[Federal Register Volume 85, Number 203 (Tuesday, October 20, 2020)]
[Notices]
[Pages 66535-66537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23272]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-892]


Forged Steel Fittings From India: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of forged steel fittings (FSF) from India.

DATES: Applicable October 20, 2020.

FOR FURTHER INFORMATION CONTACT: Lauren Caserta, 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) 482-4737.

SUPPLEMENTARY INFORMATION:

Background

    On March 30, 2020, Commerce published the Preliminary Determination 
of the countervailing duty (CVD) investigation, which aligned the final 
determination in this CVD investigation with the final determination in 
the companion antidumping duty investigation of FSF from India.\1\ On 
June 18, 2020, Commerce published the Amended Preliminary Determination 
in this investigation.\2\
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    \1\ 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) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum (PDM).
    \2\ See Forged Steel Fittings from India: Amended Preliminary 
Affirmative Countervailing Duty Determination, 85 FR 36835 (June 18, 
2020) (Amended Preliminary Determination), and accompanying Amended 
Preliminary Scope Memorandum.
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    A summary of the events that occurred since Commerce published the 
Amended Preliminary Determination, as well as a full discussion of the 
issues raised by parties for this final determination, are discussed in 
the Issues and Decision Memorandum, which is hereby adopted by this 
notice.\3\ The Issues and 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 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.
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    \3\ See Memorandum, ``Issues and Decisions Memorandum for the 
Final Determination of the Countervailing Duty Investigation of 
Forged Steel Fittings from India,'' dated concurrently with, and 
hereby adopted by, this notice (Issues and Decisions Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2018 through December 31, 
2018.

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, Commerce issued an Amended Preliminary Scope 
Memorandum. We received comments from interested parties on the Amended 
Preliminary Scope Memorandum, which we address in the Final Scope 
Decision Memorandum, dated contemporaneously with, and hereby adopted 
by, this final determination.\4\ Commerce is modifying the scope 
language as it appeared in the Amended Preliminary Determination. See 
the revised scope in Appendix I.
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    \4\ See Memorandum, ``Forged Steel Fittings from India and the 
Republic of Korea: Final Scope Decision Memorandum,'' dated October 
13, 2020; see also IPI's Letter, ``Response to Scope Preliminary 
Determinations: Antidumping and Countervailing Duty Investigation of 
Forged Steel Fittings from India and Korea (A-533-891, C-533-892, A-
580-904),'' dated June 26, 2020; Ramkrishna's Letters, ``Forged 
Steel Fittings from India and Korea: Response to Req for 
Clarification RE Scope Prelim Determination. IPI 3/26/2020,'' dated 
July 3, 2020, ``Forged Steel Fittings from India and Korea: Response 
to the Department of Commerce's Preliminary Determination from Titus 
PVF Group Inc. (``Titus'') dated June 29th, 2020,'' dated July 5, 
2020, and ``Forged Steel Fittings from India and Korea: Response to 
Req for Clarification RE Scope Prelim Determination. IPI 3/26/
2020,'' dated July 6, 2020; S.P.M. Flow's Letter, ``Forged Steel 
Fittings from India and Korea: Response Clarification RE Scope 
Prelim Determination,'' dated July 6, 2020; and Petitioners' Letter, 
``Forged Steel Fittings from India and Korea: Scope Rebuttal 
Comments,'' dated July 6, 2020.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised is attached to this notice as Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Verification

    Commerce normally verifies information relied upon in making its 
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, we were unable to conduct on-site verification due to 
travel restrictions.\6\ Consistent

[[Page 66536]]

with section 776(a)(2)(D) of the Act, Commerce relied on the 
information submitted on the record, which we used in making our 
Preliminary Determination and in the Amended Preliminary Determination, 
as facts available in making our final determination.
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    \6\ See Memorandum, ``Countervailing Duty Investigation of 
Forged Steel Fittings from India: Verification and Schedule for 
Submission of Case and Rebuttal Briefs,'' dated August 3, 2020.
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Changes Since the Preliminary Determination and Amended Preliminary 
Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to the subsidy rate calculations for 
Shakti Forge Industries Pvt. Ltd. and Shakti Forge (collectively, 
Shakti). For a discussion of these changes, see the Issues and Decision 
Memorandum.

All-Others Rate

    We continue to assign the countervailable subsidy rate calculated 
for Shakti as the all-others rate applicable to all exporters and/or 
producers not individually examined.

Final Determination

    Commerce determines the total estimated net countervailable subsidy 
rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
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Shakti Forge Industries Pvt. Ltd. and Shakti Forge                  2.64
 (collectively, Shakti).................................
Nikoo Forge Pvt. Ltd., Pan International, Patton                  300.77
 International Limited, Sage Metals Limited, Kirtanlal
 Steel Private Limited, Disha Auto Components Private
 Limited, Dynamic Flow Products, Sara Sae Private
 Limited, and Parveen Industries Private Limited........
All Others..............................................            2.64
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Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis performed 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 the publication of this notice in proceeding 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise under consideration from India that were entered 
or withdrawn from warehouse, for consumption on or after March 30, 
2020, the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, 
effective July 28, 2020, we instructed CBP to discontinue the 
suspension of liquidation of all entries at that time, but to continue 
the suspension of liquidation of all entries between March 30, 2020 and 
July 27, 2020.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and require 
a cash deposit of estimated countervailing duties for such entries of 
subject merchandise in the amounts indicated above, in accordance with 
section 706(a) of the Act. If the ITC determines that material injury, 
or threat of material injury, does not exist, this proceeding will be 
terminated, and all estimated duties deposited or securities posted as 
a result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of FSF from 
India. As Commerce's final determination is affirmative, in accordance 
with section 705(b) of the Act, the ITC will determine, within 45 days, 
whether the domestic industry in the United States is materially 
injured, or threatened with material injury. In addition, we are making 
available to the ITC all non-privileged and nonproprietary information 
related to this investigation. We will allow the ITC access to all 
privileged and business proprietary information in our files, provided 
the ITC confirms that it will not disclose such information, either 
publicly or under an administrative protective order (APO), without the 
written consent of the Assistant Secretary for Enforcement and 
Compliance.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 771(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;

[[Page 66537]]

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 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. Scope of the Investigation
IV. Scope Comments
V. Use of Facts Otherwise Available and Adverse Inferences: Non-
Cooperative and Non-Responsive Companies
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Analysis of Comments
     Comment 1: Whether Commerce Should Include the 
Integrated Goods & Service Tax (IGST) in the Calculation of the 
Benefit Received From the Export Promotion of Capital Goods Scheme 
(EPCGS) Program
     Comment 2: Whether Commerce Should Revise Its 
Calculation of the Benefit for the Provision of Water for Less Than 
Adequate Remuneration (LTAR) Program
     Comment 3: Whether the Duty Drawback (DDB) Program Is 
Countervailable
     Comment 4: Whether the EPCGS Program Is Countervailable
     Comment 5: Whether the MEIS Program Is Countervailable
     Comment 6: Whether the State Government of Gujarat 
(SGOG) Scheme of Assistance to Micro, Small and Medium Enterprises 
(MSME): Assistance of One-Time Capital Investment Subsidy and the 
SGOG Scheme of Assistance to MSME: Assistance for Interest Subsidy 
Programs Are Countervailable
     Comment 7: Whether the Gujarat Industrial Development 
Corporation (GIDC) Provision of Water for Less Than Adequate 
Remuneration (LTAR) Is Countervailable
IX. Recommendation

[FR Doc. 2020-23272 Filed 10-19-20; 8:45 am]
BILLING CODE 3510-DS-P