Notice2026-04197
Certain Freight Rail Couplers and Parts Thereof from India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination with Final Antidumping Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 3, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain freight rail couplers and parts thereof (freight rail couplers) from India. The period of investigation is April 1, 2024, through March 31, 2025. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 91 Issue 41 (Tuesday, March 3, 2026)</title>
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[Federal Register Volume 91, Number 41 (Tuesday, March 3, 2026)]
[Notices]
[Pages 10370-10373]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04197]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-941]
Certain Freight Rail Couplers and Parts Thereof from India:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination with Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain freight rail couplers and parts
thereof (freight rail couplers) from India. The period of investigation
is April 1, 2024, through March 31, 2025. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable March 3, 2026.
FOR FURTHER INFORMATION CONTACT: Benjamin Blythe or Joshua Jacobson,
AD/CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3457 or (202)
482-0266, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation
[[Page 10371]]
on August 12, 2025.\1\ On September 30, 2025, Commerce postponed the
preliminary determination of this investigation.\2\ Due to the lapse in
appropriations and Federal Government shutdown, on November 14, 2025,
Commerce tolled all deadlines in administrative proceedings by 47
days.\3\ Additionally, due to a backlog of documents that were
electronically filed via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS)
during the Federal Government shutdown, on November 24, 2025, Commerce
tolled all deadlines in administrative proceedings by an additional 21
days.\4\ The revised and tolled deadline is now February 26, 2026.
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\1\ See Certain Freight Rail Couplers and Parts Thereof From
India: Initiation of Countervailing Duty Investigation, 90 FR 40055
(August 18, 2025) (Initiation Notice).
\2\ See Certain Freight Rail Couplers and Parts Thereof from
India: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 90 FR 46794 (September 30, 2025).
\3\ See Memorandum, ``Deadlines Affected by the Shutdown of the
Federal Government,'' dated November 14, 2025.
\4\ See Memorandum, ``Tolling of all Case Deadlines,'' dated
November 24, 2025.
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\5\ A list of topics discussed in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
Decision Memorandum is a public document and is on file electronically
via ACCESS. ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\5\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Certain Freight Rail Couplers and Parts Thereof from India,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are freight rail
couplers from India. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\6\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\7\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this preliminary
determination, and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\8\
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice. See the revised scope in Appendix I.
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\6\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\7\ See Initiation Notice.
\8\ See Memorandum, ``Less-Than-Fair-Value Investigations of
Certain Freight Rail Couplers and Parts Thereof from the Czech
Republic and India and Countervailing Duty Investigation of Certain
Freight Rail Couplers and Parts Thereof from India: Preliminary
Scope Decision Memorandum,'' dated concurrently with this notice
(Preliminary Scope Decision Memorandum).
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Pursuant to 19 CFR 351.309(c)(2), interested parties may address
scope-related these product coverage comments in the in scope case
briefs, which may be submitted no later than 30 days after the issuance
date of the Preliminary Scope Decision Memorandum, i.e., 5:00 p.m.
Eastern Time (ET) on March 30, 2026.\9\ Scope rebuttal briefs, limited
to issues raised in the scope case briefs, may be submitted no later
than five days after the deadline for the scope case briefs, i.e., 5:00
p.m. ET on April 6, 2026.\10\ These deadlines apply to each of the
ongoing less-than-fair-value and CVD investigations for freight rail
couplers.\11\
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\9\ See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
\10\ Id.
\11\ See Preliminary Scope Decision Memorandum at 3-4.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\12\
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\12\ 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.
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Commerce notes that, in making these findings, we relied, in part,
on facts available and, because we found that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, we drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\13\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\13\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of freight rail couplers from India based on a
request made by the petitioner.\14\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
July 13, 2026, unless postponed.
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\14\ See Petitioner's Letter, ``Request to Align Final
Countervailing Duty Determination with the Companion Antidumping
Duty Final Determination,'' dated February 23, 2026.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act. In this investigation, Commerce calculated individual
estimated countervailable subsidy rates for Kharagpur Metal Reforming
Industries Pvt Ltd (KMRI) and Texmaco Rail and Engineering Limited
(Texmaco) that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using a
weighted average of the individual estimated subsidy rates calculated
for the examined respondents using each company's publicly-ranged
values for the subject merchandise.\15\
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\15\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the subject merchandise. Commerce then compares (B)
and (C) to (A) and selects the rate closest to (A) as the most
appropriate rate for all other producers and exporters. See, e.g.,
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan,
and the United Kingdom: Final Results of Antidumping Duty
Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum, ``Preliminary Calculation of the All Others Rate,''
dated concurrently with this notice.
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[[Page 10372]]
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Kharagpur Metal Reforming Industries Pvt Ltd............ 6.02
Texmaco Rail and Engineering Limited.................... 5.47
Bhilai Engineering Corporation Ltd...................... * 64.27
Jupiter Wagons Ltd...................................... * 64.27
All Others.............................................. 5.90
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* Rate based on facts available with adverse inferences.
Suspension of Liquidation
In accordance with section 703(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of entries of subject merchandise as described in the scope of the
investigation section entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register. Further, pursuant to section 703(d)(1)(B) of the Act
and 19 CFR 351.107(e), Commerce will instruct CBP to require a cash
deposit equal to the estimated company-specific countervailable subsidy
rate or the estimated all-others rate, as follows: (1) the cash deposit
rate for the respondents listed above will be equal to the company-
specific estimated individual countervailable subsidy rates determined
in this preliminary determination; (2) if both the producer and
exporter of the subject merchandise have company-specific estimated
subsidy rates determined in this preliminary determination, and their
rates differ, then the applicable cash deposit rate will be the higher
of these two rates; (3) if either the producer or the exporter, but not
both, of the subject merchandise have a company-specific estimated
subsidy rate determined in this preliminary determination, the
applicable cash deposit rate will be that company's company-specific
rate; and (4) the cash deposit rate for all other producers and
exporters will be equal to the estimated all-others subsidy rate.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Non-scope related case briefs or other written comments may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation. Rebuttal briefs, limited to
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\16\ Interested parties who
submit case briefs or rebuttal briefs in this proceeding must submit:
(1) a table of contents listing each issue; and (2) a table of
authorities.\17\
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\16\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\17\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2)(iii) and (d)(2)(iii), we
request that interested parties provide at the beginning of their
briefs a public, executive summary for each issue raised in their
briefs.\18\ Further, we request that interested parties limit their
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the executive summaries as the
basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\19\
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\18\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\19\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final
[[Page 10373]]
determination is affirmative, the ITC will determine before 45 days
after the final determination whether imports of freight rail couplers
from India are materially injuring, or threaten material injury to, the
U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: February 26, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers certain freight railcar
couplers (also known as ``fits'' or ``assemblies'') and parts
thereof. Freight rail couplers are composed of two main parts,
namely knuckles and coupler bodies but may also include other items
(e.g., coupler locks, lock lift assemblies, knuckle pins, knuckle
throwers, and rotors). The parts covered by this investigation
include: (1) E coupler bodies; (2) E/F coupler bodies; (3) F coupler
bodies; (4) E knuckles; and (5) F knuckles; as set forth by the
Association of American Railroads (AAR). The freight rail coupler
parts are included within the scope of this investigation when
imported individually. Coupler locks, lock lift assemblies, knuckle
pins, knuckle throwers, and rotors are covered merchandise when
imported in an assembly but are not covered by the scope when
imported separately.
Subject freight rail couplers and parts are included within the
scope whether finished or unfinished, whether imported individually
or with other subject or nonsubject parts, whether assembled or
unassembled, whether mounted or unmounted, or if joined with
nonsubject merchandise, such as other nonsubject parts or a
completed railcar. Finishing includes, but is not limited to, arc
washing, welding, grinding, shot blasting, heat treatment,
machining, and assembly of various parts. When a subject coupler or
subject parts are mounted on or to other nonsubject merchandise,
such as a railcar, only the coupler or subject parts are covered by
the scope.
The finished products covered by the scope of this investigation
meet or exceed the AAR specifications of M-211, ``Foundry and
Product Approval Requirements for the Manufacture of Couplers,
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts,'' and/
or AAR M-215 ``Coupling Systems,'' or other equivalent domestic or
international standards (including any revisions to the
standard(s)).
The country of origin for subject couplers and parts thereof,
whether fully assembled, unfinished or finished, or attached to a
railcar, is the country where the subject coupler parts were cast or
forged. Subject merchandise includes coupler parts as defined above
that have been further processed or further assembled, including
those coupler parts attached to a railcar in third countries.
Further processing includes, but is not limited to, arc washing,
welding, grinding, shot blasting, heat treatment, painting, coating,
priming, machining, and assembly of various parts. The inclusion,
attachment, joining, or assembly of nonsubject parts with subject
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject
parts or couplers from the scope.
The couplers that are the subject of this investigation are
currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) statistical reporting number 8607.30.1010,
8607.30.1050, and 8607.30.1090. Subject merchandise attached to
finished railcars may also enter under HTSUS statistical reporting
numbers 7326.90.8688, 8606.10.0000, 8606.91.0000, 8606.92.0000,
8606.99.0130, or under subheading 8606.99.0160. Subject merchandise
may also be imported under HTSUS statistical reporting number
7325.99.5000. These HTSUS subheadings are provided for convenience
and customs purposes only; the written description of the scope of
this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Use of Facts Available and Adverse Inferences
V. Subsidies Valuation
VI. Benchmarks and Interest Rates
VII. Diversification of India's Economy
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2026-04197 Filed 3-2-26; 8:45 am]
BILLING CODE 3510-DS-P
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