80020 Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices 

1See Forged Steel Fluid End Blocks from the 

People’s Republic of China: Preliminary Affirmative 

Countervailing Duty Determination, and Alignment 

of Final Determination With Final Antidumping 

Duty Determination, 85 FR 31457 (May 26, 2020) 

(Preliminary Determination). 

2See Memorandum, ‘‘Issues and Decision 

Memorandum for the Final Affirmative 

Determination of the Countervailing Duty 

Investigation of Forged Steel Fluid End Blocks from 

the People’s Republic of China,’’ dated concurrently 

with, and hereby adopted by, this notice (Issues and 

Decision Memorandum). 

3See Memorandum to the File, ‘‘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). 

4See 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). 

5See sections 771(5)(B) and (D) of the Act 

regarding financial contribution; section 771(5)(E) 

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 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[C–570–116] 

Forged Steel Fluid End Blocks From 

the People’s Republic of China: 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 the People’s Republic of 

China (China). 

DATES: Applicable December 11, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Jaron Moore or Janae Martin, 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) 482–3640 or (202) 482–0238, 

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 of the concurrent 

antidumping duty (AD) investigation.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. 

Period of Investigation 

The period of investigation is January 

1, 2018 through December 31, 2018. 

Scope of the Investigation 

The products covered by this 

investigation are fluid end blocks from 

China. 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 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. 

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 


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Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices 80021 

of the Act regarding benefit; and section 771(5A) of 

the Act regarding specificity. 

6See Issues and Decision Memorandum at ‘‘Use 

of Facts Otherwise Available and Adverse 

Inferences’’ section. 

7See Memorandum, ‘‘Cancellation of Verification 

and Setting of Briefing Schedule,’’ dated October 5, 

2020. 

8See Memorandum, ‘‘Post-Preliminary Analysis 

of Countervailing Duty Investigation: Forged Steel 

Fluid End Blocks from the People’s Republic of 

China,’’ dated September 18, 2020 (PostPreliminary Determination). 

9See Preliminary Determination, 85 FR 31457; 

see also Memorandum, ‘‘AFA Calculation 

Memorandum for the Final Determination in the 

Investigation of Forged Steel Fluid End Blocks from 

the People’s Republic of China,’’ dated December 7, 

2020. 

10Commerce has found the following company to 

be cross-owned with Nanjing Develop Advanced 

Manufacturing Co., Ltd.: Nanjing Develop Industrial 

and Commercial Co., Ltd. 

11Commerce has found the following companies 

to be cross-owned with Shanghai Qinghe 

Machinery Co., Ltd.: Haimo Technologies Group 

Corp. and Lanzhou Chenglin Oil Drilling 

Equipment Co., Ltd. 

12For discussion of the calculation of this rate, 

see Memorandum, ‘‘Countervailing Duty 

Investigation of Forged Steel Fluid End Blocks from 

the People’s Republic of China: Final Determination 

Calculation of AFA Rate,’’ dated December 7, 2020. 

13For discussion of the calculation of this rate, 

see Memorandum, ‘‘Countervailing Duty 

Investigation of Forged Steel Fluid End Blocks from 

the People’s Republic of China: Final Determination 

Calculation of All-Other’s Rate,’’ dated December 7, 

2020. 

full description of the methodology 

underlying our final determination, see 

the Issues and Decision Memorandum. 

In making this final determination, 

Commerce relied, in part, on facts 

available pursuant to section 776(a) of 

the Act. Additionally, as discussed in 

the Issues and Decision Memorandum, 

because one or more respondents did 

not act to the best of their ability in 

responding to our requests for 

information, we drew adverse 

inferences, where appropriate, in 

selecting from among the facts 

otherwise available, pursuant to section 

776(b) of the Act.6

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.7 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 

Determination,8 as facts available in 

making our final determination. 

All-Others Rate 

We continue to calculate the allothers rate using a weighted average of 

the individual estimated subsidy rates 

calculated for the examined respondents 

(Shanghai Qinghe Machinery Co., Ltd. 

and Nanjing Develop Advanced 

Manufacturing Co., Ltd.) using each 

company’s publicly-ranged data for the 

value of their exports to the United 

States of subject merchandise.9

Final Determination 

Commerce determines that the 

following estimated countervailable 

subsidy rates exist: 

Company 

Subsidy rate 

ad valorem 

(percent) 

Nanjing Develop Advanced 

Manufacturing Co., Ltd 10 .. 16.80 

Shanghai Qinghe Machinery 

Co., Ltd 11 .......................... 19.88 

China Machinery Industrial 

Products Co., Ltd .............. 12 337.07 

Anhui Tianyu Petroleum 

Equipment Manufacturing 

Co., Ltd ............................. ........................

CNCCC Sichuan Imp & Exp 

Co., Ltd ............................. ........................

GE Petroleum Equipment 

(Beijing) Co., Ltd ............... ........................

Jiaxing Shenghe Petroleum 

Machinery Co., Ltd ............ ........................

Ningbo Minmetals & Machinery Imp & Exp Co., Ltd ..... ........................

Qingdao RT G&M Co., Ltd ... ........................

Shandong Fenghuang 

Foundry Co., Ltd ............... ........................

Shandongshengjin Ruite Energy Equipment Co., Ltd 

(part of Shengli Oilfield 

R&T Group) ....................... ........................

Shanghai Baisheng Precision 

Machine ............................. ........................

Shanghai Boss Petroleum 

Equipment ......................... ........................

Shanghai CP Petrochemical 

and General Machinery 

Co., Ltd ............................. ........................

Suzhou Douson Drilling & 

Production Equipment Co., 

Ltd ..................................... ........................

Zhangjiagang Haiguo New 

Energy Equipment Manufacturing Co., Ltd .............. ........................

Anhui Yingliu 

Electromechanical Co., Ltd ........................

Daye Special Steel Co., Ltd, 

(Citic Specific Steel Group) ........................

Suzhou Fujie Machinery Co., 

Ltd., (Fujie Group) ............. ........................

All Others .............................. 13 19.52 

Disclosure 

Commerce intends to disclose to 

interested parties the calculations and 

analysis performed in this final 

determination within five days of any 

public announcement or, if there is no 

public announcement, within five days 

of the date of the publication of this 

notice in proceeding 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, we 

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 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 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 China. 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 nonprivileged 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. 


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80022 Federal Register / Vol. 85, No. 239 / Friday, December 11, 2020 / Notices 

1See Forged Steel Fluid End Blocks from Italy: 

Preliminary Affirmative Countervailing Duty 

Determination, and Alignment of Final 

Determination with Final Antidumping Duty 

Determination, 85 FR 31460 (May 26, 2020) 

(Preliminary Determination). 

2See Memorandum, ‘‘Issues and Decision 

Memorandum for the Final Determination in the 

Countervailing Duty Investigation of Fluid End 

Blocks from Italy,’’ dated concurrently with, and 

hereby adopted by, this notice (Issues and Decision 

Memorandum). 

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 an 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 777(i) of the Act and 19 CFR 

351.210(c). 

Dated: December 7, 2020. 

Jeffery 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. 

APPENDIX II 

List of Topics Discussed in the Issues and 

Decision Memorandum 

I. Summary 

II. Background 

III. Use of Facts Otherwise Available and 

Adverse Inferences 

IV. Subsidies Valuation 

V. Analysis of Programs 

VI. Analysis of Comments 

Comment 1: Whether To Continue 

Applying Adverse Facts Available (AFA) 

to the Export Buyer’s Credit (EBC) 

Program 

Comment 2: Whether the Provision of 

Electricity Is Countervailable 

Comment 3: Whether Commerce Should 

Revise the Electricity Benchmark 

Comment 4: Whether to Revise the Import 

Duty Rate in the Benchmark 

Comment 5: Whether Commerce Should 

Use Haimo’s Unconsolidated Sales Value 

for Its Denominator 

Comment 6: Whether Commerce Should 

Include Other Revenue in the Sales 

Values of Qinghe and Lanzhou Chenglin 

Comment 7: Whether Commerce Correctly 

Calculated Qinghe’s Benefit under the 

Income Tax Deduction for Research and 

Development (R&D) Expenses Under the 

Enterprise Income Tax Law 

Comment 8: Calculation of Qinghe’s Other 

Subsidies Benefits 

VII. Recommendation 

[FR Doc. 2020–27330 Filed 12–10–20; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[C–475–841] 

Forged Steel Fluid End Blocks from 

Italy: 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 Italy. 

DATES: Applicable December 11, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Nicholas Czajkowski or Konrad 

Ptaszynski, 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) 482–1395 or 

(202) 482–6187, 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 Italy.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 


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