[Federal Register Volume 85, Number 142 (Thursday, July 23, 2020)]
[Notices]
[Pages 44517-44519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15914]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-893]
Forged Steel Fluid End Blocks From India: Preliminary Negative
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that forged steel fluid end blocks (fluid end blocks) from India are
not being, or are not likely to be, sold in the United States at less
than fair value (LTFV). The period of investigation (POI) is October 1,
2018 through September 31, 2019. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable July 23, 2020.
FOR FURTHER INFORMATION CONTACT: Michael Romani or Jacob Keller, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0198 or (202) 482-4849,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 15,
2020.\1\ On March 26, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
July 16, 2020.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Forged Steel Fluid End Blocks from the Federal Republic
of Germany, India, and Italy: Initiation of Less-Than-Fair-Value
Investigations, 85 FR 2394 (January 15, 2020) (Initiation Notice).
\2\ See Forged Steel Fluid End Blocks From the Federal Republic
of Germany, India and Italy: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 85 FR
17042 (March 26, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Forged
Steel Fluid End Blocks from India,'' dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are fluid end blocks
from India, whether in finished or unfinished form, and which are
typically used in the manufacture or service of hydraulic pumps. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ As
discussed therein, Commerce is preliminarily modifying the scope
language as it appeared in the Initiation Notice to exclude fluid end
block assemblies. See the revised scope in Appendix I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Forged Steel Fluid End Blocks from the
Federal Republic of Germany, India, Italy, and the People's Republic
of China: Scope Comments Decision Memorandum for the Preliminary
Determinations,'' dated May 18, 2020 (Preliminary Scope Decision
Memorandum).
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The scope case briefs were originally due on June 25, 2020, 30 days
after the publication of Fluid End Blocks CVD Determinations, and scope
rebuttal briefs were originally due seven days thereafter on July 2,
2020.\7\ However,
[[Page 44518]]
Commerce extended the deadline to submit scope case and rebuttal briefs
to July 23, 2020, and July 30, 2020, respectively.\8\ There will be no
further opportunity for comments on scope-related issues.\9\
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\7\ The scope case and rebuttal briefs were due 30 and 37 days,
respectively, after the publication of Forged Steel Fluid End Blocks
from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty Determination, 85 FR 31457
(May 26, 2020); Forged Steel Fluid End Blocks from Germany:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 85 FR 31454 (May 26, 2020); Forged Steel Fluid End
Blocks from India: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination With Final
Antidumping Duty Determination, 85 FR 31452 (May 26, 2020); Fluid
End Blocks from Italy: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination With Final
Antidumping Duty Determination, 85 FR 31460 (May 26, 2020)
(collectively, Forged Fluid End Blocks CVD Determinations). See
Preliminary Scope Decision Memorandum at 4. Accordingly, the
deadline for the scope case briefs was Thursday, June 25, 2020; and
the deadline for the scope rebuttal briefs was Thursday, July 2,
2020.
\8\ Scope case briefs are now due on July 23, 2020 and rebuttal
scope case briefs are due on July 30, 2020. See Memorandum
``Antidumping and Countervailing Duty Investigations on Forged Steel
Fluid End Blocks from the Federal Republic of Germany, India, Italy,
and the People's Republic of China: Revision of Schedule for Scope
Case Briefs,'' dated June 25, 2020.
\9\ Parties were already permitted the opportunity to file scope
case and rebuttal briefs. Case briefs, other written comments, and
rebuttal briefs submitted in response to this preliminary LTFV
determination should not include scope-related issues. See
Preliminary Scope Decision Memorandum at 4; see also ``Public
Comment'' section of this notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value (NV) is calculated in accordance with section 773 of the
Act. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\10\ See Memorandum, ``Forged Steel Fluid End Blocks from
India--Preliminary Determination Analysis Memorandum for Bharat
Forge Limited,'' dated concurrently with this notice.
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Estimated
weighted-
average
Exporter or producer dumping
margin
(percent)
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Bharat Forge Limited....................................... \10\ 0.00
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Consistent with section 733(b)(3) of the Act, Commerce disregards
de minimis rates. Accordingly, Commerce preliminarily determines that
Bharat Forge Limited (Bharat), the only individually examined
respondent with a zero rate, has not made sales of subject merchandise
at LTFV.
Further, Commerce preliminarily determines that Ultra Engineers
(Ultra), the only other known producer or exporter of subject
merchandise identified in the Initiation Notice,\11\ had no sales of
in-scope merchandise to the United States during the POI. Therefore, we
have not calculated an estimated weighted-average dumping margin for
Ultra in this preliminary determination.\12\
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\11\ See Initiation Notice, 85 FR at 2397.
\12\ See Preliminary Decision Memorandum at 5-6.
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Consistent with section 733(d) of the Act, Commerce has not
calculated an estimated weighted-average dumping margin for all other
producers and exporters because it has not made an affirmative
preliminary determination of sales at LTFV.
Suspension of Liquidation
Because Commerce has made a negative preliminary determination of
sales at LTFV with regard to subject merchandise, Commerce will not
direct U.S. Customs and Border Protection to suspend liquidation or to
require a cash deposit of estimated antidumping duties for entries of
fluid end blocks from India.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination
concerning the estimated weighted-average dumping margin calculated for
Bharat.
As explained in the Preliminary Decision Memorandum, Ultra reports
that it had no sales of in-scope merchandise to the United States
during the POI.\13\ As provided in section 782(i)(1) of the Act, we
intend to verify Ultra's claim that it did not sell the subject
merchandise to the United States during the POI.
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\13\ Id.
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Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation. Rebuttal briefs, limited to
issues raised in these case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\14\ Commerce has
temporarily modified certain of its requirements for serving documents
containing business proprietary information, until further notice.\15\
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case
briefs or rebuttal briefs in this investigation are encouraged to
submit with each argument: (1) A statement of the issue; (2) a brief
summary of the argument; and (3) a table of authorities.
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\14\ See 19 CFR 351.309; and 19 CFR 351.303 (for general filing
requirements); see also Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19; Extension of Effective Period, 85 FR
41363 (July 10, 2020) (Temporary Rule).
\15\ See Temporary Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Postponement of Final Determination
Section 735(a)(2)(B) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of a
negative preliminary determination, a request for such postponement is
made by the petitioners. On June 24, 2020, the petitioners \16\
requested that Commerce postpone the final determination in the event
of a negative preliminary determination.\17\ In accordance with section
735(a)(2)(B) of the Act, because
[[Page 44519]]
the preliminary determination is negative, and the petitioners have
requested the postponement of the final determination, Commerce is
postponing the final determination. Accordingly, Commerce will make its
final determination by no later than 135 days after the date of
publication of this preliminary determination, pursuant to section
735(a)(2) of the Act.
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\16\ The petitioners are FEB Fair Trade Coalition, Ellwood City
Forge Company, Ellwood Quality Steels Company, Ellwood National
Steel Company, and A. Finkl & Sons.
\17\ See Petitioners' Letter, ``Forged Steel Fluid End Blocks
from India: Petitioner's Request to Postpone the Antidumping
Investigation Final Determination,'' dated June 24, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, then the ITC
will determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether imports of fluid end blocks from India are materially injuring,
or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: July 16, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are forged steel
fluid end blocks (fluid end blocks), whether in finished or
unfinished form, and which are typically used in the manufacture or
service of hydraulic pumps.
The term ``forged'' is an industry term used to describe the
grain texture of steel resulting from the application of localized
compressive force. Illustrative forging standards include, but are
not limited to, American Society for Testing and Materials (ASTM)
specifications A668 and A788.
For purposes of this investigation, the term ``steel'' denotes
metal containing the following chemical elements, by weight: (i)
Iron greater than or equal to 60 percent; (ii) nickel less than or
equal to 8.5 percent; (iii) copper less than or equal to 6 percent;
(iv) chromium greater than or equal to 0.4 percent, but less than or
equal to 20 percent; and (v) molybdenum greater than or equal to
0.15 percent, but less than or equal to 3 percent. Illustrative
steel standards include, but are not limited to, American Iron and
Steel Institute (AISI) or Society of Automotive Engineers (SAE)
grades 4130, 4135, 4140, 4320, 4330, 4340, 8630, 15-5, 17-4, F6NM,
F22, F60, and XM25, as well as modified varieties of these grades.
The products covered by this investigation are: (1) Cut-to-
length fluid end blocks with an actual height (measured from its
highest point) of 8 inches (203.2 mm) to 40 inches (1,016.0 mm), an
actual width (measured from its widest point) of 8 inches (203.2 mm)
to 40 inches (1,016.0 mm), and an actual length (measured from its
longest point) of 11 inches (279.4 mm) to 75 inches (1,905.0 mm);
and (2) strings of fluid end blocks with an actual height (measured
from its highest point) of 8 inches (203.2 mm) to 40 inches (1,016.0
mm), an actual width (measured from its widest point) of 8 inches
(203.2 mm) to 40 inches (1,016.0 mm), and an actual length (measured
from its longest point) up to 360 inches (9,144.0 mm).
The products included in the scope of this investigation have a
tensile strength of at least 70 KSI (measured in accordance with
ASTM A370) and a hardness of at least 140 HBW (measured in
accordance with ASTM E10).
A fluid end block may be imported in finished condition (i.e.,
ready for incorporation into a pump fluid end assembly without
further finishing operations) or unfinished condition (i.e., forged
but still requiring one or more finishing operations before it is
ready for incorporation into a pump fluid end assembly). Such
finishing operations may include: (1) Heat treating; (2) milling one
or more flat surfaces; (3) contour machining to custom shapes or
dimensions; (4) drilling or boring holes; (5) threading holes; and/
or (6) painting, varnishing, or coating.
Excluded from the scope of this investigation are fluid end
block assemblies which (1) include (a) plungers and related
housings, adapters, gaskets, seals, and packing nuts, (b) valves and
related seats, springs, seals, and cover nuts, and (c) a discharge
flange and related seals, and (2) are otherwise ready to be mated
with the ``power end'' of a hydraulic pump without the need for
installation of any plunger, valve, or discharge flange components,
or any other further manufacturing operations.
The products included in the scope of this investigation may
enter under Harmonized Tariff Schedule of the United States (HTSUS)
subheadings 7218.91.0030, 7218.99.0030, 7224.90.0015, 7224.90.0045,
7326.19.0010, 7326.90.8688, or 8413.91.9055. While these HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of the investigations is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Treatment of Ultra Engineers
IV. Period of Investigation
V. Scope of Investigation
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2020-15914 Filed 7-22-20; 8:45 am]
BILLING CODE 3510-DS-P