Forged Steel Fluid End Blocks From India: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination, 31452-31454 [2020-11229]

Download as PDF 31452 Federal Register / Vol. 85, No. 101 / Tuesday, May 26, 2020 / Notices because the general scope language did not cover such products. As a result, Commerce did not consider whether Meridian’s Type B handles were subject to the exclusion for ‘‘finished merchandise.’’ 6 On July 18, 2016, the CIT sustained Commerce’s findings in the Final Results of Redetermination that Meridian’s Type B handles are not covered by the scope of the Orders.7 Commerce subsequently published notice of the CIT’s decision not in harmony with Commerce’s final scope ruling and notice of amended final scope ruling pursuant to the CIT’s decision.8 The Aluminum Extrusion Fair Trade Committee (AEFTC), the petitioner in the underlying investigations, appealed. On May 22, 2018, the CAFC reversed and remanded the CIT’s final judgement, instructed the CIT to vacate Commerce’s remand redetermination, and ordered the CIT to reinstate Commerce’s original scope ruling and remand for further proceedings consistent with the opinion.9 The CAFC held that Commerce’s original scope ruling determination (i.e., that Type B handles are included within the general scope of the Orders) was reasonable and supported by substantial evidence.10 The CAFC remanded for Commerce to clarify whether Type B handles are fully and permanently assembled at the time of entry.11 The CAFC reasoned if Commerce determined that the Type B handles are imported unassembled, the original scope ruling controls, but if Commerce determined that the Type B handles were imported fully and permanently assembled, then Commerce must address whether the Type B handles are excluded from the scope as ‘‘finished merchandise.’’ 12 On May 15, 2019, Commerce issued its Second Remand Redetermination in response to the CAFC’s remand order.13 In the Second Remand Redetermination, 6 See Final Results of Redetermination Pursuant to Court Remand, Meridian Products, LLC v. United States, Court No. 13–00246, Slip Op. 15–135 (CIT December 7, 2015) (Final Results of Redetermination). 7 See Meridian Products, LLC v. United States, Court No. 13–00246, Slip Op. 16–71 at 11. 8 See Aluminum Extrusions from the People’s Republic of China: Notice of Court Decision Not in Harmony With Final Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court Decision, 81 FR 52402 (August 8, 2016). 9 See Meridian Products, LLC v. United States, 890 F.3d 1272, 1282 (CAFC 2018). 10 Id., 890 F.3d at 1281. 11 Id. 12 Id. 13 See Final Results of Second Remand Redetermination Pursuant to Court Remand, Meridian Products, LLC v. United States, 890 F. 3d 1272 (CAFC 2018) (Second Remand Redetermination). VerDate Sep<11>2014 19:08 May 22, 2020 Jkt 250001 Commerce determined that the finished merchandise exclusion does not apply to the Type B handles and that the extruded aluminum component of each Type B handle is within the scope of the Orders, while the other components (plastic end caps and screws) are not.14 On April 6, 2020, the CIT sustained Commerce’s ruling in the Second Remand Redetermination.15 No party contested Commerce’s Second Remand Redetermination.16 Amended Final Scope Ruling There is now a final court decision with respect to Commerce’s Kitchen Appliance Door Handles Scope Ruling. Therefore, Commerce issues this second amended final scope ruling and finds that the extruded aluminum component of each Type B handle is within the scope of the Orders, while the other components (plastic end caps and screws) are not. Accordingly, Commerce will instruct U.S. Customs and Border Protection to continue to suspend liquidation of Meridian’s Type B handles until appropriate liquidation instructions are sent. As of the date of publication of this notice in the Federal Register, the cash deposit rate for entries of the extruded aluminum component of Meridian’s Type B handles will be the applicable cash deposit rate of the exporters of the merchandise from China to the United States. Notification to Interested Parties This notice is issued and published in accordance with section 516A(c)(1) and (e)(1) of the Tariff Act of 1930, as amended. Dated: May 18, 2020. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. [FR Doc. 2020–11205 Filed 5–22–20; 8:45 am] BILLING CODE 3510–DS–P 14 Id. 15 See Meridian Products, LLC v. United States, Court No. 13–00246, Slip Op. 20–43 (CIT April 6, 2020). 16 Id. PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 DEPARTMENT OF COMMERCE International Trade Administration [C–533–894] Forged Steel Fluid End Blocks From India: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of forged steel fluid end blocks (fluid end blocks) from India. The period of investigation (POI) is April 1, 2018 through March 31, 2019. Interested parties are invited to comment on this preliminary determination. DATES: Applicable May 26, 2020. FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas Czajkowski, 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) 482–3861 or (202) 482–1395, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background This preliminary determination is made in accordance with section 703(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 February 27, 2020, Commerce postponed the preliminary determination of this investigation to May 18, 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 discussed in the Preliminary Decision Memorandum is included as Appendix 1 See Forged Steel Fluid End Blocks from the Federal Republic of Germany, India, Italy and the People’s Republic of China: Initiation of Countervailing Duty Investigations, 85 FR 2385 (January 15, 2020) (Initiation Notice). 2 See Forged Steel Fluid End Blocks from the Federal Republic of Germany, India, Italy and the People’s Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigations, 85 FR 11336 (February 27, 2020). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination in the Countervailing Duty Investigation of Forged Steel Fluid End Blocks from India,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). E:\FR\FM\26MYN1.SGM 26MYN1 Federal Register / Vol. 85, No. 101 / Tuesday, May 26, 2020 / Notices II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement & 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 https://enforcement.trade.gov/frn/. The signed and electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation The products covered by this investigation are forged steel fluid end blocks from India. 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 preliminary determination and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum.6 Commerce is preliminarily modifying the scope language as it appeared in the Initiation Notice. See the revised scope in Appendix I. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.7 4 See Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997) (AD Preamble). 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 concurrently with this notice (Preliminary Scope Decision Memorandum). 7 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit, and section 771(5A) of the Act regarding specificity. VerDate Sep<11>2014 19:08 May 22, 2020 Jkt 250001 Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final countervailing duty (CVD) determination in this investigation with the final determinations in the concurrent antidumping duty (AD) investigations of fluid end blocks from Germany, India, and Italy based on a request made by the petitioners.8 Consequently, the final CVD determination will be issued on the same date as the final AD determinations, which are currently scheduled to be issued no later than September 29, 2020, unless postponed. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act. In this investigation, Commerce preliminarily calculated a rate for Bharat Forge Limited (Bharat Forge), the only mandatory respondent that was individually examined. The only rate that is not zero, de minimis, or based entirely on facts otherwise available is the rate calculated for Bharat Forge. Consequently, the rate calculated for Bharat Forge is also assigned as the rate for all other producers and exporters. 31453 Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation section entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date 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. As explained in the Preliminary Decision Memorandum, Ultra Engineers (Ultra) reports that it is not a producer or exporter of fluid end blocks from India.10 As provided in section 782(i)(1) of the Act, we intend to verify Ultra’s claim that it did not produce or sell the subject merchandise during the POI. Public Comment All interested parties will have the opportunity to submit case and rebuttal briefs on the preliminary scope determination. The deadline to submit these comments will be no later than 30 days after the publication of the Preliminary Determination preliminary determinations of the CVD Commerce preliminarily determines investigations of fluid end blocks from that the following estimated Germany, India, Italy, and China in the countervailable subsidy rates exist: Federal Register. Scope rebuttal briefs Subsidy rate (which are limited to issues raised in Company ad valorem the scope briefs) may be submitted no (percent) later than seven days after the deadline for the scope briefs. These deadlines 9 Bharat Forge Limited .............. 4.69 apply to the AD and CVD fluid end All Others .................................. 4.69 blocks investigations, regardless of the deadlines of the preliminary Suspension of Liquidation determinations in the AD investigations. In accordance with section For all scope briefs and rebuttals 703(d)(1)(B) and (d)(2) of the Act, thereto, parties must file identical documents simultaneously on the 8 See Petitioners’ Letter, ‘‘Forged Steel Fluid End records of all the ongoing AD and CVD Blocks from China, Germany, India, and Italy: fluid end blocks investigations. No new Petitioner’s Request for Alignment of the factual information or business Countervailing Duty Investigations with the Concurrent Antidumping Duty Investigations,’’ proprietary information may be dated April 1, 2020. included in either scope briefs or 9 As discussed in the Preliminary Decision rebuttal scope briefs. Memorandum, Commerce has found the following company to be cross-owned with Bharat Forge Limited: Saarloha Advanced Materials Private Limited. PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 10 See Preliminary Decision Memorandum at section II.B., ‘‘Treatment of Ultra Engineers.’’ E:\FR\FM\26MYN1.SGM 26MYN1 31454 Federal Register / Vol. 85, No. 101 / Tuesday, May 26, 2020 / Notices Case briefs or other written comments regarding non-scope matters 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 case briefs, may be submitted no later than seven days after the deadline date for case briefs.11 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. 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 the U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, 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. Note that Commerce has modified certain of its requirements for serving documents containing business proprietary information, until July 17, 2020, unless extended.12 International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its determination. Pursuant to section 705(b)(2) of the Act, if the final determination is affirmative, the ITC will make its final injury determination before the later of 120 days after the date of this preliminary determination or 45 days after Commerce’s final determination. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) 11 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). 12 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 29615 (May 18, 2020). VerDate Sep<11>2014 19:08 May 22, 2020 Jkt 250001 and 777(i) of the Act and 19 CFR 351.205(c). Dated: May 18, 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. PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 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 investigation is dispositive. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope Comments IV. Scope of the Investigation V. Subsidies Valuation VI. Benchmarks and Interest Rates VII. Analysis of Programs VIII. Conclusion [FR Doc. 2020–11229 Filed 5–22–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–428–848] Forged Steel Fluid End Blocks From the Federal Republic of Germany: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of forged steel fluid end blocks (fluid end blocks) from the Federal Republic of Germany (Germany) for the period of investigation (POI) January 1, 2018 through December 31, 2018. Interested parties are invited to comment on this preliminary determination. DATES: Applicable May 26, 2020. FOR FURTHER INFORMATION CONTACT: Bob Palmer or Joseph Dowling, AD/CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue AGENCY: E:\FR\FM\26MYN1.SGM 26MYN1

Agencies

[Federal Register Volume 85, Number 101 (Tuesday, May 26, 2020)]
[Notices]
[Pages 31452-31454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11229]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-894]


Forged Steel Fluid End Blocks From India: Preliminary Affirmative 
Countervailing Duty Determination, and Alignment of Final Determination 
With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of forged steel fluid end blocks (fluid end blocks) from 
India. The period of investigation (POI) is April 1, 2018 through March 
31, 2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable May 26, 2020.

FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas 
Czajkowski, 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) 482-3861 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(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 February 27, 2020, Commerce postponed the preliminary 
determination of this investigation to May 18, 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 discussed in the Preliminary Decision Memorandum is included as 
Appendix

[[Page 31453]]

II to this notice. The Preliminary Decision Memorandum is a public 
document and is on file electronically via Enforcement & 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 https://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Forged Steel Fluid End Blocks from the Federal Republic 
of Germany, India, Italy and the People's Republic of China: 
Initiation of Countervailing Duty Investigations, 85 FR 2385 
(January 15, 2020) (Initiation Notice).
    \2\ See Forged Steel Fluid End Blocks from the Federal Republic 
of Germany, India, Italy and the People's Republic of China: 
Postponement of Preliminary Determination in the Countervailing Duty 
Investigations, 85 FR 11336 (February 27, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Forged 
Steel Fluid End Blocks from India,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are forged steel fluid 
end blocks from India. 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.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (AD Preamble).
    \5\ See Initiation Notice.
---------------------------------------------------------------------------

    For a summary of the product coverage comments and rebuttal 
responses submitted to the record for this preliminary determination 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\6\ Commerce is 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the revised scope in Appendix I.
---------------------------------------------------------------------------

    \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 concurrently with this notice (Preliminary 
Scope Decision Memorandum).
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\
---------------------------------------------------------------------------

    \7\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit, and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determinations in the concurrent 
antidumping duty (AD) investigations of fluid end blocks from Germany, 
India, and Italy based on a request made by the petitioners.\8\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determinations, which are currently scheduled to 
be issued no later than September 29, 2020, unless postponed.
---------------------------------------------------------------------------

    \8\ See Petitioners' Letter, ``Forged Steel Fluid End Blocks 
from China, Germany, India, and Italy: Petitioner's Request for 
Alignment of the Countervailing Duty Investigations with the 
Concurrent Antidumping Duty Investigations,'' dated April 1, 2020.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce preliminarily calculated a rate for 
Bharat Forge Limited (Bharat Forge), the only mandatory respondent that 
was individually examined. The only rate that is not zero, de minimis, 
or based entirely on facts otherwise available is the rate calculated 
for Bharat Forge. Consequently, the rate calculated for Bharat Forge is 
also assigned as the rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                                                               rate ad
                          Company                              valorem
                                                              (percent)
------------------------------------------------------------------------
Bharat Forge Limited \9\...................................         4.69
All Others.................................................         4.69
------------------------------------------------------------------------

Suspension of Liquidation
---------------------------------------------------------------------------

    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following company to be cross-owned with 
Bharat Forge Limited: Saarloha Advanced Materials Private Limited.
---------------------------------------------------------------------------

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date 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. 
As explained in the Preliminary Decision Memorandum, Ultra Engineers 
(Ultra) reports that it is not a producer or exporter of fluid end 
blocks from India.\10\ As provided in section 782(i)(1) of the Act, we 
intend to verify Ultra's claim that it did not produce or sell the 
subject merchandise during the POI.
---------------------------------------------------------------------------

    \10\ See Preliminary Decision Memorandum at section II.B., 
``Treatment of Ultra Engineers.''
---------------------------------------------------------------------------

Public Comment

    All interested parties will have the opportunity to submit case and 
rebuttal briefs on the preliminary scope determination. The deadline to 
submit these comments will be no later than 30 days after the 
publication of the preliminary determinations of the CVD investigations 
of fluid end blocks from Germany, India, Italy, and China in the 
Federal Register. Scope rebuttal briefs (which are limited to issues 
raised in the scope briefs) may be submitted no later than seven days 
after the deadline for the scope briefs. These deadlines apply to the 
AD and CVD fluid end blocks investigations, regardless of the deadlines 
of the preliminary determinations in the AD investigations. For all 
scope briefs and rebuttals thereto, parties must file identical 
documents simultaneously on the records of all the ongoing AD and CVD 
fluid end blocks investigations. No new factual information or business 
proprietary information may be included in either scope briefs or 
rebuttal scope briefs.

[[Page 31454]]

    Case briefs or other written comments regarding non-scope matters 
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 case briefs, may be submitted no later than 
seven days after the deadline date for case briefs.\11\ 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.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    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 the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, 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. Note that Commerce has modified certain of its requirements for 
serving documents containing business proprietary information, until 
July 17, 2020, unless extended.\12\
---------------------------------------------------------------------------

    \12\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020).
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. Pursuant 
to section 705(b)(2) of the Act, if the final determination is 
affirmative, the ITC will make its final injury determination before 
the later of 120 days after the date of this preliminary determination 
or 45 days after Commerce's final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: May 18, 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 investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Benchmarks and Interest Rates
VII. Analysis of Programs
VIII. Conclusion

[FR Doc. 2020-11229 Filed 5-22-20; 8:45 am]
BILLING CODE 3510-DS-P

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