[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 80018-80020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27331]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-428-847]
Forged Steel Fluid End Blocks From the Federal Republic of
Germany: Final 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 imports
of 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) for the period of
investigation October 1, 2018 through September 30, 2019.
DATES: Applicable December 11, 2020.
FOR FURTHER INFORMATION CONTACT: Alexis Cherry or Katherine Johnson,
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) 482-0607
or (202) 482-4929, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 23, 2020, Commerce published in the Federal Register its
preliminary affirmative determination in the LTFV investigation of
fluid end blocks from Germany, in which we also postponed the final
determination until December 7, 2020.\1\ We invited interested parties
to comment on the Preliminary Determination. 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 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, 85 FR 44513 (July 23, 2020) (Preliminary
Determination) and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative 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 (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are fluid end blocks
from Germany. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
During the course of this investigation, Commerce received scope
comments from interested parties. Commerce issued a Preliminary Scope
Decision Memorandum to address these comments.\3\ We received comments
from interested parties on the Preliminary Scope Decision Memorandum,
which we address in the Final Scope Decision Memorandum, dated
concurrently with, and hereby adopted by, this final determination.\4\
Commerce is not modifying the scope language as it appeared in the
Preliminary Determination. See Appendix I for the final scope of the
investigation.
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\3\ 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).
\4\ 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 Final
Determinations,'' dated December 7, 2020 (Final Scope Decision
Memorandum).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in the Issues
and Decision Memorandum. A list of the issues addressed in the Issues
and Decision Memorandum is attached to this notice at Appendix II. 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. The signed
and electronic versions of the Issues and Decision Memorandum are
identical in content.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation as provided for in section 782(i) of the Tariff Act of
1930, as amended (the Act). Accordingly, we took additional steps in
lieu of on-site verification and requested additional documentation and
information.\5\
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\5\ See Commerce's Letter to BGH, ``Less-Than-Fair-Value
Investigation of Forged Steel Fluid End Blocks from the Federal
Republic of Germany,'' dated October 20, 2020; see also BGH's
Letter, ``Forged Steel Fluid End Blocks from Germany: Response to
Questionnaire in Lieu of Performing On-Site Verification,'' dated
October 28, 2020.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings
related to our request for information in lieu of verification, we made
certain changes to the margin calculations. For a discussion of these
changes, see the ``Margin Calculations'' section of the Issues and
Decision Memorandum.
Use of Adverse Facts Available
The respondents Schmiedewerke Groditz GmbH (SWG) and voestalpine
Bohler Group (voestalpine) failed to cooperate in this investigation.
Therefore, in the Preliminary Determination, pursuant to sections
776(a) and (b) of the Act, Commerce assigned SWG and voestalpine a rate
based on adverse facts available (AFA). There is no new information on
the record that would cause us to revisit our determination to apply
AFA to these companies. Accordingly, we continue to find that the
application of AFA pursuant to sections 776(a) and (b) of the Act is
warranted with respect to SWG and voestalpine. Commerce has assigned to
SWG's and voestalpine's exports of the subject merchandise the rate of
70.84 percent, which is BGH's highest transaction-specific margin.\6\
Because this rate is not secondary information, but rather is based on
information obtained in the course of the investigation, Commerce need
not corroborate this rate pursuant to section 776(c) of the Act.
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\6\ See Issues and Decision Memorandum.
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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
exporters and producers
[[Page 80019]]
individually investigated excluding rates that are zero, de minimis, or
determined entirely under section 776 of the Act. Commerce assigned a
rate based entirely on facts available to SWG and voestalpine.
Therefore, the only rate that is not zero, de minimis, or based
entirely on facts otherwise available is the rate calculated for BGH.
Consequently, the rate calculated for BGH is also assigned as the rate
for all other producers and exporters.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
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\7\ See Memorandum, ``Antidumping Duty Investigation of Forged
Steel Fluid End Blocks from the Republic of Germany: Final
Determination Margin Calculation for BGH Edelstahl Siegen GmbH,''
dated concurrently with, and hereby adopted by, this notice.
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Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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BGH Edelstahl Siegen GmbH................................... \7\ 3.82
Schmiedewerke Groditz GmbH.................................. ** 70.84
voestalpine Bohler Group.................................... ** 70.84
All Others.................................................. 3.82
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** Adverse Facts Available.
Disclosure
We intend to disclose the calculations performed in this final
determination within five days of the date of publication of this
notice to parties in this proceeding in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of fluid end blocks from
Germany, as described in Appendix I of this notice, which are entered,
or withdrawn from warehouse, for consumption on or after July 23, 2020,
the date of publication in the Federal Register of the affirmative
Preliminary Determination.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the estimated weighted-average dumping
margin as follows: (1) The cash deposit rate for the respondents 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.
While Commerce normally adjusts cash deposits for estimated
antidumping (AD) duties by the amount of export subsidies countervailed
in a companion CVD proceeding when CVD provisional measures are in
effect, we have not adjusted the cash deposit rates listed above
because Commerce found no countervailable export subsidies in the final
determination of the companion CVD investigation.\8\
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\8\ See Forged Steel Fluid End Blocks from the Federal Republic
of Germany: Final Affirmative Countervailing Duty Determination, and
accompanying Issues and Decision Memorandum, dated December 7, 2020.
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
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, by reason of imports or sales (or the likelihood of
sales) for importation of fluid end blocks no later than 45 days after
this final determination. If the ITC determines that such injury does
not exist, this proceeding will be terminated, and all cash deposits
posted will be refunded and suspension of liquidation will be lifted.
If the ITC determines that such injury does exist, Commerce will issue
an AD order directing CBP to assess, upon further instruction by
Commerce, AD 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, as discussed above in the
``Continuation of Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Orders
This notice will serve as a final reminder to the parties subject
to 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 written
notification of 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 sanctionable violation.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR
351.210(c).
Dated: December 7, 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).
[[Page 80020]]
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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Changes from the Preliminary Determination
IV. Discussion of the Issues
V. Comment 1: Zeroing
Comment 2: Differential Pricing Analysis
Comment 3: Particular Market Situation Allegations
1. Cost-Based Allegations
a. Electricity Costs
b. Ferrochrome Costs
c. Natural Gas
2. Price-Based Allegations
a. Cartel Presence in Germany/Ongoing Price-Fixing Investigation
b. Scrap and Alloy Surcharges
c. Physical Differences in the Products
Comment 4: Calculation of Constructed Value Profit
Comment 5: Whether Adverse Facts Available (AFA) is Appropriate
for BGH Edelstahl Siegen GmbH (BGH)
Comment 6: Whether to Use BGH's Submitted Sales and Cost Data
Comment 7: Application of AFA to Schmiedewerke Groditz GmbH
(SWG)
Comment 8: Selection of Appropriate AFA Rate for SWG
V. Recommendation
[FR Doc. 2020-27331 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P