New AD/CV Duties Requested on Fluid End Blocks From China, Germany, India and Italy
A group of domestic manufacturers filed petitions on Dec. 18 with the Commerce Department and the International Trade Commission requesting new antidumping duty investigations on fluid end bocks from Germany, India and Italy, and new countervailing duties on the same product from China, Germany, India and Italy. Commerce will now decide whether to begin AD/CVD investigations on fluid end blocks that could eventually result in the assessment of AD/CV duties. The petition was filed by the FEB Fair Trade Coalition, the Ellwood Group, and Finkl Steel.
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Fluid end blocks are currently covered by Section 301 tariffs when imported from China. Subheadings 7326.19.00, 7326.90.86 and 8413.91.90 are subject to a 25 percent duty, while subheadings 7218.91.00, 7218.99.00, 7224.90.00 and 7224.90.00 are subject to a 15% duty (set to fall to 7.5% at an as-yet-unannounced date (see 1912130035).
Proposed Scope
The petitions propose the following scope for the investigations:
The products covered by these petitions are forged steel fluid end blocks (“FEBs”), whether unfinished, semi-finished, or finished, 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 petitions, 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 petitions are either (1) cut-to-length FEBs with a height (measured from its highest point) of 8 inches (203 .2 mm) to 40 inches (1,016.0 mm), a width (measured from its widest point) of 8 inches (203.2 mm) to 40 inches (1,016.0 mm), and a length (measured from its longest point) of 11 inches (279.4 mm) to 75 inches (1,905.0 mm), or (2) strings of FEBs with a height (measured from its highest point) of 8 inches (203.2 mm) to 40 inches (1,016.0 mm), a width (measured from its widest point) of 8 inches (203.2 mm) to 40 inches (1,016.0 mm), and a length (measured from its longest point) up to 360 inches (9,144.0 mm).
The products included in the scope of these petitions 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 ElO).
FEBs may be unfinished or have undergone one or more of the following finishing operations: (1) milling one or more flat surfaces; (2) contour machining to custom shapes or dimensions; (3) drilling or boring holes; (4) heat treating; (5) painting, varnishing, or coating; (6) threading; and/ or (7) the attachment of flanges, valves, seals, or connectors.
The products included in the scope of these petitions 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 petitions is dispositive.
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due by Jan. 7.
Email ITTNews@warren-news.com for a copy of the petitions.