Forged Steel Fittings: Prelim AD Cash Deposit Rates Take Effect for India, South Korea

Forged steel fittings from India are already subject to suspension of liquidation and countervailing duty cash deposit requirements, announced in Commerce's preliminary CV duty determination (see 2003270026). Suspension of liquidation for subject merchandise from India began March 30. Commerce is not conducting a CV duty investigation on forged steel fittings from South Korea.

Commerce calculated a zero percent AD duty rate for Shakti Forge Industries Pvt. Ltd. in its preliminary determination for India. If Commerce continues to set a zero rate for this company (or any other exporter) in its final determination, it will be exempt from any AD duty order issued in connection with this investigation. Suspension of liquidation for Shakti may still apply for CV duty purposes.

Scope Exemptions Added for Hammer Unions

Commerce is adding several paragraphs to the scope of these AD/CV duty investigations to exempt hammer unions. Bonney Forge Corporation and the United Steelworkers Union, which had originally requested the investigations, previously opposed the exclusions, "but have since determined that 'the differences between the permanent markings on hammer unions and on lug nut unions provide a sufficient basis upon which hammer unions may be excluded from the scope of these investigations,'” Commerce said. The new exemptions are as follows:

Also excluded from the scope are assembled or unassembled hammer unions that consist of a nut and two subs. To qualify for this exclusion, the hammer union must meet each of the following criteria: (1) the face of the nut of the hammer union is permanently marked with one of the following markings: “FIG 100,” “FIG 100C,” “FIG 200,” “FIG 200C,” “FIG 202,” “FIG 206,” “FIG 207,” “FIG 211,” “FIG 300,” “FIG 301,” “FIG 400,” “FIG 600,” “FIG 602,” “FIG 607,” “FIG 1002,” “FIG 1003,” “FIG 1502,” “FIG 1505,” “FIG 2002,” or “FIG 2202”; (2) the hammer union does not bear any of the following markings: “Class 3000,” “Class 3M,” “Class 6000,” “Class 6M,” “Class 9000,” or “Class 9M”; and (3) the nut and both subs of the hammer union are painted.

Also excluded from the scope are component parts for hammer union assemblies, either subs or wingnuts, marked on the wingnut and subs with “FIG 1002,” “FIG 1502,” and “FIG 2002,” and with pressure rating of 10,000 PSI or greater. These parts are made from AISI/SAE 4130, 4140 or 4340 steel and are 100 percent magnetic particle inspected before shipment.

Also excluded from the scope are tee, elbow, cross, adapter (or “crossover”), blast joint (or “spacer”), blind sub, swivel joint and pup joint which have wing nut or not. To qualify for this exclusion, these products must meet each of the following criteria: (1) Manufacturing and Inspection standard is API 6A or API 16C; and (2) Body or wing nut is permanently marked with one of the following markings: “FIG 2002,” “FIG 1502,” “FIG 1002,” “FIG 602,” “FIG 206,” or “FIG any other number” or MTR (Material Test Report) shows these Fig numbers.

​AD Suspension of Liquidation and Cash Deposit Requirements

Commerce will instruct CBP to suspend liquidation for AD duty purposes for all entries of subject merchandise that are entered, or withdrawn from warehouse, for consumption on or after May 28 (liquidation is already be suspended for CV duty purposes for merchandise from India), and require AD duty cash deposits as follows:

India

*As adjusted for export subsidies found in the concurrent CV duty investigation. This adjusted rate will serve as the AD duty cash deposit rate while liquidation is suspended in the CV duty investigation.

South Korea

(The period of investigation is 10/01/18 - 09/30/19. See Commerce's notice for more information, including the scope, suspension of liquidation, detailed cash deposit instructions, etc. See 1911200014 for a summary of initiation of this investigation, and 1910230061 for the underlying petition.)

(Federal Register 05/28/20)