.

A

metal

ring is compressed

into

a

hexagonal

groove

on the face of the

flange

to make the seal.

typ

tt

in

e

9

719905499


23/144

PUBLIC

VERSION

Weld-neck

and

slip-ons are

the

most common

types

of

flanges.

There are also

other

types

of

special

flanges,

which

include:

Orifice

:

Long welding

neck

'W

el

do

fl ange/lll

i

p

o

fl

an

g

Expander

Reducing

Spectacle

'

,

Groove &

Tongue

Flat Face Flanges'

Raised Face

Flanges

However,

the

sales

volumes/values

of

these

specialty flanges

are

very small in

relation to the

more common types

such

as weld-neck,

slip-on,

threaded,

and

so

forth.

Steel

flanges typical'ly

have

the

following

pressure

ratings

1 50#

300#

400#

600#

900#

1

500#

2s00#

With 150# and 300#

being the

most

common.

The

most common

facings on

machined

flanges

Flat

face

Raised

face

,

Tongue and Groove

Ring Joint

Flanges normally

come

with

4

-,8-,

12- or 16-bolt

holes.

Flanges are manufactured

in

many

difTrent

types

of

materials, such

as

alloy steel,

stainless steel, cast

iron, aluminum,

brass

,btonze,plastic,

and

others.

However,

the

most

common material

is forged

carbon

steel,

produced

in

accordance

with

ASTM

4105.

Flanges

are

o

a

o

o

o

a

o

a

o

are

a

a

a

o

719905499

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PUBLIC VERSION

generally produced

in

accordance

with

ASME

816.5, in a

number of standard

dimensions.

A

description of the

production

process

for

flanges

is

provided

at Exhibit

I-4.

A

substantial share

of

flange

production

is

consumed

in

the oil and

gas

industry as

connection components for

pipes,

valves, and

pumps

used to

produce

oil and

gas.

The remainder

is

sold

to

the chemical,

wind,

pharmaceutical,

and

other industries

as

connection

components in

piping

systems.

As

set

forth

in

the scope language at

Exhibit 1-3,

the scope

of this investigation

does

not

cover flange forgings,

which are carbon

steel forgings that have not been subject to any

further

processing (other

than

heat

treatment).

3. U.S.

Tariff

ClassifTcation

Finished carbon

steel

flanges

are

currently classifiable in

the

following HTSUS

subheading s:

7307

.91.501

0

and

7307

.91

.5050.

Although

the

HTSUS

subheadings

are

provided

for

convenience

and

U.S.:Customs

Border

Protection

purposes,

the

written

description

of

the

merchandise under

investigation

is

dispositive.

Excerpts

from

the current

HTSUS

are

attached

as

Exhibit

I-5.

The most-favored

nation

duty

rate

for

imports

under

the

identified

HTSUS

subheadings

is

5.5

percent

ad

valorem.

The tariff numbers

are

provided

for

the

convenience

of

the

U.S. Government and do not define the scope of the

petitions.

F.

The Names

of the Subject

Countries

and

the Name of Any

Intermediate

Country Through

Which

the Merchandise Is Transshipped

(19

C.F.R.

s

3s1.202(bxo)

The

flanges that

are

the subject

of

these

petitions

are

produced

in,

and

exported

from,

India,

Spain

and

Italy. Petitioners have no

knowledge

that

the subject merchandise

is

currently

being transshipped

from

these

countries through any

third

country

to the

United

States.

719905499

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PUBLIC VERSION

G.

Producers

and

Exporters

of the Subject

Merchandise

(19

C.F..R.

3s1.202(b)(7XiXA)

A list

of

known

producers

and exporters

of

flanges

from

India is

provided

in

Exhibit

I-6.

A

list

of

known

producers

and exporters

of flanges

from

Spain

is

provided

in Exhibit

I-7.

A list

of

known

producers

and

exporters of

flanges

from Italy

is

provided

in

Exhibit

I-8. In compiling

these

exhibits,

Petitioners

relied

upon

Internet

research and

general

market

knowledge. See

Exhibit I-2.

Information


to

Petitioners does

not allow the

identification

of

the

proportion of total

exports

to

the

United

States

accounted

for

during

the

most recent

l2-month

period

by the

producers

listed in

F.'.xhibits

l-6rl-7 and

I-8. Petitioners

believe,

however,

that the

companies

listed in

Exhibits

I-6,1-7,

and

I-8

account

for

substantially

all

exports of

the subject

merchandise to the United

States from

the subject countries.

Similarly,

information


to

Petitioners does

not allow the calculation

of

production

capacity,

production

output,

etc.

of

the

producers

listed

in

Exhibits

l-6rl-7 and

I-

8.

Indeed, Petitioners are

simply unaware

of any data source

(public

or otherwise)

for that

information.

H.

Volume

and

Value

of

Imports

(19

C.F.R.

351.202(bX8))

The volume and value

of

U.S. imports

of flanges

from

each subject

country

are

presented

at

Exhibit

I-9 for

calendar

years

2013

,20l4,and

2015,

as

well as

the

first

quarter

of

2016.16

The

source

for

these data

is the

official

import

statistics published by

the

U.S. Department

of

Commerce.

The import data at

Exhibit

I-9

are

provided

on both

an

FOB

and a CIF

basis.

t6

Import information

was:obtained through

the ITC's

DataWeb.

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PUBLIC VERSION

These

petitions

cover the

subject

merchandise from India, Spain

and

ltaly. The next

largest

import

sources are

China,

Germany and

Korea, whose

2015 shipments

were:

Quantity

Value

China

7307.9t.5010 5,998,379

16,509,095

7307.9t.5050

5,658,608 9,694,rr3

Total

11,656,987

26,203,208

Korea

7307.91.50r0

3,925,62r

7,489,440

7307.91.5050

1,419,337 3,045,909

Total

5,243,958 10,535,349

Germany

7307.91.5010 377,393

1,673,569

7307.91.50s0

2,609,047 6,699,839

Total

2,985,440

8,373,408

L Names and Addresses

of U.S.

Importers

(19

C.F'.R.

207.11(b)(2)(iii);

C.F.R.

3s1.202(bxe))

Based on information reasonably available

to Petitioners, a

list

of

known and suspected

importers of flanges

from

the subject

countries

is

provided

in

Exhibit

I-10.

This list was

compiled from

general

knowledge of the

market, Internet research and

PIERS data. Petitioners

have undertaken

their best

fforts

in

preparing

Exhibit I-10.

Indeed,

in

addition to

providing

the

names

and addresses,

we were able to locate emails andlor

phone

numbers for each importer.

Petitioners believe, however, that there

may

be a

number

of

importers

of

flanges from the

subject countries that

cannot

be

identified from

publicly

available

information.

Accordingly,

Petitioners respectfully request that the

Department obtain this information

from U.S.

Customs

:l

and

Border Protection,

as

Petitioners do

not have access to this

information.

Petitioners do not have any direct knowledge as to

whether any of the

other

identified

domestic

producers

of flanges

(Exhibit

I-1)

import

the

subject merchandise,

or flange forgings

into the

United States.

Neither Petitioner imports

finished flanges. However,

I

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PUBLIC VERSION

II. INF'ORMATION RELATED

TO SALES

AT LESS

THAN

FAIR

VALUE

AND

COUNTERVAILABLE

SUBSIDIES

Information

related to allegations

of less'than-fair-value

sales

from

India,

Spain, and

Italy

is

provided

in Volumes

II

(India),,

il

(Italy)

and

IV

(Spain)

of

these

petitions.

Information

related to the

countervailable

subsidies

provided

by the Government

of

India with

respect to the

:

manufacture,

production,

and

export

of

flanges

is

provided

in Volume

V of these

petitions.

uI. THE DOMESTIC

T'LANGES

INDUSTRY HAS

BEEN

MATERIALLY

INJURED

BY REASON

OF

UNFAIRLY

TRADED IMPORTS

OF

F'LANGES

FROM

INDIA,

ITALY AND SPAIN

A.

Introduction

Dumped and subsidized

imports of

flanges from India, Spain,

and

Italy

have already

caused material

injury to

the

domestic

industry

-

and threaten

the domestic

industry

with even

more

injury

going

forward.lT

The

volume

of subject

imports increased

by

27

percent

between

2014

and2015,while

U.S. demand

for flanges decreased

bV

t

I

percent.

See

Exhibit

I-11.

Subject

imports captured this

increase

in

market

share

at

the expense

of the domestic

producers.

Although subject

import market share

decreased slightly

in the

first

quarter

of

2016

as

compared

to

2015, it remained

[

]:percentage

points

higher

than

in 2014. Id.

The

price

effects of subject

imports are

also

signifrcant.

Subject

imports

are

interchangeable

with

the domestic

like

product

-

as

shown by

the

factthat subject

imports

have

already taken

significant

market share

from U.S.

producers.

Information


to

the Petitioners indicates that the

surge

in market

share

was accomplished

through

systematic

underselling.

The

combination of

underselling by

subject

imports and

a decline

in

U.S. demand

contributed

to

a

decline

in

pricing

over

the

period

of investigation

( POI ).

Subject

imports

t7

Because

Weldbend

arid Boltex

account for

more

fhan 50Yo

of

domestic

production

of the subject

carbon

steel

flanges

(see

Exhibit

I-15),

the

refer to

them

as

either

Petitioners,

the

domestic

producers,

the

U.S,

producers,

or

the

domestic

industry, '

719905499

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29/144

PUBLIC

VERSION

Thus the domestic

industry

has

suffered

material

injury

by

reason

of

the

subject

imports

as

manifested

in market

shate

lost

to

the

unfair

imports depressed

and suppressed

U.S.

prices

and the

resulting deterioration in

key trade

and

financial

indicators.

Subject

imports

also threaten

the domestic

industry

with further

material

injury.

Because

its financial

performance

was adversely

affected

by the

subject

imports

during

the

POI

the

.l

domestic

flange industry

is

cunently

vulnerable

to

injury by

imports.

The

rapid

and dramatic

increase

in

the

market

share

of

subject

imports demonstrates

the

ability

of

the

subject

imports to

enter

the U.S. market

rapidly

and

in large

quantities.

The subject

imports

have

also had

demonstrable

negative

price

effects

as

the

rising market

share

of

subject

imports

forced

domestic

producers

to lower their

prices

in an attempt

to

avoid

further

loss

of

market

share and

capacity utilization.

Producers of

flanges in the

subject countries

have

both substantial

capaciy

and substantial

excess capacity.ls

This substantial

unused capacity

will

allow them

to

increase

exports to

the United

States

even

further.

Taken together

these

factors

will

make

it

difficult

if

not

impossible

for

the domestic flange

industry to

generate

the

level of

profit

necessary

to

fund

research and

development

and

to

make capital

investments

needed

to

remain

competitive

unless

trade

relief is

granted. Indeed as shown

further below

the statutory

factors

that the Commission

is required to consider

demonstrate

that

subject

imports

threaten

the domestic

industry with

further material

injury.

In

the

absence of trade

relief

subject

imports will

continue

pouring

into

this

market causing additional

harm

to the

U.S.

industry.

B.

The Domestic

Like

Product Mirrors

the

Scope

of

the

Petition

The statute

defines the

domestic

like

product

as

ooa

product

which

is like or

in

the

absence

of like

most

similar

in

characteristics

and

uses

with the article

subject

to

an

It

See Exhibit

1-2

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PUBLIC

VERSION

investigation.le

The

Commission

generally

considers

a

number

of

factors

in defining

the

like

product, including

physicallcharactsristics

and

uses,

interchangeability,

channels

of

distribution,

customer

and

producer

perceptions, common

manufacturing

facilities,

production

processes

and

employees,

and,

where

appropriate,

price. See,

gg,

Nippon

Steel

Corp.

v. United

States,

19

CIT

450,455

(1995). No

single

factor

is

dispositive

and

the

Commission's

decision

regarding

the

appropriate

like

product

is

a

factual

determination

made

on

a case-by-case

basis.

The

Commission

looks

for

clear

defining

lines

between

products,

but

disregards

minor

variations.

The domestic

like

product here

is identical

to the

definition

of

the

subject

merchandise

and

also

consists

of

finished

flanges.

Taking

the

seven

common

flange

types

identified

in section

I.E.2

above'

as an

example,

while

each

flange

type

may

be

in a

different

configuration

in terms

of

shape,

size,

etc.,

they

all

have

the

same

physical

characteristic

of

being

made

of

carbon

steel,

they

are

all

used

as

flanges

(as

explained

above),

they

are

all

sold

in the

same

channels

of

distribution

(to

distributors

-

and

in

fact

to the

same

distributors),

they

are

all universally known

and

identified by

customers and

producers

alike

as

being

flanges,

they

are

all

made

in

the

same

manufacturing

facilities,

using

the

same

production

processes

and

employees.

Indeed,

Weldbend

was

a

petitioner

in the

case

against

Carbon

Steel

Butt

Weld

Pipe

Fittings.

The

scope

in that

case

covers,

in

relevant

part:

.,carbon

steel

butt-weld

pipe

fittings,

having

an

inside

diameter

of

less

than

14

inches

'

Like

flanges,

butt-weld

pipe

fittings

come

in

a variety

of

shapes

and

sizes,

and

to

best

recollection

of

Weldbend,

were

found

to

be a

single

like

product'

l9

719905499

1e

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$

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t7


31/144

PUBLIC

VERSION

C.TheDomesticlndustryConsistsofAllU.S.ProducersofFlanges

SectionTTl(4XA).oftheActdefinestherelevantindustryasthe.oproducetsasawholeof

a

domestic

like

product,

or

those

producers

whose

co[ective

output

of

a

domestie

like product

constitutes

a

major

proportion

of

the

totar

domestic

production

of

the

product' 2.

Based

on

the

domestic

rike

product

defined

above,

the

domestic

industry

consists

of

all

u's'

producers

of

flanges

D.SubjectlmportsSurpasstheStatutoryNegligibilityThreshold

Importsofflangesfromlndia,spain,andltaly,onanindividualcountrybasis,surpass

the

negligibility

threshold

established

by

the

statute'

By

law'

imports

from

a

subject

country

corresponding

to

a

domestic

like

product

that

account

for

less

than

three

percent

of

all

such

merchandise

imported

to

the

united

states

during

the

most

recent

12

months

for

which

dataarc

available

preceding

the

filing

of

the

petition

are

deemed

negligible.2t

u.s.

import

volumes

from

the

subject

countries

during

the

most

recent

l2

month

period

(May

2015

through

April

2016)'

and

their

percentage

of total imports'

are

set

forth in Table

1

below'

I TABLE

1

U.S.

Imports

of

Carbon

Steel

Flanges

for

May

2015

-

April2016

20

2l

le

u.s.c,

$

1677(4XA)'

le

u.s.c.

$

16??(24XAXi)

ofT

otal

Imports

tons

C

5

58

I

15

I

11

1

0

I'9

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PUBLIC VERSION

Accordingly,

imports

of

flanges

from

each

of

the three

subject

countries

are

not negligible

within

the

meaning

of

19

U.S.C.,$

1677(24)(

)(i).

E.

The

Commission

Should

Cumulate

Imports

From the

Three

Subject

Countries,In

Analyzing

the

Effects

of the

Unfair

Imports

Section

771(7XGXi)

of the

Act

requires

the Commission

to cumulatively

assess the

volume

and effect

of

imports of

the subject

merchandise

from all

countries

with

respect to

which

petitions

were

filed

underlsecti

on 732(b)on

the

same

day,

if such

imports

compete

with each

other and

with

the domestic

like

product

in the

United

States.22

The statutory

factors

mandating

a

cumulative

analysis

are

met

in this

case.

Specifically,

petitions

against

flange

imports from

India,

Spain,

and

ltaly are

being

filed

simultaneously.

Further,

none

of

the statutory

exceptions

to cumulation

applies

in this

use.t3

Thus,

provided there

is evidence

of a

reasonable

overlap

in competition,

cumulation

of

subject

imports

is mandatory.

,

,

An

examination

of

the

factors

traditionally

considered

by the Commission

to

determine

whether

a

reasonable

overlap

of

competition

exists

demonstrates

that

each

factor

is met

in this

case

a.

' Imports

From

All

Subject

Countries

Are

Fungible

Flange

imports

from

India, Spain,

and

Italy

Spain

are

generally substitutable

with

each

other and

with

the domestio

like

product.

Imports

from

each

of the

subject

countries

are

generally

made

by the

same processes

on

similar

equipment,

and

generally

have

the

same

chemical

and

physical properties,

as

the

domestic

like

product.2a

le

U,S.c.

$

1677(7XgXi).

le

U.S.C.

$

1677(TXeXii).

See

Exhibit l-2.

:

22

23

24

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PUBLIC

VERSION

b. All

Subject

Imports

Compete

in

the

Same

Geographic

Markets

Imports

from

each

of

the subject

countries

compete

with imports

from

the other

subject

countries

and

with

the domestic

trike

product

throughout

the

U.S.

market.

Exhibit

I-13

shows

significant

overlap

among the

subject

countries

with

respect

to

the

ports

into which

they

entered

the

United States

in

2015iand

the

first

quarter

of

2016.

For example,

ports

of

entry

where

,:

imports

from all

three

sources

were

present

during

this

period

accounted

for

83

percent

of total

subject

import

volume

during this

period. Flanges

produced

in

the

United

States

and

imported

from the

subject

countries

are all

currently

sold

nationwide.

c.

Subject

Imports

Are

Sold

Through

the

Same

Channels

of

Distribution

A large share

of

flanges, whether

produced

in

the

United

States

or

imported,

are

sold

through

distributors,

rather than

directly

to end users.

Based on

its

knowledge

of competition

in

the

market,

Petitioners

believe

that

imports

from

each

of the

subject

countries

are

purchased

by

many,

if not all,

of

the

same

distributors.

See

Exhibitl-2.

Subject

imports

are capturing

market

share

from

the

domestic

industry,

providing compelling

evidence

that some

customers

have

switched

their

purchases

from

the

domestic

like

product

to

subject

imports.

This

factor also

supports

cumulation

of the

subject

imports.

r

d.

Subject

Imports

Are Simultaneously

Present

in the

U.S.

Market

Imports

of

flanges

from

each

of

the

subject

countries

entered

the

United

States

in

every

year

during

the

POI.

See

Exhibit

I-9.

Domestically-produced

flanges

also

have

been available

in

the U.S.

market throughout

the

POI.

Thus,

this

factor

provides

further

evidence

that

subject

imports

are

competing

with

each other

and

the domestic

like

product.

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Conclusion

Both domestically-produced

and

imported

flanges, whether

imported

from India,

Spain,

or

Italy,

are

fungible

products

that are

produced

to

standard

industry

specifications

and compete

directly

against

one

another.

Imports

from

each

of

the

subject

countries

and

the domestic

product

are sold

through

the same

distribution

channels,

primarily

to distributors,

and

are

sold

in

.

the

same

geographic

markets.

Imports

from

each

subject

country

and

U.S.-produced

flanges

:,

have been

simultaneously

present

in

the

U.S.

market

in

each

of the

POI

years.

Moreover,

the

U.S.

market

for

flanges

is

highly

price-sensitive,

with

competition

occurring

between

imports

and

domestic

producers

for

sales on

the basis

of

price.

These

factors

collectively

support

the

conclusion

that

there

is

a

reasonable

overlap

of

competition

between

the

subject

imports

and

the

domestic

like

product

within

the

meaning

of

the

statute.

Accordingly,

the Commission

should

cumulate

imports

of

flanges

from

India,

Spain,

and

ltaly

in

analyzing

whether

subject

imports

have

caused

material

injury

to

the domestic

industry

in this

case.

F .

Cumulated

Imports

From the

Subject

Countries

Are

Causing

Material

Injury

to the

Domestic

Flange

Industry

In determining

whether

the

domestic

industry

has

been

injured

by

reason

of

the

imports

under

investigation,

the

statute

directs

the Commission

to

consider:

(1)

the

volume

of

imports

of

the subject

merchandise;

(2)

the

effect

of

imports

of

that merchandise

on

prices

in

the

United

States

for

the domestic

like

product;

an

(3)

the

impact of

imports

of

such

merchandise

on

domestic producers

in

the context

of production

operations

within

the

United

States.

Information

reasonably

available

to

Petitioners

indicates

unfairly

traded

imports

from

India,

Spain

and

Italy

have

been,

and continue

to

be,

a cause

of

material

injury

to the

domestic

industry

producing

flanges

719905499

2l


35/144

PUBLIC VERSION

The

Volume

of

Imports

F

rom

the

Subject

Countries

Is Significant

and

Increasing

In

evaluating

the volume

of

imports,

the Commission

must

consider

whether

the

volume

of

imports of the

merchandise,

otr

any

increase

in

that

volume

either

in absolute

terms or

relative

to

production

or consumption

in the

United

States,

is significant.2s

In these

investigations,

available

data show

that the

volume

of

subject

imports,

both

in absolute

terms

and

relative

to

l

U.S. consumption

and

production,

is

significant

within

the

meaning

of the

relevant

statutory

provlslon.

a.

The

Volume

of

Imports

Is Significant

and

Increasing

in

Absolute

Terms

The absolute

volume

of

subject

imports

from

India,

Italy and

Spain

is significant.

Subject

imports totaled

201,822

thousand

pounds and accounted

for over

81

percent of total

steel

flange

imports

in 2015.

Se

Exhibit

I-9.

Subject

imports

also

increased

significantly

2016-06-30 flanges petition volume i

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