[Federal Register Volume 89, Number 101 (Thursday, May 23, 2024)]
[Notices]
[Pages 45640-45644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11264]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-931]


Certain High Chrome Cast Iron Grinding Media From India: 
Initiation of Countervailing Duty Investigation

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

DATES: Applicable May 16, 2024.

FOR FURTHER INFORMATION CONTACT: Claudia Cott, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4270.

SUPPLEMENTARY INFORMATION:

The Petition

    On April 26, 2024, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
certain high chrome cast iron grinding media (grinding media) from 
India filed in proper form on behalf of Magotteaux Inc. (the 
petitioner),\1\ a domestic producer of grinding media. The CVD petition 
was accompanied by an antidumping duty (AD) petition concerning imports 
of grinding media from India.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Certain High Chrome Cast 
Iron Grinding Media from India,'' dated April 26, 2024 (Petition).
    \2\ Id.
---------------------------------------------------------------------------

    On April 30, 2024, Commerce requested supplemental information 
pertaining to certain aspects of the

[[Page 45641]]

Petition.\3\ On May 2, 2024, the petitioner filed responses to these 
requests for additional information, and on May 8, 2024, the petitioner 
filed an amendment to the proposed scope.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
April 30, 2024 (General Issues Questionnaire); and ``Supplemental 
Questions,'' dated April 30, 2024.
    \4\ See Petitioner's Letters, ``Response to Supplemental 
Questions (General Issues),'' dated May 2, 2024 (General Issues 
Supplement); ``Response to Supplemental Questions 
(Countervailing),'' dated May 2, 2024; and ``Scope Amendment,'' 
dated May 8, 2024 (Scope Amendment).
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of India 
(GOI) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of grinding media from 
India, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing grinding media in 
the United States. Consistent with section 702(b)(1) of the Act and 19 
CFR 351.202(b), for those alleged programs on which we are initiating a 
CVD investigation, the Petition is supported by information reasonably 
available to the petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigation.\5\
---------------------------------------------------------------------------

    \5\ See section on ``Determination of Industry Support for the 
Petition,'' infra.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on April 26, 2024, the period of 
investigation (POI) is January 1, 2023, through December 31, 2023.\6\
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigation

    The merchandise covered by this investigation are grinding media 
from India. For a full description of the scope of this investigation, 
see the appendix to this notice.

Comments on Scope of the Investigation

    On April 30, 2024, Commerce requested information from the 
petitioner regarding the proposed scope to ensure that the scope 
language in the Petition is an accurate reflection of the products for 
which the domestic industry is seeking relief.\7\ On May 2 and 8, 2024, 
the petitioner provided clarifications and/or revised the scope 
language.\8\ The description of merchandise covered by this 
investigation, as described in the appendix to this notice, reflects 
these clarifications.
---------------------------------------------------------------------------

    \7\ See General Issues Questionnaire.
    \8\ See General Issues Supplement at 1-2; see also Scope 
Amendment.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for parties to raise issues regarding product 
coverage (i.e., scope).\9\ Commerce will consider all scope comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information, all such 
factual information should be limited to public information.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on June 5, 
2024, which is 20 calendar days from the signature date of this notice. 
Any rebuttal comments, which may include factual information, must be 
filed by 5:00 p.m. ET on June 17, 2024,\11\ which is the next business 
day after 10 calendar days from the initial comment deadline.
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble); see also 19 CFR 351.312.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ The deadline for rebuttal comments falls on June 15, 2024, 
which is a Saturday. In accordance with 19 CFR 351.303(b)(1), 
Commerce will accept rebuttal comments filed by 5:00 p.m. ET on June 
17, 2024. Id. (``For both electronically filed and manually filed 
documents, if the applicable due date falls on a non-business day, 
the Secretary will accept documents that are filed on the next 
business day.'').
---------------------------------------------------------------------------

    Commerce requests that any factual information that the parties 
consider relevant to the scope of the investigation be submitted during 
that time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact Commerce and 
request permission to submit the additional information. All scope 
comments must also be filed on the record of the concurrent AD 
investigation.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at: https://access.trade.gov/help.aspx and a handbook 
can be found at: https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOI of the receipt of the Petition and provided an 
opportunity for consultations with respect to the Petition.\13\ The GOI 
did not request consultations.
---------------------------------------------------------------------------

    \13\  See Commerce's Letter, ``Countervailing Duty Petition on 
High Chrome Cast Iron Grinding Media from India: Invitation for 
Consultation,'' dated April 30, 2024.
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC apply the same statutory definition regarding the

[[Page 45642]]

domestic like product,\14\ they do so for different purposes and 
pursuant to a separate and distinct authority. In addition, Commerce's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law.\15\
---------------------------------------------------------------------------

    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\16\ Based on our analysis of the information 
submitted on the record, we have determined that grinding media, as 
described in the scope, constitute a single domestic like product, and 
we have analyzed industry support in terms of that domestic like 
product.\17\
---------------------------------------------------------------------------

    \16\ See Petition at Volume I (pages 15-17 and Exhibits I-2, and 
I-4); see also General Issues Supplement at 2-6.
    \17\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Checklist, ``Certain High Chrome Cast Iron Grinding media from 
India,'' dated concurrently with, and hereby adopted by, this notice 
(CVD Initiation Checklist), at Attachment II, Analysis of Industry 
Support for the Antidumping and Countervailing Duty Petition 
Covering High Chrome Cast Iron Grinding Media from India (Attachment 
II). This checklist is on file electronically via ACCESS.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition, and supplements thereto, with reference to 
the domestic like product as defined in the ``Scope of the 
Investigation,'' in the appendix to this notice. To establish industry 
support, the petitioner provided its own production of the domestic 
like product in 2023.\18\ The petitioner stated that there are no other 
known producers of grinding media in the United States; therefore, the 
Petition is supported by 100 percent of the U.S. industry.\19\ We 
relied on data provided by the petitioner for purposes of measuring 
industry support.\20\
---------------------------------------------------------------------------

    \18\ See Petition at Volume I (page 25 and Exhibit I-12).
    \19\ Id. at 3 and Exhibit I-2; see also General Issues 
Supplement at 2 and Exhibit I-1.
    \20\ See Petition at Volume I (pages 3 and 25 and Exhibits I-2 
and I-12); see also General Issues Supplement (page 2 and Exhibit 
1). For further discussion, see Attachment II of the CVD Initiation 
Checklist.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\21\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\22\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\23\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\24\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.\25\
---------------------------------------------------------------------------

    \21\ See Attachment II of the CVD Initiation Checklist.
    \22\ Id.; see also section 702(c)(4)(D) of the Act.
    \23\ See Attachment II of the CVD Initiation Checklist.
    \24\ Id.
    \25\ Id.
---------------------------------------------------------------------------

Injury Test

    Because India is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from India materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\26\
---------------------------------------------------------------------------

    \26\ See Petition at Volume I (page 21 and Exhibit I-9).
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant volume of subject imports; reduced market 
share; underselling and price depression and/or suppression; lost sales 
and revenues; declines in production, shipments, capacity utilization; 
and decline in financial indicators and employment variables.\27\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence and meet the statutory requirements for 
initiation.\28\
---------------------------------------------------------------------------

    \27\ Id. at 21-30 and Exhibits I-9 and I-11 through I-15; see 
also General Issues Supplement at 6 and Exhibit 2.
    \28\ See CVD Initiation Checklists at Attachment III, Analysis 
of Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petition Covering High Chrome 
Cast Iron Grinding Media from India.
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating a CVD investigation to determine 
whether imports of grinding media from India benefit from 
countervailable subsidies conferred by the GOI. In accordance with 
section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 65 
days after the date of this initiation.
    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on all 28 
programs alleged by the petitioner. For a full discussion of the basis 
for our decision to initiate an investigation of each program, see the 
CVD Initiation Checklist. A public version of the initiation checklist 
for this investigation is available in ACCESS.

Respondent Selection

    The petitioner identified 11 companies in India as producers and/or 
exporters of grinding media.\29\ Commerce intends to follow its 
standard practice in CVD investigations and

[[Page 45643]]

calculate company-specific subsidy rates in this investigation. In the 
event that Commerce determines that the number of companies is large, 
and it cannot individually examine each company based upon Commerce's 
resources, Commerce intends to select mandatory respondents based on 
U.S. Customs and Border Protection (CBP) data for U.S. imports of 
grinding media from India during the POI under the appropriate 
Harmonized Tariff Schedule of the United States subheading listed in 
the ``Scope of the Investigation'' in the appendix.
---------------------------------------------------------------------------

    \29\ See Petition at Volume I (page 18 and Exhibit I-7).
---------------------------------------------------------------------------

    On May 8, 2024, Commerce released CBP data on imports of grinding 
media from India under administrative protective order (APO) to all 
parties with access to information protected by APO and indicated that 
interested parties wishing to comment on CBP data and/or respondent 
selection must do so within three business days of the publication date 
of the notice of initiation of this investigation.\30\ Comments must be 
filed electronically using ACCESS. An electronically filed document 
must be received successfully in its entirety via ACCESS by 5:00 p.m. 
ET on the specified deadline. Commerce will not accept rebuttal 
comments regarding the CBP data or respondent selection.
---------------------------------------------------------------------------

    \30\ See Memorandum, ``Release of Data from U.S. Customs and 
Border Protection,'' dated May 8, 2024.
---------------------------------------------------------------------------

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at https://www.trade.gov/administrative-protective-orders.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOI via ACCESS. Furthermore, to the extent practicable, 
Commerce will attempt to provide a copy of the public version of the 
Petition to each exporter named in the Petition, as provided under 19 
CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    Typically, the ITC will preliminarily determine, within 45 days 
after the date on which the Petition was filed, whether there is a 
reasonable indication that subject imports are materially injuring, or 
threatening material injury to, a U.S. industry.\31\ A negative ITC 
determination will result in the investigation being terminated.\32\ 
Otherwise, this CVD investigation will proceed according to statutory 
and regulatory time limits.
---------------------------------------------------------------------------

    \31\ See section 703(a)(1) of the Act.
    \32\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \33\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\34\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
---------------------------------------------------------------------------

    \33\ See 19 CFR 351.301(b).
    \34\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301.\35\ For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, Commerce may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone submission; Commerce will grant untimely filed 
requests for the extension of time limits only in limited cases where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning time 
limits for submission of factual information prior to submitting 
factual information in this investigation.\36\
---------------------------------------------------------------------------

    \35\ See 19 CFR 351.302.
    \36\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013), and Regulations 
Improving and Strengthening the Enforcement of Trade Remedies 
Through the Administration of the Antidumping and Countervailing 
Duty Laws, 89 FR 20766 (March 25, 2024).
---------------------------------------------------------------------------

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\37\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\38\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \37\ See section 782(b) of the Act.
    \38\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at: 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective order in accordance with 19 CFR 351.305. 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of 19 CFR 351.103(d), e.g., by filing the 
required letters of appearance. Note that Commerce has amended certain 
of its requirements pertaining to the service of documents in 19 CFR 
351.303(f).\39\
---------------------------------------------------------------------------

    \39\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
---------------------------------------------------------------------------

    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act and 19 CFR 351.203(c).


[[Page 45644]]


    Dated: May 16, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix

Scope of the Investigation

    The scope of this investigation covers chrome cast iron grinding 
media in spherical (ball) or ovoid shape, with an alloy composition 
of seven percent or more (>= 7 percent of total mass) chromium (Cr) 
content and produced through the casting method, with a nominal 
diameter of up to 127 millimeters (mm) and tolerance of plus or 
minus 10 mm. The products covered by the scope are currently 
classified under Harmonized Tariff Schedule of the United States 
(HTSUS) subheading 7325.91.0000. This HTSUS subheading is provided 
for convenience and U.S. Customs purposes only. The written 
description of the scope is dispositive.

[FR Doc. 2024-11264 Filed 5-22-24; 8:45 am]
BILLING CODE 3510-DS-P