2016-06-30 flanges petition volume i
TRANSCRIPT
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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}
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
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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
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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.
$$
1671a(cX4), 1673a(c)(4).
19 U,S.C.
$
1673.
Se
also,
Exhibit I-15.
le
U.S.C.
$
1671(aXl).
2
1
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Department
of
Commerce
(i'6.*erce
or the
Department ) and
section
207
.ll of
the
regulations
of
the
U.S.
International
Trade Commission
(ooITC
or
o'Commission ).4
I.
COMMON
ISSUES
A.
Contact
Information
for
the
Petitioners
(19
C.F.R.
$
351.202(bxl))
Petitioners
are
companies
that
produce
the
domestic
like
product
in
the
United
States.
Petitioners are
therefore domestie
interested
parties
with
the
meaning
of
19
U.S.C.
$
1677(9) and
19
C.F.R.
$
351.102(b).
The
two
Petitioners
in this
case are:
Weldbend
Corporation
6600 South
Harlem Ave.
Argo,IL
60501-1930
Boltex
Mfg.
Co.,
L.P.
4901Oates
Road
'Weldbend
purchases
flange
forgings that
it
then
processes
into finished
flanges,
while
Boltex
produces
its
own
flange forgings,
which
it
then
either
processes into
finished
flanges or sells
to
.
other
U.S.
companies that
process
the flange
forging
into finished flanges.
The
only
other
domestic company
that
is'known to
have any
meaningful
domestic
flange
forging
operations
is
Ameri-Forge.
See
Exhibit
I-15.
As
such,
the
rest
of
the domestic
industry
primarily
purchases
flange
forgings
and
processes
them
into
finished
flanges.
Neither Weldbend
nor
Boltex
imports the subject
merchandise,
nor are
either
of them
affiliated
with any
importers
or exporters
of
the subject
merchandise.
4
2
7r990s499
l9
C.F.R.
$$
351.202;and207,ll
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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
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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
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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).
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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
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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.
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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.
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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
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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
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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.
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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
reasonably available
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
reasonably available
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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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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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
reasonably available
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, '
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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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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
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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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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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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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PUBLIC VERSION
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
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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