Forged Steel Fluid End Blocks From Italy: Final Affirmative Determination of Sales at Less Than Fair Value, 79996-79999 [2020-27334]
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79996
Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices
will be terminated, and all cash deposits
will be refunded. If the ITC determines
that material injury or threat of material
injury does exist, Commerce will issue
an antidumping duty order directing
CBP to assess, upon further instruction
by Commerce, antidumping duties on
all imports of the subject merchandise,
entered, or withdrawn from warehouse,
for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding Administrative
Protective Order
This notice serves as the only
reminder to parties subject to an
administrative protective order (APO) of
their responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
notification of the return or destruction
of APO materials or conversion to
judicial protective order is hereby
requested. Failure to comply with the
regulations and the terms of an APO is
a violation subject to sanction.
Notification to Interested Parties
We are issuing and publishing this
determination and notice in accordance
with sections 735(d) and 777(i) of the
Act and 19 CFR 351.210(c).
Dated: December 4, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
jbell on DSKJLSW7X2PROD with NOTICES
Appendix I
Scope of the Investigation
The merchandise covered by this
investigation is certain tobacco cigarettes,
commonly referred to as ‘‘4th tier cigarettes.’’
The subject cigarettes are composed of a
tobacco blend rolled in paper, have a
nominal minimum total length of 7.0 cm but
do not exceed 12.0 cm in total nominal
length, and have a nominal diameter of less
than 1.3 cm. These sizes of cigarettes are
frequently referred to as ‘‘Kings’’ and
‘‘100’s,’’ but subject merchandise that meets
the physical description of the scope is
included regardless of the marketing
description of the size of the cigarettes.
Subject merchandise typically has a tobacco
blend that consists of 10% or more tobacco
stems.
Subject merchandise is typically sold in
packs of 20 cigarettes per pack which
generally includes the marking ‘‘20 Class A
Cigarettes’’ but are included regardless of
packaging. 4th tier cigarette packages are
typically sold in boxes without a rounded
internal corner and without embossed
aluminum foil inside the pack.
Both menthol and non-menthol cigarettes
and cigarettes with or without a filter
attached are covered by the scope of this
investigation.
Merchandise covered by this investigation
is currently classified in the Harmonized
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Tariff Schedule of the United States (HTSUS)
under subheading 2402.20.8000. This HTSUS
subheading is 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 Issues and
Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary
Determination
V. Discussion of the Issues
General Issues
Comment 1: Whether 4th Tier Cigarettes
are a Distinct Domestic Like Product
Comment 2: Whether the Petition
Established Industry Support to Initiate
the Investigation
Comment 3: Whether Commerce Clarified
the Scope of the Investigation for Proper
Product Comparisons
Comment 4: Whether Commerce Correctly
Determined Negative Critical
Circumstances
KT&G Calculation Issues
Comment 5: Whether Commerce Should
Deduct Korean Taxes in the Normal
Value (NV) Calculation
Comment 6: Whether Commerce should
include KT&G’s sales to Non-Korean
Military Forces in Home Market sales
Comment 7: Whether Commerce’s level of
trade (LOT) adjustment in place of a
constructed export price (CEP) Offset
was in accordance with law
Comment 8: Whether KT&G unlawfully
deducted U.S. Taxes from KT&G’s U.S.
Price
Comment 9: Whether Commerce Erred in
the Rate It Selected to Compute KT&G
USA’s Imputed Credit Expenses and
Inventory Carrying Costs
Comment 10: Whether Commerce Erred in
its Treatment of REBATE4U,
REBATE5U, and REBATE6U
Comment 11: Whether Commerce
Improperly Assumed Certain Returns
Were Billing Adjustments in the U.S.
Market
Comment 12: Whether Commerce
Improperly Classified KT&G’s Repacking
Costs as a Selling Expense
VI. Recommendation
[FR Doc. 2020–27308 Filed 12–10–20; 8:45 am]
forged steel fluid end blocks (fluid end
blocks) from Italy are being, or are likely
to be, sold in the United States at less
than fair value (LTFV) for the period of
investigation October 1, 2018 through
September 30, 2019.
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT:
Dmitry Vladimirov or Hermes Pinilla,
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) 482–0665 or
(202) 482–3477, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 23, 2020, Commerce
published in the Federal Register its
preliminary affirmative determination
in the LTFV investigation of fluid end
blocks from Italy, in which we also
postponed the final determination until
December 7, 2020.1 We invited
interested parties to comment on the
Preliminary Determination. A summary
of the events that occurred since
Commerce published the Preliminary
Determination, as well as a full
discussion of the issues raised by parties
for this final determination, may be
found in the Issues and Decision
Memorandum.2
Scope of the Investigation
The products covered by this
investigation are fluid end blocks from
Italy. For a full description of the scope
of this investigation, see the ‘‘Scope of
the Investigation’’ in Appendix I.
Scope Comments
During the course of this
investigation, Commerce received scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum to address these
comments.3 We received comments
from interested parties on the
Preliminary Scope Decision
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–475–840]
Forged Steel Fluid End Blocks From
Italy: Final Affirmative Determination of
Sales at Less Than Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that imports of
AGENCY:
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1 See Forged Steel Fluid End Blocks from Italy:
Preliminary Affirmative Determination of Sales at
Less Than Fair Value, Postponement of Final
Determination, and Extension of Provisional
Measures, 85 FR 44500 (July 23, 2020) (Preliminary
Determination), and accompanying Preliminary
Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination in the Less-Than-Fair-Value
Investigation of Forged Steel Fluid End Blocks from
Italy,’’ dated concurrently with, and hereby adopted
by, this notice (Issues and Decision Memorandum).
3 See Memorandum, ’’ Forged Steel Fluid End
Blocks from the Federal Republic of Germany,
India, Italy, and the People’s Republic of China:
Scope Comments Decision Memorandum for the
Preliminary Determinations,’’ dated May 18, 2020
(Preliminary Scope Decision Memorandum).
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices
Use of Adverse Facts Available
Companies that did not respond to
our quantity and value questionnaires,
IMER International S.p.A., Galperti
Group, Mimest S.p.A., and P.
Technologies S.r.l., failed to cooperate
in this investigation. Therefore, in the
Preliminary Determination, pursuant to
sections 776(a) and (b) of the Act,
Commerce assigned these companies a
Analysis of Comments Received
rate based on adverse facts available
All issues raised in the case and
(AFA). There is no new information on
rebuttal briefs that were submitted by
the record that would cause us to revisit
parties in this investigation are
our determination to apply AFA to
addressed in the Issues and Decision
IMER International S.p.A., Galperti
Memorandum. A list of the issues
Group, Mimest S.p.A., and P.
addressed in the Issues and Decision
Technologies S.r.l. Accordingly, we
Memorandum is attached to this notice
continue to find that the application of
at Appendix II. The Issues and Decision AFA pursuant to sections 776(a) and (b)
Memorandum is a public document and of the Act is warranted with respect to
is on file electronically via Enforcement these companies. Commerce has
and Compliance’s Antidumping and
assigned to these companies’ exports of
Countervailing Duty Centralized
the subject merchandise the rate of
Electronic Service System (ACCESS).
58.48 percent, which is Lucchini’s
ACCESS is available to registered users
highest comparison-specific margin.6
at https://access.trade.gov. In addition, a Because this rate is not secondary
complete version of the Issues and
information, but rather is based on
Decision Memorandum can be accessed information obtained in the course of
directly at https://enforcement.trade.gov/ the investigation, Commerce need not
frn/.
corroborate this rate pursuant to section
776(c) of the Act.
Verification
Memorandum, which we address in the
Final Scope Decision Memorandum,
dated concurrently with, and hereby
adopted by, this final determination.4
Commerce is not modifying the scope
language as it appeared in the
Preliminary Determination. See
Appendix I for the final scope of the
investigation.
Commerce was unable to conduct onsite verification of the information
relied upon in making its final
determination in this investigation as
provided for in section 782(i) of the
Tariff Act of 1930, as amended (the Act).
Accordingly, we took additional steps in
lieu of on-site verification and requested
additional documentation and
information.5
Changes Since the Preliminary
Determination
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Based on our analysis of the
comments received, we made certain
changes to the margin calculations for
Lucchini. For a discussion of these
changes, see the ‘‘Changes from the
Preliminary Determination’’ section of
the Issues and Decision Memorandum.
4 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
Final Determinations,’’ dated December 7, 2020
(Final Scope Decision Memorandum).
5 See Commerce’s Letters, dated September 2,
2020; see also Metalcam’s Letters, both titled
‘‘Antidumping Duty Investigation of Forged Steel
Fluid End Blocks from Italy: Metalcam Post-Prelim
Questionnaire Response,’’ and dated September 11,
2020 (submitting, separately, responses to the sales
and cost portions of the questionnaire in lieu of
verification); and Lucchini’s Letter, ‘‘Antidumping
Duty Investigation of Forged Steel Fluid End Blocks
from Italy: Lucchini Mame Forge S.p.A PostPreliminary Questionnaire,’’ dated September 11,
2020.
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All-Others Rate
Section 735(c)(5)(A) of the Act
provides that the estimated weightedaverage dumping margin for all other
producers and exporters not
individually investigated shall be equal
to the weighted average of the estimated
weighted-average dumping margins
established for exporters and producers
individually investigated excluding
rates that are zero, de minimis, or
determined entirely under section 776
of the Act. Commerce has determined
that the estimated weighted-average
dumping margin for Metalcam S.p.A. is
zero. Therefore, the only rate that is not
zero, de minimis, or based entirely on
facts otherwise available, is the rate
calculated for Lucchini Mame Forge
S.p.A. Consequently, the rate calculated
for Lucchini Mame Forge S.p.A., is
assigned as the rate for all other
producers and exporters.
Final Determination
The final estimated weighted-average
dumping margins are as follows:
6 See Memorandum, ‘‘Forged Steel Fluid End
Blocks from Italy—Final Determination Analysis
Memorandum for Lucchini Mame` Forge S.p.A.,’’
dated December 7, 2020 (Lucchini Final Analysis
Memorandum) at 90 of the attached margincalculation program output.
7 See Memorandum, ‘‘Forged Steel Fluid End
Blocks from Italy—Preliminary Determination
Analysis Memorandum for Metalcam S.p.A.,’’ dated
July 16, 2020.
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Exporter or producer
Metalcam S.p.A ..........................
Lucchini Mame Forge S.p.A .......
IMER International S.p.A ............
Galperti Group ............................
Mimest S.p.A ..............................
P. Technologies S.r.l ..................
All Others ....................................
79997
Estimated
weightedaverage
dumping
margin
(percent)
7 0.00
8 7.33
** 58.48
** 58.48
** 58.48
** 58.48
7.33
Disclosure
We intend to disclose the calculations
performed for Lucchini in this final
determination within five days of the
date of publication of this notice to
parties in this proceeding in accordance
with 19 CFR 351.224(b).9
Continuation of Suspension of
Liquidation
In accordance with section
735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border
Protection (CBP) to continue to suspend
liquidation of all appropriate entries of
subject merchandise, as described in
Appendix I of this notice, entered, or
withdrawn from warehouse, for
consumption on or after July 23, 2020,
the date of publication of Preliminary
Determination in the Federal Register
except for those entries of subject
merchandise produced and exported by
Metalcam S.p.A. Because the estimated
weighted-average dumping margin for
Metalcam S.p.A. is zero, we will not be
directing CBP to suspend liquidation of
entries of the subject merchandise
produced and exported by this
company.
Pursuant to section 735(c)(1)(B)(ii) of
the Act and 19 CFR 351.210(d), where
appropriate, Commerce will instruct
CBP to require a cash deposit equal to
the estimated weighted-average
dumping margin or the estimated allothers rate, as follows: (1) The cash
deposit rate for the respondents listed
above will be equal to the companyspecific estimated weighted-average
dumping margin determined in this
final determination; (2) if the exporter is
not a respondent identified above but
the producer is, then the cash deposit
rate will be equal to the companyspecific estimated weighted-average
dumping margin established for that
producer of the subject merchandise;
and (3) the cash deposit rate for all other
producers and exporters will be equal to
8 See
Lucchini Final Analysis Memorandum.
are not disclosing any final margin
calculations for Metalcam because we made no
changes to the preliminary margin calculations for
Metalcam.
9 We
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jbell on DSKJLSW7X2PROD with NOTICES
the all-others estimated weightedaverage dumping margin. These
suspension-of-liquidation instructions
will remain in effect until further notice.
Because the estimated weightedaverage dumping margin for Metalcam
S.p.A. is zero, entries of shipments of
subject merchandise from this company
will not be subject to suspension of
liquidation or cash deposit
requirements. In such situations,
Commerce also applies the exclusion to
the provisional measures to the
producer/exporter combination that was
examined in the investigation.
Accordingly, Commerce will be
directing CBP not to suspend
liquidation of entries of subject
merchandise produced and exported by
Metalcam S.p.A. However, entries of
shipments of subject merchandise from
this company in any other producer/
exporter combination (i.e., where
Metalcam S.p.A, is either the producer
or the exporter, but not both), or by
third parties that sourced subject
merchandise from the excluded
producer/exporter combination, will be
subject to suspension of liquidation at
the all-others rate.
Because the estimated weightedaverage dumping margin is zero for the
producer/exporter combination
identified above, entries of shipments of
subject merchandise from this producer/
exporter combination will be excluded
from the potential antidumping duty
order. Such an exclusion will not be
applicable to merchandise exported to
the United States by this respondent in
any other producer/exporter
combinations or by third parties that
sourced subject merchandise from the
excluded producer/exporter
combination.
While Commerce normally adjusts
cash deposits for estimated antidumping
duties by the amount of export subsidies
countervailed in a companion
countervailing duty (CVD) proceeding
when CVD provisional measures are in
effect, we have not adjusted the cash
deposit rates listed above because
Commerce found no countervailable
export subsidies in the final
determination of the companion CVD
investigation.10
International Trade Commission
Notification
In accordance with section 735(d) of
the Act, we will notify the International
Trade Commission (ITC) of the final
affirmative determination of sales at
10 See the Final Affirmative Countervailing Duty
Determination of Forged Steel Fluid End Blocks
from Italy and accompanying Issues and Decision
Memorandum dated concurrently with this final
determination.
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LTFV. Because Commerce’s final
determination is affirmative, in
accordance with section 735(b)(2) of the
Act, the ITC will make its final
determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports or
sales (or the likelihood of sales) for
importation of fluid end blocks from
Italy no later than 45 days after this final
determination. If the ITC determines
that such injury does not exist, this
proceeding will be terminated, and all
cash deposits posted will be refunded
and suspension of liquidation will be
lifted. If the ITC determines that such
injury does exist, Commerce will issue
an AD order directing CBP to assess,
upon further instruction by Commerce,
antidumping duties on all imports of the
subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section.
Notification Regarding Administrative
Protective Orders
This notice will serve as a final
reminder to the parties subject to
administrative protective order (APO) of
their responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of return or
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and the terms of an
APO is a sanctionable violation.
Notification to Interested Parties
This determination and this notice are
issued and published pursuant to
sections 735(d) and 777(i)(1) of the Act
and 19 CFR 351.210(c).
Dated: December 7, 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
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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.
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Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Changes from the Preliminary
Determination
IV. Discussion of the Issues
Comment 1: Whether Application of
Adverse Facts Available (AFA) is
Warranted for Metalcam
Comment 2: Constructed Value Profit and
Constructed Value Selling Expenses
Comment 3: Date of Sale for Metalcam
Comment 4: Lucchini’s Direct Material
Costs
Comment 5: Major Input/Transactions
Disregarded Adjustment
Comment 6: Constructed Export Price
Profit Calculation for Lucchini
Comment 7: Commission Rate for Lucchini
Comment 8: Inventory Carrying Costs for
Lucchini
V. Recommendation
Period of Investigation
The period of investigation is April 1,
2018 through March 31, 2019.
[FR Doc. 2020–27334 Filed 12–10–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–894]
Forged Steel Fluid End Blocks from
India: Final Affirmative Countervailing
Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
forged steel fluid end blocks (fluid end
blocks) from India.
SUMMARY:
DATES:
end blocks from India.1 A summary of
the events that occurred since
Commerce published the Preliminary
Determination, as well as a full
discussion of the issues raised by parties
for this final determination, may be
found in the Issues and Decision
Memorandum which is hereby adopted
by this notice.2 The Issues and Decision
Memorandum is a public document and
is on file electronically via Enforcement
and Compliance’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (ACCESS).
ACCESS is available to registered users
at https://access.trade.gov. In addition, a
complete version of the Final Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed and electronic versions of
the Issues and Decision Memorandum
are identical in content.
Applicable December 11, 2020.
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
During the course of this
investigation, Commerce received scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum to address these
comments.3 We received comments
from interested parties on the
Preliminary Scope Decision
Memorandum, which we address in the
Final Scope Decision Memorandum,
dated concurrently with, and hereby
adopted by, this final determination.4
Commerce is not modifying the scope
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:
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Background
On May 26, 2020, Commerce
published the Preliminary
Determination of this countervailing
duty (CVD) investigation, which also
aligned the final determination of this
CVD investigation with the final
determination in the companion
antidumping duty investigation of fluid
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1 See Forged Steel Fluid End Blocks from India:
Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final
Determination with Final Antidumping Duty
Determination, 85 FR 31452 (May 26, 2020)
(Preliminary Determination).
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Fluid End
Blocks from India,’’ dated concurrently with, and
hereby adopted by, this notice (Issues and Decision
Memorandum).
3 See Memorandum, ‘‘Forged Steel Fluid End
Blocks from the Federal Republic of Germany,
India, Italy, and the People’s Republic of China:
Scope Comments Decision Memorandum for the
Preliminary Determinations,’’ dated May 18, 2020
(Preliminary Scope Decision Memorandum).
4 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 Final
Determinations,’’ dated December 7, 2020 (Final
Scope Decision Memorandum).
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79999
language as it appeared in the
Preliminary Determination. See
Appendix I for the final scope of this
investigation.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues raised by parties is
attached to this notice at Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce 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.5 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
Verification
Commerce normally verifies
information relied upon in making its
final determination, pursuant to section
782(i)(1) of the Tariff Act of 1930, as
amended (the Act). However, during the
course of this investigation, we were
unable to conduct on-site verification
due to travel restrictions.6 Consistent
with section 776(a)(2)(D) of the Act,
Commerce relied on the information
submitted on the record, which we used
in making our Preliminary
Determination and Post-Preliminary
Analysis,7 as facts available in making
our final determination.
Changes Since the Preliminary
Determination and Post-Preliminary
Analysis
Based on our review and analysis of
the comments received from parties, we
made certain changes to the subsidy rate
calculations for Bharat Forge Limited
(Bharat Forge). For a discussion of these
changes, see the Issues and Decision
Memorandum.
5 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.
6 See Memorandum, ‘‘Countervailing Duty
Investigation of Forged Steel Fittings from India:
Cancellation of Verification and Setting of Briefing
Schedule,’’ dated August 31, 2020.
7 See Memorandum, ‘‘Countervailing Duty
Investigation of Forged Steel Fluid End Blocks from
India: Post-Preliminary Analysis,’’ dated August 10,
2020 (Post-Preliminary Analysis).
E:\FR\FM\11DEN1.SGM
11DEN1
]]>Agencies
[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 79996-79999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27334]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-840]
Forged Steel Fluid End Blocks From Italy: Final Affirmative
Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of forged steel fluid end blocks (fluid end blocks) from Italy are
being, or are likely to be, sold in the United States at less than fair
value (LTFV) for the period of investigation October 1, 2018 through
September 30, 2019.
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov or Hermes Pinilla,
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) 482-0665 or (202)
482-3477, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 23, 2020, Commerce published in the Federal Register its
preliminary affirmative determination in the LTFV investigation of
fluid end blocks from Italy, in which we also postponed the final
determination until December 7, 2020.\1\ We invited interested parties
to comment on the Preliminary Determination. A summary of the events
that occurred since Commerce published the Preliminary Determination,
as well as a full discussion of the issues raised by parties for this
final determination, may be found in the Issues and Decision
Memorandum.\2\
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\1\ See Forged Steel Fluid End Blocks from Italy: Preliminary
Affirmative Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Extension of Provisional
Measures, 85 FR 44500 (July 23, 2020) (Preliminary Determination),
and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Forged Steel Fluid End Blocks from Italy,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are fluid end blocks
from Italy. For a full description of the scope of this investigation,
see the ``Scope of the Investigation'' in Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments.\3\ We received comments
from interested parties on the Preliminary Scope Decision
[[Page 79997]]
Memorandum, which we address in the Final Scope Decision Memorandum,
dated concurrently with, and hereby adopted by, this final
determination.\4\ Commerce is not modifying the scope language as it
appeared in the Preliminary Determination. See Appendix I for the final
scope of the investigation.
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\3\ See Memorandum, '' Forged Steel Fluid End Blocks from the
Federal Republic of Germany, India, Italy, and the People's Republic
of China: Scope Comments Decision Memorandum for the Preliminary
Determinations,'' dated May 18, 2020 (Preliminary Scope Decision
Memorandum).
\4\ 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 Final
Determinations,'' dated December 7, 2020 (Final Scope Decision
Memorandum).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice at Appendix II. The
Issues and Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at https://access.trade.gov. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at https://enforcement.trade.gov/frn/.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation as provided for in section 782(i) of the Tariff Act of
1930, as amended (the Act). Accordingly, we took additional steps in
lieu of on-site verification and requested additional documentation and
information.\5\
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\5\ See Commerce's Letters, dated September 2, 2020; see also
Metalcam's Letters, both titled ``Antidumping Duty Investigation of
Forged Steel Fluid End Blocks from Italy: Metalcam Post-Prelim
Questionnaire Response,'' and dated September 11, 2020 (submitting,
separately, responses to the sales and cost portions of the
questionnaire in lieu of verification); and Lucchini's Letter,
``Antidumping Duty Investigation of Forged Steel Fluid End Blocks
from Italy: Lucchini Mame Forge S.p.A Post-Preliminary
Questionnaire,'' dated September 11, 2020.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our analysis of the comments received, we made certain
changes to the margin calculations for Lucchini. For a discussion of
these changes, see the ``Changes from the Preliminary Determination''
section of the Issues and Decision Memorandum.
Use of Adverse Facts Available
Companies that did not respond to our quantity and value
questionnaires, IMER International S.p.A., Galperti Group, Mimest
S.p.A., and P. Technologies S.r.l., failed to cooperate in this
investigation. Therefore, in the Preliminary Determination, pursuant to
sections 776(a) and (b) of the Act, Commerce assigned these companies a
rate based on adverse facts available (AFA). There is no new
information on the record that would cause us to revisit our
determination to apply AFA to IMER International S.p.A., Galperti
Group, Mimest S.p.A., and P. Technologies S.r.l. Accordingly, we
continue to find that the application of AFA pursuant to sections
776(a) and (b) of the Act is warranted with respect to these companies.
Commerce has assigned to these companies' exports of the subject
merchandise the rate of 58.48 percent, which is Lucchini's highest
comparison-specific margin.\6\ Because this rate is not secondary
information, but rather is based on information obtained in the course
of the investigation, Commerce need not corroborate this rate pursuant
to section 776(c) of the Act.
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\6\ See Memorandum, ``Forged Steel Fluid End Blocks from Italy--
Final Determination Analysis Memorandum for Lucchini Mam[egrave]
Forge S.p.A.,'' dated December 7, 2020 (Lucchini Final Analysis
Memorandum) at 90 of the attached margin-calculation program output.
---------------------------------------------------------------------------
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act. Commerce has determined that the estimated weighted-average
dumping margin for Metalcam S.p.A. is zero. Therefore, the only rate
that is not zero, de minimis, or based entirely on facts otherwise
available, is the rate calculated for Lucchini Mame Forge S.p.A.
Consequently, the rate calculated for Lucchini Mame Forge S.p.A., is
assigned as the rate for all other producers and exporters.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
---------------------------------------------------------------------------
\7\ See Memorandum, ``Forged Steel Fluid End Blocks from Italy--
Preliminary Determination Analysis Memorandum for Metalcam S.p.A.,''
dated July 16, 2020.
\8\ See Lucchini Final Analysis Memorandum.
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter or producer dumping
margin
(percent)
------------------------------------------------------------------------
Metalcam S.p.A.............................................. \7\ 0.00
Lucchini Mame Forge S.p.A................................... \8\ 7.33
IMER International S.p.A.................................... ** 58.48
Galperti Group.............................................. ** 58.48
Mimest S.p.A................................................ ** 58.48
P. Technologies S.r.l....................................... ** 58.48
All Others.................................................. 7.33
------------------------------------------------------------------------
Disclosure
We intend to disclose the calculations performed for Lucchini in
this final determination within five days of the date of publication of
this notice to parties in this proceeding in accordance with 19 CFR
351.224(b).\9\
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\9\ We are not disclosing any final margin calculations for
Metalcam because we made no changes to the preliminary margin
calculations for Metalcam.
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of subject merchandise,
as described in Appendix I of this notice, entered, or withdrawn from
warehouse, for consumption on or after July 23, 2020, the date of
publication of Preliminary Determination in the Federal Register except
for those entries of subject merchandise produced and exported by
Metalcam S.p.A. Because the estimated weighted-average dumping margin
for Metalcam S.p.A. is zero, we will not be directing CBP to suspend
liquidation of entries of the subject merchandise produced and exported
by this company.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), where appropriate, Commerce will instruct CBP to require a
cash deposit equal to the estimated weighted-average dumping margin or
the estimated all-others rate, as follows: (1) The cash deposit rate
for the respondents listed above will be equal to the company-specific
estimated weighted-average dumping margin determined in this final
determination; (2) if the exporter is not a respondent identified above
but the producer is, then the cash deposit rate will be equal to the
company-specific estimated weighted-average dumping margin established
for that producer of the subject merchandise; and (3) the cash deposit
rate for all other producers and exporters will be equal to
[[Page 79998]]
the all-others estimated weighted-average dumping margin. These
suspension-of-liquidation instructions will remain in effect until
further notice.
Because the estimated weighted-average dumping margin for Metalcam
S.p.A. is zero, entries of shipments of subject merchandise from this
company will not be subject to suspension of liquidation or cash
deposit requirements. In such situations, Commerce also applies the
exclusion to the provisional measures to the producer/exporter
combination that was examined in the investigation. Accordingly,
Commerce will be directing CBP not to suspend liquidation of entries of
subject merchandise produced and exported by Metalcam S.p.A. However,
entries of shipments of subject merchandise from this company in any
other producer/exporter combination (i.e., where Metalcam S.p.A, is
either the producer or the exporter, but not both), or by third parties
that sourced subject merchandise from the excluded producer/exporter
combination, will be subject to suspension of liquidation at the all-
others rate.
Because the estimated weighted-average dumping margin is zero for
the producer/exporter combination identified above, entries of
shipments of subject merchandise from this producer/exporter
combination will be excluded from the potential antidumping duty order.
Such an exclusion will not be applicable to merchandise exported to the
United States by this respondent in any other producer/exporter
combinations or by third parties that sourced subject merchandise from
the excluded producer/exporter combination.
While Commerce normally adjusts cash deposits for estimated
antidumping duties by the amount of export subsidies countervailed in a
companion countervailing duty (CVD) proceeding when CVD provisional
measures are in effect, we have not adjusted the cash deposit rates
listed above because Commerce found no countervailable export subsidies
in the final determination of the companion CVD investigation.\10\
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\10\ See the Final Affirmative Countervailing Duty Determination
of Forged Steel Fluid End Blocks from Italy and accompanying Issues
and Decision Memorandum dated concurrently with this final
determination.
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) of the Act, the
ITC will make its final determination as to whether the domestic
industry in the United States is materially injured, or threatened with
material injury, by reason of imports or sales (or the likelihood of
sales) for importation of fluid end blocks from Italy no later than 45
days after this final determination. If the ITC determines that such
injury does not exist, this proceeding will be terminated, and all cash
deposits posted will be refunded and suspension of liquidation will be
lifted. If the ITC determines that such injury does exist, Commerce
will issue an AD order directing CBP to assess, upon further
instruction by Commerce, antidumping duties on all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Notification Regarding Administrative Protective Orders
This notice will serve as a final reminder to the parties subject
to administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return or destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR
351.210(c).
Dated: December 7, 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.
[[Page 79999]]
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Changes from the Preliminary Determination
IV. Discussion of the Issues
Comment 1: Whether Application of Adverse Facts Available (AFA)
is Warranted for Metalcam
Comment 2: Constructed Value Profit and Constructed Value
Selling Expenses
Comment 3: Date of Sale for Metalcam
Comment 4: Lucchini's Direct Material Costs
Comment 5: Major Input/Transactions Disregarded Adjustment
Comment 6: Constructed Export Price Profit Calculation for
Lucchini
Comment 7: Commission Rate for Lucchini
Comment 8: Inventory Carrying Costs for Lucchini
V. Recommendation
[FR Doc. 2020-27334 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P
