Notice2026-19522
Certain Freight Rail Couplers and Parts Thereof From India: Final Affirmative Countervailing 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
September 24, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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.
Full Text
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<title>Federal Register, Volume 91 Issue 184 (Thursday, September 24, 2026)</title>
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[Federal Register Volume 91, Number 184 (Thursday, September 24, 2026)]
[Notices]
[Pages 60595-60598]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19522]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-941]
Certain Freight Rail Couplers and Parts Thereof From India: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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.
DATES: Applicable September 24, 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
On March 3, 2026, Commerce published the Preliminary Determination
on freight rail couplers from India in the Federal Register and invited
interested parties to comment.\1\ In August 2026, the petitioner,\2\
Kharagpur Metal Reforming Industries Pvt Ltd. (KMRI), Texmaco Rail and
[[Page 60596]]
Engineering Limited (Texmaco), and the Government of India (GOI) timely
submitted case and rebuttal briefs. For a complete discussion of the
events that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\3\
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\1\ See Certain Freight Rail Couplers and Parts Thereof from
India: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 91 FR 10370 (March 3, 2026) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ The petitioner is the Coalition of Freight Coupler
Producers, whose members are McConway & Torley LLC and the United
Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union.
\3\ See Memorandum, ``Issues and Decisions Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Certain Freight Rail Couplers and Parts Thereof
from India,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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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),
which is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/frnotices">https://access.trade.gov/frnotices</a>.
Scope of the Investigation
The product covered by this investigation is freight rail couplers
from India. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
Commerce received comments from interested parties on the scope of
the investigation as it appeared in the Preliminary Determination.\4\
For the final determination, Commerce made no changes to the scope of
the investigation from that published in the Preliminary
Determination.\5\
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\4\ See Memorandum, ``Less-Than-Fair-Value Investigations of
Certain Freight Couplers and Parts Thereof from the Czech Republic
and India and Countervailing Duty Investigation of Certain Freight
Rail Couplers and Parts Thereof from India: Final Scope Decision
Memorandum,'' dated concurrently with, and hereby adopted by, this
notice.
\5\ Id.
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Verification
Consistent with section 782(i) of the Act, in June 2026, Commerce
conducted verifications of the information reported by the GOI, KMRI,
and Texmaco.\6\ We used standard verification procedures, including an
examination of relevant account records and original source documents
provided by the respondents.\7\
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\6\ Commerce did not complete the verification of Texmaco. See
Issues and Decision Memorandum at Comments 2 and 3 for further
discussion.
\7\ See Memoranda, ``Verification of the Questionnaire Responses
of the Government of India,'' dated July 31, 2026; ``Verification of
the Questionnaire Responses of Kharagpur Metal Reforming Industries
Pvt Ltd., dated July 31, 2026; and ``Verification of the
Questionnaire Responses of Texmaco Rail and Engineering Limited,''
dated July 31, 2026.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. A list of the issues
addressed in the Issues and Decision Memorandum is attached to this
notice as Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found to be countervailable, Commerce 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.\8\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 71(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.\9\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Issues and Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination
Based on our review and analysis of the information received during
verification and comments received from parties, we made certain
changes to the countervailable subsidy rate calculations for KMRI,
Texmaco, and for all other producers/exporters. For a discussion of
these changes, see the Issues and Decision Memorandum.
All-Others Rate
Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will
determine an all-others rate equal to the weighted-average
countervailable subsidy rates established for exporters and/or
producers individually investigation, excluding any zero and de minimis
countervailable subsidy rates, and any rates determined entirely under
section 776 of the Act. In this investigation, Commerce assigned a rate
based entirely on facts available to Texmaco. Therefore, the only rate
that is not zero, de minimis, or based entirely on facts otherwise
available is the rate calculated for KMRI. Consequently, the rate
calculated for KMRI is also assigned as the rate for all other
producers and exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist for the period April 1, 2024, through March 31,
2025:
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Subsidy rate
Company (percent ad
valorem)
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Kharagpur Metal Reforming Industries Pvt Ltd.............. 9.71
Texmaco Rail and Engineering Limited...................... * 75.00
Bhilai Engineering Corporation Ltd........................ * 75.00
Jupiter Wagons Ltd........................................ * 75.00
All Others................................................ 9.71
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose the calculations and analysis
performed in connection with this final determination to interested
parties within five days of any public announcement or, if there is no
public announcement, within five days of the date of the publication of
the notice in the Federal Register, in accordance with 19 CFR
351.244(b).
Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S.
Customs and Border Protection (CBP) to collect cash deposits and
suspend liquidation of entries of freight rail couplers, as described
in the scope of the investigation section, that were entered, or
withdrawn from warehouse, for consumption on or after March 3, 2026,
the date of publication of the Preliminary Determination in the Federal
Register. In accordance with section 703(d) of the Act, we instructed
CBP to discontinue the suspension of liquidation of all entries of
freight rail couplers entered or withdrawn from warehouse, on or after
July 1, 2026, the first day provisional measures were no longer in
effect, but to continue the suspension of liquidation of all entries of
freight rail couplers from March 3, 2026, through June 30, 2026.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order,
[[Page 60597]]
reinstate the suspension of liquidation under section 706(a) of the
Act, and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above.
Pursuant to section 705(c)(2) of the Act, if the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited, or
securities posted, as a result of the suspension of liquidation will be
refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of freight rail
couplers from India. As Commerce's final determination is affirmative,
in accordance with section 705(b)(2)(B) of the Act, the ITC will
determine, within 45 days, whether the domestic industry in the United
States is materially injured, or threated with material injury, by
reason of import of freight rail couplers from India. In addition, we
are making available to the ITC all non-privileged and non-proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn,
for consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Suspension of Liquidation''
section.
Administrative Protective Order
This notice will serve as the only reminder to parties subject to
the APO of their responsibility concerning the destruction 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 violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: September 18, 2026.
Steven Presing,
Executive Director for Policy and Negotiations.
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 Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and Application of Adverse
Inferences
V. Changes Since the Preliminary Determination
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether to Apply Adverse Facts Available (AFA)
Towards the Government of India (GOI) for Programs Not Used by
Mandatory Respondents
Comment 2: Whether to Complete Texmaco's Verification
Comment 3: Whether the Application of Total AFA is Warranted for
Texmaco
Comment 4: Whether to Accept Texmaco's Rebuttal Factual
Information
Comment 5: Calculation of the Ad Valorem Rate for Companies
Receiving Total AFA
Comment 6: Whether the Local Content Requirements for the More
than Adequate Remuneration (MTAR) Program is Distinct from the
Federal GOI Purchase of Freight Rail Couplers for MTAR Program
Comment 7: Whether Texmaco Benefited from the Purchase of
Freight Rail Couplers for MTAR Programs
Comment 8: Whether the Application of Total AFA is Warranted for
KMRI
Comment 9: Benchmark Selection for Calculating the Federal GOI
Purchase of Freight Rail Couplers for MTAR Program
Comment 10: Whether to Limit the Benefit Calculation for the
Federal GOI Purchase of Freight Rail Couplers for MTAR Program to
Restricted Tenders for KMRI
Comment 11: Whether Goods and Service Tax Should Be Removed from
the Price for KMRI's Sales of Freight Rail Couplers
Comment 12: Whether to Offset the Antidumping Duty (AD) Margin
by the Federal GOI Purchase of Freight Rail Couplers for MTAR
Program Rate
[[Page 60598]]
Comment 13: Whether to Adjust the Calculations of KMRI's Ad
Valorem Rate for Late Delivery Charges
Comment 14: Whether to Adjust the Calculations of the Provision
of Electricity for Less than Adequate Remuneration (LTAR) Program
for KMRI's Electronic Payment Rebates
Comment 15: Whether to Adjust the Calculations of the Provision
of Electricity for LTAR Program for KMRI's Construction Electricity
VIII. Recommendation
[FR Doc. 2026-19522 Filed 9-23-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 24, 2026.
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