2024-12610. Forged Steel Fluid End Blocks From India: Final Results of Countervailing Duty Administrative Review; 2022

AGENCY:

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

SUMMARY:

The U.S. Department of Commerce (Commerce) determines that certain producers and exporters of forged steel fluid end blocks (fluid end blocks) from India received countervailable subsidies during the period of review (POR) January 1, 2022, through December 31, 2022.

DATES:

Applicable June 10, 2024.

FOR FURTHER INFORMATION CONTACT:

Suresh Maniam, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: [phone].

SUPPLEMENTARY INFORMATION:

Background

On February 2, 2024, Commerce published in the Federal Register the Preliminary Results of the 2022 administrative review of the countervailing duty order on fluid end blocks from India and invited comments from interested parties.^[1] For a complete description of the events that occurred since the Preliminary Results, see the Issues and Decision Memorandum.^[2] Commerce conducted this review in accordance with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act).

Scope of the Order ^[3]

The products covered by the order are fluid end blocks from India. For a full description of the scope of the order, see the Issues and Decision Memorandum.

Analysis of Comments Received

All issues raised by the interested parties in their case and rebuttal briefs are addressed in the Issues and Decision Memorandum. The topics discussed and the issues raised by parties to which we responded in the Issues and Decision Memorandum are listed in the appendix to this notice. 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 https://access.trade.gov/​public/​FRNoticesListLayout.aspx.

Changes Since the Preliminary Results

Based on our analysis of comments from interested parties and the evidence on the record, we made changes to the net countervailable subsidy rates for Bharat Forge Limited (Bharat Forge). For a full description of this revision, see the Issues and Decision Memorandum.

Methodology

Commerce conducted this administrative review in accordance with section 751(a)(1)(A) the Act. For each of the subsidy programs found to be countervailable, we determine that there is a subsidy, i.e., a government-provided financial contribution that gives rise to a benefit to the recipient, and that the subsidy is specific.^[4] For a full description of the methodology underlying all of Commerce's conclusions, including our reliance, in part, on facts otherwise available, including adverse facts available, pursuant to sections 776(a) and (b) of the Act, see the Issues and Decision Memorandum.

Final Results of Administrative Review

We find the following net countervailable subsidy rates for the period January 1, 2022, through December 31, 2022:

Producer/exporter	Subsidy rate (percent ad valorem)
Bharat Forge Limited 5	3.77

Disclosure

We intend to disclose the calculations and analysis performed for these final results of review within five days after the date of publication of this notice in the Federal Register , in accordance with 19 CFR 351.224(b).

Assessment

In accordance with section 751(a)(2)(C) of the Act and 19 CFR 351.212(b)(2), Commerce has determined, and U.S. Customs and Border Protection (CBP) shall assess, countervailing duties on all appropriate entries covered by this review, for the above-listed companies at the applicable ad valorem assessment rates listed. Commerce intends to issue assessment instructions to CBP no earlier than 35 days after publication of the final results of this review in the Federal Register . If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired ( i.e., within 90 days of publication).

Cash Deposit Requirements

In accordance with section 751(a)(1) of the Act, Commerce also intends to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown above for the above-listed companies with regard to shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of these final results of review. For all non-reviewed firms, we will instruct CBP to continue to collect cash deposits of estimated countervailing duties at the all-others rate or the most recent company-specific rate applicable to the company, as appropriate. These cash deposit requirements, effective upon publication of these final results, shall remain in effect until further notice.

Administrative Protective Order

This notice also serves as a final reminder to parties subject to an 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 the return or 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 sanctionable violation.

Notification to Interested Parties

The final results are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5).

Dated: May 30, 2024.

Abdelali Elouaradia,

Deputy Assistant Secretary for Enforcement and Compliance.

Appendix—List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Scope of the Order

IV. Subsidies Valuation

V. Use of Facts Otherwise Available and Application of Adverse Inferences

VI. Analysis of Programs

VII. Discussion of Issues

Comment 1: Whether the Duty Drawback (DDB) Scheme Is Countervailable

Comment 2: Whether the Export Promotion of Capital Goods Scheme (EPCGS) Is countervailable

Comment 3: Whether Bharat Forge's EPCGS Information Submitted to Commerce Is Complete and Accurate

Comment 4: Treatment of the Merchandise Exports from India Scheme (MEIS) and Status Holder Incentive Scheme (SHIS) Programs

Comment 5: Whether Bharat Forge Received a Financial Contribution under the Renewable Energy Certificates Program

Comment 6: Whether the Remission of Duties and Taxes on Export Products (RODTEP) Program Is Countervailable

Comment 7: Whether Commerce Should Revise its Sales Denominators

VIII. Recommendation

Footnotes

1.   See Forged Steel Fluid End Blocks from India: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Administrative Review, in Part; 2022, 89 FR 7373 (February 2, 2024) ( Preliminary Results), and accompanying Preliminary Decision Memorandum.

2.   See Memorandum, “Issues and Decision Memorandum for the Final Results of the Countervailing Duty Administrative Review of Forged Steel Fluid End Blocks from India; 2022,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

3.   See Forged Steel Fluid End Blocks from India: Countervailing Duty Order,86 FR 7535 (January 29, 2021) ( Order).

4.   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.

5.  Commerce finds the following companies to be cross-owned with Bharat Forge: Bharat Forge Utilities Limited and Saarloha Advanced Materials Private Limited.