[Federal Register Volume 85, Number 202 (Monday, October 19, 2020)]
[Notices]
[Pages 66306-66309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23111]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-891]


Forged Steel Fittings From India: Final Affirmative Determination 
of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that forged 
steel fittings (FSF) from India are being, or are likely to be, sold in 
the United States at less than fair value (LTFV).

DATES: Applicable October 19, 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

    On May 28, 2020, Commerce published the Preliminary Determination 
in this investigation.\1\ A summary of the events that occurred since 
Commerce published the Preliminary Determination, as well as a full 
discussion of the issues raised by parties for this final 
determination, may be found in the Issues and Decision Memorandum.\2\
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    \1\ See Forged Steel Fittings from India: Preliminary 
Affirmative Determination of Sales at Less-Than-Fair-Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 85 FR 32007 (May 28, 2020) (Preliminary Determination) and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Less-Than-Fair-Value Investigation of 
Forged Steel Fittings from India,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is October 1, 2018 through September 
30, 2019.

Scope of the Investigation

    The products covered by this investigation are forged steel 
fittings from India. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    On May 20, 2020, we issued a Preliminary Scope Decision 
Memorandum.\3\ Between June and July 2020, we received additional scope 
comments from several interested parties, including the petitioners. In 
response to these comments, we have made changes to the scope of the 
investigation for this final determination. For a full discussion and 
analysis of the scope comments timely received, see the Final Scope 
Decision Memorandum.\4\
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    \3\ See Memorandum, ``Forged Steel Fittings from India and the 
Republic of Korea: Scope Comments Preliminary Decision Memorandum,'' 
dated May 20, 2020 (Preliminary Scope Decision Memorandum).
    \4\ See Memorandum, ``Forged Steel Fittings from India and the 
Republic of Korea: Final Scope Decision Memorandum'' (Final Scope 
Decision Memorandum), dated October 13, 2020.

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[[Page 66307]]

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum is 
attached to this notice as Appendix II. The Issues and Decision 
Memorandum is a public document and is available 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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    Commerce normally verifies information relied upon in making final 
determination, pursuant to section 782(i)(1) of the Tariff Act of 1930, 
as amended (the Act). However, during the course of this investigation, 
Commerce was unable to conduct on-site verification due to travel 
restrictions and took additional steps in lieu of verification, as 
discussed in the Issues and Decision Memorandum. Consistent with 
section 776(a)(2)(D) of the Act, Commerce relied on the information 
submitted on the record as facts available in making our final 
determination.\5\
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    \5\ Id.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and additional 
information obtained since our preliminary findings, we made certain 
changes to the margin calculations for Shakti Forge Industries Pvt. 
Ltd. (Shakti), the sole cooperative respondent in this investigation, 
since the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
individually investigated exporters and producers, excluding any 
margins that are zero or de minimis or 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.''
    For this final determination, Commerce has determined that the 
estimated weighted-average dumping margin for Shakti is zero. In 
addition, Commerce has 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).\6\ 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 
assigning as the all-others rate. For a full discussion of the all-
others rate methodology, see the Issues and Decision Memorandum.
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    \6\ See Issues and Decision Memorandum.
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Final Determination

    The estimated weighted-average dumping margins are as follows:
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    \7\ See Memorandum, ``Final Countervailing Duty Determination 
Calculations for Shakti Forge Industries Pvt. Ltd. and Shakti 
Forge,'' dated October 13, 2020.
    \8\ Shakti and Shakti Forge are a single entity. See Preliminary 
Decision Memorandum.

------------------------------------------------------------------------
                                                       Cash deposit rate
                                 Estimated weighted-     (adjusted for
       Exporter/producer          average  dumping    subsidy offset(s))
                                  margin  (percent)      (percent) \7\
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Shakti Forge Industries Pvt.                  * 0.00      Not Applicable
 Ltd \8\......................
Nikoo Forge Pvt. Ltd..........             ** 293.40              290.88
Pan International.............             ** 293.40              290.88
Disha Auto Components Pvt. Ltd             ** 293.40              290.88
Dynamic Flow Products.........             ** 293.40              290.88
Kirtanlal Steel Pvt Ltd.......             ** 293.40              290.88
Metal Forgings Pvt Ltd........             ** 293.40              290.88
Patton International Limited..             ** 293.40              290.88
Sage Metals Limited...........             ** 293.40              290.88
Technotrak Engineers..........             ** 293.40              290.88
All-Others....................                195.60              193.08
------------------------------------------------------------------------
* (de minimis)
** (AFA)

Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue the 
suspension of

[[Page 66308]]

liquidation of all appropriate entries of FSF, as described in Appendix 
I of this notice, which were entered, or withdrawn from warehouse, for 
consumption on or after May 28, 2020, the date of publication of the 
Preliminary Determination in this investigation in the Federal 
Register. Further, Commerce will instruct CBP to require a cash deposit 
equal to the estimated amount by which the normal value exceeds the 
U.S. price as shown above.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, we will instruct 
CBP to require a cash deposit equal to the estimated amount by which 
the normal value exceeds the U.S. price as follows: (1) The cash 
deposit rate for the respondent listed above will be equal to the 
respondent-specific estimated weighted-average dumping margin 
determined in this final 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 respondent-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 rate for Shakti is 
zero, we will not instruct CBP to suspend liquidation of entries of 
subject merchandise produced and exported by Shakti or Shakti Forge or 
to require cash deposits on such entries.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated, and 
all cash deposits will be refunded. If the ITC determines that material 
injury or threat of material injury does exist, Commerce will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by Commerce, antidumping duties on all imports of the 
subject merchandise, entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: October 13, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation 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 API 
11B;
     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, SAE J1231, 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 subs or wingnuts made to ASTM 
A788, marked with ``FIG 1002,'' ``FIG 1502,'' or ``FIG 2002,'' and 
with a 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

[[Page 66309]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Application of Facts Available and Use of Adverse Inferences
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Whether Commerce Should Revise Its All-Others 
Methodology
    Comment 2: Whether Commerce Should Base Shakti's Dumping Margin 
on Adverse Facts Available
    Comment 3: Whether Commerce Should Adjust Shakti's Direct 
Materials Consumption Cost
    Comment 4: Whether Commerce Should Disallow the Interest Expense 
Offset of Shakti Forge
VIII. Recommendation

[FR Doc. 2020-23111 Filed 10-16-20; 8:45 am]
BILLING CODE 3510-DS-P