Forged Steel Fittings From India and the Republic of Korea: Initiation of Less-Than-Fair-Value Investigations, 64265-64270 [2019-25043]

Download as PDF Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices predecessor.29 Accordingly, we preliminarily determine that Wor-Biz Industrial is the successor-in-interest to Wor-Biz Trading and, as such, that it is entitled to Wor-Biz Trading’s CVD cash deposit rate with respect to entries of subject merchandise. Should our final results remain the same as these preliminary results, we will instruct U.S. Customs and Border Protection to assign entries of subject merchandise exported by Wor-Biz Industrial the AD and CVD cash deposit rates applicable to Wor-Biz Trading, effective the date of publication of the final results. Public Comment Any interested party may request a hearing within 14 days of publication of this notice, in accordance with 19 CFR 351.310(c). Interested parties may submit case briefs and/or written comments no later than 14 days after the date of publication of this notice.30 Rebuttal briefs and rebuttals to written comments, which must be limited to issues raised in such briefs or comments, may be filed not later than 7 days after the case briefs.31 Any hearing, if requested, will normally be held two days after rebuttal briefs/ comments are due, in accordance with 19 CFR 351.310(d)(1). Parties who submit case briefs or rebuttal briefs in these CCRs are requested to submit with each argument (1) a statement of the issue, and (2) a brief summary of the argument with an electronic version included. Consistent with 19 CFR 351.216(e), we will issue the final results of these CCRs no later than 270 days after the date on which these reviews were initiated or within 45 days of publication of these preliminary results if all parties agree to our preliminary findings. We are issuing and publishing this initiation and preliminary results notice in accordance with sections 751(b)(1) and 777(i)(1) of the Act and 19 CFR 351.216 and 351.221(c)(3). Dated: November 15, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2019–25263 Filed 11–20–19; 8:45 am] BILLING CODE 3510–DS–P 29 See Wor-Biz’s Third CCR Submission at 1 and Exhibit S–1. 30 Commerce is exercising its discretion under 19 CFR 351.309(c)(1)(ii) to alter the time limit for the filing of case briefs. 31 Commerce is exercising its discretion under 19 CFR 351.309(d)(1) to alter the time limit for the filing of rebuttal briefs. VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 DEPARTMENT OF COMMERCE International Trade Administration [A–533–891, A–580–904] Forged Steel Fittings From India and the Republic of Korea: Initiation of Less-Than-Fair-Value Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable November 12, 2019. FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Charlotte BaskinGerwitz, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2670 or (202) 482–4880, respectively. SUPPLEMENTARY INFORMATION: AGENCY: The Petitions On October 23, 2019, the U.S. Department of Commerce (Commerce) received antidumping duty (AD) petitions concerning imports of forged steel fittings from India and the Republic of Korea (Korea), filed in proper form by Bonney Forge Corporation and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) (collectively, the petitioners).1 The Petitions were accompanied by a countervailing duty (CVD) petition concerning imports of forged steel fittings from India.2 The petitioners are a domestic producer of forged steel fittings and a certified union that represents workers who produce forged steel fittings.3 On October 28 and November 4, 2019, Commerce requested supplemental information pertaining to certain aspects of the Petitions in separate supplemental questionnaires.4 The 1 See Petitioners’ Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties: Forged Steel Fittings from India and the Republic of Korea,’’ dated October 23, 2019 (the Petitions). 2 Id. 3 See Volume I of the Petitions at 2. 4 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Forged Steel Fittings from India and the Republic of Korea: Supplemental Questions,’’ dated October 28, 2019 (General Issues Supplemental); ‘‘Petition for the Imposition of Antidumping Duties on Imports of Forged Steel Fittings from India: Supplemental Questions,’’ dated October 28, 2019; ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Forged Steel Fittings from the Republic of Korea: Supplemental Questions,’’ dated May 14, 2019; Memorandum, ‘‘Petition for the Imposition of Antidumping Duties on Imports of PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 64265 petitioners filed responses to the supplemental questionnaires on October 30, November 4, and November 6, 2019.5 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that imports of forged steel fittings from India and Korea are being, or are likely to be, sold in the United States at less than fair value (LTFV) within the meaning of section 731 of the Act, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing forged steel fittings in the United States. Consistent with section 732(b)(1) of the Act, the Petitions are accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the Petitions on behalf of the domestic industry, because the petitioners are interested parties, as defined in sections 771(9)(C) and (D) of the Act. Commerce also finds that the petitioners demonstrated sufficient industry support with respect to the initiation of the requested AD investigations.6 Periods of Investigation Because the Petitions were filed on October 23, 2019, the period of investigation (POI) for the India and Korea AD investigations is October 1, 2018 through September 30, 2019, pursuant to 19 CFR 351.204(b)(1). Scope of the Investigations The products covered by these investigations are forged steel fittings from India and Korea. For a full description of the scope of these investigations, see the Appendix to this notice. Forged Steel Fittings from India: Phone Call with Counsel to the Petitioners,’’ dated November 4, 2019; and Memorandum, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Forged Steel Fittings from India and the Republic of Korea: Phone Call with Counsel to the Petitioners,’’ dated November 4, 2019 (Scope Memo). 5 See Petitioners’ Letters, ‘‘Forged Steel Fittings from India and the Republic of Korea: Response to General Issues Questionnaire,’’ dated October 30, 2019 (General Issues Supplement); ‘‘Forged Steel Fittings from Korea: Response to Supplemental Questionnaire,’’ dated October 30, 2019; ‘‘Forged Steel Fittings from India: Response to Antidumping Questionnaire,’’ dated October 30, 2019; ‘‘Forged Steel Fittings from India and the Republic of Korea: Response on Revisions to the Scope,’’ dated November 4, 2019; and ‘‘Forged Steel Fittings from India: Response to Additional Antidumping Questions,’’ dated November 6, 2019. 6 See the ‘‘Determination of Industry Support for the Petitions’’ section, infra. E:\FR\FM\21NON1.SGM 21NON1 64266 Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices Comments on the Scope of the Investigations During our review of the Petitions, we contacted the petitioners regarding the proposed scope to ensure that the scope language in the Petitions is an accurate reflection of the products for which the domestic industry is seeking relief.7 As a result, the scope of the Petitions was modified to clarify the description of the merchandise covered by the Petitions. The description of the merchandise covered by these investigations, as described in the Appendix to this notice, reflects these clarifications. As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (scope).8 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determinations. If scope comments include factual information,9 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on December 2, 2019, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on December 12, 2019, which is 10 calendar days from the initial comment deadline.10 Commerce requests that any factual information parties consider relevant to the scope of the investigations be submitted during this period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information. All such submissions must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).11 7 See General Issues Supplemental; see also Scope Memo. 8 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 10 See 19 CFR 351.303(b). 11 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents exempted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines. Comments on Product Characteristics Commerce is providing interested parties an opportunity to comment on the appropriate physical characteristics of forged steel fittings to be reported in response to Commerce’s AD questionnaires. This information will be used to identify the key physical characteristics of the subject merchandise in order to report the relevant costs of production accurately, as well as to develop appropriate product-comparison criteria. Interested parties may provide any information or comments that they feel are relevant to the development of an accurate list of physical characteristics. Specifically, they may provide comments as to which characteristics are appropriate to use as: (1) General product characteristics, and (2) product comparison criteria. We note that it is not always appropriate to use all product characteristics as product comparison criteria. We base product comparison criteria on meaningful commercial differences among products. In other words, although there may be some physical product characteristics utilized by manufacturers to describe forged steel fittings, it may be that only a select few product characteristics take into account commercially meaningful physical characteristics. In addition, interested parties may comment on the order in which the physical characteristics should be used in matching products. Generally, Commerce attempts to list the most important physical characteristics first and the least important characteristics last. In order to consider the suggestions of interested parties in developing and issuing the AD questionnaires, all product characteristics comments must Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/ help.aspx and a handbook can be found at https:// access.trade.gov/help/Handbook%20 on%20Electronic%20Filling%20Procedures.pdf. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 be filed by 5:00 p.m. ET on December 2, 2019, which is 20 calendar days from the signature date of this notice.12 Any rebuttal comments must be filed by 5:00 p.m. ET on December 12, 2019. All comments and submissions to Commerce must be filed electronically using ACCESS, as explained above, on the record of each of the AD investigations. Determination of Industry Support for the Petitions Section 732(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 732(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, Commerce shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC must apply the same statutory definition regarding the domestic like product,13 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.14 12 See 19 CFR 351.303(b). section 771(10) of the Act. 14 See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. 13 See E:\FR\FM\21NON1.SGM 21NON1 Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of the domestic like product distinct from the scope of the Petitions.15 Based on our analysis of the information submitted on the record, we have determined that forged steel fittings, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.16 In determining whether the petitioners have standing under section 732(c)(4)(A) of the Act, we considered the industry support data contained in the Petitions with reference to the domestic like product as defined in the ‘‘Scope of the Investigations,’’ in the Appendix to this notice. To establish industry support, the petitioners provided their own production of the domestic like product in 2018, as well as the 2018 production of Capitol Manufacturing Company LLC (Capitol Manufacturing), a U.S. producer of forged steel fittings that supports the Petitions.17 The petitioners compared the production of the supporters of the Petitions to the estimated total production of the domestic like product for the entire domestic industry.18 We relied on data provided by the v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 15 See Volume I of the Petitions at 12–14; see also General Issues Supplement at 6. 16 For a discussion of the domestic like product analysis as applied to these cases and information regarding industry support, see Antidumping Duty Investigation Initiation Checklist: Forged Steel Fittings from India (India AD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Forged Steel Fittings from India and the Republic of Korea (Attachment II); see also Antidumping Duty Investigation Initiation Checklist: Forged Steel Fittings from the Republic of Korea (Korea AD Initiation Checklist), at Attachment II. These checklists are dated concurrently with, and hereby adopted by, this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Commerce building. 17 See Volume I of the Petitions at 4 and Exhibits I–3 and I–4. 18 Id. at 4–5 and Exhibits I–3 and I–4; see also General Issues Supplement at 6–8 and Exhibit 12. VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 petitioners for purposes of measuring industry support.19 Our review of the data provided in the Petitions, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioners have established industry support for the Petitions.20 First, the Petitions established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support (e.g., polling).21 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 732(c)(4)(A)(i) of the Act, because the domestic producers (or workers) who support the Petitions account for at least 25 percent of the total production of the domestic like product.22 Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 732(c)(4)(A)(ii) of the Act, because the domestic producers (or workers) who support the Petitions account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petitions.23 Accordingly, Commerce determines that the Petitions were filed on behalf of the domestic industry within the meaning of section 732(b)(1) of the Act. Allegations and Evidence of Material Injury and Causation The petitioners allege that the U.S. industry producing the domestic like product is being materially injured, or is threatened with material injury, by reason of the imports of the subject merchandise sold at less than normal value (NV). In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.24 19 See Volume I of the Petitions at 4–5 and Exhibits I–3 and I–4; see also General Issues Supplement at 6–8 and Exhibit 12. For further discussion, see India AD Initiation Checklist at Attachment II; see also Korea AD Initiation Checklist at Attachment II. 20 See India AD Initiation Checklist at Attachment II; see also Korea AD Initiation Checklist at Attachment II. 21 See section 732(c)(4)(D) of the Act; see also India AD Initiation Checklist at Attachment II; and Korea AD Initiation Checklist at Attachment II. 22 See India AD Initiation Checklist at Attachment II; see also Korea AD Initiation Checklist at Attachment II. 23 See India AD Initiation Checklist at Attachment II; see also Korea AD Initiation Checklist at Attachment II. 24 See Volume I of the Petitions at 22 and Exhibit I–15. PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 64267 The petitioners contend that the industry’s injured condition is illustrated by a significant and increasing volume of subject imports; reduced market share; underselling and price depression or suppression; and declines in the domestic industry’s production, capacity utilization, U.S. shipments, and financial performance.25 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as cumulation, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.26 Allegations of Sales at LTFV The following is a description of the allegations of sales at LTFV upon which Commerce based its decision to initiate AD investigations of imports of forged steel fittings from India and Korea. The sources of data for the deductions and adjustments relating to U.S. price and normal value (NV) are discussed in greater detail in the country-specific AD Initiation Checklists. Export Price For India and Korea, the petitioners based export price (EP) on the average unit values (AUVs) of publicly available import data. The petitioners made deductions from U.S. price for foreign inland freight and foreign brokerage and handling charges.27 Normal Value For Korea, the petitioners based NV on home market prices obtained through market research for forged steel fittings produced in and sold, or offered for sale, in Korea within the POI.28 For India, the petitioners were unable to obtain information relating to the prices charged for forged steel fittings produced in and sold, or offered for sale, in India or third country prices.29 The petitioners therefore calculated normal value based on constructed value (CV).30 For further discussion of 25 Id. at 16–35 and Exhibits I–1, I–14, I–15 and I–17 through I–20. 26 See India AD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Forged Steel Fittings from India and the Republic of Korea (Attachment III); see also Korea AD Initiation Checklist, at Attachment III. 27 See India AD Initiation Checklist; see also Korea Initiation Checklist. 28 See Korea Initiation Checklist. 29 See India AD Initiation Checklist. 30 Id. E:\FR\FM\21NON1.SGM 21NON1 64268 Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices CV, see the section ‘‘Normal Value Based on Constructed Value.’’ 31 Normal Value Based on Constructed Value As noted, the petitioner was unable to obtain information relating to the prices charged for forged steel fittings produced in India, or third country prices; accordingly, the petitioner based NV on CV.32 Pursuant to section 773(e) of the Act, CV consists of the cost of manufacturing (COM), selling, general, and administrative (SG&A) expenses, financial expenses, packing expenses, and profit. For India, the petitioner calculated the COM based on the input factors of production and its own usage rates. The input factors of production were valued using publicly available data on costs specific to India during the proposed POI.33 Specifically, the prices for raw materials, reclaimed steel scrap, and packing inputs were valued using publicly available import and domestic price data for India.34 Labor and energy costs were valued using publicly available sources for India.35 The petitioner calculated factory overhead, SG&A expenses, financial expenses, and profit for India based on the ratios found in the experience of a producer of identical or comparable merchandise from India.36 Fair Value Comparisons Based on the data provided by the petitioners, there is reason to believe that imports of forged steel fittings from India and Korea are being, or are likely to be, sold in the United States at LTFV. Based on comparisons of EP to NV in accordance with sections 772 and 773 of the Act, the estimated dumping margins for forged steel fittings from India range from 52.48 to 293.40 percent and from Korea range from 45.31 to 198.38 percent.37 Initiation of LTFV Investigations Based upon the examination of the Petitions and supplemental responses, we find that they meet the requirements 31 In accordance with section 505(a) of the Trade Preferences Extension Act of 2015, amending section 773(b)(2) of the Act, for these investigations, Commerce will request information necessary to calculate the CV and cost of production (COP) to determine whether there are reasonable grounds to believe or suspect that sales of the foreign like product have been made at prices that represent less than the COP of the product. Commerce no longer requires a COP allegation to conduct this analysis. 32 See India AD Initiation Checklist; see also Korea AD Initiation Checklist. 33 Id. 34 Id. 35 Id. 36 Id. 37 Id. VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 of section 732 of the Act. Therefore, we are initiating AD investigations to determine whether imports of forged steel fittings from India and Korea are being, or are likely to be, sold in the United States at LTFV. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determinations no later than 140 days after the date of this initiation. Respondent Selection In the Petitions, the petitioners named 12 companies in India 38 and four companies in Korea,39 as producers/ exporters of forged steel fittings. Following standard practice in AD investigations involving market economy countries, in the event Commerce determines that the number of companies is large and it cannot individually examine each company based upon Commerce’s resources, where appropriate, Commerce intends to select respondents in India and Korea based on U.S. Customs and Border Protection (CBP) data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigations,’’ in the Appendix. Between November 5 and November 6, 2019, Commerce released CBP data on imports of forged steel fittings from India and Korea under APO to all parties with access to information protected by APO and indicated that interested parties wishing to comment on the CBP data must do so within three business days of the publication date of the notice of initiation of these investigations.40 Commerce will not accept rebuttal comments regarding the CBP data or respondent selection. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on the Commerce’s website at https://enforcement.trade.gov/ apo. Comments must be filed electronically using ACCESS. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. We intend to finalize our decisions regarding 38 See Volume I of the Petitions at Exhibit I–13. 39 Id. 40 See Memoranda, ‘‘Antidumping Duty Investigation of Forged Steel Fittings from India: Release of Customs Data from U.S. Customs and Border Protection,’’ dated November 6, 2019; and ‘‘Antidumping Duty Investigation of Forged Steel Fittings from Korea: Release of Customs Data from U.S. Customs and Border Protection,’’ dated November 5, 2019. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petitions In accordance with section 732(b)(3)(A) of the Act and 19 CFR 351.202(f), copies of the public version of the Petitions have been provided to the governments of India and Korea via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petitions to each exporter named in the Petitions, as provided under 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 732(d) of the Act. Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petitions were filed, whether there is a reasonable indication that imports of forged steel fittings from India and/ or Korea are materially injuring, or threatening material injury to, a U.S. industry.41 A negative ITC determination for any country will result in the investigations being terminated with respect to that country.42 Otherwise, these investigations will proceed according to statutory and regulatory time limits. Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). Section 351.301(b) of Commerce’s regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 43 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.44 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on 41 See section 733(a) of the Act. 42 Id. 43 See 44 See E:\FR\FM\21NON1.SGM 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 21NON1 Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in these investigations. Particular Market Situation Allegation Section 504 of the Trade Preferences Extension Act of 2015 amended the Act by adding the concept of particular market situation (PMS) for purposes of CV under section 773(e) of the Act.45 Section 773(e) of the Act states that ‘‘if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not accurately reflect the cost of production in the ordinary course of trade, the administering authority may use another calculation methodology under this subtitle or any other calculation methodology.’’ When an interested party submits a PMS allegation pursuant to section 773(e) of the Act, Commerce will respond to such a submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds that a PMS exists under section 773(e) of the Act, then it will modify its dumping calculations appropriately. Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a deadline for the submission of PMS allegations and supporting factual information. However, in order to administer section 773(e) of the Act, Commerce must receive PMS allegations and supporting factual information with enough time to consider the submission. Thus, should an interested party wish to submit a PMS allegation and supporting new factual information pursuant to section 773(e) of the Act, it must do so no later than 20 days after submission of a respondent’s initial section D questionnaire response. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In 45 See Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimelyfiled requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to submitting factual information in these investigations. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.46 Parties must use the certification formats provided in 19 CFR 351.303(g).47 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in these investigations should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed at 19 CFR 351.103(d)). This notice is issued and published pursuant to sections 732(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). Dated: November 12, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigations The merchandise covered by these investigations is carbon and alloy forged steel fittings, whether unfinished (commonly known as blanks or rough forgings) or finished. Such fittings are made in a variety of shapes including, but not limited to, elbows, tees, crosses, laterals, couplings, 46 See section 782(b) of the Act. Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to frequently asked questions regarding the Final Rule are available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 47 See PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 64269 reducers, caps, plugs, bushings, unions, and outlets. Forged steel fittings are covered regardless of end finish, whether threaded, socket-weld or other end connections. The scope includes integrally reinforced forged branch outlet fittings, regardless of whether they have one or more ends that is a socket welding, threaded, butt welding end, or other end connections. While these fittings are generally manufactured to specifications ASME B16.11, MSS SP–79, MSS SP–83, MSS–SP– 97, ASTM A105, ASTM A350 and ASTM A182, the scope is not limited to fittings made to these specifications. The term forged is an industry term used to describe a class of products included in applicable standards, and it does not reference an exclusive manufacturing process. Forged steel fittings are not manufactured from casings. Pursuant to the applicable standards, fittings may also be machined from bar stock or machined from seamless pipe and tube. All types of forged steel fittings are included in the scope regardless of nominal pipe size (which may or may not be expressed in inches of nominal pipe size), pressure class rating (expressed in pounds of pressure, e.g., 2,000 or 2M; 3,000 or 3M; 6,000 or 6M; 9,000 or 9M), wall thickness, and whether or not heat treated. Excluded from this scope are all fittings entirely made of stainless steel. Also excluded are flanges, nipples, and all fittings that have a maximum pressure rating of 300 pounds per square inch/PSI or less. Also excluded from the scope are fittings certified or made to the following standards, so long as the fittings are not also manufactured to the specifications of ASME B16.11, MSS SP–79, MSS SP–83, MSS SP– 97, ASTM A105, ASTM A350 and ASTM A182: • American Petroleum Institute (API) 5CT, API 5L, or API11B; • American Society of Mechanical Engineers (ASME) B16.9; • Manufacturers Standardization Society (MSS) SP–75; • Society of Automotive Engineering (SAE) J476, SAE J514, SAE J516, SAE J517, SAE J518, SAE J1026, SAEJ1231, SAE J1453, SAE J1926, J2044 or SAE AS 35411; • Hydraulic hose fittings (e.g., fittings used in high pressure water cleaning applications, in the manufacture of hydraulic engines, to connect rubber dispensing hoses to a dispensing nozzle or grease fitting) made to ISO 12151–1, 12151–2, 12151–3, 12151–4, 12151–5, or 12151–6; • Underwriter’s Laboratories (UL) certified electrical conduit fittings; • ASTM A153, A536, A576, or A865; • Casing Conductor Connectors made to proprietary specifications; • Machined steel parts (e.g., couplers) that are not certified to any specifications in this scope description and that are not for connecting steel pipes for distributing gas and liquids; • Oil country tubular goods (OCTG) connectors (e.g., forged steel tubular connectors for API 5L pipes or OCTG for offshore oil and gas drilling and extraction); • Military Specification (MIL) MIL–C– 4109F and MIL–F–3541; and E:\FR\FM\21NON1.SGM 21NON1 64270 Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices • International Organization for Standardization (ISO) ISO6150–B. To be excluded from the scope, products must have the appropriate standard or pressure markings and/or be accompanied by documentation showing product compliance to the applicable standard or pressure, e.g., ‘‘API 5CT’’ mark and/or a mill certification report. Subject carbon and alloy forged steel fittings are normally entered under Harmonized Tariff Schedule of the United States (HTSUS) 7307.92.3010, 7307.92.3030, 7307.92.9000, 7307.99.1000, 7307.99.3000, 7307.99.5045, and 7307.99.5060. They may also be entered under HTSUS 7307.93.3010, 7307.93.3040, 7307.93.6000, 7307.93.9010, 7307.93.9040, 7307.93.9060, and 7326.19.0010. The HTSUS subheadings and specifications are provided for convenience and customs purposes; the written description of the scope is dispositive. [FR Doc. 2019–25043 Filed 11–20–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–533–892] Forged Steel Fittings From India: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable November 12, 2019. FOR FURTHER INFORMATION CONTACT: Lauren Caserta, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4737. SUPPLEMENTARY INFORMATION: AGENCY: The Petition On October 23, 2019, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition concerning imports of forged steel fittings from India, filed in proper form on behalf of Bonney Forge Corporation, a domestic producer of forged steel fittings, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW), a certified labor union whose members include workers at the facilities in which the domestic like product is produced (collectively, the petitioners).1 The 1 See Petitioners’ Letter, ‘‘Petition for the Imposition of Antidumping and Countervailing Duties: Forged Steel Fittings from India and the VerDate Sep<11>2014 16:41 Nov 20, 2019 Jkt 250001 Petition was accompanied by antidumping duty (AD) petitions concerning imports of forged steel fittings from India and the Republic of Korea (Korea).2 On October 28, 2019, Commerce requested further information pertaining to certain aspects of the Petition in supplemental questionnaires.3 The petitioners filed responses to the supplemental questionnaires on October 30, 2019.4 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of India (GOI) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of forged steel fittings in India, and that imports of such products are materially injuring, or threatening material injury to, the forged steel fittings industry in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating CVD investigation, the Petition is accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the Petition on behalf of the domestic industry, because the petitioners are an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioners demonstrated sufficient industry support necessary for the initiation of the requested CVD investigation.5 Period of Investigation Because the Petition was filed on October 23, 2019, the period of investigation (POI) is January 1, 2018 through December 31, 2018.6 Scope of the Investigation The products covered by this investigation are forged steel fittings Republic of Korea,’’ dated October 23, 2019 (the Petition). 2 Id. 3 See Commerce’s Letters, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Forged Steel Fittings from India: Supplemental Questions,’’ dated October 28, 2019; and ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Forged Steel Fittings from India and the Republic of Korea and Countervailing Duties on Imports of Forged Steel Fittings from India: Supplemental Questions,’’ dated October 28, 2019. 4 See Petitioners’ Letters, ‘‘Forged Steel Fittings from India: Response to Supplemental Questionnaire,’’ dated October 30, 2019; and ‘‘Forged Steel Fittings from India and the Republic of Korea: Response to General Issues Questionnaire,’’ dated October 30, 2019 (General Issues Supplement). 5 See the ‘‘Determination of Industry Support for the Petition’’ section, infra. 6 See 19 CFR 351.204(b)(2). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 from India. For a full description of the scope of this investigation, see the Appendix to this notice. Comments on the Scope of the Investigation During our review of the Petition, we contacted the petitioners regarding the proposed scope to ensure that the scope language in the Petition is an accurate reflection of the products for which the domestic industry is seeking relief.7 As a result, the scope of the Petition was modified to clarify the description of the merchandise covered by the Petition. The description of the merchandise covered by this investigation, as described in the Appendix to this notice, reflects these clarifications. As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (scope).8 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,9 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit such comments by 5:00 p.m. Eastern Time (ET) on December 2, 2019, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on December 12, 2019, which is 10 calendar days from the initial comments deadline.10 Commerce requests that any factual information parties consider relevant to the scope of the investigation be submitted during this period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact Commerce and request permission to submit the additional information. All such submissions must be filed on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized 7 See General Issues Supplemental. Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 10 See 19 CFR 351.303(b). 8 See E:\FR\FM\21NON1.SGM 21NON1

Agencies

[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64265-64270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25043]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-891, A-580-904]


Forged Steel Fittings From India and the Republic of Korea: 
Initiation of Less-Than-Fair-Value Investigations

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

DATES: Applicable November 12, 2019.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Charlotte Baskin-
Gerwitz, AD/CVD Operations, Office VII, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-2670 
or (202) 482-4880, respectively.

SUPPLEMENTARY INFORMATION:

The Petitions

    On October 23, 2019, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of forged 
steel fittings from India and the Republic of Korea (Korea), filed in 
proper form by Bonney Forge Corporation and the United Steel, Paper and 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service 
Workers International Union (USW) (collectively, the petitioners).\1\ 
The Petitions were accompanied by a countervailing duty (CVD) petition 
concerning imports of forged steel fittings from India.\2\ The 
petitioners are a domestic producer of forged steel fittings and a 
certified union that represents workers who produce forged steel 
fittings.\3\
---------------------------------------------------------------------------

    \1\ See Petitioners' Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties: Forged Steel Fittings from 
India and the Republic of Korea,'' dated October 23, 2019 (the 
Petitions).
    \2\ Id.
    \3\ See Volume I of the Petitions at 2.
---------------------------------------------------------------------------

    On October 28 and November 4, 2019, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in separate 
supplemental questionnaires.\4\ The petitioners filed responses to the 
supplemental questionnaires on October 30, November 4, and November 6, 
2019.\5\
---------------------------------------------------------------------------

    \4\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Forged Steel 
Fittings from India and the Republic of Korea: Supplemental 
Questions,'' dated October 28, 2019 (General Issues Supplemental); 
``Petition for the Imposition of Antidumping Duties on Imports of 
Forged Steel Fittings from India: Supplemental Questions,'' dated 
October 28, 2019; ``Petitions for the Imposition of Antidumping and 
Countervailing Duties on Imports of Forged Steel Fittings from the 
Republic of Korea: Supplemental Questions,'' dated May 14, 2019; 
Memorandum, ``Petition for the Imposition of Antidumping Duties on 
Imports of Forged Steel Fittings from India: Phone Call with Counsel 
to the Petitioners,'' dated November 4, 2019; and Memorandum, 
``Petitions for the Imposition of Antidumping and Countervailing 
Duties on Imports of Forged Steel Fittings from India and the 
Republic of Korea: Phone Call with Counsel to the Petitioners,'' 
dated November 4, 2019 (Scope Memo).
    \5\ See Petitioners' Letters, ``Forged Steel Fittings from India 
and the Republic of Korea: Response to General Issues 
Questionnaire,'' dated October 30, 2019 (General Issues Supplement); 
``Forged Steel Fittings from Korea: Response to Supplemental 
Questionnaire,'' dated October 30, 2019; ``Forged Steel Fittings 
from India: Response to Antidumping Questionnaire,'' dated October 
30, 2019; ``Forged Steel Fittings from India and the Republic of 
Korea: Response on Revisions to the Scope,'' dated November 4, 2019; 
and ``Forged Steel Fittings from India: Response to Additional 
Antidumping Questions,'' dated November 6, 2019.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of forged steel 
fittings from India and Korea are being, or are likely to be, sold in 
the United States at less than fair value (LTFV) within the meaning of 
section 731 of the Act, and that such imports are materially injuring, 
or threatening material injury to, the domestic industry producing 
forged steel fittings in the United States. Consistent with section 
732(b)(1) of the Act, the Petitions are accompanied by information 
reasonably available to the petitioners supporting their allegations.
    Commerce finds that the petitioners filed the Petitions on behalf 
of the domestic industry, because the petitioners are interested 
parties, as defined in sections 771(9)(C) and (D) of the Act. Commerce 
also finds that the petitioners demonstrated sufficient industry 
support with respect to the initiation of the requested AD 
investigations.\6\
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    \6\ See the ``Determination of Industry Support for the 
Petitions'' section, infra.
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Periods of Investigation

    Because the Petitions were filed on October 23, 2019, the period of 
investigation (POI) for the India and Korea AD investigations is 
October 1, 2018 through September 30, 2019, pursuant to 19 CFR 
351.204(b)(1).

Scope of the Investigations

    The products covered by these investigations are forged steel 
fittings from India and Korea. For a full description of the scope of 
these investigations, see the Appendix to this notice.

[[Page 64266]]

Comments on the Scope of the Investigations

    During our review of the Petitions, we contacted the petitioners 
regarding the proposed scope to ensure that the scope language in the 
Petitions is an accurate reflection of the products for which the 
domestic industry is seeking relief.\7\ As a result, the scope of the 
Petitions was modified to clarify the description of the merchandise 
covered by the Petitions. The description of the merchandise covered by 
these investigations, as described in the Appendix to this notice, 
reflects these clarifications.
---------------------------------------------------------------------------

    \7\ See General Issues Supplemental; see also Scope Memo.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\8\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\9\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on December 2, 2019, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on December 12, 2019, which 
is 10 calendar days from the initial comment deadline.\10\
---------------------------------------------------------------------------

    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\11\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
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    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of forged steel fittings to 
be reported in response to Commerce's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant costs of 
production accurately, as well as to develop appropriate product-
comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe forged steel fittings, it may be that only a select few 
product characteristics take into account commercially meaningful 
physical characteristics. In addition, interested parties may comment 
on the order in which the physical characteristics should be used in 
matching products. Generally, Commerce attempts to list the most 
important physical characteristics first and the least important 
characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on December 2, 
2019, which is 20 calendar days from the signature date of this 
notice.\12\ Any rebuttal comments must be filed by 5:00 p.m. ET on 
December 12, 2019. All comments and submissions to Commerce must be 
filed electronically using ACCESS, as explained above, on the record of 
each of the AD investigations.
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\13\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\14\
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    \13\ See section 771(10) of the Act.
    \14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).

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[[Page 64267]]

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the Petitions.\15\ Based on our analysis of the information 
submitted on the record, we have determined that forged steel fittings, 
as defined in the scope, constitute a single domestic like product, and 
we have analyzed industry support in terms of that domestic like 
product.\16\
---------------------------------------------------------------------------

    \15\ See Volume I of the Petitions at 12-14; see also General 
Issues Supplement at 6.
    \16\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Antidumping Duty Investigation Initiation Checklist: Forged 
Steel Fittings from India (India AD Initiation Checklist), at 
Attachment II, Analysis of Industry Support for the Antidumping and 
Countervailing Duty Petitions Covering Forged Steel Fittings from 
India and the Republic of Korea (Attachment II); see also 
Antidumping Duty Investigation Initiation Checklist: Forged Steel 
Fittings from the Republic of Korea (Korea AD Initiation Checklist), 
at Attachment II. These checklists are dated concurrently with, and 
hereby adopted by, this notice and on file electronically via 
ACCESS. Access to documents filed via ACCESS is also available in 
the Central Records Unit, Room B8024 of the main Commerce building.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. To establish industry support, the petitioners provided 
their own production of the domestic like product in 2018, as well as 
the 2018 production of Capitol Manufacturing Company LLC (Capitol 
Manufacturing), a U.S. producer of forged steel fittings that supports 
the Petitions.\17\ The petitioners compared the production of the 
supporters of the Petitions to the estimated total production of the 
domestic like product for the entire domestic industry.\18\ We relied 
on data provided by the petitioners for purposes of measuring industry 
support.\19\
---------------------------------------------------------------------------

    \17\ See Volume I of the Petitions at 4 and Exhibits I-3 and I-
4.
    \18\ Id. at 4-5 and Exhibits I-3 and I-4; see also General 
Issues Supplement at 6-8 and Exhibit 12.
    \19\ See Volume I of the Petitions at 4-5 and Exhibits I-3 and 
I-4; see also General Issues Supplement at 6-8 and Exhibit 12. For 
further discussion, see India AD Initiation Checklist at Attachment 
II; see also Korea AD Initiation Checklist at Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petitions.\20\ First, the Petitions established support from 
domestic producers (or workers) accounting for more than 50 percent of 
the total production of the domestic like product and, as such, 
Commerce is not required to take further action in order to evaluate 
industry support (e.g., polling).\21\ Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(i) of the Act, because the domestic producers (or 
workers) who support the Petitions account for at least 25 percent of 
the total production of the domestic like product.\22\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act, because the 
domestic producers (or workers) who support the Petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the Petitions.\23\ Accordingly, Commerce determines that 
the Petitions were filed on behalf of the domestic industry within the 
meaning of section 732(b)(1) of the Act.
---------------------------------------------------------------------------

    \20\ See India AD Initiation Checklist at Attachment II; see 
also Korea AD Initiation Checklist at Attachment II.
    \21\ See section 732(c)(4)(D) of the Act; see also India AD 
Initiation Checklist at Attachment II; and Korea AD Initiation 
Checklist at Attachment II.
    \22\ See India AD Initiation Checklist at Attachment II; see 
also Korea AD Initiation Checklist at Attachment II.
    \23\ See India AD Initiation Checklist at Attachment II; see 
also Korea AD Initiation Checklist at Attachment II.
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Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioners allege that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\24\
---------------------------------------------------------------------------

    \24\ See Volume I of the Petitions at 22 and Exhibit I-15.
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
and declines in the domestic industry's production, capacity 
utilization, U.S. shipments, and financial performance.\25\ We have 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as cumulation, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\26\
---------------------------------------------------------------------------

    \25\ Id. at 16-35 and Exhibits I-1, I-14, I-15 and I-17 through 
I-20.
    \26\ See India AD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Forged Steel Fittings from India and the Republic of Korea 
(Attachment III); see also Korea AD Initiation Checklist, at 
Attachment III.
---------------------------------------------------------------------------

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of forged steel fittings from India and Korea. The sources of 
data for the deductions and adjustments relating to U.S. price and 
normal value (NV) are discussed in greater detail in the country-
specific AD Initiation Checklists.

Export Price

    For India and Korea, the petitioners based export price (EP) on the 
average unit values (AUVs) of publicly available import data. The 
petitioners made deductions from U.S. price for foreign inland freight 
and foreign brokerage and handling charges.\27\
---------------------------------------------------------------------------

    \27\ See India AD Initiation Checklist; see also Korea 
Initiation Checklist.
---------------------------------------------------------------------------

Normal Value

    For Korea, the petitioners based NV on home market prices obtained 
through market research for forged steel fittings produced in and sold, 
or offered for sale, in Korea within the POI.\28\
---------------------------------------------------------------------------

    \28\ See Korea Initiation Checklist.
---------------------------------------------------------------------------

    For India, the petitioners were unable to obtain information 
relating to the prices charged for forged steel fittings produced in 
and sold, or offered for sale, in India or third country prices.\29\ 
The petitioners therefore calculated normal value based on constructed 
value (CV).\30\ For further discussion of

[[Page 64268]]

CV, see the section ``Normal Value Based on Constructed Value.'' \31\
---------------------------------------------------------------------------

    \29\ See India AD Initiation Checklist.
    \30\ Id.
    \31\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015, amending section 773(b)(2) of the Act, for 
these investigations, Commerce will request information necessary to 
calculate the CV and cost of production (COP) to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product. Commerce no longer requires a COP 
allegation to conduct this analysis.
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Normal Value Based on Constructed Value

    As noted, the petitioner was unable to obtain information relating 
to the prices charged for forged steel fittings produced in India, or 
third country prices; accordingly, the petitioner based NV on CV.\32\ 
Pursuant to section 773(e) of the Act, CV consists of the cost of 
manufacturing (COM), selling, general, and administrative (SG&A) 
expenses, financial expenses, packing expenses, and profit. For India, 
the petitioner calculated the COM based on the input factors of 
production and its own usage rates. The input factors of production 
were valued using publicly available data on costs specific to India 
during the proposed POI.\33\ Specifically, the prices for raw 
materials, reclaimed steel scrap, and packing inputs were valued using 
publicly available import and domestic price data for India.\34\ Labor 
and energy costs were valued using publicly available sources for 
India.\35\ The petitioner calculated factory overhead, SG&A expenses, 
financial expenses, and profit for India based on the ratios found in 
the experience of a producer of identical or comparable merchandise 
from India.\36\
---------------------------------------------------------------------------

    \32\ See India AD Initiation Checklist; see also Korea AD 
Initiation Checklist.
    \33\ Id.
    \34\ Id.
    \35\ Id.
    \36\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of forged steel fittings from India and Korea are 
being, or are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for forged steel fittings from India 
range from 52.48 to 293.40 percent and from Korea range from 45.31 to 
198.38 percent.\37\
---------------------------------------------------------------------------

    \37\ Id.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating AD investigations to determine 
whether imports of forged steel fittings from India and Korea are 
being, or are likely to be, sold in the United States at LTFV. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Respondent Selection

    In the Petitions, the petitioners named 12 companies in India \38\ 
and four companies in Korea,\39\ as producers/exporters of forged steel 
fittings. Following standard practice in AD investigations involving 
market economy countries, in the event Commerce determines that the 
number of companies is large and it cannot individually examine each 
company based upon Commerce's resources, where appropriate, Commerce 
intends to select respondents in India and Korea based on U.S. Customs 
and Border Protection (CBP) data for U.S. imports under the appropriate 
Harmonized Tariff Schedule of the United States numbers listed in the 
``Scope of the Investigations,'' in the Appendix.
---------------------------------------------------------------------------

    \38\ See Volume I of the Petitions at Exhibit I-13.
    \39\ Id.
---------------------------------------------------------------------------

    Between November 5 and November 6, 2019, Commerce released CBP data 
on imports of forged steel fittings from India and Korea under APO to 
all parties with access to information protected by APO and indicated 
that interested parties wishing to comment on the CBP data must do so 
within three business days of the publication date of the notice of 
initiation of these investigations.\40\ Commerce will not accept 
rebuttal comments regarding the CBP data or respondent selection.
---------------------------------------------------------------------------

    \40\ See Memoranda, ``Antidumping Duty Investigation of Forged 
Steel Fittings from India: Release of Customs Data from U.S. Customs 
and Border Protection,'' dated November 6, 2019; and ``Antidumping 
Duty Investigation of Forged Steel Fittings from Korea: Release of 
Customs Data from U.S. Customs and Border Protection,'' dated 
November 5, 2019.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Commerce's website at https://enforcement.trade.gov/apo.
    Comments must be filed electronically using ACCESS. An 
electronically filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. 
We intend to finalize our decisions regarding respondent selection 
within 20 days of publication of this notice.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of India and Korea via ACCESS. To the 
extent practicable, we will attempt to provide a copy of the public 
version of the Petitions to each exporter named in the Petitions, as 
provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of forged steel fittings from India and/or 
Korea are materially injuring, or threatening material injury to, a 
U.S. industry.\41\ A negative ITC determination for any country will 
result in the investigations being terminated with respect to that 
country.\42\ Otherwise, these investigations will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \41\ See section 733(a) of the Act.
    \42\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \43\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\44\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on

[[Page 64269]]

the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in these investigations.
---------------------------------------------------------------------------

    \43\ See 19 CFR 351.301(b).
    \44\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Particular Market Situation Allegation

    Section 504 of the Trade Preferences Extension Act of 2015 amended 
the Act by adding the concept of particular market situation (PMS) for 
purposes of CV under section 773(e) of the Act.\45\ Section 773(e) of 
the Act states that ``if a particular market situation exists such that 
the cost of materials and fabrication or other processing of any kind 
does not accurately reflect the cost of production in the ordinary 
course of trade, the administering authority may use another 
calculation methodology under this subtitle or any other calculation 
methodology.'' When an interested party submits a PMS allegation 
pursuant to section 773(e) of the Act, Commerce will respond to such a 
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds 
that a PMS exists under section 773(e) of the Act, then it will modify 
its dumping calculations appropriately.
---------------------------------------------------------------------------

    \45\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
---------------------------------------------------------------------------

    Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a 
deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\46\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\47\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \46\ See section 782(b) of the Act.
    \47\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in these investigations should ensure 
that they meet the requirements of these procedures (e.g., the filing 
of letters of appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: November 12, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations is carbon and 
alloy forged steel fittings, whether unfinished (commonly known as 
blanks or rough forgings) or finished. Such fittings are made in a 
variety of shapes including, but not limited to, elbows, tees, 
crosses, laterals, couplings, reducers, caps, plugs, bushings, 
unions, and outlets. Forged steel fittings are covered regardless of 
end finish, whether threaded, socket-weld or other end connections. 
The scope includes integrally reinforced forged branch outlet 
fittings, regardless of whether they have one or more ends that is a 
socket welding, threaded, butt welding end, or other end 
connections.
    While these fittings are generally manufactured to 
specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS-SP-97, ASTM 
A105, ASTM A350 and ASTM A182, the scope is not limited to fittings 
made to these specifications.
    The term forged is an industry term used to describe a class of 
products included in applicable standards, and it does not reference 
an exclusive manufacturing process. Forged steel fittings are not 
manufactured from casings. Pursuant to the applicable standards, 
fittings may also be machined from bar stock or machined from 
seamless pipe and tube.
    All types of forged steel fittings are included in the scope 
regardless of nominal pipe size (which may or may not be expressed 
in inches of nominal pipe size), pressure class rating (expressed in 
pounds of pressure, e.g., 2,000 or 2M; 3,000 or 3M; 6,000 or 6M; 
9,000 or 9M), wall thickness, and whether or not heat treated.
    Excluded from this scope are all fittings entirely made of 
stainless steel. Also excluded are flanges, nipples, and all 
fittings that have a maximum pressure rating of 300 pounds per 
square inch/PSI or less.
    Also excluded from the scope are fittings certified or made to 
the following standards, so long as the fittings are not also 
manufactured to the specifications of ASME B16.11, MSS SP-79, MSS 
SP-83, MSS SP-97, ASTM A105, ASTM A350 and ASTM A182:
     American Petroleum Institute (API) 5CT, API 5L, or 
API11B;
     American Society of Mechanical Engineers (ASME) B16.9;
     Manufacturers Standardization Society (MSS) SP-75;
     Society of Automotive Engineering (SAE) J476, SAE J514, 
SAE J516, SAE J517, SAE J518, SAE J1026, SAEJ1231, SAE J1453, SAE 
J1926, J2044 or SAE AS 35411;
     Hydraulic hose fittings (e.g., fittings used in high 
pressure water cleaning applications, in the manufacture of 
hydraulic engines, to connect rubber dispensing hoses to a 
dispensing nozzle or grease fitting) made to ISO 12151-1, 12151-2, 
12151-3, 12151-4, 12151-5, or 12151-6;
     Underwriter's Laboratories (UL) certified electrical 
conduit fittings;
     ASTM A153, A536, A576, or A865;
     Casing Conductor Connectors made to proprietary 
specifications;
     Machined steel parts (e.g., couplers) that are not 
certified to any specifications in this scope description and that 
are not for connecting steel pipes for distributing gas and liquids;
     Oil country tubular goods (OCTG) connectors (e.g., 
forged steel tubular connectors for API 5L pipes or OCTG for 
offshore oil and gas drilling and extraction);
     Military Specification (MIL) MIL-C-4109F and MIL-F-
3541; and

[[Page 64270]]

     International Organization for Standardization (ISO) 
ISO6150-B.
    To be excluded from the scope, products must have the 
appropriate standard or pressure markings and/or be accompanied by 
documentation showing product compliance to the applicable standard 
or pressure, e.g., ``API 5CT'' mark and/or a mill certification 
report.
    Subject carbon and alloy forged steel fittings are normally 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) 7307.92.3010, 7307.92.3030, 7307.92.9000, 7307.99.1000, 
7307.99.3000, 7307.99.5045, and 7307.99.5060. They may also be 
entered under HTSUS 7307.93.3010, 7307.93.3040, 7307.93.6000, 
7307.93.9010, 7307.93.9040, 7307.93.9060, and 7326.19.0010.
    The HTSUS subheadings and specifications are provided for 
convenience and customs purposes; the written description of the 
scope is dispositive.

[FR Doc. 2019-25043 Filed 11-20-19; 8:45 am]
BILLING CODE 3510-DS-P
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