[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.

------------------------------------------------------------------------
                                                               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