[Federal Register Volume 85, Number 142 (Thursday, July 23, 2020)]
[Notices]
[Pages 44500-44503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15915]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-840]


Forged Steel Fluid End Blocks From Italy: 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 Italy 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: Dmitry Vladimirov or Hermes Pinilla, 
AD/CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration,

[[Page 44501]]

U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-0665 or (202) 482-3477, 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 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Forged Steel Fluid End Blocks from Italy,'' 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 Italy, 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 therein, Commerce is preliminarily modifying the scope 
language as it appeared in the Initiation Notice to exclude fluid end 
block assemblies. 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, 85 FR at 2395; see also Commerce's 
letter to all interested parties, dated January 27, 2020.
    \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 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. 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. Furthermore, pursuant to sections 776(a) and (b) of the Act, 
Commerce has preliminarily relied upon facts otherwise available, with 
adverse inferences for IMER International S.p.A., Galperti Group, 
Mimest S.p.A., and P. Technologies S.r.l. 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 margins that are zero, de minimis, or 
determined entirely under section 776 of the Act.
    Commerce has preliminarily determined that the estimated weighted-
average dumping margin for Metalcam S.p.A., is zero. Therefore, the 
only rate that is not zero, de minimis, or based entirely on facts 
otherwise available, is the rate calculated for Lucchini Mam[eacute] 
Forge S.p.A. Consequently, the rate calculated for Lucchini Mam[eacute] 
Forge S.p.A., is 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 or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Metalcam S.p.A..............................................   \10\ 0.00
Lucchini Mam[eacute] Forge S.p.A............................   \11\ 4.84
IMER International S.p.A....................................    ** 50.93
Galperti Group..............................................    ** 50.93
Mimest S.p.A................................................    ** 50.93
P. Technologies S.r.l.......................................    ** 50.93
All Others..................................................        4.84
------------------------------------------------------------------------
** Adverse Facts Available (AFA).


[[Page 44502]]

    Consistent with section 733(b)(3) of the Act, Commerce disregards 
de minimis rates. Accordingly, Commerce preliminarily determines that 
Metalcam S.p.A, an individually examined respondent with a zero rate, 
has not made sales of subject merchandise at LTFV.
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    \10\ See Memorandum, ``Forged Steel Fluid End Blocks from 
Italy--Preliminary Determination Analysis Memorandum for Metalcam 
S.p.A.,'' dated concurrently with this notice.
    \11\ See Memorandum, ``Forged Steel Fluid End Blocks from 
Italy--Preliminary Determination Analysis Memorandum for Lucchini 
Mam[eacute] Forge S.p.A.,'' dated concurrently with this notice.
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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 Metalcam S.p.A. 
Because the estimated weighted-average dumping margin for Metalcam 
S.p.A 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 Metalcam 
S.p.A. 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 Metalcam S.p.A. 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 an exclusion is 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 Italy: Preliminary Affirmative Countervailing Duty Determination, 
and Alignment of Final Determination with Final Antidumping Duty 
Determination, 85 FR 31460 (May 26, 2020), and accompanying 
Preliminary Decision Memorandum.
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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.

[[Page 44503]]

    On June 12 and 16, 2020, pursuant to 19 CFR 351.210(e), Metalcam 
S.p.A and Lucchini Mam[eacute] Forge S.p.A. 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.
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    \15\ See Metalcam S.p.A.'s Letter, ``Antidumping Duty 
Investigation of Forged Steel Fluid End Blocks from Italy: Request 
to Postpone Final Determination,'' dated June 12, 2020; and Lucchini 
Mam[eacute] Forge S.p.A.'s Letter, ``Antidumping Duty Investigation 
of Forged Steel Fluid End Blocks from Italy: Lucchini Mam[eacute] 
Forge S.p.A. Request to Postpone the Final Determination,'' dated 
June 16, 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 Italy 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 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. 2020-15915 Filed 7-22-20; 8:45 am]
BILLING CODE 3510-DS-P