[Federal Register Volume 85, Number 142 (Thursday, July 23, 2020)]
[Notices]
[Pages 44513-44516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15912]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-428-847]
Forged Steel Fluid End Blocks From the Federal Republic of
Germany: 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 fluid end blocks (fluid end blocks) from the Federal
Republic of Germany (Germany) are being, or are likely to be, 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 July 23, 2020.
FOR FURTHER INFORMATION CONTACT: Katherine Johnson or Alexis Cherry,
AD/CVD Operations, Office VIII, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4929
or (202) 482-0607, respectively.
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 January 15,
2020.\1\ On March 26, 2020, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
July 16, 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 Fluid End Blocks from the Federal Republic
of Germany, India and Italy: Initiation of Less-Than-Fair-Value
Investigations, 85 FR 2394 (January 15, 2020) (Initiation Notice).
\2\ See Forged Steel Fluid End Blocks from the Federal Republic
of Germany, India and Italy: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 85 FR
17042 (March 26, 2020).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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 products covered by this investigation are fluid end blocks
from Germany, whether in finished or unfinished form, and which are
typically used in the manufacture or service of hydraulic pumps. 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. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ As
discussed herein, 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.
\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 May 18, 2020 (Preliminary Scope Decision
Memorandum).
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The scope case briefs were originally due on June 25, 2020, 30 days
after the publication of Fluid End Blocks CVD Determinations, and scope
rebuttal briefs were originally due seven days thereafter on July 2,
2020.\7\ However, Commerce extended the deadline to submit scope case
and rebuttal briefs to July 23, 2020, and July 30, 2020,
respectively.\8\ There will be no further
[[Page 44514]]
opportunity for comments on scope-related issues.\9\
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\7\ The scope case and rebuttal briefs were due 30 and 37 days,
respectively, after the publication of Forged Steel Fluid End Blocks
from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty Determination, 85 FR 31457
(May 26, 2020); Forged Steel Fluid End Blocks from Germany:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination, 85 FR 31454 (May 26, 2020); Forged Steel Fluid End
Blocks from India: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination With Final
Antidumping Duty Determination, 85 FR 31452 (May 26, 2020); Forged
Steel Fluid End Blocks from Italy: Preliminary Affirmative
Countervailing Duty Determination, and Alignment of Final
Determination With Final Antidumping Duty Determination, 85 FR 31460
(May 26, 2020) (collectively, Fluid End Blocks CVD Determinations).
See the Preliminary Scope Decision Memorandum at 4. Accordingly, the
deadline for the scope case briefs was Thursday, June 25, 2020; and
the deadline for the scope rebuttal briefs was Thursday, July 2,
2020.
\8\ See Memorandum ``Antidumping and Countervailing Duty
Investigations on Forged Steel Fluid End Blocks from the Federal
Republic of Germany, India, Italy, and the People's Republic of
China: Revision of Schedule for Scope Case Briefs,'' dated June 25,
2020.
\9\ Parties were already permitted the opportunity to file scope
case and rebuttal briefs. Case briefs, other written comments, and
rebuttal briefs submitted in response to this preliminary LTFV
determination should not include scope-related issues. See
Preliminary Scope Decision Memorandum at 4; see also ``Public
Comment'' section of this notice.
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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. Normal value (NV) is
calculated in accordance with section 773 of the Act. Furthermore,
pursuant to sections 776(a) and (b) of the Act, Commerce has
preliminarily relied on facts otherwise available, with adverse
inferences, for Schmiedewerke Groditz GmbH (SWG) and voestalpine Bohler
Group. For a full description of the methodology underlying the
preliminary determination, see the Preliminary Decision Memorandum.
All-Others Rate
Section 733(d)(1)(A)(ii) of the Act provides that in the
preliminary determination Commerce shall determine an estimated all-
others rate for all exporters and producers not individually examined.
Pursuant to section 735(c)(5)(A) of the Act, 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.
Commerce has preliminarily determined that the estimated weighted-
average dumping margin for BGH Edelstahl Siegen GmbH (BGH Siegen) is
zero. Additionally, Commerce preliminarily assigned a rate based
entirely on facts available, under section 776 of the Act, to SWG.
Therefore, pursuant to section 735(c)(5)(B) of the Act, we determine
that it is reasonable to calculate the all-others rate based on a
simple average of BGH Siegen's zero percent margin and SWG's adverse
facts available (AFA) margin.\10\ For a full description of the
methodology underlying Commerce's analysis, see the Preliminary
Decision Memorandum.
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\10\ See, e.g., Heavy Walled Rectangular Welded Carbon Steel
Pipes and Tubes from the Republic of Turkey: Final Determination of
Sales at Less Than Fair Value, 81 FR 47355 (July 21, 2016).
\11\ See Memorandum, ``Antidumping Duty Investigation of Forged
Steel Fluid End Blocks from the Republic of Germany: Preliminary
Determination Margin Calculation for BGH Edelstahl Siegen GmbH,''
dated concurrently with, and hereby adopted by, this notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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BGH Edelstahl Siegen GmbH................................... \11\ 0.00
Schmiedewerke Groditz GmbH.................................. ** 15.47
voestalpine Bohler Group.................................... ** 15.47
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All-Others.............................................. 7.74
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** Adverse Facts Available (AFA).
Consistent with section 733(b)(3) of the Act, Commerce disregards
de minimis rates. Accordingly, Commerce preliminarily determines that
BGH Siegen, an individually examined respondent with a zero rate, 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, except for those
entries of subject merchandise produced and exported by BGH Siegen.
Because the estimated weighted-average dumping margin for BGH Siegen is
zero, we are not directing CBP to suspend liquidation of entries of the
subject merchandise it produced and exported.
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR
351.205(d), where appropriate, Commerce will instruct CBP to require a
cash deposit equal to the estimated weighted-average dumping margin or
the estimated all-others rate, as follows: (1) The cash deposit rate
for the respondents listed above will be equal to the company-specific
estimated weighted-average dumping 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.
These suspension of liquidation instructions will remain in effect
until further notice.
Because the estimated weighted-average dumping margin for BGH
Siegen is zero, entries of shipments of subject merchandise from this
company will not be subject to suspension of liquidation or cash
deposit requirements. In such situations, Commerce applies the
exclusion to the provisional measures to the producer/exporter
combination that was examined in the investigation. Accordingly,
Commerce is directing CBP not to suspend liquidation of entries of
subject merchandise produced and exported by BGH Siegen. Entries of
shipments of subject merchandise from this company in any other
producer/exporter combination, or by third parties that sourced subject
merchandise from the excluded producer/exporter combination, are
subject to the provisional measures at the all-others rate.
Should the final estimated weighted-average dumping margin be zero
or de minimis for the producer/exporter combination identified above,
entries of shipments of subject merchandise from this producer/exporter
combination will be excluded from the potential antidumping duty order.
Such exclusions are not applicable to merchandise exported to the
United States by this respondent in any other producer/exporter
combinations or by third parties that sourced subject merchandise from
the excluded producer/exporter combination.
While Commerce normally adjusts cash deposits for estimated
antidumping duties by the amount of export subsidies countervailed in a
companion countervailing duty (CVD) proceeding when CVD provisional
measures are in effect, we have preliminarily not adjusted the cash
deposit rates listed above because Commerce found no countervailable
export subsidies in the preliminary determination of the companion CVD
investigation.\12\
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\12\ 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), and
accompanying Preliminary Decision Memorandum.
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[[Page 44515]]
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 on non-scope issues 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 these case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\13\ Note that
Commerce has modified certain of its requirements for serving documents
containing business proprietary information until further notice.\14\
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).
\14\ 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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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 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.
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 June 16, and 17, 2020, pursuant to 19 CFR 351.210(e), BGH Siegen
and SWG requested, respectively, that Commerce postpone the final
determination and that provisional measures be extended to a period not
to exceed six months.\15\ 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 exporters account 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, pursuant to
section 735(a)(2) of the Act.
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\15\ See BGH Siegen's Letter, ``Forged Steel Fluid End Blocks
from the Federal Republic of Germany: Request to Extend Final
Determination and Provisional Measures,'' dated June 16, 2020; see
also SWG's Letter, ``Forged Steel Fluid End Blocks from Germany:
Request for Extension of Final Determination,'' dated June 17, 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, then 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 imports of fluid end blocks from Germany 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: July 16, 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
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incorporation into a pump fluid end assembly). Such finishing
operations may include: (1) Heat treating; (2) milling one or more
flat surfaces; (3) contour machining to custom shapes or dimensions;
(4) drilling or boring holes; (5) threading holes; and/or (6)
painting, varnishing, or coating.
Excluded from the scope of this investigation are fluid end
block assemblies which (1) include (a) plungers and related
housings, adapters, gaskets, seals, and packing nuts, (b) valves and
related seats, springs, seals, and cover nuts, and (c) a discharge
flange and related seals, and (2) are otherwise ready to be mated
with the ``power end'' of a hydraulic pump without the need for
installation of any plunger, valve, or discharge flange components,
or any other further manufacturing operations.
The products included in the scope of this investigation may
enter under Harmonized Tariff Schedule of the United States (HTSUS)
subheadings 7218.91.0030, 7218.99.0030, 7224.90.0015, 7224.90.0045,
7326.19.0010, 7326.90.8688, or 8413.91.9055. While these HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Application of Facts Available and Use of Adverse Inference
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2020-15912 Filed 7-22-20; 8:45 am]
BILLING CODE 3510-DS-P