[Federal Register Volume 85, Number 103 (Thursday, May 28, 2020)]
[Notices]
[Pages 32007-32010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11448]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-891]
Forged Steel Fittings From India: 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 India 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.
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\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 India'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are FSF from India. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope), 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 version issued in the Countervailing Duty (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
[[Page 32008]]
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.
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\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 Memorandum).
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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 Shakti Forge Industries
Pvt. Ltd. (Shakti). 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 (AFA)
under sections 776(a) and (b) of the Act for Nikoo Forge Pvt. Ltd.
(Nikoo Forge), Pan International (Pan), Disha Auto Components Pvt. Ltd,
Dynamic Flow Products, Kirtanlal Steel Pvt Ltd, Metal Forgings Pvt Ltd,
Patton International Limited, Sage Metals Limited, and Technotrak
Engineers. 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.
Pursuant to section 735(c)(5)(B) of the Act, if the estimated
weighted-average dumping margins established for all exporters and
producers individually examined are zero, de minimis or determined
based entirely on facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated weighted-average dumping
margin for all other producers or exporters. One method contemplated by
section 735(c)(5)(B) of the Act is ``averaging the estimated weighted
average dumping margins determined for the exporters and producers
individually investigated.''
Commerce has preliminarily determined that the estimated weighted-
average dumping margin for Shakti is zero. In addition, Commerce has
preliminarily determined the estimated weighted-average dumping margins
for Nikoo Forge and Pan entirely on the basis of facts otherwise
available (i.e., 293.40 percent).\8\ Because we have no calculated
rates that are not based entirely on facts available, zero, or de
minimis, we have determined that a reasonable method for assigning a
margin to all other producers or exporters is to average the weighted-
average dumping margins calculated for the three mandatory respondents.
The simple average of these rates is 195.60 percent, and, pursuant to
section 735(c)(5)(B) of the Act, this is the rate we are preliminary
assigning as the all-others rate.
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\8\ See Preliminary Decision Memorandum.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\9\ Commerce preliminarily determines that Shakti and Shakti
Forge are a single entity. See Preliminary Decision Memorandum.
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Cash deposit
Estimated rate (adjusted
Exporter/producer weighted-average for subsidy
dumping margin offset(s))
(percent) (percent)
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Shakti Forge Industries Pvt. Ltd * 0.00 NA
\9\..............................
Nikoo Forge Pvt. Ltd.............. ** 293.40 290.87
Pan International................. ** 293.40 290.87
Disha Auto Components Pvt. Ltd.... ** 293.40 290.87
Dynamic Flow Products............. ** 293.40 290.87
Kirtanlal Steel Pvt Ltd........... ** 293.40 290.87
Metal Forgings Pvt Ltd............ ** 293.40 290.87
Patton International Limited...... ** 293.40 290.87
Sage Metals Limited............... ** 293.40 290.87
Technotrak Engineers.............. ** 293.40 290.87
All Others........................ 195.60 193.07
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* (de minimis)
** (AFA).
Consistent with section 733(b)(3) of the Act, Commerce disregards
de minimis rates and preliminarily determines that the individually
examined respondent with a de minimis rate (i.e., Shakti) has not made
sales of subject merchandise at LTFV.
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
[[Page 32009]]
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. Pursuant
to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this investigation are encouraged to submit with
each argument: (1) A statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date. Note that Commerce has modified certain of its requirements for
serving documents containing business proprietary information until
July 17, 2020, unless extended.\10\
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\10\ 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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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 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, and May 12, 2020, pursuant to 19 CFR 351.210(e),
the petitioners and Shakti, respectively, requested that Commerce
postpone the final determination and that provisional measures be
extended to a period not to exceed six months.\11\ 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.
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\11\ See Petitioners' Letter, ``Forged Steel Fittings from
India: Request for Extension of Final Determination,'' dated May 11,
2020, and Shakti's Letter, ``Forged Steel Fittings from India:
Request to Postpone the Final Determination,'' dated May 12, 2020.
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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 Secretaryfor 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;
[[Page 32010]]
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.
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 and Extension of Provisional
Measures
VII. Affiliation and Collapsing
VIII. Application of Facts Available and Use of Adverse Inferences
IX. Discussion of the Methodology
X. Date of Sale
XI. Product Comparisons
XII. Export Price
XIII. Normal Value
XIV. Currency Conversion
XV. Verification
XVI. Adjustments to Cash Deposit Rates for Export Subsidies in
Companion CVD Investigation
XVII. Conclusion
[FR Doc. 2020-11448 Filed 5-27-20; 8:45 am]
BILLING CODE 3510-DS-P