[Federal Register Volume 86, Number 18 (Friday, January 29, 2021)]
[Notices]
[Pages 7535-7537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01978]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-116, C-428-848, C-533-894, C-475-841]


Forged Steel Fluid End Blocks From the People's Republic of 
China, the Federal Republic of Germany, India, and Italy: 
Countervailing Duty Orders, and Amended Final Affirmative 
Countervailing Duty Determination for the People's Republic of China

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing countervailing duty orders on forged steel fluid 
end blocks (FEBs) from the People's Republic of China (China), the 
Federal Republic of Germany (Germany), India, and Italy. In addition, 
Commerce is amending its final determination with respect to FEBs from 
China to correct ministerial errors.

DATES: Applicable January 29, 2021.

FOR FURTHER INFORMATION CONTACT: Jaron Moore at (202) 482-3640 or Janae 
Martin at (202) 482-0238 (China); Joseph Dowling at (202) 482-1646 or 
Robert Palmer at (202) 482-9068 (Germany); William Langley at (202) 
482-3861 or Nicholas Czajkowski at (202) 482-1395 (India); and Konrad 
Ptaszynski at (202) 482-6187 or Nicholas Czajkowski at (202) 482-1395 
(Italy); AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with sections 705(a), 705(d), and 777(i)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on 
December 11, 2020, Commerce published its affirmative final 
determinations that countervailable subsidies are being provided to 
producers and exporters of FEBs from China, Germany, India, and 
Italy.\1\ In the investigation of FEBs from China, an interested party 
to the investigation submitted a timely filed allegation on the record 
that Commerce made certain ministerial errors in the final 
countervailing duty determination on FEBs from China. Section 705(e) of 
the Act and 19 CFR 351.224(f) define ministerial errors as errors in 
addition, subtraction, or other arithmetic function, clerical errors 
resulting from inaccurate copying, duplication, or the like, and any 
other type of unintentional error which Commerce considers ministerial. 
We reviewed the allegations and determined that we made certain 
ministerial errors in the final countervailing duty determination on 
FEBs from China. See ``Amendment to the Final Determination'' section 
below for further discussion.
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    \1\ See Forged Steel Fluid End Blocks from the People's Republic 
of China: Final Affirmative Countervailing Duty Determination, 85 FR 
80020 (December 11, 2020) (China Final Determination); Forged Steel 
Fluid End Blocks From the Federal Republic of Germany: Final 
Affirmative Countervailing Duty Determination, 85 FR 80011 (December 
11, 2020); Forged Steel Fluid End Blocks from India: Final 
Affirmative Countervailing Duty Determination, 85 FR 79999 (December 
11, 2020); and Forged Steel Fluid End Blocks from Italy: Final 
Affirmative Countervailing Duty Determination, 85 FR 80022 (December 
11, 2020).
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    On January 25, 2021, the ITC notified Commerce of its affirmative 
final determinations that pursuant to sections 705(b)(1)(A)(i) and 
705(d) of the Act, that an industry in the United States is materially 
injured by reason of subsidized imports of subject merchandise from 
China, Germany, India, and Italy.\2\
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    \2\ See ITC's Letter, ``Notification of ITC Final 
Determinations,'' dated January 25, 2021 (ITC Notification Letter).
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Scope of the Orders

    The merchandise covered by these orders is FEBs from China, 
Germany, India, and Italy. For a complete description of the scope of 
these orders, see the appendix to this notice.

Amendment to the Final Determination of FEBs From China

    On December 21, 2020, Shanghai Qinghe Machinery Co., Ltd. (Qinghe) 
timely alleged that the China Final Determination contained certain 
ministerial errors and requested that Commerce correct such errors.\3\
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    \3\ See Qinghe's Letter, ``Qinghe Comments on Ministerial Errors 
in the Final Determination and the Disclosed Calculations for 
Qinghe: Countervailing Duty Investigation of Forged Steel Fluid End 
Blocks from the People's Republic of China (C-570-116),'' dated 
December 21, 2020.
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    Commerce reviewed the record and, on January 6, 2020, agreed that 
an error referenced in Qinghe's allegation constituted a ministerial 
error within the meaning of section 705(e) of the Act and 19 CFR 
351.224(f).\4\ Specifically, Commerce found that it made an error in 
calculating Qinghe's sales denominator used in the China Final 
Determination by excluding ``other operating revenue'' from the 
denominator, and in the use of a denominator other than the sales value 
from the period of investigation.\5\ Pursuant to 19 CFR 351.224(e), 
Commerce is amending the China Final Determination to reflect the 
correction of the ministerial error described above. Based on this 
correction, the subsidy rate for Qinghe decreased from 19.88 percent ad 
valorem to 19.31 percent ad valorem.\6\ Because we based the all-others 
rate on Qinghe's ad valorem subsidy rate,\7\ the correction described 
above also applies to the all-others rate. As a result, the all-others 
rate determined in the China Final Determination also decreased from 
19.52 percent ad valorem to 19.05 percent ad valorem.\8\ Because we 
used the subsidy rate for several programs in our calculation of the 
adverse facts available (AFA) rate, the AFA rate also decreased from 
337.09 percent ad valorem to 336.55 percent ad valorem.\9\
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    \4\ See Memorandum, ``Countervailing Duty Investigation of 
Forged Steel Fluid End Blocks from the People's Republic of China--
Ministerial Error Allegations in the Final Determination,'' dated 
January 6, 2021 (Ministerial Error Memorandum), at 1-3.
    \5\ Id.
    \6\ Id.
    \7\ See China Final Determination, 85 FR at 80021.
    \8\ See Ministerial Error Memorandum.
    \9\ Id.
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Countervailing Duty Orders

    On January 25, 2021, in accordance with sections 705(b)(1)(A)(i) 
and 705(d) of the Act, the ITC notified Commerce of its final 
determinations in these investigations, in which it found that an 
industry in the United States is materially injured by reason of 
subsidized imports of FEBs from China, Germany, India, and Italy.\10\ 
Therefore, in accordance with section 705(c)(2) of the Act, Commerce is 
issuing these countervailing duty orders. Because the ITC determined 
that imports of FEBs from China, Germany, India, and Italy are 
materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China, Germany, India, and Italy, entered or withdrawn 
from warehouse for consumption, are subject to the assessment of 
countervailing duties.
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    \10\ See ITC Notification Letter.

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[[Page 7536]]

    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of FEBs from China, Germany, India, and Italy, which are 
entered, or withdrawn from warehouse, for consumption on or after May 
26, 2020, the date of publication of the Preliminary 
Determinations,\11\ but will not include entries occurring after the 
expiration of the provisional measures period and before the 
publication of the ITC's final injury determinations under section 
705(b) of the Act, as further described below.
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    \11\ See 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); Forged 
Steel Fluid End Blocks from the Federal Republic of Germany: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 85 FR 31454 (May 26, 2020); 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); and 
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) (collectively, Preliminary Determinations).
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Suspension of Liquidation and Cash Deposits

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation of FEBs from China, 
Germany, India, and Italy, as described in the appendix to this notice, 
effective on the date of publication of the ITC's notice of final 
determinations in the Federal Register, and to assess, upon further 
instruction by Commerce, pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates below. On or 
after the date of publication of the ITC's final injury determinations 
in the Federal Register, CBP must require, at the same time as 
importers would deposit estimated normal customs duties on this 
merchandise, a cash deposit equal to the rates noted below. The all-
others rate applies to all producers or exporters not specifically 
listed below.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
China:
    Nanjing Develop Advanced Manufacturing Co., Ltd.....           16.80
    Shanghai Qinghe Machinery Co., Ltd..................           19.31
    China Machinery Industrial Products Co., Ltd........          336.55
    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..........................................           19.05
Germany:
    BGH Edelstahl Siegen GmbH...........................            5.86
    Schmiedewerke Gr[ouml]ditz GmbH.....................            6.71
    voestalpine Bohler Group............................           14.81
    All Others..........................................            6.29
India:
    Bharat Forge Limited................................            5.20
    All Others..........................................            5.20
Italy:
    Lucchini Mame Forge S.p.A...........................            4.76
    Metalcam S.p.A......................................            3.12
    All Others..........................................            3.52
    Companies Subject to AFA (non-respondent companies):           44.86
     Forge Mochieri S.p.A.; Imer International S.p.A.;
     Galperti Group, Mimest S.p.A.; P. Technologies
     S.r.L..............................................
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Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigations, Commerce 
published the Preliminary Determinations on May 26, 2020. As such, the 
four-month period beginning on the date of the publication of the 
Preliminary Determinations ended on September 22, 2020. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination.
    Therefore, in accordance with section 703(d) of the Act, we 
instructed CBP to terminate the suspension of liquidation and to 
liquidate, without regard to countervailing duties, unliquidated 
entries of FEBs from China, Germany, India, and Italy, entered, or 
withdrawn from warehouse, for consumption, on or after September 23, 
2020, the date on

[[Page 7537]]

which the provisional measures expired, until and through the day 
preceding the date of publication of the ITC's final injury 
determinations in the Federal Register. Suspension of liquidation will 
resume on the date of publication of the ITC's final determinations in 
the Federal Register.

Notification to Interested Parties

    This notice constitutes the countervailable duty (CVD) orders with 
respect to FEBs from China, Germany, India, and Italy, pursuant to 
section 706(a) of the Act. Interested parties can find a list of CVD 
orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    These orders are issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: January 25, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Orders

    The products covered by these orders 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 these orders, 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 these orders 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 these orders 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 these orders 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 these orders 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 these orders is dispositive.

[FR Doc. 2021-01978 Filed 1-28-21; 8:45 am]
BILLING CODE 3510-DS-P