Certain Freight Rail Couplers and Parts Thereof From India: Final Affirmative Determination of Sales at Less Than Fair Value
The U.S. Department of Commerce (Commerce) determines that certain freight rail couplers and parts thereof (freight rail couplers) from India are being, or are likely to be, sol...
Enforcement and Compliance, International Trade Administration, Department of Commerce.
SUMMARY:
The U.S. Department of Commerce (Commerce) determines that certain freight rail couplers and parts thereof (freight rail couplers) from India are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2024, through June 30, 2025.
DATES:
Applicable September 24, 2026.
FOR FURTHER INFORMATION CONTACT:
Colin Thrasher, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3004.
SUPPLEMENTARY INFORMATION:
Background
On May 6, 2026, Commerce published in the
Federal Register
its preliminary affirmative determination in the LTFV investigation of freight rail couplers from India.[1]
In the
Preliminary Determination,
Commerce postponed the final determination until September 18, 2026, and invited interested parties to comment on the
Preliminary Determination.
A summary of the events that occurred since Commerce published its
Preliminary Determination,
as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.[2]
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, which is available to registered users at
access.trade.gov.
In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at
access.trade.gov/​frnotices.
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
Commerce received comments from interested parties on the scope of the investigation as it appeared in the
Preliminary Determination.[3]
For the
( printed page 60589)
final determination, Commerce made no changes to the scope of the investigation from that published in the
Preliminary Determination.[4]
Verification
Commerce conducted verification of the information relied upon in making its final determination in this investigation, in accordance with section 782(i) of the Tariff Act of 1930, as amended (the Act). Specifically, Commerce conducted on-site verification of the sales and cost information submitted by Kharagpur Metal Reforming Industries Pvt Ltd (Kharagpur) and Texmaco Rail and Engineering Limited (Texmaco).[5]
We used standard verification procedures, including an examination of relevant sales and accounting records, and original source documents provided by Kharagpur and Texmaco.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by interested parties in this investigation are addressed in the Issues and Decision Memorandum. For a list of the issues addressed in the Issues and Decision Memorandum,
see
Appendix II.
Changes Since the Preliminary Determination
We made certain changes since the
Preliminary Determination.
For a discussion of these changes,
see
the Issues and Decision Memorandum.
Methodology
Commerce is conducting this investigation in accordance with section 731 of the Act. Export price is calculated in accordance with section 772(a) of the Act. Normal value is calculated in accordance with section 773 of the Act.
Pursuant to sections 776(a) and (b) of the Act, Commerce is relying upon facts otherwise available, with adverse inferences (AFA), for Bhilai Engineering Corporation Ltd. and Jupiter Wagons Ltd. For a full description of the methodology underlying the determination to apply AFAto Bhilai Engineering Corporation Ltd. and Jupiter Wagons Ltd.,
see
the
Preliminary Determination
PDM. These determinations remain unchanged in the final determination.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that Commerce shall determine an estimated all-others rate for all other exporters and producers not individually examined. This rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually examined, excluding rates that are zero,
de minimis,
or determined entirely under section 776 of the Act.
In this investigation, Commerce calculated estimated weighted-average dumping margins for Texmaco and Kharagpur that are not zero,
de minimis,
or based entirely on facts otherwise available. Accordingly, Commerce calculated the all-others rate using a weighted average of the dumping margins calculated for the examined respondents relying on publicly-ranged sales data.[6]
Final Determination
Commerce determines that the following estimated weighted-average dumping margins exist for the period July 1, 2024, through June 30, 2025:
Exporter/producer
Weighted-average dumping margin
(percent)
Cash deposit rate (adjusted for subsidy offset(s))
(percent)
Bhilai Engineering Corporation Ltd.
* 71.01
71.01
Jupiter Wagons Ltd.
* 71.01
71.01
Kharagpur Metal Reforming Industries Pvt Ltd.
2.32
0.00
Texmaco Rail and Engineering Limited
15.79
12.10
All Others
5.24
1.55
* Rate is 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 publication of the notice in the
Federal Register
, in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation and Cash Deposit Requirements
In accordance with section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all entries of subject merchandise, as described in Appendix I of this notice, which were entered, or withdrawn from warehouse, for consumption on or after May 6, 2026, the date of publication of the
Preliminary Determination
in the
Federal Register
.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), upon the publication of this notice, we will instruct CBP to require a cash deposit for estimated antidumping duties for such entries as follows: (1) the cash deposit rate for the respondent listed above will be equal to the company-specific estimated weighted-average
( printed page 60590)
dumping margin determined in this final determination; (2) if the exporter is not a respondent identified above, but the producer is, then the cash deposit rate will be equal to the company-specific estimated weighted-average dumping margin established for that producer of the subject merchandise; and (3) the cash deposit rate for all other producers and exporters will be equal to the all-others estimated weighted-average dumping margin. These suspension of liquidation instructions will remain in effect until further notice.
To determine the cash deposit rates in an LTFV investigation, Commerce normally adjusts the estimated weighted-average dumping margins by the amount of domestic pass-through and export subsidies countervailed in the companion countervailing duty (CVD) investigation. Accordingly, where Commerce has made a final affirmative determination of countervailable export subsides, Commerce offsets the estimated weighted average dumping margins in the LTFV investigation by the appropriate export subsidy rate from the companion CVD investigation.[7]
Commerce has continued to adjust the cash deposit rate for export subsidies found in the companion CVD investigation by the appropriate export subsidy rate; however, the suspension of liquidation of provisional measures in the companion CVD case has been discontinued.[8]
Therefore, we are not instructing CBP to collect cash deposits based on the adjusted estimated weighted-average dumping margin for export subsidies at this time. If the U.S. International Trade Commission (ITC) makes a final affirmative determination of injury due to both dumping and subsidies, then the cash deposit rate will be revised effective on the date of publication of the ITC's final affirmative determination in the
Federal Register
to be the company-specific estimated weighted-average dumping margin adjusted for export subsidies.
U.S. International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the ITC of our final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of freight rail couplers from India no later than 45 days after this final determination. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated and all cash deposits will be refunded or canceled, and suspension of liquidation will be lifted. If the ITC determines that such injury does exist, Commerce will issue an AD order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the subject merchandise that are entered, or withdrawn from warehouse, 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 (APO)
This notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the disposition 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 sanctionable violation.
Notification to Interested Parties
This final determination and notice are issued and published in accordance with sections 735(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
Comment 4: Constructed Value Profit
( printed page 60591)
Comment 5: Cash Deposit Subsidy Offset
Comment 6: U.S. Sales Surcharge
Comment 7: Application of Total AFA Kharagpur—Cost
Comment 8: Cost Verification Finding
Comment 9: Scrap Offset
Comment 10: Revised Sales Databases
Comment 11: Application of AFA
Comment 12: Application of Total AFA—Cost
Comment 13: Application of Partial AFA—Cost
Comment 14: Scrap and Consumables Costs
Comment 15: Sales Versus Production Quantities
Comment 16: Cost Reporting Methodology
Comment 17: Cost Programming
V. Recommendation
Footnotes
1.
See Certain Freight Rail Couplers and Parts Thereof from India: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures,91 FR 24517 (May 6, 2026) (
Preliminary Determination), and accompanying Preliminary Decision Memorandum (PDM).
2.
See
Memorandum, “Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of Certain Freight Rail Couplers and Parts Thereof from India,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).
3.
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.
See
Memoranda, “Verification of the Sales Responses of Texmaco Rail and Engineering Limited,” dated July 30, 2026; “Verification of the Sales Responses of Kharagpur Metal Reforming Industries Pvt. Ltd,” dated July 23, 2026; “Verification of the Cost Response of Texmaco Rail and Engineering Limited,” dated August 13, 2026; and “Verification of the Cost Response of Kharagpur Metal Reforming Industries Pvt. Ltd.,” dated August 17, 2026.
6.
With two respondents under examination, Commerce normally calculates: (A) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents; (B) a simple average of the estimated weighted-average dumping margins calculated for the examined respondents; and (C) a weighted-average of the estimated weighted-average dumping margins calculated for the examined respondents using each company's publicly-ranged U.S. sales values for the merchandise under consideration. 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. In this investigation, 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, “Final Calculation of All-Others Rate,” dated concurrently with this determination.
8.
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).
Use this for formal legal and research references to the published document.
91 FR 60588
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“Certain Freight Rail Couplers and Parts Thereof From India: Final Affirmative Determination of Sales at Less Than Fair Value,” thefederalregister.org (September 24, 2026), https://thefederalregister.org/documents/2026-19521/certain-freight-rail-couplers-and-parts-thereof-from-india-final-affirmative-determination-of-sales-at-less-than-fair-va.