[Federal Register Volume 85, Number 101 (Tuesday, May 26, 2020)]
[Notices]
[Pages 31454-31457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11206]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-428-848]
Forged Steel Fluid End Blocks From the Federal Republic of
Germany: Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of forged steel fluid end blocks (fluid end blocks) from the
Federal Republic of Germany (Germany) for the period of investigation
(POI) January 1, 2018 through December 31, 2018. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable May 26, 2020.
FOR FURTHER INFORMATION CONTACT: Bob Palmer or Joseph Dowling, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue
[[Page 31455]]
NW, Washington, DC 20230; telephone: (202) 482-9068 or (202) 482-1646,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on January 15,
2020.\1\ On February 27, 2020, Commerce postponed the preliminary
determination of this investigation to May 18, 2020.\2\ For a complete
description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\3\ A list of
topics discussed in the Preliminary Decision Memorandum is included as
Appendix II to this notice. The Preliminary Decision Memorandum is a
public document and is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
http://access.trade.gov. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\1\ See Forged Steel Fluid End Blocks from the Federal Republic
of Germany, India, Italy and the People's Republic of China:
Initiation of Countervailing Duty Investigations, 85 FR 2385
(January 15, 2020) (Initiation Notice).
\2\ See Forged Steel Fluid End Blocks from the Federal Republic
of Germany, India, Italy, and the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigations: Postponement of Preliminary Determination in the
Countervailing Duty Investigations, 85 FR 11336 (February 27, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Forged
Steel Fluid End Blocks from the Federal Republic of Germany,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is forged steel fluid end
blocks from Germany. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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For a summary of the product coverage comments and rebuttal
responses submitted to the record for this preliminary determination
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ Commerce is
preliminarily modifying the scope language as it appeared in the
Initiation Notice. See the revised scope in Appendix I.
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\6\ See Memorandum, ``Forged Steel Fluid End Blocks from the
Federal Republic of Germany, India, Italy, and the People's Republic
of China: Scope Comments Decision Memorandum for the Preliminary
Determinations,'' dated concurrently with this notice (Preliminary
Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that
confers a benefit to the recipient, and that the subsidy is
specific.\7\
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\7\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because Commerce finds that one of the
respondents did not act to the best of its ability to respond to
Commerce's requests for information, Commerce drew an adverse inference
where appropriate in selecting from among the facts otherwise
available.\8\ For further information, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Decision
Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determinations in the concurrent
antidumping duty (AD) investigations of forged steel fluid end blocks
from Germany, India, and Italy, based on a request made by the
petitioners.\9\ Consequently, the final CVD determination will be
issued on the same date as the final AD determinations, which are
currently scheduled to be issued no later than September 29, 2020,
unless postponed.
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\9\ See Petitioners' Letter, ``Forged Steel Fluid End Blocks
from China, Germany, India, and Italy: Petitioner's Request for
Alignment of the Countervailing Duty Investigations with the
Concurrent Antidumping Duty Investigations,'' dated April 1, 2020.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for BGH Edelstahl Siegen GmbH and
Schmiedewerke Gr[ouml]ditz GmbH that are not zero, de minimis, or based
entirely on facts otherwise available. Commerce calculated the all-
others rate using a weighted average of the individual estimated
subsidy rates calculated for the examined respondents using each
company's publicly-ranged sales data.\10\
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\10\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged sales
values. Commerce then compares (B) and (C) to (A) and selects the
rate closest to (A) as the most appropriate rate for all other
producers and exporters. See, e.g., Ball Bearings and Parts Thereof
from France, Germany, Italy, Japan, and the United Kingdom: Final
Results of Antidumping Duty Administrative Reviews, Final Results of
Changed-Circumstances Review, and Revocation of an Order in Part, 75
FR 53661, 53663 (September 1, 2010). As complete publicly ranged
sales data were available, Commerce used the publicly ranged sales
data of the mandatory respondents. For a complete analysis of the
data, see the All-Others' Rate Calculation Memorandum, dated
concurrently with this notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company ad valorem
(percent)
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BGH Edelstahl Siegen GmbH \11\.......................... 5.25
Schmiedewerke Gr[ouml]ditz GmbH \12\.................... 6.06
voestalpine Bohler Group................................ 10.04
All Others.............................................. 5.61
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Suspension of Liquidation
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\11\ As discussed in the Preliminary Decision Memorandum,
Commerce has 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.
\12\ As discussed in the Preliminary Decision Memorandum,
Commerce has 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.
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In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
[[Page 31456]]
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit case and
rebuttal briefs on the preliminary scope determination. The deadline to
submit these comments will be no later than 30 days after the
publication of the preliminary determinations of the CVD investigations
of fluid end blocks from Germany, India, Italy, and China in the
Federal Register. Scope rebuttal briefs (which are limited to issues
raised in the scope briefs) may be submitted no later than seven days
after the deadline for the scope briefs. These deadlines apply to the
AD and CVD fluid end blocks investigations, regardless of the deadlines
of the preliminary determinations in the AD investigations. For all
scope briefs and rebuttals thereto, parties must file identical
documents simultaneously on the records of all the ongoing AD and CVD
fluid end blocks investigations. No new factual information or business
proprietary information may be included in either scope briefs or
rebuttal scope briefs.
Case briefs or other written comments regarding non-scope matters
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\13\ Pursuant to 19
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this investigation are encouraged to submit with
each argument: (1) A statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date. Note that Commerce has modified certain of its requirements for
serving documents containing business proprietary information, until
July 17, 2020, unless extended.\14\
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\14\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020).
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. Pursuant
to section 705(b)(2) of the Act, if the final determination is
affirmative, the ITC will make its final injury determination before
the later of 120 days after the date of this preliminary determination
or 45 days after Commerce's final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: May 18, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are forged steel
fluid end blocks (fluid end blocks), whether in finished or
unfinished form, and which are typically used in the manufacture or
service of hydraulic pumps.
The term ``forged'' is an industry term used to describe the
grain texture of steel resulting from the application of localized
compressive force. Illustrative forging standards include, but are
not limited to, American Society for Testing and Materials (ASTM)
specifications A668 and A788.
For purposes of this investigation, the term ``steel'' denotes
metal containing the following chemical elements, by weight: (i)
Iron greater than or equal to 60 percent; (ii) nickel less than or
equal to 8.5 percent; (iii) copper less than or equal to 6 percent;
(iv) chromium greater than or equal to 0.4 percent, but less than or
equal to 20 percent; and (v) molybdenum greater than or equal to
0.15 percent, but less than or equal to 3 percent. Illustrative
steel standards include, but are not limited to, American Iron and
Steel Institute (AISI) or Society of Automotive Engineers (SAE)
grades 4130, 4135, 4140, 4320, 4330, 4340, 8630, 15-5, 17-4, F6NM,
F22, F60, and XM25, as well as modified varieties of these grades.
The products covered by this investigation are: (1) Cut-to-
length fluid end blocks with an actual height (measured from its
highest point) of 8 inches (203.2 mm) to 40 inches (1,016.0 mm), an
actual width (measured from its widest point) of 8 inches (203.2 mm)
to 40 inches (1,016.0 mm), and an actual length (measured from its
longest point) of 11 inches (279.4 mm) to 75 inches (1,905.0 mm);
and (2) strings of fluid end blocks with an actual height (measured
from its highest point) of 8 inches (203.2 mm) to 40 inches (1,016.0
mm), an actual width (measured from its widest point) of 8 inches
(203.2 mm) to 40 inches (1,016.0 mm), and an actual length (measured
from its longest point) up to 360 inches (9,144.0 mm).
The products included in the scope of this investigation have a
tensile strength of at least 70 KSI (measured in accordance with
ASTM A370) and a hardness of at least 140 HBW (measured in
accordance with ASTM E10).
A fluid end block may be imported in finished condition (i.e.,
ready for incorporation into a pump fluid end assembly without
further finishing operations) or unfinished condition (i.e., forged
but still requiring one or more finishing operations before it is
ready for incorporation into a pump fluid end assembly). Such
finishing operations may include: (1) Heat treating; (2) milling one
or more flat surfaces; (3) contour machining to custom shapes or
dimensions; (4) drilling or boring holes; (5) threading holes; and/
or (6) painting, varnishing, or coating.
Excluded from the scope of this investigation are fluid end
block assemblies
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which (1) include (a) plungers and related housings, adapters,
gaskets, seals, and packing nuts, (b) valves and related seats,
springs, seals, and cover nuts, and (c) a discharge flange and
related seals, and (2) are otherwise ready to be mated with the
``power end'' of a hydraulic pump without the need for installation
of any plunger, valve, or discharge flange components, or any other
further manufacturing operations.
The products included in the scope of this investigation may
enter under Harmonized Tariff Schedule of the United States (HTSUS)
subheadings 7218.91.0030, 7218.99.0030, 7224.90.0015, 7224.90.0045,
7326.19.0010, 7326.90.8688, or 8413.91.9055. While these HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Programs Preliminarily Determined to Be Not Used during the
POI
IX. Programs for Which Additional Information is Necessary
X. Conclusion
[FR Doc. 2020-11206 Filed 5-22-20; 8:45 am]
BILLING CODE 3510-DS-P