Brake Rotors From the People's Republic of China: Preliminary Results of the Twelfth New Shipper Review, 56634-56639 [05-19363]
Download as PDF
56634
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
Antidumping Duty Proceedings
Period to be Reviewed
United Power Packaging Limited.
United Power Packaging Ltd.
High Den Enterprises Ltd.
Rally Plastics Co., Ltd.
Sea Lake Polyethylene Enterprise Ltd.
Shanghai Glopack, Inc.
Shanghai New Ai Lian Import & Export Co., Ltd.
Countervailing Duty Proceedings.
CANADA: Alloy Magnesium.
C–122–815 ................................................................................................................................................................
Magnola Metallurgy Inc.
Norsk Hydro Canada Inc.
CANADA: Pure Magnesium.
C–122–815 ................................................................................................................................................................
Magnola Metallurgy Inc.
Norsk Hydro Canada Inc.
FRANCE: Corrosion–Resistant Carbon Steel Flat Products.
C–427–810 ................................................................................................................................................................
Duferco Coating SA.
Sorral SA.
REPUBLIC OF KOREA: Corrosion–Resistant Carbon Steel Flat Products.
C–580–818 ................................................................................................................................................................
Dongbu Steel Co., Ltd.
POSCO.
REPUBLIC OF KOREA: Stainless Steel Sheet and Strip in Coils.
C–580–835 ................................................................................................................................................................
Dai Yang Metal Co., Ltd.
REPUBLIC OF KOREA: Dynamic Random Access Memory Semiconductors.
C–580–851 ................................................................................................................................................................
Hynix Semiconductor Inc. (formerly Hyundai Electronics Industries Co., Ltd.).
Suspension Agreements.
None.
1/1/04 - 12/31/04
1/1/04 - 12/31/04
1/1/04 - 12/31/04
1/1/04 - 12/31/04
1/1/04 - 12/31/04
1/1/04 - 12/31/04
1 If one of the above named companies does not qualify for a separate rate, all other exporters of frozen fish fillets from the Socialist Republic
of Vietnam who have not qualified for a separate rate are deemed to be covered by this review as part of the single Vietnam entity of which the
named exporters are a part.
2 If one of the above named companies does not qualify for a separate rate, all other exporters of floor-standing metal-top ironing tables from
the People’s Republic of China who have not qualified for a separate rate are deemed to be covered by this review as part of the single PRC entity of which the named exporters are a part.
3 If one of the above named companies does not qualify for a separate rate, all other exporters of petroleum wax candles from the People’s
Republic of Chinawho have not qualified for a separate rate are deemed to be covered by this review as part of the single PRC entity of which
the named exporters are a part.
4 If one of the above named companies does not qualify for a separate rate, all other exporters of polyethylene retail carrier bags from the
People’s Republic of China who have not qualified for a separate rate are deemed to be covered by this review as part of the single PRC entity
of which the named exporters are a part.
During any administrative review
covering all or part of a period falling
between the first and second or third
and fourth anniversary of the
publication of an antidumping duty
order under section 351.211 or a
determination under section
351.218(f)(4) to continue an order or
suspended investigation (after sunset
review), the Secretary, if requested by a
domestic interested party within 30
days of the date of publication of the
notice of initiation of the review, will
determine, consistant with FAG Italia v.
United States, 291 F.3d 806 (Fed Cir.
2002), as appropriate, whether
antidumping duties have been absorbed
by an exporter or producer subject to the
review if the subject merchandise is
sold in the United States through an
importer that is affiliated with such
exporter or producer. The request must
include the name(s) of the exporter or
producer for which the inquiry is
requested.
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
Interested parties must submit
applications for disclosure under
administrative protective orders in
accordance with 19 CFR 351.305.
These initiations and this notice are
in accordance with section 751(a) of the
Tariff Act of 1930, as amended (19 USC
1675(a)) and 19 CFR 351.221(c)(1)(i).
DEPARTMENT OF COMMERCE
Dated: September 20, 2005.
Holly A. Kuga,
Senior Office Director, AD/CVD Operations,
Office 4, for Import Administration.
[FR Doc. 05–19364 Filed 9–27–05; 8:45 am]
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(‘‘the Department’’) is currently
conducting the twelfth new shipper
review of the antidumping duty order
on brake rotors from the People’s
Republic of China (‘‘PRC’’) covering the
period April 1, 2004, through September
30, 2004. We preliminarily determine
that no sales have been made below
normal value (‘‘NV’’) with respect to the
exporters who participated fully and are
entitled to a separate rate in this review.
If these preliminary results are adopted
BILLING CODE 3510–DS–S
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
International Trade Administration
[A–570–846]
Brake Rotors From the People’s
Republic of China: Preliminary Results
of the Twelfth New Shipper Review
AGENCY:
E:\FR\FM\28SEN1.SGM
28SEN1
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
in our final results of this review, we
will instruct U.S. Customs and Border
Protection (‘‘CBP’’) to assess
antidumping duties on entries of subject
merchandise during the period of
review (‘‘POR’’) for which the importer–
specific assessment rates are above de
minimis.
EFFECTIVE DATE:
September 28, 2005.
FOR FURTHER INFORMATION CONTACT:
Nicole Bankhead (Dixion) or Kit Rudd
(Wally) AD/CVD Operations, Office 9,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone: (202) 482–9068 or
(202) 482–1385, respectively.
SUPPLEMENTARY INFORMATION:
Case History
On April 17, 1997, the Department
published in the Federal Register the
antidumping duty order on brake rotors
from the PRC. See Notice of
Antidumping Duty Order: Brake Rotors
from the People’s Republic of China, 62
FR 18740 (April 17, 1997) (‘‘Brake
Rotors Order’’).
On October 28, 2004, the Department
received timely requests for new
shipper reviews under the antidumping
duty order on brake rotors from the PRC
in accordance with section 751(a)(2)(B)
of the Tariff Act of 1930, as amended
(the Act), and section 351.214(c) of the
Department’s regulations, from Laizhou
Wally Automobile Co., Ltd. (‘‘Wally’’)
and Dixion Brake System (Longkou) Ltd.
(‘‘Dixion’’).
On November 24, 2004, the
Department initiated these new shipper
reviews for the period April 1, 2004,
through September 30, 2004, for Wally
and Dixion. See Brake Rotors from the
People’s Republic of China: Initiation of
the Twelfth New Shipper Antidumping
Duty Review, 69 FR 70632 (December 7,
2004).
On December 3, 2004, the Department
requested from the Office of Policy a
memorandum listing surrogate
countries.
On December 6, 2004, the Department
issued its Section A, C, and D of the
General Antidumping Duty
Questionnaire to Wally and Dixion.
On December 7, 2004, the Department
received from the Office of Policy a list
of surrogate countries. On December 8,
2004, the Department provided all
interested parties the opportunity to
submit information pertinent to
selecting a surrogate country and
valuing factors of production in this
review.
On December 20, 2004, the
Department requested from CBP copies
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
of all customs documents pertaining to
the entry of brake rotors from the PRC
exported by Wally and Dixion during
the period of April 1, 2004, through
September 30, 2004. See Memorandum
from James C. Doyle, Office Director, to
William R. Scopa of CBP, dated
December 20, 2004. The Department
also issued Wally and Dixion sales and
cost reconciliation questionnaires on
December 20, 2004.
On January 21, 2005, Wally and
Dixion submitted Sections A, C, D, and
importer questionnaire responses along
with their sales and cost reconciliations.
On January 24, 2005, Dixion
submitted an invoice to replace an
invoice it claimed it inadvertently
submitted in its January 21, 2005,
response.
On February 1, 2005, the Coalition for
the Preservation of American Brake
Drum and Rotor Aftermarket
Manufacturers (‘‘Petitioners’’) submitted
comments regarding Wally and Dixions’
questionnaire responses.
On February 2, 2005, the Department
placed documentation provided by CBP
on the record pertaining to specific
entries of brake rotors and/or brake
drums exported by Wally and Dixion
during the POR.
On February 9, 2005, Wally and
Dixion provided information for valuing
factors of production in this review.
On March, 11, 2005, the Department
sent Dixion a supplemental Sections A,
C, and D questionnaire, as well as a
supplemental importer questionnaire.
On March 14, 2005, the Department
sent Wally a supplemental Sections A,
C, D questionnaire, as well as a
supplemental importer questionnaire.
On April 8, 2005, Wally and Dixion
submitted their responses to the
Department’s supplemental
questionnaires.
On April 25, 2005, the Department
extended the time limit for the
preliminary results of the instant review
on brake rotors from the PRC. See Brake
Rotors from the People’s Republic of
China: Extension of the New Shipper
Antidumping Duty Reviews, 70 FR
22298 (April 29, 2005).
On June 22, 2005, the Department
sent Wally and Dixion a second
supplemental on Sections A, C, and D
of the antidumping questionnaires and
on the importer questionnaires. On July
14, 2005, Dixion submitted its second
supplemental Sections A, C, and D of
the antidumping questionnaire and on
the importer questionnaire. On July 20,
2005, Wally submitted its response to
the second supplemental Sections A, C,
and D questionnaire as well as the
second importer questionnaire.
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
56635
On July 25, 2005, the Department
issued Dixion a third supplemental
sections A, C, and D of the antidumping
questionnaire and the importer
questionnaire. On July 29, 2005, the
Department issued Dixion an additional
questionnaire.
On August 4, 2005, Wally submitted
its supplemental questionnaire response
on August 4, 2005. On August 8, 2005,
Dixion submitted its third and fourth
supplemental questionnaire responses.
On August 10, 2005, Petitioners
submitted verification comments for
Wally.
On August 29, 2005, Wally and
Dixion submitted their verification
exhibits to the Department.
Period of Review
The POR covers April 1, 2004,
through September 30, 2004.
Scope of the Order
The products covered by this order
are brake rotors made of gray cast iron,
whether finished, semifinished, or
unfinished, ranging in diameter from 8
to 16 inches (20.32 to 40.64 centimeters)
and in weight from 8 to 45 pounds (3.63
to 20.41 kilograms). The size parameters
(weight and dimension) of the brake
rotors limit their use to the following
types of motor vehicles: automobiles,
all–terrain vehicles, vans and
recreational vehicles under ‘‘one ton
and a half,’’ and light trucks designated
as ‘‘one ton and a half.’’
Finished brake rotors are those that
are ready for sale and installation
without any further operations. Semi–
finished rotors are those on which the
surface is not entirely smooth, and have
undergone some drilling. Unfinished
rotors are those which have undergone
some grinding or turning.
These brake rotors are for motor
vehicles, and do not contain in the
casting a logo of an original equipment
manufacturer (‘‘OEM’’) which produces
vehicles sold in the United States. (i.e.,
General Motors, Ford, Chrysler, Honda,
Toyota, Volvo). Brake rotors covered in
this order are not certified by OEM
producers of vehicles sold in the United
States. The scope also includes
composite brake rotors that are made of
gray cast iron, which contain a steel
plate, but otherwise meet the above
criteria. Excluded from the scope of this
order are brake rotors made of gray cast
iron, whether finished, semifinished, or
unfinished, with a diameter less than 8
inches or greater than 16 inches (less
than 20.32 centimeters or greater than
40.64 centimeters) and a weight less
than 8 pounds or greater than 45 pounds
(less than 3.63 kilograms or greater than
20.41 kilograms).
E:\FR\FM\28SEN1.SGM
28SEN1
56636
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
Brake rotors are currently classifiable
under subheading 8708.39.5010 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). Although the
HTSUS subheading is provided for
convenience and customs purposes, the
written description of the scope of this
order is dispositive.
Verification
On August 4, 2005, the Department
issued verification outlines to Wally and
Dixion. The Department conducted
verification of the questionnaire
responses of Wally during the period
August 15 through 17, 2005, and Dixion
from August 18 through August 20,
2005. On September 20, 2005, the
Department issued the verification
reports for Wally and Dixion.
We used standard verification
procedures, including on–site
inspection of the manufacturers’ and
exporters’ facilities, and examination of
relevant sales and financial records. Our
verification results are outlined in the
verification report for each company.
For further discussion, see September
20, 2005, verification reports for Dixion
and Wally (‘‘Dixion Verification
Report’’) and (‘‘Wally Verification
Report’’).
New Shipper Status - Wally and Dixion
Consistent with our practice, we
investigated the bona fide nature of the
sales made by Wally and Dixion for this
new shipper review. We found no
evidence that the sales in question were
not bona fide sales. Based on our
investigation into the bona fide nature
of the sales, the questionnaire responses
submitted by each company, and our
verification thereof, we preliminarily
determine that both respondents have
met the requirements to qualify as a new
shipper during the POR, and that
neither was affiliated with any exporter
or producer that had previously shipped
subject merchandise to the United
States. Therefore, for purposes of these
preliminary results of the review, we are
treating both respondents’ sales of brake
rotors to the United States as
appropriate transactions for this new
shipper review. See Memorandum from
Nicole Bankhead, Case Analyst, through
Alex Villanueva, Program Manager,
Office 9, to James C. Doyle, Office
Director, Office 9, 12th New Shipper
Review of Brake Rotors from the
People’s Republic of China (‘‘PRC’’):
Bona Fide Nature of the Sale in the New
Shipper Review of Dixion Brake System
(Longkou) Ltd., dated September 20,
2005; see also Memorandum from
Nicole Bankhead, Case Analyst, through
Alex Villanueva, Program Manager,
Office 9, to James C. Doyle, Office
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
Director, Office 9, 12th New Shipper
Review of Brake Rotors from the
People’s Republic of China (‘‘PRC’’):
Bona Fide Nature of the Sale in the New
Shipper Review of Laizhou Wally
Automobile Co., Ltd., dated September
20, 2005.
Separate Rates
The Department has treated the PRC
as a non–market economy (‘‘NME’’)
country in all previous antidumping
cases. See, i.e., Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Frozen and Canned
Warmwater Shrimp from the People’s
Republic of China, 69 FR 70997
(December 8, 2004). In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by the administering
authority. We have no evidence
suggesting that this determination
should be changed. Therefore, we
treated the PRC as an NME country for
purposes of this review and calculated
NV by valuing the FOP in a surrogate
country. It is the Department’s policy to
assign all exporters of the merchandise
subject to review that are located in
NME countries a single antidumping
duty rate unless an exporter can
demonstrate an absence of governmental
control, both in law (de jure) and in fact
(de facto), with respect to its export
activities. To establish whether an
exporter is sufficiently independent of
governmental control to be entitled to a
separate rate, the Department analyzes
the exporter using the criteria
established in the Final Determination
of Sales at Less Than Fair Value:
Sparklers from the People’s Republic of
China, 56 FR 20588 (May 6, 1991)
(‘‘Sparklers’’), as amplified in the Final
Determination of Sales at Less Than
Fair Value: Silicon Carbide from the
People’s Republic of China, 59 FR 22585
(May 2, 1994) (‘‘Silicon Carbide’’).
Under the separate rates criteria
established in these cases, the
Department assigns separate rates to
NME exporters only if they can
demonstrate the absence of both de jure
and de facto governmental control over
their export activities.
Absence of De Jure Control
Evidence supporting, though not
requiring, a finding of de jure absence
of government control over export
activities includes: (1) an absence of
restrictive stipulations associated with
the individual exporter’s business and
export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) any other formal
measures by the government
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
decentralizing control of companies. See
Sparklers at 20589.
In the instant review, Wally and
Dixion submitted complete responses to
the separate rates section of the
Department’s questionnaire. The
evidence submitted in the instant
review by these Respondents includes
government laws and regulations on
corporate ownership, business licences,
and narrative information regarding the
companies’ operations and selection of
management. The evidence provided by
Wally and Dixion supports a finding of
a de jure absence of governmental
control over their export activities
because: (1) there are no controls on
exports of subject merchandise, such as
quotas applied to, or licenses required
for, exports of the subject merchandise
to the United States; and (2) the subject
merchandise does not appear on any
government list regarding export
provisions or export licensing.
Absence of De Facto Control
The absence of de facto governmental
control over exports is based on whether
the Respondent: (1) sets its own export
prices independent of the government
and other exporters; (2) retains the
proceeds from its export sales and
makes independent decisions regarding
the disposition of profits or financing of
losses; (3) has the authority to negotiate
and sign contracts and other
agreements; and (4) has autonomy from
the government regarding the selection
of management. See Silicon Carbide at
22587; Sparklers at 20589; see also
Notice of Final Determination of Sales
at Less Than Fair Value: Furfuryl
Alcohol from the People’s Republic of
China, 60 FR 22544, 22545 (May 8,
1995).
In their questionnaire responses,
Wally and Dixion submitted evidence
indicating an absence of de facto
governmental control over their export
activities. Specifically, this evidence
indicates that: (1) each company sets its
own export prices independent of the
government and without the approval of
a government authority; (2) each
company retains the proceeds from its
sales and makes independent decisions
regarding the disposition of profits or
financing of losses; (3) each company
has a general manager, branch manager
or division manager with the authority
to negotiate and bind the company in an
agreement; (4) the general manager is
selected by the board of directors or
company employees, and the general
manager appoints the deputy managers
and the manager of each department;
and (5) there is no restriction on either
companies use of export revenues.
Therefore, the Department has
E:\FR\FM\28SEN1.SGM
28SEN1
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
preliminarily found that Wally and
Dixion have established prima facie that
they qualify for separate rates under the
criteria established by Silicon Carbide
and Sparklers.
Use of Partial Facts Available for Wally
and Dixion
Section 776(a)(2) of the Act, provides
that, if an interested party: (A)
withholds information that has been
requested by the Department; (B) fails to
provide such information in a timely
manner or in the form or manner
requested, subject to sections 782(c)(1)
and (e) of the Act; (C) significantly
impedes a proceeding under the
antidumping statute; or (D) provides
such information but the information
cannot be verified, the Department
shall, subject to subsection 782(d) of the
Act, use facts otherwise available in
reaching the applicable determination.
Furthermore, section 776(b) of the Act
states that ‘‘if the administrating
authority finds that an interested party
has failed to cooperate by not acting to
the best of its ability to comply with a
request for information from the
administering authority or the
Commission, the administering
authority or the Commission ..., in
reaching the applicable determination
under this title, may use an inference
that is adverse to the interests of that
party in selecting from among the facts
otherwise available.’’ See also Statement
of Administrative Action (‘‘SAA’’)
accompanying the Uruguay Round
Agreements Act (‘‘URAA’’), H.R. Rep.
No. 103–316 at 870 (1994).
For the reasons explained below, and
pursuant to section 776(a)(2)(D) of the
Act, the Department has preliminarily
determined that the use of a partial facts
available is warranted for the selection
of certain surrogate values. On January
21, 2005, Wally and Dixion each
submitted the material inputs used in
their production of subject merchandise
during the POR. See Wally’s January 21,
2005, Questionnaire Response (‘‘Wally
QR’’); see also Dixion’s January 21,
2005, Questionnaire Response (‘‘Dixion
QR’’). On March, 11, 2005, the
Department sent Dixion a supplemental
Sections A, C, and D questionnaire and
on March 14, 2005, the Department sent
Wally a supplemental Sections A, C, D
questionnaire; the Department requested
material specifications for certain
material inputs Respondents reported
using to produce subject merchandise
during the POR. Wally and Dixion each
provided the specifications of their
material inputs as requested by the
Department. See Wally’s April 8, 2005
Supplemental Questionnaire Response
at pages 21 - 23 (‘‘Wally SQR’’); see also
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
Dixion’s April 8, 2005 Supplemental
Questionnaire Response at pages 22 - 23
(‘‘Dixion SQR’’). Respondents’ provided
the specifications regarding the
phosphorous content of the pig iron, the
carbon and manganese contents of the
ferromanganese, and the silicon content
of the ferrosilicon they used to produce
subject merchandise during the POR. Id.
Additionally, Wally reported that the
limestone it used in the production
process was not limestone flux. See
Wally SQR at 22.
The Department conducted
verification of the questionnaire
responses of Wally during the period
August 15 through 17, 2005, and Dixion
from August 18 through August 20,
2005. While at verification the
Department was unable to verify the
specifications reported by Respondents
in their questionnaire responses for the
following material inputs: pig iron,
ferromanganese, and ferrosilicon. See
Dixion Verification Report; see also
Wally verification report. The
Department was also unable to verify
Wally’s statement that it did not use
limestone flux. Id. The Department was
thus unable to verify certain information
provided by the Respondents; therefore,
the use of facts available pursuant to
section 776(a)(2)(D) of the Act is
appropriate.
The Department, however, finds that
Respondents acted to the best of their
ability, and we have not used an adverse
inference, as provided under section
776(b) of the Act, to value their factors
of production. Specifically, though the
Respondents were unable to support
their claims regarding the chemical
content of certain inputs used, the
Department found that the Respondents
submitted the highest surrogate values
as being representative of their actual
factors of production for pig iron and
ferrosilicon. See Respondents’ February
9, 2005, Factor Value submission. Thus,
for the preliminary results, the
Department is applying the highest
surrogate value to these inputs, which is
the value that Respondents proposed
the Department use to value these
inputs, as facts available.
Surrogate Country
When the Department is investigating
imports from an NME country, section
773(c)(1) of the Act directs it to base
normal value (‘‘NV’’), in most
circumstances, on the NME producer’s
factors of production, valued in a
surrogate market–economy country or
countries considered to be appropriate
by the Department. In accordance with
section 773(c)(4) of the Act, in valuing
the factors of production, the
Department shall utilize, to the extent
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
56637
possible, the prices or costs of factors of
production in one or more market–
economy countries that are at a level of
economic development comparable to
that of the NME country and are
significant producers of comparable
merchandise. The sources of the
surrogate values we have used in this
investigation are discussed under the
‘‘Normal Value’’ section below.
The Department determined that
India, Indonesia, Sri Lanka, the
Philippines, and Egypt are countries
comparable to the PRC in terms of
economic development. See
Memorandum from Ron Lorentzen,
Office of Policy, Acting Director, to
Brian C. Smith, Program Manager:
Antidumping Duty Administrative
Review of Brake Rotors from the
People’s Republic of China (PRC):
Request for a List of Surrogate
Countries, dated December 7, 2004. We
select an appropriate surrogate country
based on the availability and reliability
of data from the countries. See
Department Policy Bulletin No. 04.1:
Non–Market Economy Surrogate
Country Selection Process (‘‘Policy
Bulletin’’), dated March 1, 2004. In this
case, we have found that India is a
significant producer of comparable
merchandise, is at a similar level of
economic development pursuant to
773(c)(4) of the Act, and has publicly
available and reliable data. See
Memorandum from Nicole Bankhead,
Case Analyst, through Alex Villanueva,
Program Manager, Office 9 and James C.
Doyle, Office Director, Office 9, to The
File, 12th New Shipper Review of Brake
Rotors from the People’s Republic of
China (‘‘PRC’’): Selection of a Surrogate
Country, dated September 20, 2005
(‘‘Surrogate Country Memo’’).
U.S. Price
In accordance with section 772(a) of
the Act, the Department calculated
export prices (‘‘EPs’’) for sales to the
United States for Wally and Dixion
because the first sale to an unaffiliated
party was made before the date of
importation and the use of constructed
EP (‘‘CEP’’) was not otherwise
warranted. We calculated EP based on
the price to unaffiliated purchasers in
the United States. In accordance with
section 772(c) of the Act, as appropriate,
we deducted from the starting price to
unaffiliated purchasers foreign inland
freight, brokerage and handling,
international freight, and marine
insurance. For Wally, each of these
services was either provided by a NME
vendor or paid for using a NME
currency. Thus, we based the deduction
for these movement charges on
surrogate values. For Dixion,
E:\FR\FM\28SEN1.SGM
28SEN1
56638
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
international freight was provided by a
market economy provider and paid in
U.S. dollars, and therefore we used the
actual cost per kilogram of the freight.
See Memorandum from Nicole
Bankhead, Case Analyst, through Alex
Villanueva, Program Manager, Office 9
and James C. Doyle, Office Director,
Office 9, to The File, 12th New Shipper
Review of Brake Rotors from the
People’s Republic of China (‘‘PRC’’):
Surrogate Values for the Preliminary
Results, dated September 20, 2005
(‘‘Surrogate Values Memo’’) for details
regarding the surrogate values for other
movement expenses.
Normal Value
In accordance with section 773(c) of
the Act, we calculated NV based on
factors of production (‘‘FOP’’) reported
by the Respondents for the POR. To
calculate NV, we valued the reported
FOP by multiplying the per–unit factor
quantities by publicly available Indian
surrogate values. In selecting surrogate
values, we considered the quality,
specificity, and contemporaneity of the
available values. As appropriate, we
adjusted the value of material inputs to
account for delivery costs. Where
appropriate, we increased Indian
surrogate values by surrogate inland
freight costs. We calculated these inland
freight costs using the shorter of the
reported distances from the PRC port to
the PRC factory, or from the domestic
supplier to the factory. This adjustment
is in accordance with the United States
Court of Appeals for the Federal
Circuit’s (‘‘CAFC’’) decision in Sigma
Corp. v. United States, 117 F. 3d 1401,
1407–1408 (Fed.Cir. 1997). For those
values not contemporaneous with the
POR, we adjusted for inflation or
deflation using data published in the
IMF’s International Financial Statistics.
We excluded from the surrogate country
import data used in our calculations
imports from Korea, Thailand, and
Indonesia due to generally available
export subsidies. See China Nat’l Mach.
Import & Export Corp. v. United States,
CIT 01–1114, 293 F. Supp. 2d 1334 (CIT
2003), aff’d 104 Fed. Appx. 183 (Fed.
Cir. 2004) and Certain Cut–to-Length
Carbon Steel Plate from Romania:
Notice of Final Results and Final Partial
Rescission of Antidumping Duty
Administrative Review, 70 FR 12651
(March 15, 2005) and accompanying
Issues and Decision Memorandum at
Comment 4. Furthermore, we
disregarded prices from NME countries.
Finally, imports that were labeled as
originating from an ‘‘unspecified’’
country were excluded from the average
value, because the Department could
not be certain that they were not from
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
either an NME or a country with general
export subsidies. We converted the
surrogate values to U.S. dollars as
appropriate, using the official exchange
rate recorded on the dates of sale of
subject merchandise in this case,
obtained from Import Administration’s
website at https://www.ia.ita.doc.gov/
exchange/. For further detail,
see the Surrogate Values Memo.
Assessment Rates
Upon issuing the final results of the
review, the Department shall determine,
and CBP shall assess and liquidate,
antidumping duties on all appropriate
entries. The Department will issue
appropriate appraisement instructions
for the companies subject to this review
directly to CBP within 15 days of
publication of the final results of this
Preliminary Results of Reviews
review. Pursuant to 19 CFR
We preliminarily determine that the
351.212(b)(1), we will calculate
following margins exist during the
importer–specific ad valorem duty
period April 1, 2004, through September assessment rates based on the ratio of
30, 2004:
the total amount of the dumping
margins calculated for the examined
BRAKE ROTORS FROM THE PRC
sales to the total entered value of those
same sales. We will instruct CBP to
Weighted–Average assess antidumping duties on all
Manufacturer/Exporter
Margin (Percent)
appropriate entries covered by this
review if any importer–specific
Laizhou Wally Autoassessment rate calculated in the final
mobile Co., Ltd.
(‘‘Wally’’) ....................
0.00 results of this review is above de
Dixion Brake System
minimis.
(Longkou) Ltd.
(‘‘Dixion’’) ...................
6.61
Public Comment
The Department will disclose to
parties to this proceeding the
calculations performed in reaching the
preliminary results within ten days of
the date of announcement of the
preliminary results. An interested party
may request a hearing within 30 days of
publication of the preliminary results.
See 19 CFR 351.310(c). Interested
parties may submit written comments
(case briefs) within 30 days of
publication of the preliminary results
and rebuttal comments (rebuttal briefs),
which must be limited to issues raised
in the case briefs, within five days after
the time limit for filing case briefs. See
19 CFR 351.309(c)(1)(ii) and 19 CFR
351.309(d). Parties who submit
arguments are requested to submit with
the argument: (1) a statement of the
issue; (2) a brief summary of the
argument; and (3) a table of authorities.
Further, the Department requests that
parties submitting written comments
provide the Department with a diskette
containing the public version of those
comments. Unless the deadline is
extended pursuant to section
751(a)(3)(A) of the Act, the Department
will issue the final results of this new
shipper review, including the results of
our analysis of the issues raised by the
parties in their comments, within 120
days of publication of the preliminary
results. The assessment of antidumping
duties on entries of merchandise
covered by this review and future
deposits of estimated duties shall be
based on the final results of this review.
PO 00000
Frm 00017
Fmt 4703
Sfmt 4703
Cash Deposit Requirements
Upon completion of this review, we
will require cash deposits at the rate
established in the final results as further
described below.
Bonding will no longer be permitted
to fulfill security requirements for
shipments of brake rotors from the PRC
produced and exported by Wally and
Dixion that are entered, or withdrawn
from warehouse, for consumption on or
after the publication date of the final
results of the new shipper reviews. The
following cash deposit requirements
will be effective upon publication of the
final results of the new shipper reviews
for all shipments of subject merchandise
from Wally and Dixion entered, or
withdrawn from warehouse, for
consumption on or after the publication
date: (1) for subject merchandise
manufactured and exported by Wally
and Dixion, the cash deposit rate will be
the rate established in the final results
of this review, except that no cash
deposit will be required if the cash
deposit rate calculated in the final
results is zero or de minimis; and (2) for
subject merchandise exported by Wally
or Dixion but not manufactured by
Wally or Dixion, respectively, the cash
deposit rate will continue to be the PRC
countrywide rate (i.e., 43.32 percent);
and (3) for subject merchandise
produced by Wally or Dixion but not
exported by the same company, the cash
deposit rate will be the rate applicable
to the exporter. These requirements,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
E:\FR\FM\28SEN1.SGM
28SEN1
Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Notices
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This new shipper review and notice
are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the
Act and 19 CFR 351.214.
Dated: September 20, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 05–19363 Filed 9–27–05; 8:45 am]
Billing Code: 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–831]
Notice of Amended Final Results of
Antidumping Duty Administrative
Review: Garlic from the People’s
Republic of China
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On June 13, 2005, the
Department of Commerce (‘‘the
Department’’) published the final results
of its administrative review of the
antidumping duty order on fresh garlic
from the People’s Republic of China
(‘‘PRC’’) for the period from November
1, 2002, through October 31, 2003, in
the Federal Register. See Final Results
of Antidumping Duty Administrative
Review: Fresh Garlic from the People’s
Republic of China, 69 FR 34082, and
accompanying ‘‘Issues and Decision
Memorandum,’’ dated June 6, 2005
(‘‘Final Results’’). We released the
disclosure documents to the
respondents on June 14, 2005, and to
the petitioners1 on June 16, 2005. On
June 20, 2005, the following parties filed
timely allegations that the Department
made various ministerial errors in the
Final Results: Jinan Yipin Corporation
Ltd. (‘‘Jinan Yipin’’), Linshu Dading
Private Agricultural Co., Ltd. (‘‘Linshu
Dading’’), Sunny Import and Export Co.,
AGENCY:
1 The Fresh Garlic Producers Association and its
individual members (Christopher Ranch L.L.C., The
Garlic Company, Valley Garlic, and Vessey and
Company, Inc).
VerDate Aug<31>2005
16:02 Sep 27, 2005
Jkt 205001
Ltd. (‘‘Sunny’’), Taian Fook Huat Tong
Kee Foodstuffs Co., Ltd. (‘‘FHTK’’),
Taiyan Ziyang Food Co., Ltd.
(‘‘Ziyang’’), and Zhengzhou Harmoni
Spice Co., Ltd. (‘‘Harmoni’’). On June
23, 2005, the petitioners submitted
rebuttal comments to one of the
ministerial error allegations filed
collectively by Jinan Yipin, Linshu
Dading, Sunny, and Harmoni. In
addition, when examining the
ministerial error allegations raised by
FHTK and Ziyang, the Department
found other ministerial errors. Ziyang
and FHTK filed complaints with the
Court of International Trade (‘‘CIT’’),
challenging the final results of review
on June 14, and June 15, 2005,
respectively. On July 26, 2005, Harmoni,
Jinan Yipin, Linshu Dading, and Sunny
filed similar complaints with the CIT,
challenging the final results of review.
On August 9 and August 10, 2005,
Jinxiang Dongyun Freezing Storage Co.
Ltd. and the petitioners, respectively,
also filed complaints with the CIT,
challenging the final results of review.
When the interested parties noted above
filed their complaints with the CIT the
Department no longer had jurisdiction
to correct the ministerial errors.
Therefore, the Department requested
leave from the CIT to correct these
errors. On September 15, 2005, the CIT
granted the Department leave to correct
the errors.
We are amending our Final Results to
correct ministerial errors for
respondents Jinan Yipin, Linshu
Dading, FHTK, Ziyang, and Harmoni
pursuant to section 751(h) of the Tariff
Act of 1930, as amended (‘‘the Act’’).
EFFECTIVE DATE: September 28, 2005.
FOR FURTHER INFORMATION CONTACT:
Sochieta Moth, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue NW,
Washington, DC 20230; telephone: (202)
482–0168.
SUPPLEMENTARY INFORMATION:
Scope of the Order
The products covered by this
antidumping duty order are all grades of
garlic, whole or separated into
constituent cloves, whether or not
peeled, fresh, chilled, frozen,
provisionally preserved, or packed in
water or other neutral substance, but not
prepared or preserved by the addition of
other ingredients or heat processing.
The differences between grades are
based on color, size, sheathing, and
level of decay.
The scope of this order does not
include the following: (a) garlic that has
been mechanically harvested and that is
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
56639
primarily, but not exclusively, destined
for non–fresh use; or (b) garlic that has
been specially prepared and cultivated
prior to planting and then harvested and
otherwise prepared for use as seed.
The subject merchandise is used
principally as a food product and for
seasoning. The subject garlic is
currently classifiable under subheadings
0703.20.0010, 0703.20.0020,
0703.20.0090, 0710.80.7060,
0710.80.9750, 0711.90.6000, and
2005.90.9700 of the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’). Although the HTSUS
subheadings are provided for
convenience and customs purposes, our
written description of the scope of this
order is dispositive. In order to be
excluded from the antidumping duty
order, garlic entered under the HTSUS
subheadings listed above that is (1)
mechanically harvested and primarily,
but not exclusively, destined for non–
fresh use or (2) specially prepared and
cultivated prior to planting and then
harvested and otherwise prepared for
use as seed must be accompanied by
declarations to the U.S. Customs and
Border Protection (‘‘CBP’’) to that effect.
Amendment to Final Determination
In accordance with sections 751(a)
and 777(i)(1) of the Act, on June 13,
2005, the Department published the
Final Results. On June 20, 2005, the
following parties filed timely allegations
that the Department made various
ministerial errors in the Final
Determination: Jinan Yipin, Linshu
Dading, Sunny Import and Export Co.,
Ltd. (‘‘Sunny’’), FHTK, Ziyang, and
Harmoni. On June 23, 2005, the
petitioners submitted rebuttal comments
to one of the ministerial error
allegations filed by Jinan Yipin, Linshu
Dading, Sunny, and Harmoni.
After analyzing all interested parties’
comments and rebuttal comments, we
have determined, in accordance with
section 751(h) of the Act and 19 CFR
351.224(e), that the Department has
made ministerial errors in the final
determination calculations for Harmoni,
Jinan Yipin, Linshu Dading, FHTK, and
Ziyang. In addition, when examining
FHTK’s and Ziyang’s ministerial error
allegations, the Department found
additional ministerial errors that
affected our margin calculations in the
Final Results. For a detailed discussion
of these ministerial errors, and our
analysis, see Memorandum from
Barbara E. Tillman to Joseph A. Spetrini
re: Issues and Decision Memorandum
for the Amended Final Determination in
the Administrative Review on Fresh
Garlic from the People’s Republic of
China, dated September 22, 2005
E:\FR\FM\28SEN1.SGM
28SEN1
Agencies
[Federal Register Volume 70, Number 187 (Wednesday, September 28, 2005)]
[Notices]
[Pages 56634-56639]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-19363]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-846]
Brake Rotors From the People's Republic of China: Preliminary
Results of the Twelfth New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is currently
conducting the twelfth new shipper review of the antidumping duty order
on brake rotors from the People's Republic of China (``PRC'') covering
the period April 1, 2004, through September 30, 2004. We preliminarily
determine that no sales have been made below normal value (``NV'') with
respect to the exporters who participated fully and are entitled to a
separate rate in this review. If these preliminary results are adopted
[[Page 56635]]
in our final results of this review, we will instruct U.S. Customs and
Border Protection (``CBP'') to assess antidumping duties on entries of
subject merchandise during the period of review (``POR'') for which the
importer-specific assessment rates are above de minimis.
EFFECTIVE DATE: September 28, 2005.
FOR FURTHER INFORMATION CONTACT: Nicole Bankhead (Dixion) or Kit Rudd
(Wally) AD/CVD Operations, Office 9, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230; telephone:
(202) 482-9068 or (202) 482-1385, respectively.
SUPPLEMENTARY INFORMATION:
Case History
On April 17, 1997, the Department published in the Federal Register
the antidumping duty order on brake rotors from the PRC. See Notice of
Antidumping Duty Order: Brake Rotors from the People's Republic of
China, 62 FR 18740 (April 17, 1997) (``Brake Rotors Order'').
On October 28, 2004, the Department received timely requests for
new shipper reviews under the antidumping duty order on brake rotors
from the PRC in accordance with section 751(a)(2)(B) of the Tariff Act
of 1930, as amended (the Act), and section 351.214(c) of the
Department's regulations, from Laizhou Wally Automobile Co., Ltd.
(``Wally'') and Dixion Brake System (Longkou) Ltd. (``Dixion'').
On November 24, 2004, the Department initiated these new shipper
reviews for the period April 1, 2004, through September 30, 2004, for
Wally and Dixion. See Brake Rotors from the People's Republic of China:
Initiation of the Twelfth New Shipper Antidumping Duty Review, 69 FR
70632 (December 7, 2004).
On December 3, 2004, the Department requested from the Office of
Policy a memorandum listing surrogate countries.
On December 6, 2004, the Department issued its Section A, C, and D
of the General Antidumping Duty Questionnaire to Wally and Dixion.
On December 7, 2004, the Department received from the Office of
Policy a list of surrogate countries. On December 8, 2004, the
Department provided all interested parties the opportunity to submit
information pertinent to selecting a surrogate country and valuing
factors of production in this review.
On December 20, 2004, the Department requested from CBP copies of
all customs documents pertaining to the entry of brake rotors from the
PRC exported by Wally and Dixion during the period of April 1, 2004,
through September 30, 2004. See Memorandum from James C. Doyle, Office
Director, to William R. Scopa of CBP, dated December 20, 2004. The
Department also issued Wally and Dixion sales and cost reconciliation
questionnaires on December 20, 2004.
On January 21, 2005, Wally and Dixion submitted Sections A, C, D,
and importer questionnaire responses along with their sales and cost
reconciliations.
On January 24, 2005, Dixion submitted an invoice to replace an
invoice it claimed it inadvertently submitted in its January 21, 2005,
response.
On February 1, 2005, the Coalition for the Preservation of American
Brake Drum and Rotor Aftermarket Manufacturers (``Petitioners'')
submitted comments regarding Wally and Dixions' questionnaire
responses.
On February 2, 2005, the Department placed documentation provided
by CBP on the record pertaining to specific entries of brake rotors
and/or brake drums exported by Wally and Dixion during the POR.
On February 9, 2005, Wally and Dixion provided information for
valuing factors of production in this review.
On March, 11, 2005, the Department sent Dixion a supplemental
Sections A, C, and D questionnaire, as well as a supplemental importer
questionnaire.
On March 14, 2005, the Department sent Wally a supplemental
Sections A, C, D questionnaire, as well as a supplemental importer
questionnaire.
On April 8, 2005, Wally and Dixion submitted their responses to the
Department's supplemental questionnaires.
On April 25, 2005, the Department extended the time limit for the
preliminary results of the instant review on brake rotors from the PRC.
See Brake Rotors from the People's Republic of China: Extension of the
New Shipper Antidumping Duty Reviews, 70 FR 22298 (April 29, 2005).
On June 22, 2005, the Department sent Wally and Dixion a second
supplemental on Sections A, C, and D of the antidumping questionnaires
and on the importer questionnaires. On July 14, 2005, Dixion submitted
its second supplemental Sections A, C, and D of the antidumping
questionnaire and on the importer questionnaire. On July 20, 2005,
Wally submitted its response to the second supplemental Sections A, C,
and D questionnaire as well as the second importer questionnaire.
On July 25, 2005, the Department issued Dixion a third supplemental
sections A, C, and D of the antidumping questionnaire and the importer
questionnaire. On July 29, 2005, the Department issued Dixion an
additional questionnaire.
On August 4, 2005, Wally submitted its supplemental questionnaire
response on August 4, 2005. On August 8, 2005, Dixion submitted its
third and fourth supplemental questionnaire responses.
On August 10, 2005, Petitioners submitted verification comments for
Wally.
On August 29, 2005, Wally and Dixion submitted their verification
exhibits to the Department.
Period of Review
The POR covers April 1, 2004, through September 30, 2004.
Scope of the Order
The products covered by this order are brake rotors made of gray
cast iron, whether finished, semifinished, or unfinished, ranging in
diameter from 8 to 16 inches (20.32 to 40.64 centimeters) and in weight
from 8 to 45 pounds (3.63 to 20.41 kilograms). The size parameters
(weight and dimension) of the brake rotors limit their use to the
following types of motor vehicles: automobiles, all-terrain vehicles,
vans and recreational vehicles under ``one ton and a half,'' and light
trucks designated as ``one ton and a half.''
Finished brake rotors are those that are ready for sale and
installation without any further operations. Semi-finished rotors are
those on which the surface is not entirely smooth, and have undergone
some drilling. Unfinished rotors are those which have undergone some
grinding or turning.
These brake rotors are for motor vehicles, and do not contain in
the casting a logo of an original equipment manufacturer (``OEM'')
which produces vehicles sold in the United States. (i.e., General
Motors, Ford, Chrysler, Honda, Toyota, Volvo). Brake rotors covered in
this order are not certified by OEM producers of vehicles sold in the
United States. The scope also includes composite brake rotors that are
made of gray cast iron, which contain a steel plate, but otherwise meet
the above criteria. Excluded from the scope of this order are brake
rotors made of gray cast iron, whether finished, semifinished, or
unfinished, with a diameter less than 8 inches or greater than 16
inches (less than 20.32 centimeters or greater than 40.64 centimeters)
and a weight less than 8 pounds or greater than 45 pounds (less than
3.63 kilograms or greater than 20.41 kilograms).
[[Page 56636]]
Brake rotors are currently classifiable under subheading
8708.39.5010 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the scope of this
order is dispositive.
Verification
On August 4, 2005, the Department issued verification outlines to
Wally and Dixion. The Department conducted verification of the
questionnaire responses of Wally during the period August 15 through
17, 2005, and Dixion from August 18 through August 20, 2005. On
September 20, 2005, the Department issued the verification reports for
Wally and Dixion.
We used standard verification procedures, including on-site
inspection of the manufacturers' and exporters' facilities, and
examination of relevant sales and financial records. Our verification
results are outlined in the verification report for each company. For
further discussion, see September 20, 2005, verification reports for
Dixion and Wally (``Dixion Verification Report'') and (``Wally
Verification Report'').
New Shipper Status - Wally and Dixion
Consistent with our practice, we investigated the bona fide nature
of the sales made by Wally and Dixion for this new shipper review. We
found no evidence that the sales in question were not bona fide sales.
Based on our investigation into the bona fide nature of the sales, the
questionnaire responses submitted by each company, and our verification
thereof, we preliminarily determine that both respondents have met the
requirements to qualify as a new shipper during the POR, and that
neither was affiliated with any exporter or producer that had
previously shipped subject merchandise to the United States. Therefore,
for purposes of these preliminary results of the review, we are
treating both respondents' sales of brake rotors to the United States
as appropriate transactions for this new shipper review. See Memorandum
from Nicole Bankhead, Case Analyst, through Alex Villanueva, Program
Manager, Office 9, to James C. Doyle, Office Director, Office 9, 12th
New Shipper Review of Brake Rotors from the People's Republic of China
(``PRC''): Bona Fide Nature of the Sale in the New Shipper Review of
Dixion Brake System (Longkou) Ltd., dated September 20, 2005; see also
Memorandum from Nicole Bankhead, Case Analyst, through Alex Villanueva,
Program Manager, Office 9, to James C. Doyle, Office Director, Office
9, 12th New Shipper Review of Brake Rotors from the People's Republic
of China (``PRC''): Bona Fide Nature of the Sale in the New Shipper
Review of Laizhou Wally Automobile Co., Ltd., dated September 20, 2005.
Separate Rates
The Department has treated the PRC as a non-market economy
(``NME'') country in all previous antidumping cases. See, i.e., Notice
of Final Determination of Sales at Less Than Fair Value: Certain Frozen
and Canned Warmwater Shrimp from the People's Republic of China, 69 FR
70997 (December 8, 2004). In accordance with section 771(18)(C)(i) of
the Act, any determination that a foreign country is an NME country
shall remain in effect until revoked by the administering authority. We
have no evidence suggesting that this determination should be changed.
Therefore, we treated the PRC as an NME country for purposes of this
review and calculated NV by valuing the FOP in a surrogate country. It
is the Department's policy to assign all exporters of the merchandise
subject to review that are located in NME countries a single
antidumping duty rate unless an exporter can demonstrate an absence of
governmental control, both in law (de jure) and in fact (de facto),
with respect to its export activities. To establish whether an exporter
is sufficiently independent of governmental control to be entitled to a
separate rate, the Department analyzes the exporter using the criteria
established in the Final Determination of Sales at Less Than Fair
Value: Sparklers from the People's Republic of China, 56 FR 20588 (May
6, 1991) (``Sparklers''), as amplified in the Final Determination of
Sales at Less Than Fair Value: Silicon Carbide from the People's
Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon Carbide'').
Under the separate rates criteria established in these cases, the
Department assigns separate rates to NME exporters only if they can
demonstrate the absence of both de jure and de facto governmental
control over their export activities.
Absence of De Jure Control
Evidence supporting, though not requiring, a finding of de jure
absence of government control over export activities includes: (1) an
absence of restrictive stipulations associated with the individual
exporter's business and export licenses; (2) any legislative enactments
decentralizing control of companies; and (3) any other formal measures
by the government decentralizing control of companies. See Sparklers at
20589.
In the instant review, Wally and Dixion submitted complete
responses to the separate rates section of the Department's
questionnaire. The evidence submitted in the instant review by these
Respondents includes government laws and regulations on corporate
ownership, business licences, and narrative information regarding the
companies' operations and selection of management. The evidence
provided by Wally and Dixion supports a finding of a de jure absence of
governmental control over their export activities because: (1) there
are no controls on exports of subject merchandise, such as quotas
applied to, or licenses required for, exports of the subject
merchandise to the United States; and (2) the subject merchandise does
not appear on any government list regarding export provisions or export
licensing.
Absence of De Facto Control
The absence of de facto governmental control over exports is based
on whether the Respondent: (1) sets its own export prices independent
of the government and other exporters; (2) retains the proceeds from
its export sales and makes independent decisions regarding the
disposition of profits or financing of losses; (3) has the authority to
negotiate and sign contracts and other agreements; and (4) has autonomy
from the government regarding the selection of management. See Silicon
Carbide at 22587; Sparklers at 20589; see also Notice of Final
Determination of Sales at Less Than Fair Value: Furfuryl Alcohol from
the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
In their questionnaire responses, Wally and Dixion submitted
evidence indicating an absence of de facto governmental control over
their export activities. Specifically, this evidence indicates that:
(1) each company sets its own export prices independent of the
government and without the approval of a government authority; (2) each
company retains the proceeds from its sales and makes independent
decisions regarding the disposition of profits or financing of losses;
(3) each company has a general manager, branch manager or division
manager with the authority to negotiate and bind the company in an
agreement; (4) the general manager is selected by the board of
directors or company employees, and the general manager appoints the
deputy managers and the manager of each department; and (5) there is no
restriction on either companies use of export revenues. Therefore, the
Department has
[[Page 56637]]
preliminarily found that Wally and Dixion have established prima facie
that they qualify for separate rates under the criteria established by
Silicon Carbide and Sparklers.
Use of Partial Facts Available for Wally and Dixion
Section 776(a)(2) of the Act, provides that, if an interested
party: (A) withholds information that has been requested by the
Department; (B) fails to provide such information in a timely manner or
in the form or manner requested, subject to sections 782(c)(1) and (e)
of the Act; (C) significantly impedes a proceeding under the
antidumping statute; or (D) provides such information but the
information cannot be verified, the Department shall, subject to
subsection 782(d) of the Act, use facts otherwise available in reaching
the applicable determination.
Furthermore, section 776(b) of the Act states that ``if the
administrating authority finds that an interested party has failed to
cooperate by not acting to the best of its ability to comply with a
request for information from the administering authority or the
Commission, the administering authority or the Commission ..., in
reaching the applicable determination under this title, may use an
inference that is adverse to the interests of that party in selecting
from among the facts otherwise available.'' See also Statement of
Administrative Action (``SAA'') accompanying the Uruguay Round
Agreements Act (``URAA''), H.R. Rep. No. 103-316 at 870 (1994).
For the reasons explained below, and pursuant to section
776(a)(2)(D) of the Act, the Department has preliminarily determined
that the use of a partial facts available is warranted for the
selection of certain surrogate values. On January 21, 2005, Wally and
Dixion each submitted the material inputs used in their production of
subject merchandise during the POR. See Wally's January 21, 2005,
Questionnaire Response (``Wally QR''); see also Dixion's January 21,
2005, Questionnaire Response (``Dixion QR''). On March, 11, 2005, the
Department sent Dixion a supplemental Sections A, C, and D
questionnaire and on March 14, 2005, the Department sent Wally a
supplemental Sections A, C, D questionnaire; the Department requested
material specifications for certain material inputs Respondents
reported using to produce subject merchandise during the POR. Wally and
Dixion each provided the specifications of their material inputs as
requested by the Department. See Wally's April 8, 2005 Supplemental
Questionnaire Response at pages 21 - 23 (``Wally SQR''); see also
Dixion's April 8, 2005 Supplemental Questionnaire Response at pages 22
- 23 (``Dixion SQR''). Respondents' provided the specifications
regarding the phosphorous content of the pig iron, the carbon and
manganese contents of the ferromanganese, and the silicon content of
the ferrosilicon they used to produce subject merchandise during the
POR. Id. Additionally, Wally reported that the limestone it used in the
production process was not limestone flux. See Wally SQR at 22.
The Department conducted verification of the questionnaire
responses of Wally during the period August 15 through 17, 2005, and
Dixion from August 18 through August 20, 2005. While at verification
the Department was unable to verify the specifications reported by
Respondents in their questionnaire responses for the following material
inputs: pig iron, ferromanganese, and ferrosilicon. See Dixion
Verification Report; see also Wally verification report. The Department
was also unable to verify Wally's statement that it did not use
limestone flux. Id. The Department was thus unable to verify certain
information provided by the Respondents; therefore, the use of facts
available pursuant to section 776(a)(2)(D) of the Act is appropriate.
The Department, however, finds that Respondents acted to the best
of their ability, and we have not used an adverse inference, as
provided under section 776(b) of the Act, to value their factors of
production. Specifically, though the Respondents were unable to support
their claims regarding the chemical content of certain inputs used, the
Department found that the Respondents submitted the highest surrogate
values as being representative of their actual factors of production
for pig iron and ferrosilicon. See Respondents' February 9, 2005,
Factor Value submission. Thus, for the preliminary results, the
Department is applying the highest surrogate value to these inputs,
which is the value that Respondents proposed the Department use to
value these inputs, as facts available.
Surrogate Country
When the Department is investigating imports from an NME country,
section 773(c)(1) of the Act directs it to base normal value (``NV''),
in most circumstances, on the NME producer's factors of production,
valued in a surrogate market-economy country or countries considered to
be appropriate by the Department. In accordance with section 773(c)(4)
of the Act, in valuing the factors of production, the Department shall
utilize, to the extent possible, the prices or costs of factors of
production in one or more market-economy countries that are at a level
of economic development comparable to that of the NME country and are
significant producers of comparable merchandise. The sources of the
surrogate values we have used in this investigation are discussed under
the ``Normal Value'' section below.
The Department determined that India, Indonesia, Sri Lanka, the
Philippines, and Egypt are countries comparable to the PRC in terms of
economic development. See Memorandum from Ron Lorentzen, Office of
Policy, Acting Director, to Brian C. Smith, Program Manager:
Antidumping Duty Administrative Review of Brake Rotors from the
People's Republic of China (PRC): Request for a List of Surrogate
Countries, dated December 7, 2004. We select an appropriate surrogate
country based on the availability and reliability of data from the
countries. See Department Policy Bulletin No. 04.1: Non-Market Economy
Surrogate Country Selection Process (``Policy Bulletin''), dated March
1, 2004. In this case, we have found that India is a significant
producer of comparable merchandise, is at a similar level of economic
development pursuant to 773(c)(4) of the Act, and has publicly
available and reliable data. See Memorandum from Nicole Bankhead, Case
Analyst, through Alex Villanueva, Program Manager, Office 9 and James
C. Doyle, Office Director, Office 9, to The File, 12th New Shipper
Review of Brake Rotors from the People's Republic of China (``PRC''):
Selection of a Surrogate Country, dated September 20, 2005 (``Surrogate
Country Memo'').
U.S. Price
In accordance with section 772(a) of the Act, the Department
calculated export prices (``EPs'') for sales to the United States for
Wally and Dixion because the first sale to an unaffiliated party was
made before the date of importation and the use of constructed EP
(``CEP'') was not otherwise warranted. We calculated EP based on the
price to unaffiliated purchasers in the United States. In accordance
with section 772(c) of the Act, as appropriate, we deducted from the
starting price to unaffiliated purchasers foreign inland freight,
brokerage and handling, international freight, and marine insurance.
For Wally, each of these services was either provided by a NME vendor
or paid for using a NME currency. Thus, we based the deduction for
these movement charges on surrogate values. For Dixion,
[[Page 56638]]
international freight was provided by a market economy provider and
paid in U.S. dollars, and therefore we used the actual cost per
kilogram of the freight. See Memorandum from Nicole Bankhead, Case
Analyst, through Alex Villanueva, Program Manager, Office 9 and James
C. Doyle, Office Director, Office 9, to The File, 12th New Shipper
Review of Brake Rotors from the People's Republic of China (``PRC''):
Surrogate Values for the Preliminary Results, dated September 20, 2005
(``Surrogate Values Memo'') for details regarding the surrogate values
for other movement expenses.
Normal Value
In accordance with section 773(c) of the Act, we calculated NV
based on factors of production (``FOP'') reported by the Respondents
for the POR. To calculate NV, we valued the reported FOP by multiplying
the per-unit factor quantities by publicly available Indian surrogate
values. In selecting surrogate values, we considered the quality,
specificity, and contemporaneity of the available values. As
appropriate, we adjusted the value of material inputs to account for
delivery costs. Where appropriate, we increased Indian surrogate values
by surrogate inland freight costs. We calculated these inland freight
costs using the shorter of the reported distances from the PRC port to
the PRC factory, or from the domestic supplier to the factory. This
adjustment is in accordance with the United States Court of Appeals for
the Federal Circuit's (``CAFC'') decision in Sigma Corp. v. United
States, 117 F. 3d 1401, 1407-1408 (Fed.Cir. 1997). For those values not
contemporaneous with the POR, we adjusted for inflation or deflation
using data published in the IMF's International Financial Statistics.
We excluded from the surrogate country import data used in our
calculations imports from Korea, Thailand, and Indonesia due to
generally available export subsidies. See China Nat'l Mach. Import &
Export Corp. v. United States, CIT 01-1114, 293 F. Supp. 2d 1334 (CIT
2003), aff'd 104 Fed. Appx. 183 (Fed. Cir. 2004) and Certain Cut-to-
Length Carbon Steel Plate from Romania: Notice of Final Results and
Final Partial Rescission of Antidumping Duty Administrative Review, 70
FR 12651 (March 15, 2005) and accompanying Issues and Decision
Memorandum at Comment 4. Furthermore, we disregarded prices from NME
countries. Finally, imports that were labeled as originating from an
``unspecified'' country were excluded from the average value, because
the Department could not be certain that they were not from either an
NME or a country with general export subsidies. We converted the
surrogate values to U.S. dollars as appropriate, using the official
exchange rate recorded on the dates of sale of subject merchandise in
this case, obtained from Import Administration's website at https://
www.ia.ita.doc.gov/exchange/. For further detail, see the
Surrogate Values Memo.
Preliminary Results of Reviews
We preliminarily determine that the following margins exist during
the period April 1, 2004, through September 30, 2004:
Brake Rotors from the PRC
------------------------------------------------------------------------
Weighted-Average
Manufacturer/Exporter Margin (Percent)
------------------------------------------------------------------------
Laizhou Wally Automobile Co., Ltd. (``Wally'')...... 0.00
Dixion Brake System (Longkou) Ltd. (``Dixion'')..... 6.61
------------------------------------------------------------------------
Public Comment
The Department will disclose to parties to this proceeding the
calculations performed in reaching the preliminary results within ten
days of the date of announcement of the preliminary results. An
interested party may request a hearing within 30 days of publication of
the preliminary results. See 19 CFR 351.310(c). Interested parties may
submit written comments (case briefs) within 30 days of publication of
the preliminary results and rebuttal comments (rebuttal briefs), which
must be limited to issues raised in the case briefs, within five days
after the time limit for filing case briefs. See 19 CFR
351.309(c)(1)(ii) and 19 CFR 351.309(d). Parties who submit arguments
are requested to submit with the argument: (1) a statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities. Further, the Department requests that parties submitting
written comments provide the Department with a diskette containing the
public version of those comments. Unless the deadline is extended
pursuant to section 751(a)(3)(A) of the Act, the Department will issue
the final results of this new shipper review, including the results of
our analysis of the issues raised by the parties in their comments,
within 120 days of publication of the preliminary results. The
assessment of antidumping duties on entries of merchandise covered by
this review and future deposits of estimated duties shall be based on
the final results of this review.
Assessment Rates
Upon issuing the final results of the review, the Department shall
determine, and CBP shall assess and liquidate, antidumping duties on
all appropriate entries. The Department will issue appropriate
appraisement instructions for the companies subject to this review
directly to CBP within 15 days of publication of the final results of
this review. Pursuant to 19 CFR 351.212(b)(1), we will calculate
importer-specific ad valorem duty assessment rates based on the ratio
of the total amount of the dumping margins calculated for the examined
sales to the total entered value of those same sales. We will instruct
CBP to assess antidumping duties on all appropriate entries covered by
this review if any importer-specific assessment rate calculated in the
final results of this review is above de minimis.
Cash Deposit Requirements
Upon completion of this review, we will require cash deposits at
the rate established in the final results as further described below.
Bonding will no longer be permitted to fulfill security
requirements for shipments of brake rotors from the PRC produced and
exported by Wally and Dixion that are entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of the new shipper reviews. The following cash deposit
requirements will be effective upon publication of the final results of
the new shipper reviews for all shipments of subject merchandise from
Wally and Dixion entered, or withdrawn from warehouse, for consumption
on or after the publication date: (1) for subject merchandise
manufactured and exported by Wally and Dixion, the cash deposit rate
will be the rate established in the final results of this review,
except that no cash deposit will be required if the cash deposit rate
calculated in the final results is zero or de minimis; and (2) for
subject merchandise exported by Wally or Dixion but not manufactured by
Wally or Dixion, respectively, the cash deposit rate will continue to
be the PRC countrywide rate (i.e., 43.32 percent); and (3) for subject
merchandise produced by Wally or Dixion but not exported by the same
company, the cash deposit rate will be the rate applicable to the
exporter. These requirements, when imposed, shall remain in effect
until publication of the final results of the next administrative
review.
[[Page 56639]]
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This new shipper review and notice are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the Act and 19 CFR 351.214.
Dated: September 20, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-19363 Filed 9-27-05; 8:45 am]
Billing Code: 3510-DS-S