Notice of Final Determination of Sales at Less Than Fair Value: Outboard Engines From Japan, 326-329 [E4-3925]

Download as PDF 326 Notices Federal Register Vol. 70, No. 2 Tuesday, January 4, 2005 This section of the FEDERAL REGISTER contains documents other than rules or proposed rules that are applicable to the public. Notices of hearings and investigations, committee meetings, agency decisions and rulings, delegations of authority, filing of petitions and applications and agency statements of organization and functions are examples of documents appearing in this section. DEPARTMENT OF COMMERCE International Trade Administration [A–583–008] Correction: Notice of Final Results of Antidumping Duty Administrative Review: Circular Welded Carbon Steel Pipes and Tubes From Taiwan BILLING CODE 3510–DS–S Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: September 30, 2004 FOR FURTHER INFORMATION CONTACT: Angela Strom at (202) 482–2704, AD/ CVD Operations, Office 7, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: On September 30, 2004, the Department of Commerce published the final results of the administrative review of the antidumping order covering circular welded carbon steel pipes and tubes from Taiwan. See Circular Welded Carbon Steel Pipes and Tubes From Taiwan: Final Results of Antidumping Duty Administrative Review, 69 FR 58390 (Final Results). The version published in the Federal Register contained a typographical error which is being identified and corrected by this Correction notice. During the publication process, the title of one of the sections‘‘Assessment’’ -was transposed into the chart in the previous section that identified the respondent and the final weighted–average margin. The necessary correction is as follows: International Trade Administration AGENCY: DEPARTMENT OF AGRICULTURE Forest Service Notice of Tri-County Advisory Committee Meeting AGENCY: ACTION: Forest Service, USDA. Notice of meeting. SUMMARY: Pursuant to the authorities in the Federal Advisory Committee Act (Pub. L. 92–463) and under the Secure Rural Schools and Community SelfDetermination Act of 2000 (Pub. L. 106– 393) the Beaverhead-Deerlodge National Forest’s Tri-County Resource Advisory Committee will meet on Thursday, February 3, 2005, from 4 p.m. to 8 p.m. in Deer Lodge, Montana, for a business meeting. The meeting is open to the public. DATES: Thursday, February 3, 2005. The meeting will be held at the USDA Service Center, 1002 Hollenback Road, Deer Lodge, Montana. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Thomas K. Reilly, Designated Forest Official (DFO), Forest Supervisor, Beaverhead-Deerlodge National Forest, at (406) 683–3973. Agenda topics for this meeting includes a review of projects approved and proposed for funding as authorized under Title II of Public Law 106–393, new proposals for funding, information about a community fire plan, and public comment. If the meeting location is changed, notice will be posted in local newspaper, including The Montana Standard. SUPPLEMENTARY INFORMATION: Dated: December 27, 2004. Thomas K. Reilly, Forest Supervisor, Designated Federal Official. [FR Doc. 05–30 Filed 1–3–05; 8:45 am] BILLING CODE 3410–11–M VerDate jul<14>2003 18:02 Jan 03, 2005 Jkt 205001 Dated: December 28, 2004. Barbara E. Tillman, Acting Assistant Secretary for Import Administration. [FR Doc. E4–3924 Filed 1–3–05; 8:45 am] DEPARTMENT OF COMMERCE [A–588–865] Notice of Final Determination of Sales at Less Than Fair Value: Outboard Engines From Japan Import Administration, International Trade Administration, Department of Commerce. EFFECTIVE DATE: January 4, 2005. FOR FURTHER INFORMATION CONTACT: James Kemp or Shane Subler at (202) 482–5346 or (202) 482–0189, respectively; AD/CVD Operations, Office 1, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street & Constitution Avenue, NW., Washington, DC 20230. AGENCY: Final Determination We determine that outboard engines from Japan are being sold, or are likely to be sold, in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act). The estimated margins of sales at LTFV are shown in the Continuation of Suspension of Liquidation section of this notice. Case History The preliminary determination in this investigation was published on August We determine the following dumping 12, 2004. See Notice of Preliminary Determination of Sales at Less Than margin exists for the period May 1, Fair Value and Postponement of Final 2002, to April 30, 2003. Determination: Outboard Engines from Weighted–Average Japan, 69 FR 49863 (August 12, 2004) Producer and Exporter Margin (percent(Preliminary Determination). Since the age) publication of the preliminary determination, the following events Yieh Hsing .................... 1.61 have occurred: In September and October 2004, the Assessment Department of Commerce (the The Department shall determine .... Department) verified the questionnaire (See Final Results at 58391 for the responses submitted by Yamaha Motor balance of this section).’’ Company, Ltd., Yamaha Marine This notice is published in Company, Ltd., and Yamaha Motor accordance with sections 751(a)(1) and Corporation, U.S.A. (collectively 777(i)(1) of the Act. Yamaha). The sales and cost verification Final Results of Review PO 00000 Frm 00001 Fmt 4703 Sfmt 4703 E:\FR\FM\04JAN1.SGM 04JAN1 Federal Register / Vol. 70, No. 2 / Tuesday, January 4, 2005 / Notices reports were issued on November 1, 2004. On November 10, 2004, we received case briefs from (1) the petitioner; 1 (2) BRP U.S. Inc. and Bombardier Recreational Products Inc. (collectively, BRP), a domestic interested party; (3) American Honda Motor Co., Inc., and Honda Motor Co., Ltd., American Suzuki Motor Corporation and Suzuki Motor Corporation, Tohatsu Corporation, Tohatsu Marine Corporation, and Tohatsu America Corporation, Nissan Marine Co., Ltd. (collectively, the Other Japanese Parties); and (4) Yamaha.2 On November 17, 2004, we received rebuttal briefs from the petitioner, BRP, and Yamaha. Since no request was made for a public hearing, a public hearing was not held. Scope of Investigation For the purpose of this investigation, the products covered are outboard engines (also referred to as outboard motors), whether assembled or unassembled; and powerheads, whether assembled or unassembled. The subject engines are gasoline-powered sparkignition, internal combustion engines designed and used principally for marine propulsion for all types of light recreational and commercial boats, including, but not limited to, canoes, rafts, inflatable, sail and pontoon boats. Specifically included in this scope are two-stroke, direct injection two-stroke, and four-stroke outboard engines. Outboard engines are comprised of (1) a powerhead assembly, or an internal combustion engine, (2) a midsection assembly, by which the outboard engine is attached to the vehicle it propels, and (3) a gearcase assembly, which typically includes a transmission and propeller shaft, and may or may not include a propeller. To the extent that these components are imported together, but unassembled, they collectively are covered within the scope of this investigation. An ‘‘unassembled’’ outboard engine consists of a powerhead as defined below, and any other parts imported with the powerhead that may be used in the assembly of an outboard engine. Powerheads are comprised of, at a minimum, (1) a cylinder block, (2) pistons, (3) connecting rods, and (4) a crankshaft. Importation of these four components together, whether 1 The petitioner in this investigation is Mercury Marine, a division of Brunswick Corporation. 2 On December 6, 2004, we rejected the case briefs submitted by Yamaha and the Other Japanese Parties because they contained new factual information. After making the revisions requested by the Department, Yamaha and the Other Japanese Parties resubmitted the briefs on December 7, 2004. VerDate jul<14>2003 18:02 Jan 03, 2005 Jkt 205001 assembled or unassembled, and whether or not accompanied by additional components, constitute a powerhead for purposes of this investigation. An ‘‘unassembled’’ powerhead consists of, at a minimum, the four powerhead components listed above, and any other parts imported with it that may be used in the assembly of a powerhead. The scope does not include parts or components (other than powerheads) imported separately. The outboard engines and powerheads subject to this investigation are currently classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 8407.21.0040 and 8407.21.0080. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. Excluded from the scope of the investigation are five specific models of powerheads. The specific characteristics for each excluded powehead are described below. 1. 75 Horsepower Carbureted Powerhead: the engine type is fourstroke inline four cylinder internal combustion engine; the valve train consists of sixteen valves and twin cam with timing belt and tensioner; the crankcase is of high-pressure die-cast aluminum; the block is of high-pressure die-cast aluminum with iron cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 1; fuel supplied by four individual carburetors fitted to left side (as viewed from rear) of engine; power output 55.9 kW at 5000 RPM; fuel consumption 28.0 L/H Max at 6000 RPM; maximum height 539 mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6 kg. 2. 90 Horsepower Carbureted Powerhead: the engine type is fourstroke inline four cylinder internal combustion engine; the valve train consists of sixteen valves and twin cam with timing belt and tensioner; the crankcase is of high-pressure die-cast aluminum; the block is of high-pressure die-cast aluminum with iron cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 1; fuel supplied by four individual carburetors fitted to left side (as viewed from rear) of engine; power output 67.1 kW at 5500 RPM; fuel consumption 31.5 L/H Max at 6000 RPM; maximum height 539 mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6 kg. PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 327 3. 75 Horsepower Electronic Fuel Injection Powerhead: the engine type is four-stroke inline four cylinder internal combustion engine; the valve train consists of sixteen valves and twin cam with timing belt and tensioner; the crankcase is of high-pressure die-cast aluminum; the block is of high-pressure die-cast aluminum with iron cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle body multi-point electronic fuel injection; power output 55.9 kW at 5000 RPM; fuel consumption 29.0 L/H Max at 6000 RPM; maximum height 539 mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0 lbs./83.0 kg. 4. 90 Horsepower Electronic Fuel Injection Powerhead: the engine type is four-stroke inline four cylinder internal combustion engine; the valve train consists of sixteen valves and twin cam with timing belt and tensioner; the crankcase is of high-pressure die-cast aluminum; the block is of high-pressure die-cast aluminum with iron cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle body multi-point electronic fuel injection; power output 67.1 kW at 5500 RPM; fuel consumption 33.0 L/H Max at 6000 RPM; maximum height 539 mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0 lbs./83.0 kg. 5. 115 Horsepower Electronic Fuel Injection Powerhead: the engine type is four-stroke inline four cylinder internal combustion engine; the valve train consists of sixteen valves and twin cam with timing belt and tensioner; the crankcase is of high-pressure die-cast aluminum; the block is of high-pressure die-cast aluminum with iron cylinder liners; displacement 1.741 liters; bore and stroke 79 mm x 89 mm; compression ratio 9.7: 1; fuel supplied by multi-point electronic fuel injection with four individual throttle bodies; power output 85.8 kW at 5500 RPM; fuel consumption 38.0 L/H Max at 5500 RPM; maximum height 539 mm; maximum width 444 mm; maximum length 637 mm; and weight (dry) 189.0 lbs./85.7 kg. Period of Investigation The period of investigation (POI) is January 1, 2003, through December 31, 2003. This period corresponds to the four most recent fiscal quarters prior to the month of filing of the petition (i.e., January 2004) involving imports from a market economy, and is in accordance with our regulations. See 19 CFR 351.204(b)(1). E:\FR\FM\04JAN1.SGM 04JAN1 328 Federal Register / Vol. 70, No. 2 / Tuesday, January 4, 2005 / Notices Scope Issues Outboard Engines Under 25 Horsepower In the preliminary determination, we analyzed parties’ comments regarding the appropriateness of including engines of 25 horsepower or less in the scope of investigation and determined that the engines were within the scope. See Preliminary Determination at 49864. For the final determination, we affirm our decision in the preliminary determination and continue to find that these engines are included in the scope of the investigation. No parties commented on this issue for the final determination. Powerheads Imported as Replacement Parts In the preliminary determination, we found that engines imported for the purpose of repairing outboard engines previously sold are properly included in the scope of the investigation. See Preliminary Determination at 49865. The Other Japanese Parties submitted a case brief arguing that the Department should exclude these engines from the scope for the final determination. The petitioner and BRP submitted rebuttal briefs on this issue. After analyzing the parties’ arguments, we continue to find that engines imported for the purpose of repair are properly included in the scope of the investigation for the reasons outlined at Comment 2 of the Memorandum from Barbara E. Tillman, Acting Deputy Assistant Secretary, to James J. Jochum, Assistant Secretary for Import Administration, RE: Issues and Decision Memorandum for the Final Determination of the Investigation of Outboard Engines from Japan (Decision Memorandum), dated December 27, 2004. Treatment of Powerheads as a Separate Class or Kind In the preliminary determination, we found that completed engines and powerheads constituted the same class or kind of merchandise. See Preliminary Determination at 49865. Yamaha and the Other Japanese Parties submitted case briefs arguing that the Department should find that powerheads are a separate class or kind from completed outboard engines. The petitioner and BRP submitted a rebuttal brief on this issue. After analyzing the parties’ arguments, we continue to find that completed engines and powerheads constitute the same class or kind of merchandise for the reasons outlined at Comment 1 of the Decision Memorandum. VerDate jul<14>2003 18:02 Jan 03, 2005 Jkt 205001 Amendment to the Scope of Investigation In a separate November 17, 2004, submission, the petitioner requested that the Department exclude certain models of powerheads from the scope of the investigation. On November 23, 2004, Yamaha submitted comments on the petitioner’s request.3 The petitioner submitted a response to these comments on November 30, 2004. After analyzing the parties’ arguments, we accepted the petitioner’s proposed scope amendment to exclude certain powerhead models for the reasons outlined at Comment 17 of the Decision Memorandum. For a description of the excluded powerheads, see the Scope of Investigation section of this notice. Verification As provided in section 782(i) of the Act, we conducted verification of the cost and sales information submitted by Yamaha. We used standard verification procedures including examination of relevant accounting and production records, and original source documents provided by the respondent. Analysis of Comments Received All issues raised in the case and rebuttal briefs submitted by parties to this proceeding are listed in the appendix to this notice and addressed in the Decision Memorandum hereby adopted by this notice. The Decision Memorandum is on file in room B–099 of the main Department building. In addition, a complete version of the Decision Memorandum can be accessed directly on the World Wide Web at https://www.ita.doc.gov/frn. The paper and electronic versions of the Decision Memorandum are identical in content. Changes Since the Preliminary Determination Based on our findings at verification and our analysis of comments received, we have made adjustments to the preliminary determination calculation methodologies in calculating the final dumping margin for Yamaha. These adjustments are discussed in the Decision Memorandum and the Memorandum from James Kemp and Shane Subler, International Trade Compliance Analysts, through Constance Handley, Program Manager, RE: Final Determination Analysis Memorandum for Yamaha Motor Company, Ltd., Yamaha Marine 3 On December 6, 2004, we rejected Yamaha’s comments because they contained new factual information submitted after the Department’s regulatory deadline. The date of Yamaha’s revised submission is December 7, 2004. PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 Company, Ltd., and Yamaha Motor Corporation, USA, dated December 27, 2004. Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B) of the Act, we are directing U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all entries of outboard engines exported from Japan, that are entered, or withdrawn from warehouse, for consumption on or after the date of the preliminary determination. CBP shall continue to require a cash deposit or the posting of a bond based on the estimated weighted-average dumping margins shown below. The suspension of liquidation instructions will remain in effect until further notice. We determine that the following weighted-average dumping margin exists for Japan: Manufacturer/exporter Margin (percent) Yamaha .................................... All others ................................... 18.98 18.98 International Trade Commission Notification In accordance with section 735(d) of the Act, we have notified the International Trade Commission (ITC) of our determination. The ITC will determine, within 45 days, whether imports of subject merchandise from Japan are causing material injury, or threaten material injury, to an industry in the United States. If the ITC determines that material injury or threat of material injury does not exist, this proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP officials to assess antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse for consumption on or after the effective date of the suspension of liquidation. This notice also serves as a reminder to parties subject to administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to complywith the regulations and the terms of an APO is a sanctionable violation. E:\FR\FM\04JAN1.SGM 04JAN1 Federal Register / Vol. 70, No. 2 / Tuesday, January 4, 2005 / Notices This determination is issued and published in accordance with sections 735(d) and 777(i)(1) of the Act. Dated: December 27, 2004. Joseph A. Spetrini, Acting Assistant Secretary for Import Administration. Appendix Issues Covered in Decision Memorandum 1. Class or Kind. 2. Powerheads Imported for Repair Purposes. 3. Treatment of Non-Dumped Sales. 4. Level of Trade (LOT) Adjustment for Yamaha’s Sales to Original Equipment Manufacturer (OEM) Customers. 5. Surrogate Prices for Yamaha’s CEP Sales to Its Affiliated Boat Builders. 6. Per-Unit Cap on the CEP Offset. 7. Home Market Levels of Trade. 8. Adjustments to U.S. Price. 9. Reported Home Market Payment Dates. 10. Certain Home Market Sales within the Ordinary Course of Trade. 11. Credit Expenses for Export Price Sales. 12. Reporting of the REBATE4U Field. 13. Minor Corrections Submitted at Verification. 14. Application of LOT Adjustment. 15. Home Market Consignment Sales. 16. Packing Costs. 17. Amendment to Scope. 18. Yamaha’s Standard Cost System. 19. Certain Excluded Costs. 20. Parent Company G&A Expenses. 21. Affiliated Supplier Inputs. [FR Doc. E4–3925 Filed 1–3–05; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–890] Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Wooden Bedroom Furniture From the People’s Republic of China Import Administration, International Trade Administration, Department ofCommerce. EFFECTIVE DATE: January 4, 2005. FOR FURTHER INFORMATION CONTACT: Aishe Allen, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–0172. AGENCY: Amendment to Final Determination In accordance with sections 735(d) and 777(i)(1) of the Tariff Act of 1930, as amended, (‘‘the Act’’), on November 17, 2004, the Department of Commerce (‘‘the Department’’) published the VerDate jul<14>2003 18:02 Jan 03, 2005 Jkt 205001 Notice of Final Determination of Sales at Less Than Fair Value in the investigation of wooden bedroom furniture from the People’s Republic of China (‘‘PRC’’) (‘‘Final Determination’’). See Final Determination and corresponding ‘‘Issues and Decision Memorandum’’ dated November 8, 2004. Between November 12, 2004, and November 22, 2004, the following parties filed timely allegations that the Department made various ministerial errors in the Final Determination: Superwood Company Limited; Shanghai SMEC Corporation; follows: Dongguan Chunsan Wood Products Co., Ltd.; Trendex Industries Limited; the American Furniture Manufacturers Committee for Legal Trade and its individual members and the Cabinet Makers, Millmen, and Industrial Carpenters Local 721, UBC Southern Council of Industrial Worker’s Local Union 2305, United Steel Workers of American Local 193U, Carpenters Industrial Union Local 2093, and Teamsters, Chauffeurs, Warehousemen and Helper Local 991 (collectively ‘‘Petitioners’’); Rui Feng Woodwork Co., Ltd., Rui Feng Lumber Development Co., Ltd., and Dorbest Limited (‘‘Dorbest’’); Lacquer Craft Mfg. Co., Ltd. (‘‘Lacquer Craft’’); Dongguan Lung Dong Furniture Co., Ltd., and Dongguan Dong He Furniture Co., Ltd., (‘‘Lung Dong’’); and Shing Mark Enterprise Co., Ltd., Carven Industries Limited (BVI), Carven Industries Limited (HK), Dongguan Zhenxin Furniture Co., Ltd., and Dongguan Yongpeng Furniture Co., Ltd. (‘‘Shing Mark’’); Hongyu Furniture (Shenzhen) Limited (‘‘Hongyu’’); American Signature, Inc., and Value City Furniture (‘‘ASI/VCF’’) and Pulaski Furniture Corp. (‘‘Pulaski’’) with respect to ministerial errors in the calculation of the margin for their supplier, Dorbest. On November 29, 2004, Petitioners filed comments rebutting the interested parties’ ministerial-error allegations. On the same day, Lacquer Craft, Lung Dong, Shing Mark, and Starcorp Furniture (Shanghai) Co., Ltd., Orin Furniture (Shanghai) Co., Ltd., and Shanghai Starcorp Furniture Co., Ltd. (‘‘Starcorp’’), filed comments rebutting the Petitioners ministerial-error allegations. Further, on November 29, 2004, Petitioners submitted a letter requesting the Department to strike from the record Exhibit 12 and any references to this Exhibit in Shing Mark’s November 22, 2004, ministerial-error submission because it contains new untimely factual information. On November 30, 2004, Shing Mark filed a letter stating the Department should reject Petitioners’ request to strike PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 329 certain information because the information is not new or untimely. Also, on November 30, 2004, Petitioners filed a letter requesting the Department to strike from the record Starcorp’s November 29, 2004, submission as untimely filed ministerial- error comments. On December 1, 2004, Starcorp filed a letter stating that its letter was both timely and appropriate. On December 6, 2004, Petitioners filed a letter requesting the Department to strike from the record portions of Lung Dong’s November 29, 2004, rebuttal comments because it allegedly contained untimely raised ministerialerror allegations. On December 10, 2004, we returned Lung Dong’s and Starcorp’s November 29, 2004, submissions because they contained untimely ministerial-error allegations. Lung Dong submitted an amended version of its November 29, 2004, submission on December 14, 2004. After analyzing all interested parties comments and rebuttal comments, we have determined, in accordance with 19 CFR 351.224(e), that we made ministerial errors in the calculations we performed for the final determination. For a detailed discussion of these ministerial errors, and our analysis, see the ‘‘Amended Issues and Decision Memorandum’’ dated December 27, 2004, and the company specific amended final determination analysis memoranda dated December 27, 2004. Additionally, in the Final Determination, we determined that several companies qualified for separate-rate status. The margin we calculated in the Final Determination for these companies was 8.64 percent. Because the rates of the selected mandatory respondents have changed since the Final Determination, we have recalculated the rate for the nonmandatory respondents which the Department determined to be entitled to separate rate. The rate for Section A respondents is now 6.65%. See Memorandum to the File from Eugene Degnan, Amended Calculation of Section A Rate, dated December 27, 2004. Therefore, in accordance with 19 CFR 351.224(e), we are amending the final determination of sales at LTFV in the antidumping duty investigation of wooden bedroom furniture from the PRC. The revised weighted-average dumping margins are in the ‘‘Antidumping Duty Order’’ section, below. Antidumping Duty Order On December 23, 2004, in accordance with section 735(d) of the Act, the International Trade Commission (‘‘ITC’’) E:\FR\FM\04JAN1.SGM 04JAN1

Agencies

[Federal Register Volume 70, Number 2 (Tuesday, January 4, 2005)]
[Notices]
[Pages 326-329]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E4-3925]


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 DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-865]


Notice of Final Determination of Sales at Less Than Fair Value: 
Outboard Engines From Japan

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: January 4, 2005.

FOR FURTHER INFORMATION CONTACT: James Kemp or Shane Subler at (202) 
482-5346 or (202) 482-0189, respectively; AD/CVD Operations, Office 1, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street & Constitution Avenue, NW., 
Washington, DC 20230.

Final Determination

    We determine that outboard engines from Japan are being sold, or 
are likely to be sold, in the United States at less than fair value 
(LTFV), as provided in section 735 of the Tariff Act of 1930, as 
amended (the Act). The estimated margins of sales at LTFV are shown in 
the Continuation of Suspension of Liquidation section of this notice.

Case History

    The preliminary determination in this investigation was published 
on August 12, 2004. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: Outboard 
Engines from Japan, 69 FR 49863 (August 12, 2004) (Preliminary 
Determination). Since the publication of the preliminary determination, 
the following events have occurred:
    In September and October 2004, the Department of Commerce (the 
Department) verified the questionnaire responses submitted by Yamaha 
Motor Company, Ltd., Yamaha Marine Company, Ltd., and Yamaha Motor 
Corporation, U.S.A. (collectively Yamaha). The sales and cost 
verification

[[Page 327]]

reports were issued on November 1, 2004. On November 10, 2004, we 
received case briefs from (1) the petitioner; \1\ (2) BRP U.S. Inc. and 
Bombardier Recreational Products Inc. (collectively, BRP), a domestic 
interested party; (3) American Honda Motor Co., Inc., and Honda Motor 
Co., Ltd., American Suzuki Motor Corporation and Suzuki Motor 
Corporation, Tohatsu Corporation, Tohatsu Marine Corporation, and 
Tohatsu America Corporation, Nissan Marine Co., Ltd. (collectively, the 
Other Japanese Parties); and (4) Yamaha.\2\ On November 17, 2004, we 
received rebuttal briefs from the petitioner, BRP, and Yamaha. Since no 
request was made for a public hearing, a public hearing was not held.
---------------------------------------------------------------------------

    \1\ The petitioner in this investigation is Mercury Marine, a 
division of Brunswick Corporation.
    \2\ On December 6, 2004, we rejected the case briefs submitted 
by Yamaha and the Other Japanese Parties because they contained new 
factual information. After making the revisions requested by the 
Department, Yamaha and the Other Japanese Parties resubmitted the 
briefs on December 7, 2004.
---------------------------------------------------------------------------

Scope of Investigation

    For the purpose of this investigation, the products covered are 
outboard engines (also referred to as outboard motors), whether 
assembled or unassembled; and powerheads, whether assembled or 
unassembled. The subject engines are gasoline-powered spark-ignition, 
internal combustion engines designed and used principally for marine 
propulsion for all types of light recreational and commercial boats, 
including, but not limited to, canoes, rafts, inflatable, sail and 
pontoon boats. Specifically included in this scope are two-stroke, 
direct injection two-stroke, and four-stroke outboard engines.
    Outboard engines are comprised of (1) a powerhead assembly, or an 
internal combustion engine, (2) a midsection assembly, by which the 
outboard engine is attached to the vehicle it propels, and (3) a 
gearcase assembly, which typically includes a transmission and 
propeller shaft, and may or may not include a propeller. To the extent 
that these components are imported together, but unassembled, they 
collectively are covered within the scope of this investigation. An 
``unassembled'' outboard engine consists of a powerhead as defined 
below, and any other parts imported with the powerhead that may be used 
in the assembly of an outboard engine.
    Powerheads are comprised of, at a minimum, (1) a cylinder block, 
(2) pistons, (3) connecting rods, and (4) a crankshaft. Importation of 
these four components together, whether assembled or unassembled, and 
whether or not accompanied by additional components, constitute a 
powerhead for purposes of this investigation. An ``unassembled'' 
powerhead consists of, at a minimum, the four powerhead components 
listed above, and any other parts imported with it that may be used in 
the assembly of a powerhead.
    The scope does not include parts or components (other than 
powerheads) imported separately.
    The outboard engines and powerheads subject to this investigation 
are currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) at subheadings 8407.21.0040 and 8407.21.0080. 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise under 
investigation is dispositive.
    Excluded from the scope of the investigation are five specific 
models of powerheads.
    The specific characteristics for each excluded powehead are 
described below.
    1. 75 Horsepower Carbureted Powerhead: the engine type is four-
stroke inline four cylinder internal combustion engine; the valve train 
consists of sixteen valves and twin cam with timing belt and tensioner; 
the crankcase is of high-pressure die-cast aluminum; the block is of 
high-pressure die-cast aluminum with iron cylinder liners; displacement 
1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 
1; fuel supplied by four individual carburetors fitted to left side (as 
viewed from rear) of engine; power output 55.9 kW at 5000 RPM; fuel 
consumption 28.0 L/H Max at 6000 RPM; maximum height 539 mm; maximum 
width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6 
kg.
    2. 90 Horsepower Carbureted Powerhead: the engine type is four-
stroke inline four cylinder internal combustion engine; the valve train 
consists of sixteen valves and twin cam with timing belt and tensioner; 
the crankcase is of high-pressure die-cast aluminum; the block is of 
high-pressure die-cast aluminum with iron cylinder liners; displacement 
1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6: 
1; fuel supplied by four individual carburetors fitted to left side (as 
viewed from rear) of engine; power output 67.1 kW at 5500 RPM; fuel 
consumption 31.5 L/H Max at 6000 RPM; maximum height 539 mm; maximum 
width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6 
kg.
    3. 75 Horsepower Electronic Fuel Injection Powerhead: the engine 
type is four-stroke inline four cylinder internal combustion engine; 
the valve train consists of sixteen valves and twin cam with timing 
belt and tensioner; the crankcase is of high-pressure die-cast 
aluminum; the block is of high-pressure die-cast aluminum with iron 
cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 
81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle 
body multi-point electronic fuel injection; power output 55.9 kW at 
5000 RPM; fuel consumption 29.0 L/H Max at 6000 RPM; maximum height 539 
mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0 
lbs./83.0 kg.
    4. 90 Horsepower Electronic Fuel Injection Powerhead: the engine 
type is four-stroke inline four cylinder internal combustion engine; 
the valve train consists of sixteen valves and twin cam with timing 
belt and tensioner; the crankcase is of high-pressure die-cast 
aluminum; the block is of high-pressure die-cast aluminum with iron 
cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x 
81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle 
body multi-point electronic fuel injection; power output 67.1 kW at 
5500 RPM; fuel consumption 33.0 L/H Max at 6000 RPM; maximum height 539 
mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0 
lbs./83.0 kg.
    5. 115 Horsepower Electronic Fuel Injection Powerhead: the engine 
type is four-stroke inline four cylinder internal combustion engine; 
the valve train consists of sixteen valves and twin cam with timing 
belt and tensioner; the crankcase is of high-pressure die-cast 
aluminum; the block is of high-pressure die-cast aluminum with iron 
cylinder liners; displacement 1.741 liters; bore and stroke 79 mm x 89 
mm; compression ratio 9.7: 1; fuel supplied by multi-point electronic 
fuel injection with four individual throttle bodies; power output 85.8 
kW at 5500 RPM; fuel consumption 38.0 L/H Max at 5500 RPM; maximum 
height 539 mm; maximum width 444 mm; maximum length 637 mm; and weight 
(dry) 189.0 lbs./85.7 kg.

Period of Investigation

    The period of investigation (POI) is January 1, 2003, through 
December 31, 2003. This period corresponds to the four most recent 
fiscal quarters prior to the month of filing of the petition (i.e., 
January 2004) involving imports from a market economy, and is in 
accordance with our regulations. See 19 CFR 351.204(b)(1).

[[Page 328]]

Scope Issues

Outboard Engines Under 25 Horsepower

    In the preliminary determination, we analyzed parties' comments 
regarding the appropriateness of including engines of 25 horsepower or 
less in the scope of investigation and determined that the engines were 
within the scope. See Preliminary Determination at 49864. For the final 
determination, we affirm our decision in the preliminary determination 
and continue to find that these engines are included in the scope of 
the investigation. No parties commented on this issue for the final 
determination.

Powerheads Imported as Replacement Parts

    In the preliminary determination, we found that engines imported 
for the purpose of repairing outboard engines previously sold are 
properly included in the scope of the investigation. See Preliminary 
Determination at 49865. The Other Japanese Parties submitted a case 
brief arguing that the Department should exclude these engines from the 
scope for the final determination. The petitioner and BRP submitted 
rebuttal briefs on this issue. After analyzing the parties' arguments, 
we continue to find that engines imported for the purpose of repair are 
properly included in the scope of the investigation for the reasons 
outlined at Comment 2 of the Memorandum from Barbara E. Tillman, Acting 
Deputy Assistant Secretary, to James J. Jochum, Assistant Secretary for 
Import Administration, RE: Issues and Decision Memorandum for the Final 
Determination of the Investigation of Outboard Engines from Japan 
(Decision Memorandum), dated December 27, 2004.

Treatment of Powerheads as a Separate Class or Kind

    In the preliminary determination, we found that completed engines 
and powerheads constituted the same class or kind of merchandise. See 
Preliminary Determination at 49865. Yamaha and the Other Japanese 
Parties submitted case briefs arguing that the Department should find 
that powerheads are a separate class or kind from completed outboard 
engines. The petitioner and BRP submitted a rebuttal brief on this 
issue. After analyzing the parties' arguments, we continue to find that 
completed engines and powerheads constitute the same class or kind of 
merchandise for the reasons outlined at Comment 1 of the Decision 
Memorandum.

Amendment to the Scope of Investigation

    In a separate November 17, 2004, submission, the petitioner 
requested that the Department exclude certain models of powerheads from 
the scope of the investigation. On November 23, 2004, Yamaha submitted 
comments on the petitioner's request.\3\ The petitioner submitted a 
response to these comments on November 30, 2004. After analyzing the 
parties' arguments, we accepted the petitioner's proposed scope 
amendment to exclude certain powerhead models for the reasons outlined 
at Comment 17 of the Decision Memorandum. For a description of the 
excluded powerheads, see the Scope of Investigation section of this 
notice.
---------------------------------------------------------------------------

    \3\ On December 6, 2004, we rejected Yamaha's comments because 
they contained new factual information submitted after the 
Department's regulatory deadline. The date of Yamaha's revised 
submission is December 7, 2004.
---------------------------------------------------------------------------

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the cost and sales information submitted by Yamaha. We used standard 
verification procedures including examination of relevant accounting 
and production records, and original source documents provided by the 
respondent.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
parties to this proceeding are listed in the appendix to this notice 
and addressed in the Decision Memorandum hereby adopted by this notice. 
The Decision Memorandum is on file in room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the World Wide Web at https://
www.ita.doc.gov/frn. The paper and electronic versions of the Decision 
Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our findings at verification and our analysis of comments 
received, we have made adjustments to the preliminary determination 
calculation methodologies in calculating the final dumping margin for 
Yamaha. These adjustments are discussed in the Decision Memorandum and 
the Memorandum from James Kemp and Shane Subler, International Trade 
Compliance Analysts, through Constance Handley, Program Manager, RE: 
Final Determination Analysis Memorandum for Yamaha Motor Company, Ltd., 
Yamaha Marine Company, Ltd., and Yamaha Motor Corporation, USA, dated 
December 27, 2004.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of outboard engines exported from 
Japan, that are entered, or withdrawn from warehouse, for consumption 
on or after the date of the preliminary determination. CBP shall 
continue to require a cash deposit or the posting of a bond based on 
the estimated weighted-average dumping margins shown below. The 
suspension of liquidation instructions will remain in effect until 
further notice.
    We determine that the following weighted-average dumping margin 
exists for Japan:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
Yamaha.....................................................        18.98
All others.................................................        18.98
------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. The ITC will 
determine, within 45 days, whether imports of subject merchandise from 
Japan are causing material injury, or threaten material injury, to an 
industry in the United States. If the ITC determines that material 
injury or threat of material injury does not exist, this proceeding 
will be terminated and all securities posted will be refunded or 
canceled. If the ITC determines that such injury does exist, the 
Department will issue an antidumping duty order directing CBP officials 
to assess antidumping duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse for consumption on or after the 
effective date of the suspension of liquidation.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to complywith the regulations and the 
terms of an APO is a sanctionable violation.

[[Page 329]]

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: December 27, 2004.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.

Appendix

Issues Covered in Decision Memorandum

    1. Class or Kind.
    2. Powerheads Imported for Repair Purposes.
    3. Treatment of Non-Dumped Sales.
    4. Level of Trade (LOT) Adjustment for Yamaha's Sales to 
Original Equipment Manufacturer (OEM) Customers.
    5. Surrogate Prices for Yamaha's CEP Sales to Its Affiliated 
Boat Builders.
    6. Per-Unit Cap on the CEP Offset.
    7. Home Market Levels of Trade.
    8. Adjustments to U.S. Price.
    9. Reported Home Market Payment Dates.
    10. Certain Home Market Sales within the Ordinary Course of 
Trade.
    11. Credit Expenses for Export Price Sales.
    12. Reporting of the REBATE4U Field.
    13. Minor Corrections Submitted at Verification.
    14. Application of LOT Adjustment.
    15. Home Market Consignment Sales.
    16. Packing Costs.
    17. Amendment to Scope.
    18. Yamaha's Standard Cost System.
    19. Certain Excluded Costs.
    20. Parent Company G&A Expenses.
    21. Affiliated Supplier Inputs.

 [FR Doc. E4-3925 Filed 1-3-05; 8:45 am]
BILLING CODE 3510-DS-P
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