Forged Steel Fluid End Blocks From the Federal Republic of Germany: Final Affirmative Countervailing Duty Determination, 80011-80014 [2020-27335]
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices
733(e)(2)(A) of the Act, suspension of
liquidation of silicon metal from Iceland
as described in the ‘‘Scope of the
investigations’’ in Appendix I, shall
apply to unliquidated entries of
merchandise from imports of silicon
metal exported by PCC Bakki and all
other producers/exporters from Iceland,
that are entered, or withdrawn from
warehouse, for consumption on or after
the date which is 90 days before the
publication of this notice, the date
suspension of liquidation is first
ordered.
We will also instruct CBP, pursuant to
section 733(d)(1)(B) of the Act and 19
CFR 351.205(d) to require a cash deposit
equal to the margins indicated in the
charts above. These suspension of
liquidation instructions will remain in
effect until further notice.
Verification
Because each mandatory respondent
in these investigations did not act to the
best of their abilities to provide
information requested by Commerce,
and Commerce preliminarily determines
each of the mandatory respondents to be
uncooperative, we will not conduct
verifications.
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Disclosure
Normally, Commerce discloses to
interested parties the calculations
performed in connection with a
preliminary determination within five
days of any public announcement or, if
there is no public announcement,
within five days of the date of
publication of the notice of preliminary
determination in the Federal Register,
in accordance with 19 CFR 351.224(b).
However, because Commerce
preliminarily applied AFA to each
mandatory respondent in these
investigations, in accordance with
section 776 of the Act, there are no
calculations to disclose.
Public Comment
Interested parties are invited to
comment on these preliminary
determinations no later than 30 days
after the date of publication of these
preliminary determinations.14 Rebuttal
briefs, limited to issues raised in case
briefs, may be submitted no later than
seven days after the deadline date for
case briefs.15 Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in
these proceedings are encouraged to
submit with each argument: (1) A
statement of the issue; (2) a brief
14 See 19 CFR 351.309(c)(1)(i); see also 19 CFR
351.303 (for general filing requirements).
15 See 19 CFR 351.309(d); see also 19 CFR 351.303
(for general filing requirements).
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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: (1) The party’s name,
address, and telephone number; (2) the
number of participants and whether any
participant is a foreign national; and (3)
a list of the issues to be discussed. If a
request for a hearing is made, Commerce
intends to hold the hearing at a time and
date to be determined. Parties should
confirm by telephone the date, time, and
location of the hearing two days before
the scheduled date.
An electronically filed document
must be received successfully in its
entirety by ACCESS by 5:00 p.m.
Eastern Time on the established
deadline. Note that Commerce has
temporarily modified certain of its
requirements for serving documents
containing business proprietary
information, until further notice.16
Final Determinations
Section 735(a)(1) of the Act and 19
CFR 351.210(b)(1) provide that
Commerce will issue the final
determination within 75 days after the
date of its preliminary determination.
Accordingly, Commerce will make its
final determinations no later than 75
days after the signature date of these
preliminary determinations.
80011
Dated: December 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and
Compliance.
Appendix I
Scope of the Investigations
The scope of these investigations covers all
forms and sizes of silicon metal, including
silicon metal powder. Silicon metal contains
at least 85.00 percent but less than 99.99
percent silicon, and less than 4.00 percent
iron, by actual weight. Semiconductor grade
silicon (merchandise containing at least
99.99 percent silicon by actual weight and
classifiable under Harmonized Tariff
Schedule of the United States (HTSUS)
subheading 2804.61.0000) is excluded from
the scope of these investigations.
Silicon metal is currently classifiable
under subheadings 2804.69.1000 and
2804.69.5000 of the HTSUS. While the
HTSUS numbers are provided for
convenience and customs purposes, the
written description of the scope remains
dispositive.
Appendix II
List of Topics Discussed in the Preliminary
Decision Memoranda
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigations
V. Application of Facts Available, Use of
Adverse Inferences, Corroboration, and
Calculation of All-Others Rate
VI. Preliminary Critical Circumstances
Finding
VII. Conclusion
[FR Doc. 2020–27316 Filed 12–10–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Commission
Notification
International Trade Administration
In accordance with section 733(f) of
the Act, Commerce will notify the
International Trade Commission (ITC) of
our affirmative preliminary
determinations. If our final
determinations are affirmative, the ITC
will determine before the later of 120
days after the date of these preliminary
determinations or 45 days after our final
determinations whether these imports
are materially injuring, or threaten
material injury to, the U.S. industry.
Forged Steel Fluid End Blocks From
the Federal Republic of Germany: Final
Affirmative Countervailing Duty
Determination
Notification to Interested Parties
These determinations are issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act and 19
CFR 351.205(c).
16 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19; Extension
of Effective Period, 85 FR 41363 (July 10, 2020).
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[C–428–848]
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: 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 the Federal Republic of
Germany (Germany).
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT:
Joseph Dowling or Robert Palmer, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
AGENCY:
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–1646 or
(202) 482–9068, respectively.
SUPPLEMENTARY INFORMATION:
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
end blocks from Germany.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.
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 raised
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.
Period of Investigation
Verification
The period of investigation (POI) is
January 1, 2018 through December 31,
2018.
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
Scope of the Investigation
The products covered by this
investigation are fluid end blocks from
Germany. 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
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comments.3 We received comments
from interested parties on the
Preliminary Scope 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.
1 See 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, 85 FR 31454
(May 26, 2020) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination of the Countervailing Duty
Investigation of Forged Steel Fluid End Blocks from
Federal Republic of Germany,’’ dated concurrently
with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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3 See Memorandum to the File, ‘‘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).
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, ‘‘Cancellation of Verification
and Establishment of the Briefing Schedule,’’ dated
October 23, 2020.
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Determination,7 as facts available in
making our final determination.
All-Others Rate
We continue to calculate the allothers rate using a weighted average of
the individual estimated subsidy rates
calculated for the examined respondents
(BGH Edelstahl Siegen GmbH and
Schmiedewerke Gro¨ditz GmbH) using
each company’s publicly ranged data for
the value of their exports of subject
merchandise to the United States.8
Final Determination
Commerce determines that the
following estimated countervailable
subsidy rates exist:
Company
BGH Edelstahl Siegen
GmbH 9 ..............................
Schmiedewerke Gro¨ditz
GmbH 10 ............................
voestalpine Bohler Group 11
All Others 12 ..........................
Subsidy rate
(percent)
5.86
6.71
14.81
6.29
Disclosure
We intend to disclose to parties in
this proceeding the calculations
performed for this final determination
within five days of the date of
publication of this notice, in accordance
with 19 CFR 351.224(b).
Continuation of Suspension of
Liquidation
As a result of our Preliminary
Determination and pursuant to sections
703(d)(1)(B) and (d)(2) of the Act,
Commerce instructed U.S. Customs and
Border Protection (CBP) to suspend
liquidation of entries of subject
merchandise from Germany that were
7 See Memorandum, ‘‘Countervailing Duty
Investigation of Forged Steel Fluid End Blocks from
the Federal Republic of Germany: Post-Preliminary
Analysis,’’ dated October 26, 2020 (PostPreliminary Determination).
8 See Preliminary Determination, 85 FR at 31454.
9 As discussed in the Preliminary Decision
Memorandum, Commerce found the following
companies to be cross-owned with BGH Edelstahl
Siegen GmbH: Boschgotthardshu¨tte O. Breyer
GmbH, BGH Edelstahlwerke GmbH, Rohstoff-,
Press- und Schneidbetrieb Siegen GmbH, and SRG
Schrott und Recycling GmbH.
10 As discussed in the Preliminary Decision
Memorandum, Commerce found the following
companies to be cross-owned with Schmiedewerke
Gro¨ditz GmbH: GMH Schmiedetechnik GmbH,
Georgsmarienhu¨tte Holding GmbH, and GHM
Recycling GmbH.
11 See Memorandum, ‘‘AFA Calculation
Memorandum for the Final Determination,’’ dated
December 7, 2020.
12 For discussion of the calculation of this rate,
see Memorandum, ‘‘Countervailing Duty
Investigation of Forged Steel Fluid End Blocks from
the Federal Republic of Gemany: Final
Determination Calculation of All Other’s Rate,’’
dated December 7, 2020.
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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices
entered or withdrawn from warehouse,
for consumption on or after May 26,
2020, the date of publication of the
Preliminary Determination in the
Federal Register. In accordance with
section 703(d) of the Act, effective
September 23, 2020, we instructed CBP
to discontinue the suspension of
liquidation of all entries of subject
merchandise, but to continue the
suspension of liquidation of all entries
of subject merchandise between May 26,
2020 and September 22, 2020.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a CVD order and require a
cash deposit of estimated countervailing
duties for entries of subject merchandise
in the amounts indicated above, in
accordance with section 706(a) of the
Act. If the ITC determines that material
injury, or threat of material injury, does
not exist, this proceeding will be
terminated, and all estimated duties
deposited or securities posted as a result
of the suspension of liquidation will be
refunded or canceled.
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ITC Notification
In accordance with section 705(d) of
the Act, Commerce will notify the ITC
of its final affirmative determination
that countervailable subsidies are being
provided to producers and exporters of
fluid end blocks from Germany. As
Commerce’s final determination is
affirmative, in accordance with section
705(b) of the Act, the ITC will
determine, within 45 days, whether the
domestic industry in the United States
is materially injured, or threatened with
material injury. In addition, we are
making available to the ITC all nonprivileged and nonproprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
ITC confirms that it will not disclose
such information, either publicly or
under an administrative protective order
(APO), without the written consent of
the Assistant Secretary for Enforcement
and Compliance.
Notification Regarding Administrative
Protective Orders
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to the APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
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hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) 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.,
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80013
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 this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and
Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether Commerce Properly
Initiated This Investigation
Comment 2: Whether the Administrative
Record of This Investigation Is Complete
Comment 3: Whether Commerce Provided
Sufficient Time To Review Its PostPreliminary Determination and Submit
Case Briefs
Comment 4: Whether the Application of
Adverse Facts Available (AFA) to the
Federal Republic of Germany (FRG) for
Certain Programs Is Warranted
Comment 5: 2018 Special Equalization
Scheme—Reduced EEG 13 Surcharge
5a: Whether the EEG Program Constitutes
a Financial Contribution
5b: Whether the EEG Program Is Specific
5c: Whether Commerce’s Calculation of the
EEG Program Benefit Is Correct
Comment 6: Special Equalization Scheme:
Reduced Surcharge Under the Combined
Heat and Power Act (KWKG) 14
6a: Whether the KWKG Program
Constitutes a Financial Contribution
6b: Whether the KWKG Program Is Specific
6c: Whether the KWKG Program Confers a
Benefit
Comment 7: Offshore Surcharge Relief
Program
13 Erneuerbare-Energien-Gesetz (EEG) or
Renewable Energy Resources Act.
14 Combined Heat and Power Act or Kraft-Wa
¨ rmeKopplungsgesetz.
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7a: Whether the Offshore Surcharge Relief
Program Constitutes a Financial
Contribution
7b: Whether the Offshore Surcharge Relief
Program Is Specific
7c: Whether the Offshore Surcharge Relief
Program Confers a Benefit
Comment 8: Whether the Concession Fee
Ordinance 15 Relief Program Is
Countervailable
Comment 9: The Energy Tax Act
(EnergieStG) 16 and Electricity Tax Act
(StromStG) 17 Programs
9a: Whether Section 9a of the StromStG
and Section 51 of the EnergieStG Are
Specific
9b: Whether Section 9b and 10 of the
StromStG Are Specific
9c: Whether Section 37 of the EnergieStG
Is Specific
Comment 10: Whether Commerce Should
Find European Union (EU) Emissions
Trading System (ETS) Countervailable
Comment 11: Whether the EU ETS—
Compensation of Indirect CO2 Costs
Program Is Countervailable
Comment 12: Whether the EU Research
Fund for Coal and Steel (RFCS) Program
Is Countervailable
Comment 13: Whether Commerce Should
Include Sales of Services in Calculating
SWG’s Subsidy Rate
Comment 14: Whether Commerce Correctly
Attributed BGH Siegen’s Benefit
VII. Recommendation
[FR Doc. 2020–27335 Filed 12–10–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–891; A–580–904]
Forged Steel Fittings From India and
the Republic of Korea: Antidumping
Duty Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final
determinations by the Department of
Commerce (Commerce) and the
International Trade Commission (ITC),
Commerce is issuing antidumping duty
orders on forged steel fittings from India
and the Republic of Korea (Korea).
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT:
Caitlin Monks, AD/CVD Operations,
Office VII, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
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AGENCY:
15 Concession Fee Ordinance
(Konzessionsabgabenverordung or KAV) Relief.
16 Energy Tax Act or Energiesteuergesetz
(EnergieStG).
17 Electricity Tax Act or Stromsteuergesetz
(StromStG).
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NW, Washington, DC 20230; telephone:
(202) 482–2670.
SUPPLEMENTARY INFORMATION:
Background
In accordance with sections 735(d)
and 777(i)(1) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR
351.210(c), on October 19, 2020,
Commerce published its final
affirmative determinations in the lessthan-fair-value (LTFV) investigations of
forged steel fittings from India and
Korea.1 On November 25, 2020, the ITC
notified Commerce of its final
affirmative determinations that an
industry in the United States is
materially injured within the meaning
of section 735(b)(1)(A)(i) of the Act, by
reason of LTFV imports of forged steel
fittings from India and Korea.2
Scope of the Orders
The products covered by these orders
are forged steel fittings from India and
Korea. For a complete description of the
scope of the orders, see the Appendix to
this notice.
Antidumping Duty Orders
On November 25, 2020, in accordance
with sections 735(b)(1)(A)(i) and 735(d)
of the Act, the ITC notified Commerce
of its final determinations in this
investigation, in which it found that an
industry in the United States is
materially injured by reason of imports
of forged steel fittings from India and
Korea.3 Therefore, in accordance with
section 735(c)(2) of the Act, Commerce
is issuing these antidumping duty
orders. Because the ITC determined that
imports of forged steel fittings from
India and Korea are materially injuring
a U.S. industry, unliquidated entries of
such merchandise from India and Korea,
entered or withdrawn from warehouse
for consumption, are subject to the
assessment of antidumping duties.
As a result of the ITC’s final
affirmative determinations, in
accordance with section 736(a)(1) of the
Act, Commerce will direct U.S. Customs
and Border Protection (CBP) to assess,
upon further instruction by Commerce,
antidumping duties equal to the amount
by which the normal value of the
merchandise exceeds the export price or
1 See
Forged Steel Fittings from India: Final
Affirmative Determination of Sales at Less Than
Fair Value, 85 FR 66306 (October 19, 2020); see also
Forged Steel Fittings from the Republic of Korea:
Final Affirmative Determination of Sales at Less
Than Fair Value, 85 FR 66302 (October 19, 2020).
2 See ITC’s Letter, ‘‘Notification of ITC Final
Determinations,’’ dated November 25, 2020.
3 See ITC Notification; see also Forged Steel
Fittings from India and Korea (Inv. Nos. 701–TA–
631 and 731–TA–1463–1464 (Final), USITC
Publication 5137, November 2020).
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constructed export price of the
merchandise, for all relevant entries of
forged steel fittings from India.
Antidumping duties will be assessed on
unliquidated entries of forged steel
fittings from India and Korea entered, or
withdrawn from warehouse, for
consumption on or after May 28, 2020,
the date of publication of the
Preliminary Determinations,4 but will
not include entries occurring after the
expiration of the provisional measures
period and before publication of the
ITC’s final injury determination, as
further described below.
Continuation of Suspension of
Liquidation
In accordance with section 736 of the
Act, Commerce will instruct CBP to
continue to suspend liquidation of all
relevant entries of forged steel fittings
from India and Korea, as described in
the Appendix of this notice, which are
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of the ITC’s notice of final
determination in the Federal Register.
These instructions suspending
liquidation will remain in effect until
further notice. Because the rate for
Shakti Forge Industries Pvt. Ltd
(Shakti) 5 is zero, we will not instruct
CBP to suspend liquidation of entries of
subject merchandise produced and
exported by Shakti or to require cash
deposits on such entries. Entries of
subject merchandise exported to the
United States by any other producer/
exporter combination, e.g., merchandise
produced by a third party and exported
by Shakti, or produced by Shakti and
exported by a third party, are not
entitled to this exclusion from
suspension of liquidation and are
subject to the applicable cash deposit
rates noted below.
Commerce will also instruct CBP to
require cash deposits equal to the
estimated weighted-average dumping
margins included in the tables below.
Accordingly, effective on the date of
publication in the Federal Register of
the notice of the ITC’s final affirmative
injury determinations, CBP will require,
at the same time as importers would
4 See Forged Steel Fittings from India: Preliminary
Affirmative Determination of Sales at Less-ThanFair-Value, Postponement of Final Determination,
and Extension of Provisional Measures, 85 FR
32007 (May 28, 2020); see also Forged Steel Fittings
from the Republic of Korea: Preliminary Affirmative
Determination of Sales at Less-Than-Fair-Value,
Postponement of Final Determination, and
Extension of Provisional Measures, 85 FR 32010
(May 28, 2020); (Preliminary Determinations).
5 Commerce has determined Shakti Forge
Industries Pvt. Ltd and its affiliate Shakti Forge to
constitute a single entity. See Preliminary Decision
Memorandum.
E:\FR\FM\11DEN1.SGM
11DEN1
]]>Agencies
[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 80011-80014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27335]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-428-848]
Forged Steel Fluid End Blocks From the Federal Republic of
Germany: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: 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 the Federal
Republic of Germany (Germany).
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT: Joseph Dowling or Robert Palmer, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401
[[Page 80012]]
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1646
or (202) 482-9068, respectively.
SUPPLEMENTARY INFORMATION:
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
end blocks from Germany.\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.
---------------------------------------------------------------------------
\1\ See 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, 85 FR 31454 (May 26, 2020)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Forged Steel Fluid End Blocks from Federal Republic
of Germany,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Period of Investigation
The period of investigation (POI) is January 1, 2018 through
December 31, 2018.
Scope of the Investigation
The products covered by this investigation are fluid end blocks
from Germany. 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 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.
---------------------------------------------------------------------------
\3\ See Memorandum to the File, ``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).
---------------------------------------------------------------------------
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 raised 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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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
Determination,\7\ as facts available in making our final determination.
---------------------------------------------------------------------------
\6\ See Memorandum, ``Cancellation of Verification and
Establishment of the Briefing Schedule,'' dated October 23, 2020.
\7\ See Memorandum, ``Countervailing Duty Investigation of
Forged Steel Fluid End Blocks from the Federal Republic of Germany:
Post-Preliminary Analysis,'' dated October 26, 2020 (Post-
Preliminary Determination).
---------------------------------------------------------------------------
All-Others Rate
We continue to calculate the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents (BGH Edelstahl Siegen GmbH and Schmiedewerke
Gr[ouml]ditz GmbH) using each company's publicly ranged data for the
value of their exports of subject merchandise to the United States.\8\
---------------------------------------------------------------------------
\8\ See Preliminary Determination, 85 FR at 31454.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
---------------------------------------------------------------------------
\9\ As discussed in the Preliminary Decision Memorandum,
Commerce found the following companies to be cross-owned with BGH
Edelstahl Siegen GmbH: Boschgotthardsh[uuml]tte O. Breyer GmbH, BGH
Edelstahlwerke GmbH, Rohstoff-, Press- und Schneidbetrieb Siegen
GmbH, and SRG Schrott und Recycling GmbH.
\10\ As discussed in the Preliminary Decision Memorandum,
Commerce found the following companies to be cross-owned with
Schmiedewerke Gr[ouml]ditz GmbH: GMH Schmiedetechnik GmbH,
Georgsmarienh[uuml]tte Holding GmbH, and GHM Recycling GmbH.
\11\ See Memorandum, ``AFA Calculation Memorandum for the Final
Determination,'' dated December 7, 2020.
\12\ For discussion of the calculation of this rate, see
Memorandum, ``Countervailing Duty Investigation of Forged Steel
Fluid End Blocks from the Federal Republic of Gemany: Final
Determination Calculation of All Other's Rate,'' dated December 7,
2020.
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
BGH Edelstahl Siegen GmbH \9\........................... 5.86
Schmiedewerke Gr[ouml]ditz GmbH \10\.................... 6.71
voestalpine Bohler Group \11\........................... 14.81
All Others \12\......................................... 6.29
------------------------------------------------------------------------
Disclosure
We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of publication of this notice, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise from Germany that were
[[Page 80013]]
entered or withdrawn from warehouse, for consumption on or after May
26, 2020, the date of publication of the Preliminary Determination in
the Federal Register. In accordance with section 703(d) of the Act,
effective September 23, 2020, we instructed CBP to discontinue the
suspension of liquidation of all entries of subject merchandise, but to
continue the suspension of liquidation of all entries of subject
merchandise between May 26, 2020 and September 22, 2020.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and require
a cash deposit of estimated countervailing duties for entries of
subject merchandise in the amounts indicated above, in accordance with
section 706(a) of the Act. If the ITC determines that material injury,
or threat of material injury, does not exist, this proceeding will be
terminated, and all estimated duties deposited or securities posted as
a result of the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of fluid end
blocks from Germany. As Commerce's final determination is affirmative,
in accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury. In addition, we
are making available to the ITC all non-privileged and nonproprietary
information related to this investigation. We will allow the ITC access
to all privileged and business proprietary information in our files,
provided the ITC confirms that it will not disclose such information,
either publicly or under an administrative protective order (APO),
without the written consent of the Assistant Secretary for Enforcement
and Compliance.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) 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 this investigation is
dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether Commerce Properly Initiated This
Investigation
Comment 2: Whether the Administrative Record of This
Investigation Is Complete
Comment 3: Whether Commerce Provided Sufficient Time To Review
Its Post-Preliminary Determination and Submit Case Briefs
Comment 4: Whether the Application of Adverse Facts Available
(AFA) to the Federal Republic of Germany (FRG) for Certain Programs
Is Warranted
Comment 5: 2018 Special Equalization Scheme--Reduced EEG \13\
Surcharge
---------------------------------------------------------------------------
\13\ Erneuerbare-Energien-Gesetz (EEG) or Renewable Energy
Resources Act.
---------------------------------------------------------------------------
5a: Whether the EEG Program Constitutes a Financial Contribution
5b: Whether the EEG Program Is Specific
5c: Whether Commerce's Calculation of the EEG Program Benefit Is
Correct
Comment 6: Special Equalization Scheme: Reduced Surcharge Under
the Combined Heat and Power Act (KWKG) \14\
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\14\ Combined Heat and Power Act or Kraft-W[auml]rme-
Kopplungsgesetz.
---------------------------------------------------------------------------
6a: Whether the KWKG Program Constitutes a Financial
Contribution
6b: Whether the KWKG Program Is Specific
6c: Whether the KWKG Program Confers a Benefit
Comment 7: Offshore Surcharge Relief Program
[[Page 80014]]
7a: Whether the Offshore Surcharge Relief Program Constitutes a
Financial Contribution
7b: Whether the Offshore Surcharge Relief Program Is Specific
7c: Whether the Offshore Surcharge Relief Program Confers a
Benefit
Comment 8: Whether the Concession Fee Ordinance \15\ Relief
Program Is Countervailable
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\15\ Concession Fee Ordinance (Konzessionsabgabenverordung or
KAV) Relief.
---------------------------------------------------------------------------
Comment 9: The Energy Tax Act (EnergieStG) \16\ and Electricity
Tax Act (StromStG) \17\ Programs
---------------------------------------------------------------------------
\16\ Energy Tax Act or Energiesteuergesetz (EnergieStG).
\17\ Electricity Tax Act or Stromsteuergesetz (StromStG).
---------------------------------------------------------------------------
9a: Whether Section 9a of the StromStG and Section 51 of the
EnergieStG Are Specific
9b: Whether Section 9b and 10 of the StromStG Are Specific
9c: Whether Section 37 of the EnergieStG Is Specific
Comment 10: Whether Commerce Should Find European Union (EU)
Emissions Trading System (ETS) Countervailable
Comment 11: Whether the EU ETS--Compensation of Indirect CO2
Costs Program Is Countervailable
Comment 12: Whether the EU Research Fund for Coal and Steel
(RFCS) Program Is Countervailable
Comment 13: Whether Commerce Should Include Sales of Services in
Calculating SWG's Subsidy Rate
Comment 14: Whether Commerce Correctly Attributed BGH Siegen's
Benefit
VII. Recommendation
[FR Doc. 2020-27335 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P
