[Federal Register Volume 85, Number 103 (Thursday, May 28, 2020)]
[Notices]
[Pages 32010-32013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11447]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-904]


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

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that forged steel fittings (FSF) from the Republic of Korea (Korea) are 
being sold in the United States at less than fair value (LTFV). The 
period of investigation (POI) is October 1, 2018 through September 30, 
2019. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable May 28, 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 
NW, Washington, DC 20230; telephone: (202) 482-2670.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on November 
21, 2019.\1\ On February 28, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now May 
20, 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 included 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 https://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 the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
---------------------------------------------------------------------------

    \1\ See Forged Steel Fittings from India and the Republic of 
Korea: Initiation of Less-Than-Fair-Value Investigations, 84 FR 
64265 (November 21, 2019) (Initiation Notice).
    \2\ See Forged Steel Fittings from India and the Republic of 
Korea: Postponement of Preliminary Determinations in the Less-Than-
Fair-Value Investigations, 85 FR 11965 (February 28, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Forged 
Steel Fittings from the Republic of Korea'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are FSF from Korea. 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), which Commerce 
extended on March 27, 2020.\5\ Certain interested parties commented on 
the scope of the investigation as it appeared in the Initiation Notice 
and on a revised

[[Page 32011]]

version issued in the CVD Preliminary Determination of FSF from 
India.\6\ 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.\7\ Commerce is 
preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the revised scope in Appendix I to this notice.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice; see also Memorandum, ``Antidumping 
and Countervailing Duty Investigations of Forged Steel Fittings from 
India and the Republic of Korea: Clarification of Deadlines for 
Scope Comments,'' dated March 27, 2020.
    \6\ See Forged Steel Fittings From India: Preliminary 
Affirmative Countervailing Duty Determination, and Alignment of 
Final Determination With Final Antidumping Duty Determination, 85 FR 
17536 (March 30, 2020).
    \7\ See Memorandum, ``Forged Steel Fittings from India and the 
Republic of Korea: Scope Comments Preliminary Decision Memorandum,'' 
dated concurrently with this preliminary determination (Preliminary 
Scope Decision Memorandum).
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act for Samyoung Fitting Co., 
Ltd. (Samyoung). Constructed export prices have been calculated in 
accordance with section 772(b) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. In addition, 
Commerce has relied on facts available with an adverse inference under 
sections 776(a) and (b) of the Act for Pusan Coupling Corporation, 
Sandong Metal Industry Co., Ltd. (Sandong), Shinchang Industries, 
Shinwoo Tech, Titus Industrial Korea Co, Ltd, and ZEOtech Co., Ltd 
(ZEOtech). For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce has preliminarily assigned a rate 
based entirely on facts available to two mandatory respondents, ZEOtech 
and Sandong. Therefore, the only rate that is not zero, de minimis, or 
based entirely on facts otherwise available is the rate calculated for 
Samyoung. Consequently, the rate calculated for Samyoung is also 
assigned as the rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Samyoung Fitting Co., Ltd...................................       27.19
Sandong Metal Industry Co., Ltd.............................      198.38
ZEOtech Co., Ltd............................................      198.38
Pusan Coupling Corporation..................................      198.38
Shinchang Industries........................................      198.38
Shinwoo Tech................................................      198.38
Titus Industrial Korea Co, Ltd..............................      198.38
All Others..................................................       27.19
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), 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 
margins determined in this preliminary 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 the all-others estimated 
weighted-average dumping margin.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this 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 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

    Case briefs or other written comments 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 unless Commerce alters the time limit. Rebuttal 
briefs, limited to issues raised in case briefs, may be submitted no 
later than seven days after the deadline date for case briefs.\8\ 
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.
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date. Note that Commerce has modified certain of its requirements for 
serving documents containing business proprietary information until 
July 17, 2020, unless extended.\9\
---------------------------------------------------------------------------

    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020).
---------------------------------------------------------------------------

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who

[[Page 32012]]

account for a significant proportion of exports of the subject 
merchandise, or in the event of a negative preliminary determination, a 
request for such postponement is made by the petitioner. Section 
351.210(e)(2) of Commerce's regulations requires that a request by 
exporters for postponement of the final determination be accompanied by 
a request for extension of provisional measures from a four-month 
period to a period not more than six months in duration.
    On May 11, 2020, pursuant to 19 CFR 351.210(e), Samyoung and the 
petitioners requested that Commerce postpone the final determination 
and that provisional measures be extended to a period not to exceed six 
months.\10\ In accordance with section 735(a)(2)(A) of the Act and 19 
CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, Commerce 
will make its final determination no later than 135 days after the date 
of publication of this preliminary determination.
---------------------------------------------------------------------------

    \10\ See Samyoung's Letter, ``Forged Steel Fittings from the 
Republic of Korea: Request to Postpone Final Determination,'' dated 
May 11, 2020; and Petitioners' Letter, ``Forged Steel Fittings from 
Korea: Request for Extension of Final,'' dated May 11, 2020.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether subject imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: May 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by these investigations is carbon and 
alloy forged steel fittings, whether unfinished (commonly known as 
blanks or rough forgings) or finished. Such fittings are made in a 
variety of shapes including, but not limited to, elbows, tees, 
crosses, laterals, couplings, reducers, caps, plugs, bushings, 
unions (including hammer unions), and outlets. Forged steel fittings 
are covered regardless of end finish, whether threaded, socket-weld 
or other end connections. The scope includes integrally reinforced 
forged branch outlet fittings, regardless of whether they have one 
or more ends that is a socket welding, threaded, butt welding end, 
or other end connections.
    While these fittings are generally manufactured to 
specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS-SP-97, ASTM 
A105, ASTM A350 and ASTM A182, the scope is not limited to fittings 
made to these specifications.
    The term forged is an industry term used to describe a class of 
products included in applicable standards, and it does not reference 
an exclusive manufacturing process. Forged steel fittings are not 
manufactured from casings. Pursuant to the applicable standards, 
fittings may also be machined from bar stock or machined from 
seamless pipe and tube.
    All types of forged steel fittings are included in the scope 
regardless of nominal pipe size (which may or may not be expressed 
in inches of nominal pipe size), pressure class rating (expressed in 
pounds of pressure, e.g., 2,000 or 2M; 3,000 or 3M; 6,000 or 6M; 
9,000 or 9M), wall thickness, and whether or not heat treated.
    Excluded from this scope are all fittings entirely made of 
stainless steel. Also excluded are flanges, nipples, and all 
fittings that have a maximum pressure rating of 300 pounds per 
square inch/PSI or less.
    Also excluded from the scope are fittings certified or made to 
the following standards, so long as the fittings are not also 
manufactured to the specifications of ASME B16.11, MSS SP-79, MSS 
SP-83, MSS SP-97, ASTM A105, ASTM A350 and ASTM A182:
     American Petroleum Institute (API) 5CT, API 5L, or 
API11B;
     American Society of Mechanical Engineers (ASME) B16.9;
     Manufacturers Standardization Society (MSS) SP-75;
     Society of Automotive Engineering (SAE) J476, SAE J514, 
SAE J516, SAE J517, SAE J518, SAE J1026, SAEJ1231, SAE J1453, SAE 
J1926, J2044 or SAE AS 35411;
     Hydraulic hose fittings (e.g., fittings used in high 
pressure water cleaning applications, in the manufacture of 
hydraulic engines, to connect rubber dispensing hoses to a 
dispensing nozzle or grease fitting) made to ISO 12151-1, 12151-2, 
12151-3, 12151-4, 12151-5, or 12151-6;
     Underwriter's Laboratories (UL) certified electrical 
conduit fittings;
     ASTM A153, A536, A576, or A865;
     Casing Conductor Connectors made to proprietary 
specifications;
     Machined steel parts (e.g., couplers) that are not 
certified to any specifications in this scope description and that 
are not for connecting steel pipes for distributing gas and liquids;
     Oil country tubular goods (OCTG) connectors (e.g., 
forged steel tubular connectors for API 5L pipes or OCTG for 
offshore oil and gas drilling and extraction);
     Military Specification (MIL) MIL-C-4109F and MIL-F-
3541; and
     International Organization for Standardization (ISO) 
ISO6150-B.
    Also excluded from the scope are assembled or unassembled hammer 
unions that consist of a nut and two subs. To qualify for this 
exclusion, the hammer union must meet each of the following 
criteria: (1) the face of the nut of the hammer union is permanently 
marked with one of the following markings: ``FIG 100,'' ``FIG 110,'' 
``FIG 100C,'' ``FIG 200,'' ``FIG 200C,'' ``FIG 201,'' ``FIG 202,'' 
``FIG 206,'' ``FIG 207,'' ``FIG 211,'' ``FIG 300,'' ``FIG 301,'' 
``FIG 400,'' ``FIG 600,'' ``FIG 602,'' ``FIG 607,'' ``FIG 1002,'' 
``FIG 1003,'' ``FIG 1502,'' ``FIG 1505,'' ``FIG 2002,'' or ``FIG 
2202''; (2) the hammer union does not bear any of the following 
markings: ``Class 3000,'' ``Class 3M,'' ``Class 6000,'' ``Class 
6M,'' ``Class 9000,'' or ``Class 9M''; and (3) the nut and both subs 
of the hammer union are painted.
    Also excluded from the scope are component parts for hammer 
union assemblies, either subs or wingnuts, marked on the wingnut and 
subs with ``FIG 1002,'' ``FIG 1502,'' and ``FIG 2002,'' and with 
pressure rating of 10,000 PSI or greater. These parts are made from 
AISI/SAE 4130, 4140 or 4340 steel and are 100 percent magnetic 
particle inspected before shipment.
    Also excluded from the scope are tee, elbow, cross, adapter (or 
``crossover''), blast joint (or ``spacer''), blind sub, swivel joint 
and pup joint which have wing nut or not. To qualify for this 
exclusion, these products must meet each of the following criteria: 
(1) Manufacturing and Inspection standard is API 6A or API 16C; and, 
(2) body or wing nut is permanently marked with one of the following 
markings: ``FIG 2002,'' ``FIG 1502,'' ``FIG 1002,'' ``FIG 602,'' 
``FIG 206,'' or ``FIG any other number'' or MTR (Material Test 
Report) shows these FIG numbers.
    To be excluded from the scope, products must have the 
appropriate standard or pressure markings and/or be accompanied by 
documentation showing product compliance to the applicable standard 
or pressure, e.g., ``API 5CT'' mark and/or a mill certification 
report.
    Subject carbon and alloy forged steel fittings are normally 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) 7307.92.3010, 7307.92.3030, 7307.92.9000, 7307.99.1000, 
7307.99.3000, 7307.99.5045, and 7307.99.5060. They may also be 
entered under HTSUS 7307.93.3010, 7307.93.3040, 7307.93.6000, 
7307.93.9010, 7307.93.9040, 7307.93.9060, and 7326.19.0010.

[[Page 32013]]

    The HTSUS subheadings and specifications are provided for 
convenience and customs purposes; the written description of the 
scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Postponement of Final Determination
VII. Application of Facts Available and Use of Adverse Inferences
VIII. Discussion of the Methodology
IX. Date of Sale
X. Product Comparisons
XI. Export Price
XII. Normal Value
XIII. Currency Conversion
XIV. Verification
XV. Conclusion

[FR Doc. 2020-11447 Filed 5-27-20; 8:45 am]
BILLING CODE 3510-DS-P