[Federal Register Volume 85, Number 239 (Friday, December 11, 2020)]
[Notices]
[Pages 79996-79999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27334]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-840]


Forged Steel Fluid End Blocks From Italy: Final Affirmative 
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 Italy 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: Dmitry Vladimirov or Hermes Pinilla, 
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) 482-0665 or (202) 
482-3477, 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 Italy, 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 Italy: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 85 FR 44500 (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 Italy,'' 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 Italy. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation'' in 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

[[Page 79997]]

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/.

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 Letters, dated September 2, 2020; see also 
Metalcam's Letters, both titled ``Antidumping Duty Investigation of 
Forged Steel Fluid End Blocks from Italy: Metalcam Post-Prelim 
Questionnaire Response,'' and dated September 11, 2020 (submitting, 
separately, responses to the sales and cost portions of the 
questionnaire in lieu of verification); and Lucchini's Letter, 
``Antidumping Duty Investigation of Forged Steel Fluid End Blocks 
from Italy: Lucchini Mame Forge S.p.A Post-Preliminary 
Questionnaire,'' dated September 11, 2020.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received, we made certain 
changes to the margin calculations for Lucchini. For a discussion of 
these changes, see the ``Changes from the Preliminary Determination'' 
section of the Issues and Decision Memorandum.

Use of Adverse Facts Available

    Companies that did not respond to our quantity and value 
questionnaires, IMER International S.p.A., Galperti Group, Mimest 
S.p.A., and P. Technologies S.r.l., failed to cooperate in this 
investigation. Therefore, in the Preliminary Determination, pursuant to 
sections 776(a) and (b) of the Act, Commerce assigned these companies 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 IMER International S.p.A., Galperti 
Group, Mimest S.p.A., and P. Technologies S.r.l. 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 these companies. 
Commerce has assigned to these companies' exports of the subject 
merchandise the rate of 58.48 percent, which is Lucchini's highest 
comparison-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 Memorandum, ``Forged Steel Fluid End Blocks from Italy--
Final Determination Analysis Memorandum for Lucchini Mam[egrave] 
Forge S.p.A.,'' dated December 7, 2020 (Lucchini Final Analysis 
Memorandum) at 90 of the attached margin-calculation program output.
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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 individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act. Commerce has determined that the estimated weighted-average 
dumping margin for Metalcam S.p.A. is zero. Therefore, the only rate 
that is not zero, de minimis, or based entirely on facts otherwise 
available, is the rate calculated for Lucchini Mame Forge S.p.A. 
Consequently, the rate calculated for Lucchini Mame Forge S.p.A., is 
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, ``Forged Steel Fluid End Blocks from Italy--
Preliminary Determination Analysis Memorandum for Metalcam S.p.A.,'' 
dated July 16, 2020.
    \8\ See Lucchini Final Analysis Memorandum.

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
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Metalcam S.p.A..............................................    \7\ 0.00
Lucchini Mame Forge S.p.A...................................    \8\ 7.33
IMER International S.p.A....................................    ** 58.48
Galperti Group..............................................    ** 58.48
Mimest S.p.A................................................    ** 58.48
P. Technologies S.r.l.......................................    ** 58.48
All Others..................................................        7.33
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Disclosure

    We intend to disclose the calculations performed for Lucchini 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).\9\
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    \9\ We are not disclosing any final margin calculations for 
Metalcam because we made no changes to the preliminary margin 
calculations for Metalcam.
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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 subject merchandise, 
as described in Appendix I of this notice, entered, or withdrawn from 
warehouse, for consumption on or after July 23, 2020, the date of 
publication of Preliminary Determination in the Federal Register except 
for those entries of subject merchandise produced and exported by 
Metalcam S.p.A. Because the estimated weighted-average dumping margin 
for Metalcam S.p.A. is zero, we will not be directing CBP to suspend 
liquidation of entries of the subject merchandise produced and exported 
by this company.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), where appropriate, Commerce will instruct CBP to require a 
cash deposit equal to the estimated weighted-average dumping margin or 
the estimated all-others rate, as follows: (1) The cash deposit rate 
for the respondents listed above will be equal to the company-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 
company-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

[[Page 79998]]

the all-others estimated weighted-average dumping margin. These 
suspension-of-liquidation instructions will remain in effect until 
further notice.
    Because the estimated weighted-average dumping margin for Metalcam 
S.p.A. is zero, entries of shipments of subject merchandise from this 
company will not be subject to suspension of liquidation or cash 
deposit requirements. In such situations, Commerce also applies the 
exclusion to the provisional measures to the producer/exporter 
combination that was examined in the investigation. Accordingly, 
Commerce will be directing CBP not to suspend liquidation of entries of 
subject merchandise produced and exported by Metalcam S.p.A. However, 
entries of shipments of subject merchandise from this company in any 
other producer/exporter combination (i.e., where Metalcam S.p.A, is 
either the producer or the exporter, but not both), or by third parties 
that sourced subject merchandise from the excluded producer/exporter 
combination, will be subject to suspension of liquidation at the all-
others rate.
    Because the estimated weighted-average dumping margin is zero for 
the producer/exporter combination identified above, entries of 
shipments of subject merchandise from this producer/exporter 
combination will be excluded from the potential antidumping duty order. 
Such an exclusion will not be applicable to merchandise exported to the 
United States by this respondent in any other producer/exporter 
combinations or by third parties that sourced subject merchandise from 
the excluded producer/exporter combination.
    While Commerce normally adjusts cash deposits for estimated 
antidumping duties by the amount of export subsidies countervailed in a 
companion countervailing duty (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.\10\
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    \10\ See the Final Affirmative Countervailing Duty Determination 
of Forged Steel Fluid End Blocks from Italy and accompanying Issues 
and Decision Memorandum dated concurrently with this final 
determination.
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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 from Italy 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, antidumping 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).
    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 79999]]

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
    Comment 1: Whether Application of Adverse Facts Available (AFA) 
is Warranted for Metalcam
    Comment 2: Constructed Value Profit and Constructed Value 
Selling Expenses
    Comment 3: Date of Sale for Metalcam
    Comment 4: Lucchini's Direct Material Costs
    Comment 5: Major Input/Transactions Disregarded Adjustment
    Comment 6: Constructed Export Price Profit Calculation for 
Lucchini
    Comment 7: Commission Rate for Lucchini
    Comment 8: Inventory Carrying Costs for Lucchini
V. Recommendation

[FR Doc. 2020-27334 Filed 12-10-20; 8:45 am]
BILLING CODE 3510-DS-P