Fluid End Blocks: China, Germany, India, Italy – 5-Year Reviews

Fluid End Blocks: Institution of Five-Year Reviews of Countervailing and Antidumping Duty orders

Background. -On January 29, 2021, the Department of Commerce (“Commerce”) issued countervailing duty orders on imports of fluid end blocks from China, Germany, India, and Italy, and antidumping duty orders on fluid end blocks from Germany and Italy (86 FR 7535 and 86 FR 7528). The Commission is conducting reviews pursuant to section 751(c) of the Act, as amended (19 U.S.C.1675(c)), to determine whether revocation of the orders would be likely to lead to continuation or recurrence of material injury to the domestic industry within a reasonably foreseeable time.Provisions concerning the conduct of this proceeding may be found in the Commission’s Rules of practice and procedure at 19 CFR part 201, subparts A and B, and 19 CFR part 207, subparts A and F. The Commission will assess the adequacy of interested party responses to this notice of institution to determine whether to conduct full or expedited reviews. The Commission’s determinations in any expedited reviews will be based on the facts available, which may include data provided in response to this notice.

Definitions. -the following definitions apply to these reviews:

(1) Subject Merchandise is the class or kind of merchandise that is within the scope of the five-year reviews, as defined

Participation in the proceeding and public service list. -Persons, including industrial users of the Subject Merchandise and, if the merchandise is sold at the retail level, representative consumer organizations, wishing to participate in the proceeding as parties must file an entry of appearance with the Secretary to the Commission, as provided in § 201.11(b)(4) of the Commission’s rules, no later than 21 days after publication of this notice in the Federal Register. The Secretary will maintain a public service list containing the names and addresses of all persons, or their representatives, who are parties to the proceeding.

Former Commission employees who are seeking to appear in Commission five-year reviews are advised that they may appear in a review even if they participated personally and substantially in the corresponding underlying original investigation or an earlier review of the same underlying investigation. The Commission’s designated agency ethics official has advised that a five-year review is not the same particular matter as the underlying original investigation, and a five-year review is not the same particular matter as an earlier review of the same underlying investigation for purposes of 18 U.S.C. 207, the post-employment statute for Federal employees, and Commission rule 201.15(b) (19 CFR 201.15(b)),79 FR 3246 (Jan.17, 2014), 73 FR 24609 (May 5, 2008). Consequently, former employees are not required to seek Commission approval to appear in a review under Commission rule 19 CFR 201.15, even if the corresponding underlying original investigation or an earlier review of the same underlying investigation was pending when they where Commission employees. For further ethics advice on this matter, contact Charles Smith, Office of the General Counsel, at 202-205-3408.

notable Filing Information for USITC proceedings

The U.S. International Trade Commission (USITC) outlines specific procedures for filings in its proceedings. All documents filed must adhere to these guidelines.

Filing Procedures: Details regarding the Commission’s filing procedures are available in its rules. Filings require service on all other parties involved in the proceeding, utilizing either the public or APO service list. A certificate of service must accompany each document filed (unless the filer is not a party to the proceeding).

Electronic Filing Only: Currently, the USITC Secretary’s Office accepts only electronic filings. Submissions must be made through the Commission’s Electronic Document Information System (EDIS) at https://edis.usitc.gov. Paper-based filings, or paper copies of electronic submissions, are not accepted at this time.

OMB Information: Responses are not required if a valid Office of Management and Budget (OMB) number is not displayed. The current OMB number is 3117-0016/USITC no.25-5-658, expiring June 30, 2026. The estimated public reporting burden is an average of 15 hours per response. Comments regarding this burden estimate should be sent to the office of Investigations, U.S.International Trade Commission,500 E Street SW,Washington,DC 20436.

Inability to provide Information: If an interested party cannot furnish requested information in the specified format, they must notify the Commission instantly. This notification should include a full explanation of the reason for the inability to comply and suggest alternative ways to provide equivalent information. Failure to notify the Commission or provide an adequate explanation may result in an adverse inference being drawn against the party, as per § 776(b) of the Act (19 U.S.C.1677e(b)).

responding to a Five-Year Review: A Guide for Interested Parties

The U.S. International Trade Commission (ITC) initiates five-year reviews of antidumping and countervailing duty orders to determine whether revoking these orders would likely lead to material injury to the domestic industry. If you are an interested party,responding effectively to the ITC’s notice of initiation is crucial. Here’s a breakdown of the key elements required in your response, based on the provided text:

1. Identification of the Respondent

Clearly state who you are responding on behalf of. This includes:

* Your Firm/Entity: Provide the full legal name.
* Your Role: Specify your connection to the Subject Merchandise and/or the Domestic Industry. are you:
* A producer of the Domestic Like Product?
* an exporter of the Subject Merchandise?
* A U.S. or foreign trade/business association (with a majority of members being interested parties)?
* Another interested party? (Explain your interest).
* Union/Association Details (if applicable): if representing a union or trade association, specifically list the firms where your workers are employed or which are members of your association. This is a critical requirement.

2. Willingness to participate

Provide a clear statement confirming your firm/entity’s willingness to participate in the proceeding and provide information requested by the Commission. A simple “Yes, our firm is willing to participate and provide information as requested” is sufficient.

3.Likely Effects of Revocation

This is the core of your response. Address the likely effects of revoking the countervailing and antidumping duty orders on the Domestic Industry – both generally and specifically to your firm. You must address the factors outlined in Section 752(a) of the Act (19 U.S.C. 1675a(a)). Consider these points:

* Likely Volume of Subject Imports: What volume of Subject Merchandise is likely to enter the U.S.if the orders are revoked? Provide data and reasoning.
* Likely Price Effects: How will the price of Subject Merchandise change if duties are removed? Will this lead to price undercutting or suppression of domestic prices?
* impact on the Domestic Industry: Analyze the broader impact on the Domestic Industry.Consider factors like:
* Production levels
* Sales
* Market share
* Profitability
* Employment
* Investment
* Innovation

4.List of U.S. Producers of the Domestic Like Product

Compile a thorough list of all known and currently operating U.S. producers of the Domestic Like Product. Crucially, identify any known related parties and clearly define the nature of the relationship, referencing Section 771(4)(B) of the Act (19 U.S.C. 1677(4)(B)). Examples of related parties include parent-subsidiary relationships, affiliated companies, or entities under common control.

5. List of U.S.Importers of the Subject Merchandise

Provide a list of all known and currently operating U.S.importers of the Subject Merchandise. This information helps the ITC understand the import landscape.

Important Considerations:

* Definitions: Pay close attention to the definitions of Subject Merchandise, Domestic Industry, and Domestic Like Product as defined in the ITC’s notice and relevant statutes.
* Data & Evidence: Support your statements with data,statistics,and other evidence whenever possible.
* Timeliness: Adhere strictly to the ITC’s deadlines for submitting your response.
* Legal Counsel: Consider consulting with legal counsel specializing in international trade law to ensure your response is comprehensive and legally sound.

Reporting Requirements for Domestic Producers and Importers of Subject Merchandise

This outlines the information required from U.S. producers and importers of the Domestic Like Product and Subject Merchandise.

For U.S. producers of the Domestic Like Product:

Respondents must provide data pertaining to their U.S. plant(s) operations. Specifically, the following information is required:

(a) Production Capacity: Report the level of production reasonably expected under normal conditions. This includes consideration of:
* Equipment and machinery in place and ready to operate.
* Normal operating levels (hours per week/weeks per year).
* Time allocated for downtime, maintenance, repair, and cleanup.
* A typical or representative product mix.

(b) Production: Detail the quantity and value of U.S. commercial shipments of the Domestic Like Product produced in your U.S. plant(s).

(c) Internal Consumption/Transfers: Report the quantity and value of U.S. internal consumption or company transfers of the Domestic Like Product produced in your U.S. plant(s).

(d) Financial Data: Provide the value of the following for your most recently completed fiscal year (and specify the fiscal year-end date):
* Net sales
* Cost of Goods Sold (COGS)
* Gross profit
* Selling, General and Administrative (SG&A) expenses
* Operating Income

This financial data should encompass both U.S. and export commercial sales, internal consumption, and company transfers.

For U.S. Importers or Associations of U.S. Importers of the subject Merchandise:

Respondents must provide information on their firm’s (or their members’ aggregate) operations concerning the Subject Merchandise from any Subject contry during calendar year 2024. All quantity data should be reported in units, and all value data in U.S. dollars.

Information Required: Production Capacity, Exports, and Market Changes

(b) Capacity (quantity) of your firm(s) to produce the Subject Merchandise in each Subject Country: Please detail your firm’s production capacity – the level of output reasonably expected during the year under normal conditions. This should account for existing equipment, typical operating levels (hours/week, weeks/year), and necessary downtime for maintenance, repair, and cleanup, as well as a representative product mix.

(c) Quantity and Value of Exports to the United States: Provide the quantity and value of your firm’s exports of Subject Merchandise to the United States. If possible, estimate the percentage of total U.S. imports of Subject Merchandise from each Subject Country that your firm’s exports represent.

(12) significant Changes in Supply and Demand: Identify any significant changes in supply and demand conditions or the business cycle for the Domestic Like Product in the United States, or in the market for the Subject Merchandise in each Subject Country, since the Order Date. also, indicate any significant changes likely to occur in the reasonably foreseeable future. Consider factors such as technology, production methods, development efforts, and the ability to increase production, including the potential reallocation of facilities currently used for other products.