[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 79999-80001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27333]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-894]


Forged Steel Fluid End Blocks 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 fluid end blocks (fluid end blocks) from India.

DATES: Applicable December 11, 2020.

FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas 
Czajkowski, 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) 482-3861 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 26, 2020, Commerce published the Preliminary Determination 
of this countervailing duty (CVD) investigation, which also aligned the 
final determination of this CVD investigation with the final 
determination in the companion antidumping duty investigation of fluid 
end blocks from India.\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 which 
is hereby adopted by this notice.\2\ 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 
http://access.trade.gov. In addition, a complete version of the Final 
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.
---------------------------------------------------------------------------

    \1\ See Forged Steel Fluid End Blocks from India: Preliminary 
Affirmative Countervailing Duty Determination, and Alignment of 
Final Determination with Final Antidumping Duty Determination, 85 FR 
31452 (May 26, 2020) (Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Fluid End Blocks from India,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation is April 1, 2018 through March 31, 
2019.

Scope of the Investigation

    The products covered by this investigation are forged steel fluid 
end blocks from India. 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 this 
investigation.
---------------------------------------------------------------------------

    \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\ 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).
---------------------------------------------------------------------------

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 
raised by parties is attached to this notice at 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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 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 Post-Preliminary 
Analysis,\7\ as facts available in making our final determination.
---------------------------------------------------------------------------

    \6\ See Memorandum, ``Countervailing Duty Investigation of 
Forged Steel Fittings from India: Cancellation of Verification and 
Setting of Briefing Schedule,'' dated August 31, 2020.
    \7\ See Memorandum, ``Countervailing Duty Investigation of 
Forged Steel Fluid End Blocks from India: Post-Preliminary 
Analysis,'' dated August 10, 2020 (Post-Preliminary Analysis).
---------------------------------------------------------------------------

Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

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

[[Page 80000]]

All-Others Rate

    We continue to calculate the all-others rate using the rate of the 
only mandatory respondent, Bharat Forge.\8\
---------------------------------------------------------------------------

    \8\ See Preliminary Determination, 85 FR at 31453.
---------------------------------------------------------------------------

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            ad valorem
                                                             (percent)
------------------------------------------------------------------------
Bharat Forge Limited....................................            5.20
All Others..............................................            5.20
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this final determination within five days of 
its 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

    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 as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after May 26, 2020, the date of publication of the Preliminary 
Determination in the Federal Register. In accordance with section 
703(d) of the Act, effective September 23, 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 
May 26, 2020 and September 22, 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 fluid end 
blocks 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: 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).
    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.

[[Page 80001]]

APPENDIX II

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Benchmarks and Interest Rates
V. Use of Facts Available
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether the Duty Drawback Scheme Is Countervailable
    Comment 2: Whether the Income Tax Reduction for Research and 
Development (R&D) Scheme Is Countervailable
    Comment 3: Whether the Package Scheme of Incentives (PSI) Is 
Countervailable
    Comment 4: Whether Commerce Should Use the International 
Monetary Fund (IMF) Lending Benchmark for 2014-2016
    Comment 5: Whether Commerce Should Treat EPCGS Licenses 
Fulfilled during the POI as an Interest-Free Loan
    Comment 6: Whether Commerce Should Revise Its Calculation for 
the Benefit of the Duty Drawback Program
    Comment 7: Whether Commerce Should Revise Its Calculation for 
the Benefit of the Package Scheme of Incentives Provided by the 
State Government of Maharashtra
    Comment 8: Whether Renewable Energy Certificates Are 
Countervailable
    Comment 9: Whether Commerce Should Exclude Goods and Services 
Tax from Its Calculations of the Renewable Energy Certificate 
Program
    Comment 10: Whether Commerce Should Exclude CENVAT from its 
Calculations of the EPCGS Program
    Comment 11: Whether Commerce Should Revise Its Calculations of 
the Focus Product Scheme
VIII. Recommendation

[FR Doc. 2020-27333 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P