Stainless Steel Bar From Germany: Preliminary Results of Antidumping Duty Administrative Review, 5811-5815 [E6-1508]
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Federal Register / Vol. 71, No. 23 / Friday, February 3, 2006 / Notices
hsrobinson on PROD1PC70 with NOTICES
Initiation of New Shipper Reviews
Pursuant to section 751(a)(2)(B)(i)(I) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), and 19 CFR 351.214(b)(2), Since
Hardware certified that it did not export
hand trucks to the United States during
the period of investigation (‘‘POI’’).
Pursuant to section 751(a)(2)(B)(i)(II)
and 19 CFR 351.214(b)(2)(iii)(A), Since
Hardware certified that, since the
initiation of the investigation, they have
not been affiliated with any exporter or
producer who exported hand trucks to
the United States during the POI,
including those not individually
examined during the investigation. As
required by 19 CFR 351.214(b)(2)(iii)(B),
Since Hardware also certified that its
export activities are not controlled by
the central government of the PRC, and
provided a complete Section A response
as supporting documentation.
In addition to the certifications
described above, Since Hardware
submitted documentation establishing
the following: (1) The date on which it
first shipped hand trucks for export to
the United States and the date on which
hand trucks were first entered, or
withdrawn from warehouse, for
consumption; (2) the volume of its first
shipment and the volume of subsequent
shipments; and (3) the date of its first
sale to an unaffiliated customer in the
United States.
Pursuant to section 751(a)(2)(B) of the
Act and 19 CFR 351.214(d)(1), we are
initiating a new shipper review for
shipments of hand trucks from the PRC
produced and exported by Since
Hardware. See Memoranda to the File
titled, ‘‘New Shipper Initiation
Checklist’’ for Since Hardware, dated
January 25, 2006.
The POR is May 24, 2004, through
November 30, 2005. See 19 CFR
351.214(g)(1)(i)(A). We intend to issue
preliminary results of this review no
later than 180 days from the date of
initiation, and final results of this
review no later than 270 days from the
date of initiation. See section
751(a)(2)(B)(iv) of the Act.
Because Since Hardware has certified
that it produced and exported hand
trucks on which it based its request for
a new shipper review, we will instruct
U.S. Customs and Border Protection to
allow, at the option of the importer, the
posting of a bond or security in lieu of
a cash deposit for each entry of hand
trucks both produced and exported by
Since Hardware, until the completion of
the new shipper review, pursuant to
section 751(a)(2)(B)(iii) of the Act.
Interested parties that need access to
proprietary information in this new
shipper review should submit
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applications for disclosure under
administrative protective order in
accordance with 19 CFR 351.305 and
351.306.
This initiation and notice are in
accordance with section 751(a)(2)(B) of
the Act and 19 CFR 351.214 and
351.221(c)(1)(i).
Dated: January 30, 2006.
Stephen J. Claeys,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E6–1505 Filed 2–2–06; 8:45 am]
(BILLING CODE: 3510–DS–S)
DEPARTMENT OF COMMERCE
International Trade Administration
A–428–830
Stainless Steel Bar From Germany:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
is conducting an administrative review
of the antidumping duty order on
stainless steel bar from Germany. The
period of review is March 1, 2004,
through February 28, 2005. This review
covers imports of stainless steel bar
from one producer/exporter.
We have preliminarily found that
sales of subject merchandise sold by
BGH Edelstahl Freital GmbH, BGH
Edelstahl Lippendorf GmbH, BGH
Edelstahl Lugau GmbH, and BGH
Edelstahl Siegen GmbH have been made
at less than normal value. We invite
interested parties to comment on these
preliminary results. We will issue the
final results not later than 120 days from
the date of publication of this notice.
EFFECTIVE DATE: February 3, 2006.
FOR FURTHER INFORMATION CONTACT:
Brandon Farlander or Andrew Smith,
AD/CVD Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–0182 or (202) 482–
1276, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On March 7, 2002, the Department of
Commerce (‘‘the Department’’)
published an antidumping duty order
on stainless steel bar from Germany. See
Notice of Amended Final Determination
of Sales at Less Than Fair Value and
Antidumping Duty Order: Stainless
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5811
Steel Bar from Germany, 67 FR 10382
(March 7, 2002) (‘‘LTFV Final’’). On
October 10, 2003, the Department
published an amended antidumping
duty order on stainless steel bar from
Germany. See Notice of Amended
Antidumping Duty Orders: Stainless
Steel Bar from France, Germany, Italy,
Korea, and the United Kingdom, 68 FR
58660 (October 10, 2003).
On March 1, 2005, the Department
published its Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 70
FR 9918 (March 1, 2005). On March 31,
2005, in accordance with 19 CFR
351.213(b), the Department received a
timely request for review from BGH
Edelstahl Freital GmbH, BGH Edelstahl
Lippendorf GmbH, BGH Edelstahl
Lugau GmbH, and BGH Edelstahl Siegen
GmbH (collectively ‘‘BGH’’), and from
Stahlwerke Ergste Westig GmbH/Ergste
Westig South Carolina (‘‘SEW’’). On
March 31, 2005, Carpenter Technology
Corp., Crucible Specialty Metals
Division of Crucible Materials Corp.,
and Electralloy Corp. requested that the
Department conduct an administrative
review of BGH.
In accordance with 19 CFR
351.221(b)(1), we published a notice of
initiation of this antidumping duty
administrative review on April 22, 2005.
See Notice of Initiation of Antidumping
and Countervailing Duty Administrative
Reviews, 70 FR 20862 (April 22, 2005).
The period of review (‘‘POR’’) is March
1, 2004, through February 28, 2005.
Sections A, B, C, and D of the
Department’s antidumping duty
questionnaire were sent to BGH on
April 25, 2005. Sections A, B, and C of
the Department’s antidumping duty
questionnaire were sent to SEW on
April 25, 2005.
On May 9, 2005, BGH requested that
it be relieved from the requirement to
report affiliated party resales because
sales of the foreign like product to
affiliated parties during the POR
constituted less than five percent of
total sales of the foreign like product.
On May 25, 2005, we granted BGH’s
request in accordance with 19 CFR
351.403(d). See Memorandum to Susan
Kuhbach, ‘‘Reporting of BGH’s Home
Market Sales by an Affiliated Party,’’
dated May 25, 2005, which is in the
Department’s Central Records Unit,
located in Room B–099 of the main
Department building (‘‘CRU’’).
We received timely responses to the
Department’s antidumping duty
questionnaire from BGH on May 23 and
June 22, 2005. We received a timely
response to Section A of the
Department’s antidumping duty
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questionnaire from SEW on May 23,
2005.
On June 14, 2005, SEW timely
withdrew its request for an
administrative review. SEW’s request
was the only request for an
administrative review of SEW’s U.S.
sales. In accordance with 19 CFR
351.213(d)(1), the Department rescinded
its antidumping administrative review
of SEW. See Notice of Rescission, in
Part, of Antidumping Duty
Administrative Review: Stainless Steel
Bar from Germany, 70 FR 37084 (June
28, 2005).
We issued a supplemental
questionnaire to BGH on July 6, 2005.
We received a response from BGH on
August 2, 2005. On October 20, 2005,
we determined that the four production
companies comprising BGH should be
considered one entity for the purposes
of this proceeding. See Memorandum to
Gary Taverman, ‘‘Third Antidumping
Administrative Review of Stainless
Steel Bar from Germany,’’ dated October
20, 2005, which is on file in the
Department’s CRU. We issued an
additional supplemental questionnaire
to BGH on November 2 and received a
timely response from BGH on November
29, 2005. We also issued supplemental
questionnaires to BGH on November 22,
2005, January 11, and January 20, 2006.
We received timely responses from BGH
on December 20, 2005, January 23, and
January 24, 2006, respectively.
Scope of the Order
For the purposes of this order, the
term ‘‘stainless steel bar’’ includes
articles of stainless steel in straight
lengths that have been either hot–rolled,
forged, turned, cold–drawn, cold–rolled
or otherwise cold–finished, or ground,
having a uniform solid cross section
along their whole length in the shape of
circles, segments of circles, ovals,
rectangles (including squares), triangles,
hexagons, octagons, or other convex
polygons. Stainless steel bar includes
cold–finished stainless steel bars that
are turned or ground in straight lengths,
whether produced from hot–rolled bar
or from straightened and cut rod or
wire, and reinforcing bars that have
indentations, ribs, grooves, or other
deformations produced during the
rolling process.
Except as specified above, the term
does not include stainless steel semi–
finished products, cut length flat–rolled
products (i.e., cut length rolled products
which if less than 4.75 mm in thickness
have a width measuring at least 10 times
the thickness, or if 4.75 mm or more in
thickness having a width which exceeds
150 mm and measures at least twice the
thickness), products that have been cut
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from stainless steel sheet, strip or plate,
wire (i.e., cold–formed products in
coils, of any uniform solid cross section
along their whole length, which do not
conform to the definition of flat–rolled
products), and angles, shapes and
sections.
The stainless steel bar subject to this
review is currently classifiable under
subheadings 7222.11.00.05,
7222.11.00.50, 7222.19.00.05,
7222.19.00.50, 7222.20.00.05,
7222.20.00.45, 7222.20.00.75, and
7222.30.00.00 of the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’). Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
order is dispositive.
product made in the ordinary course of
trade. In making product comparisons,
consistent with the Notice of Final
Determination of Sales at Less Than
Fair Value: Stainless Steel Bar from
Germany, 67 FR 3159 (January 23, 2002)
and Notice of Amended Final
Determination of Sales at Less Than
Fair Value and Antidumping Duty
Order: Stainless Steel Bar from
Germany, 67 FR 10382 (March 7, 2002)
(collectively ‘‘LTFV Final’’), we
matched foreign like products based on
the physical characteristics reported by
BGH in the following order: general type
of finish; grade; remelting process; type
of final finishing operation; shape; and
size.
Fair Value Comparisons
To determine whether sales of
stainless steel bar by BGH to the United
States were made at less than normal
value (‘‘NV’’), we compared the export
price (‘‘EP’’) to NV, as described in the
‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice, below.
Pursuant to section 777A(d)(2) of the
Tariff Act of 1930, as amended (‘‘the
Act’’), we compared the EPs of
individual U.S. transactions to the
weighted–average NV of the foreign like
product, where there were sales made in
the ordinary course of trade, as
discussed in the ‘‘Normal Value’’
section of this notice.
We calculated EP in accordance with
section 772(a) of the Act because the
merchandise was sold to the first
unaffiliated purchaser in the United
States prior to importation by the
exporter or producer outside the United
States and because constructed export
price methodology was not otherwise
warranted. We based EP on the packed
ex–works, cost, insurance and freight, or
delivered price to unaffiliated
purchasers in the United States. We
calculated the correct starting price by
accounting for billing adjustments and
early payment discounts. We also made
deductions from the starting price for
movement expenses in accordance with
section 772(c)(2)(A) of the Act. These
deductions included foreign inland
freight, international freight, brokerage
and handling, U.S. other transportation
expense, country of manufacture inland
insurance, U.S. inland insurance, U.S.
customs duties (including harbor
maintenance fees and merchandise
processing fees), and U.S. inland freight,
where applicable.
Product Comparisons
In accordance with section 771(16) of
the Act, we considered all products
produced by BGH covered by the
description in the ‘‘Scope of the Order’’
section, above, to be foreign like
products for purposes of determining
appropriate product comparisons to
U.S. sales. In accordance with section
773(a)(1)(C)(ii) of the Act, in order to
determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV, we compared BGH’s
volume of home market sales of the
foreign like product to the volume of its
U.S. sales of the subject merchandise.
(For further details, see the ‘‘Normal
Value’’ section of this notice.)
We compared U.S. sales to sales made
in the comparison market within the
contemporaneous window period,
which extends from three months prior
to the POR until two months after the
POR. Where there were no sales of
identical merchandise in the
comparison market made in the
ordinary course of trade to compare to
U.S. sales, we compared U.S. sales to
sales of the most similar foreign like
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Export Price
Normal Value
A. Home Market Viability
In order to determine whether there
was a sufficient volume of sales in the
home market to serve as a viable basis
for calculating NV (i.e., whether the
aggregate volume of home market sales
of the foreign like product is equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared
BGH’s volume of home market sales of
the foreign like product to the volume
of its U.S. sales of the subject
merchandise, in accordance with 19
CFR 351.404(b)(2). Because BGH’s
aggregate volume of home market sales
of the foreign like product was greater
than five percent of its aggregate volume
of U.S. sales for the subject
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merchandise, we determined that the
home market was viable.
B. Affiliated–Party Transactions and
Arm’s–Length Test
The Department’s practice with
respect to the use of home market sales
to affiliated parties for NV is to
determine whether such sales are at
arm’s–length prices. See 19 CFR
351.403(c). BGH made sales in the home
market to affiliated and unaffiliated
customers. To test whether the sales to
affiliates were made at arm’s–length
prices, we compared the starting prices
of sales to affiliated and unaffiliated
customers net of all movement charges,
direct selling expenses, discounts, and
packing. Where the price to the
affiliated party was, on average, within
a range of 98 to 102 percent of the price
of the same or comparable merchandise
to the unaffiliated parties, we
determined that the sales made to the
affiliated party were at arm’s length. See
Antidumping Proceedings: Affiliated
Party Sales in the Ordinary Course of
Trade, 67 FR 69186 (November 15,
2002). In accordance with the
Department’s practice, we only included
in our margin analysis those sales to
affiliated parties that were made at
arm’s length (and which passed the cost
test described below).
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C. Cost of Production
Because we disregarded sales below
the cost of production (‘‘COP’’) in the
last completed review for BGH (see
Notice of Final Results of Antidumping
Duty Administrative Review: Stainless
Steel Bar from Germany, 70 FR 19419
(April 13, 2005)), we had reasonable
grounds to believe or suspect that sales
of the foreign like product under
consideration for the determination of
NV in this review may have been made
at prices below the COP, as provided by
section 773(b)(2)(A)(ii) of the Act.
Therefore, pursuant to section 773(b)(1)
of the Act, we requested that BGH
respond to section D, the cost of
production/constructed value section of
the questionnaire.
We conducted the COP analysis
described below.
1. Calculation of COP
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of BGH’s cost of materials and
fabrication for the foreign like product,
plus amounts for general and
administrative expenses (‘‘G&A’’), and
interest expenses. We relied on the COP
information provided by BGH, except in
the following instances.
According to section 773(f)(3) of the
Act and 19 CFR 351.407(b) (‘‘Major
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Input Rule’’), the Secretary normally
will determine the value of a major
input purchased from an affiliated
person based on the higher of: (1) the
price paid by the exporter or producer
to the affiliated person for the major
input; (2) the amount usually reflected
in sales of the major input in the market
under consideration; or (3) the cost to
the affiliated person of producing the
major input. In its June 22, 2005,
Section D response at Exhibit D–4, BGH
reported that it purchases scrap and
alloy inputs from affiliated trading
companies.
We have not applied the Major Input
Rule to BGH’s scrap or alloy purchases
because the purchases were from
affiliated trading companies that did not
produce the inputs that they supplied to
BGH. Instead, we have applied the
valuation rules described in section
773(f)(2) of the Act, the ‘‘Transactions
Disregarded Rule.’’ Under the
Transactions Disregarded Rule, a
transaction directly or indirectly
between affiliated persons may be
disregarded if, in the case of any
element of value required to be
considered, the amount representing
that element does not fairly reflect the
amount usually reflected in sales of
merchandise under consideration in the
market under consideration.
We applied the Transactions
Disregarded Rule to BGH’s scrap and
alloy input purchases from affiliated
trading companies during the POR,
comparing the transfer prices to BGH’s
third–party purchase prices, as provided
in Exhibit SD–19 of the November 29,
2005, supplemental Section D
questionnaire response. As a result of
this comparison, we have determined
that BGH received affiliated party inputs
at less than market value prices.
Therefore, we made an upward
adjustment to BGH’s cost of
manufacturing, for all products, for
affiliated party transactions occurring at
less than market value in accordance
with section 773(f)(2) of the Act.
In addition, BGH reported unique
G&A expense ratios for each production
company, and weight–averaged those
ratios to create a single BGH G&A
expense ratio for all CONNUMs. We
calculated CONNUM–specific G&A
expenses by weighting the G&A ratios
for each production company by the
production of each CONNUM at each
facility. In our revised G&A ratios, we
also included the administrative
expenses incurred by BGH’s parent
company, Boschgotthardshutte O.
Breyer Gmbh (‘‘BOB’’), which were not
allocable to BOB’s cost of leasing fixed
assets. For further explanation about
these cost adjustments, see
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5813
Memorandum from Case Accountant to
Neal Halper, Director, ‘‘Cost of
Production and Constructed Value
Calculation Adjustments for the
Preliminary Determination - BGH
Group, Inc.,’’ dated January 30, 2006.
2. Test of Home Market Sales Prices
On a product–specific basis, we
compared the adjusted, weighted–
average COP to the home market sales
of the foreign like product during the
POR, as required under section 773(b) of
the Act, in order to determine whether
the sales prices were below the COP.
The prices were exclusive of any
applicable movement charges, billing
adjustments, commissions, discounts,
rebates and indirect selling expenses. In
determining whether to disregard home
market sales made at prices below the
COP, we examined, in accordance with
section 773(b)(1)(A) of the Act, whether
such sales were made (1) within an
extended period of time in substantial
quantities, and (2) at prices which did
not permit the recovery of all costs
within a reasonable period of time.
3. Results of the COP Test
Pursuant to section 773(b)(1) of the
Act, where less than 20 percent of the
respondent’s sales of a given product are
made at prices below the COP, we do
not disregard any below–cost sales of
that product because we determine that
in such instances the below–cost sales
were not made in ‘‘substantial
quantities.’’ Where 20 percent or more
of a respondent’s sales of a given
product are at prices less than the COP,
we determine that in such instances the
below cost sales represent ‘‘substantial
quantities’’ within an extended period
of time in accordance with section
773(b)(1)(A) of the Act. In such cases,
we also determine whether such sales
are made at prices which would not
permit recovery of all costs within a
reasonable period of time, in accordance
with section 773(b)(1)(B) of the Act.
We found that, for certain specific
products, more than 20 percent of the
comparison market sales were at prices
less than the COP and, thus, the below–
cost sales were made within an
extended period of time in substantial
quantities. In addition, these sales were
made at prices that did not provide for
the recovery of costs within a reasonable
period of time. We therefore excluded
these sales and used the remaining sales
as the basis for determining NV, in
accordance with section 773(b)(1).
D. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
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sales in the comparison market at the
same level of trade (‘‘LOT’’) as the EP
transaction or constructed export price
(‘‘CEP’’) transaction. The LOT in the
comparison market is the LOT of the
starting–price sales in the comparison
market or, when NV is based on CV, the
LOT of the sales from which we derive
SG&A expenses and profit. With respect
to U.S. price for EP transactions, the
LOT is also that of the starting–price
sale, which is usually from the exporter
to the importer. For CEP, the LOT is that
of the constructed sale from the exporter
to the importer. To determine whether
comparison market sales are at a
different LOT from U.S. sales, we
examined stages in the marketing
process and selling functions along the
chain of distribution between the
producer and the unaffiliated customer.
If the comparison market sales are at a
different LOT, and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison market sales at the LOT
of the export transaction, the
Department makes an LOT adjustment
in accordance with section 773(a)(7)(A)
of the Act. For CEP sales, we examine
stages in the marketing process and
selling functions along the chain of
distribution between the producer and
the unaffiliated customer. We analyze
whether different selling activities are
performed, and whether any price
differences (other than those for which
other allowances are made under the
Act) are shown to be wholly or partly
due to a difference in LOT between the
CEP and NV. Under section 773(a)(7)(A)
of the Act, we make an upward or
downward adjustment to NV for LOT if
the difference in LOT involves the
performance of different selling
activities and is demonstrated to affect
price comparability, based on a pattern
of consistent price differences between
sales at different LOTs in the country in
which NV is determined. Finally, if the
NV LOT is at a more advanced stage of
distribution than the LOT of the CEP,
but the data available do not provide an
appropriate basis to determine an LOT
adjustment, we reduce NV by the
amount of indirect selling expenses
incurred in the foreign comparison
market on sales of the foreign like
product, but by no more than the
amount of the indirect selling expenses
incurred for CEP sales. See section
773(a)(7)(B) of the Act (the CEP offset
provision). In analyzing differences in
selling functions, we determine whether
the LOTs identified by the respondent
are meaningful. See Antidumping
Duties; Countervailing Duties, Final
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Rule, 62 FR 27296, 27371 (May 19,
1997). If the claimed LOTs are the same,
we expect that the functions and
activities of the seller should be similar.
Conversely, if a party claims that LOTs
are different for different groups of
sales, the functions and activities of the
seller should be dissimilar. See
Porcelain–on-Steel Cookware from
Mexico: Final Results of Administrative
Review, 65 FR 30068 (May 10, 2000).
BGH reported four channels of
distribution in the home market.
Channels 1 and 2 were made–to-order
sales to distributors and end–users,
respectively. Channels 3 and 4 were
sales from inventory to distributors and
end–users, respectively. We examined
the selling functions reported by BGH
for each of these channels and found
that made–to-order sales in channels 1
and 2 were similar with respect to sales
process, freight services, inventory
maintenance, and warranty service. We
also found that because channel 3 sales
were made from inventory, they differed
from channel 1 and 2 made–to-order
sales with respect to inventory services,
but that they were otherwise similar to
channels 1 and 2 with respect to sales
process, freight services, and warranty
service. Therefore, we found that
channels of distribution 1, 2 and 3 were
sufficiently similar to constitute a
distinct level of trade (LOTH 1).
BGH included in distribution channel
4 any sale made from inventory in
which ‘‘other revenue’’ was reported on
the invoice. BGH considered these
channel 4 sales to be a separate LOT
because of service center selling
functions provided for bar sold through
this channel. ‘‘Other revenue’’ is a
separate charge appearing on the
invoice for special services performed
by the inventory warehouse, such as
cutting, grinding, special finishing and
additional testing. We agree with BGH
that the ‘‘other revenue’’ charged on
certain sales is indicative of service
center functions and that these sales are
distinct from LOTH 1 with respect to
sales process and inventory
maintenance, and as such constitute a
separate level of trade, LOTH 2.
BGH reported EP sales through two
channels of distribution, made–to-order
sales to distributors (channel 1) and
warehouse inventory sales to
distributors (channel 3). We examined
the chain of distribution and the selling
activities associated with sales through
these channels and found them to be
similar with respect to sales process,
freight services, and warranty service.
Therefore, we determine that the two EP
channels of distribution constitute a
single LOT (LOTU 1).
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The EP LOT differed considerably
from LOTH 2 with respect to sales
process and warehousing/inventory
maintenance. However, the EP LOT is
similar to LOTH 1 with respect to sales
process, freight services, warehouse/
inventory maintenance and warranty
service. Consequently, we matched the
EP sales to sales at the same LOT in the
home market (LOTH 1). Where no
matches at the same LOT were possible,
we matched to sales in LOTH 2 and we
made a LOT adjustment. See section
773(a)(7)(A) of the Act.
E. Calculation of Normal Value Based
on Comparison Market Prices
We calculated NV based on the ex–
works or delivered price to unaffiliated
customers or prices to affiliated
customers that we determined to be at
arm’s length. We identified the correct
starting price by accounting for billing
adjustments, early payment discounts,
other discounts, rebates and interest
revenue. In accordance with section
773(a)(6)(B)(ii) of the Act, we made
deductions for inland freight and inland
insurance. We also made adjustments,
in accordance with 19 CFR 351.410(e),
for indirect selling expenses incurred in
the home market or on U.S. sales where
commissions were granted on sales in
one market but not in the other (the
commission offset).
Furthermore, we made adjustments
for differences in costs attributable to
differences in the physical
characteristics of the merchandise in
accordance with section 773(a)(6)(C)(ii)
of the Act and 19 CFR 351.411. In
addition, where appropriate, we made
adjustments for differences in
circumstances of sale (‘‘COS’’) in
accordance with section 773(a)(6)(C)(iii)
of the Act and 19 CFR 351.410 by
deducting direct selling expenses
incurred on comparison market sales
(credit expenses), and adding U.S. direct
selling expenses (credit expenses).
Where payment dates were unreported,
we recalculated the credit expenses
using the last date of new information
received in place of actual date of
payment. We deducted home market
packing costs and added U.S. packing
costs in accordance with sections
773(a)(6)(A) and (B) of the Act.
Finally, where appropriate, we made
an adjustment for differences in LOT
under section 773(a)(7)(A) of the Act
and 19 CFR 351.412(b)-(e).
Preliminary Results of Review
We preliminarily find that the
following dumping margin exists for the
period March 1, 2004, through February
28, 2005.
E:\FR\FM\03FEN1.SGM
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Federal Register / Vol. 71, No. 23 / Friday, February 3, 2006 / Notices
Manufacturer/Exporter
BGH ..............................
Margin
1.06 percent
Assessment Rates
Upon completion of this
administrative review, the Department
will determine, and U.S. Customs and
Border Protection (‘‘CBP’’) shall assess,
antidumping duties on all appropriate
entries. Pursuant to 19 CFR 351.212(b),
the Department calculates an
assessment rate for each importer of the
subject merchandise. Upon issuance of
the final results of this administrative
review, if any importer (or customer)specific assessment rates calculated in
the final results are above de minimis
(i.e., at or above 0.5 percent), the
Department will issue appraisement
instructions directly to CBP to assess
antidumping duties on appropriate
entries. To determine whether the duty
assessment rates covering the period
were de minimis, in accordance with
the requirement set forth in 19 CFR
351.106(c)(2), we calculated importer
(or customer)-specific ad valorem rates
by aggregating the dumping margins
calculated for all U.S. sales to that
importer (or customer) and dividing this
amount by the entered value of the sales
to that importer (or customer).
The Department will issue
appropriate assessment instructions
directly to CBP within 15 days of
publication of the final results of this
review.
hsrobinson on PROD1PC70 with NOTICES
Cash Deposit Rates
The following deposit requirements
will be effective upon completion of the
final results of this administrative
review for all shipments of stainless
steel bar from Germany entered, or
withdrawn from warehouse, for
consumption on or after the publication
date of the final results of this
administrative review, as provided by
section 751(a)(1) of the Act: (1) The cash
deposit rate listed above for each
specific company will be the rate
established in the final results of this
review, except if a rate is less than 0.5
percent, and therefore de minimis, the
cash deposit will be zero; (2) for
previously reviewed or investigated
companies not listed above, the cash
deposit rate will continue to be the
company–specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review, a prior
review, or the original less–than-fair–
value investigation, but the producer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the
merchandise; and (4) if neither the
VerDate Aug<31>2005
15:55 Feb 02, 2006
Jkt 208001
exporter nor the manufacturer is a firm
covered in this review, the cash deposit
rate will be 16.96 percent, the ‘‘all
others’’ rate established in the LTFV
Final.
Public Comment
Any interested party may request a
hearing within 30 days of publication of
this notice. A hearing, if requested, will
be 37 days after the publication of this
notice, or the first business day
thereafter. Issues raised in the hearing
will be limited to those raised in the
case and rebuttal briefs. Interested
parties may submit case briefs within 30
days of the date of publication of this
notice. Rebuttal briefs, which must be
limited to issues raised in the case
briefs, may be filed not later than 35
days after the date of publication of this
notice. Parties who submit case briefs or
rebuttal briefs in this proceeding are
requested to submit with each argument
(1) a statement of the issue and (2) a
brief summary of the argument with an
electronic version included.
The Department will issue the final
results of this administrative review,
including the results of its analysis of
issues raised in any such written briefs
or hearing, within 120 days of
publication of these preliminary results.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) 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.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: January 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6–1508 Filed 2–2–06; 8:45 am]
BILLING CODE 3510–DS–S
PO 00000
Frm 00015
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5815
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[I.D. 013106A]
Magnuson-Stevens Act Provisions;
General Provisions for Domestic
Fisheries; Application for Exempted
Fishing Permits
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notification of a proposal for
Exempted Fishing Permits to conduct
experimental fishing; request for
comments.
AGENCY:
SUMMARY: The Assistant Regional
Administrator for Sustainable Fisheries,
Northeast Region, NMFS (Assistant
Regional Administrator), has made a
preliminary determination that the
subject Exempted Fishing Permit (EFP)
application contains all the required
information and warrants further
consideration. The Assistant Regional
Administrator has also made a
preliminary determination that the
activities authorized under the EFP
would be consistent with the goals and
objectives of the Atlantic Sea Scallop
Fishery Management Plan (FMP).
However, further review and
consultation may be necessary before a
final determination is made to issue the
EFP. Therefore, NMFS announces that
the Assistant Regional Administrator
proposes to recommend an EFP be
issued that would allow vessels to
conduct fishing operations that are
otherwise restricted by the regulations
governing the fisheries of the
Northeastern United States. This EFP
would exempt participating vessels
from the 18,000 lb (8,165 kg) sea scallop
access area possession limit.
Regulations under the MagnusonStevens Fishery Conservation and
Management Act require publication of
this notification to provide interested
parties the opportunity to comment on
applications for proposed EFPs.
DATES: Comments on this document
must be received on or before February
21, 2006.
ADDRESSES: Written comments should
be sent to Patricia A. Kurkul, Regional
Administrator, NMFS, Northeast
Regional Office, 1 Blackburn Drive,
Gloucester, MA 01930. Mark the outside
of the envelope ‘‘Comments on the
Standardized Sea Scallop Bag EFP
Proposal.’’ Comments may also be sent
via e-mail to DA5l336@noaa.gov or by
fax to (978) 281–9135.
E:\FR\FM\03FEN1.SGM
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Agencies
[Federal Register Volume 71, Number 23 (Friday, February 3, 2006)]
[Notices]
[Pages 5811-5815]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1508]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
A-428-830
Stainless Steel Bar From Germany: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce is conducting an administrative
review of the antidumping duty order on stainless steel bar from
Germany. The period of review is March 1, 2004, through February 28,
2005. This review covers imports of stainless steel bar from one
producer/exporter.
We have preliminarily found that sales of subject merchandise sold
by BGH Edelstahl Freital GmbH, BGH Edelstahl Lippendorf GmbH, BGH
Edelstahl Lugau GmbH, and BGH Edelstahl Siegen GmbH have been made at
less than normal value. We invite interested parties to comment on
these preliminary results. We will issue the final results not later
than 120 days from the date of publication of this notice.
EFFECTIVE DATE: February 3, 2006.
FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Andrew Smith, AD/
CVD Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0182 or (202) 482-1276, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 7, 2002, the Department of Commerce (``the Department'')
published an antidumping duty order on stainless steel bar from
Germany. See Notice of Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Order: Stainless Steel Bar from
Germany, 67 FR 10382 (March 7, 2002) (``LTFV Final''). On October 10,
2003, the Department published an amended antidumping duty order on
stainless steel bar from Germany. See Notice of Amended Antidumping
Duty Orders: Stainless Steel Bar from France, Germany, Italy, Korea,
and the United Kingdom, 68 FR 58660 (October 10, 2003).
On March 1, 2005, the Department published its Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation;
Opportunity to Request Administrative Review, 70 FR 9918 (March 1,
2005). On March 31, 2005, in accordance with 19 CFR 351.213(b), the
Department received a timely request for review from BGH Edelstahl
Freital GmbH, BGH Edelstahl Lippendorf GmbH, BGH Edelstahl Lugau GmbH,
and BGH Edelstahl Siegen GmbH (collectively ``BGH''), and from
Stahlwerke Ergste Westig GmbH/Ergste Westig South Carolina (``SEW'').
On March 31, 2005, Carpenter Technology Corp., Crucible Specialty
Metals Division of Crucible Materials Corp., and Electralloy Corp.
requested that the Department conduct an administrative review of BGH.
In accordance with 19 CFR 351.221(b)(1), we published a notice of
initiation of this antidumping duty administrative review on April 22,
2005. See Notice of Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 70 FR 20862 (April 22, 2005). The period of
review (``POR'') is March 1, 2004, through February 28, 2005.
Sections A, B, C, and D of the Department's antidumping duty
questionnaire were sent to BGH on April 25, 2005. Sections A, B, and C
of the Department's antidumping duty questionnaire were sent to SEW on
April 25, 2005.
On May 9, 2005, BGH requested that it be relieved from the
requirement to report affiliated party resales because sales of the
foreign like product to affiliated parties during the POR constituted
less than five percent of total sales of the foreign like product. On
May 25, 2005, we granted BGH's request in accordance with 19 CFR
351.403(d). See Memorandum to Susan Kuhbach, ``Reporting of BGH's Home
Market Sales by an Affiliated Party,'' dated May 25, 2005, which is in
the Department's Central Records Unit, located in Room B-099 of the
main Department building (``CRU'').
We received timely responses to the Department's antidumping duty
questionnaire from BGH on May 23 and June 22, 2005. We received a
timely response to Section A of the Department's antidumping duty
[[Page 5812]]
questionnaire from SEW on May 23, 2005.
On June 14, 2005, SEW timely withdrew its request for an
administrative review. SEW's request was the only request for an
administrative review of SEW's U.S. sales. In accordance with 19 CFR
351.213(d)(1), the Department rescinded its antidumping administrative
review of SEW. See Notice of Rescission, in Part, of Antidumping Duty
Administrative Review: Stainless Steel Bar from Germany, 70 FR 37084
(June 28, 2005).
We issued a supplemental questionnaire to BGH on July 6, 2005. We
received a response from BGH on August 2, 2005. On October 20, 2005, we
determined that the four production companies comprising BGH should be
considered one entity for the purposes of this proceeding. See
Memorandum to Gary Taverman, ``Third Antidumping Administrative Review
of Stainless Steel Bar from Germany,'' dated October 20, 2005, which is
on file in the Department's CRU. We issued an additional supplemental
questionnaire to BGH on November 2 and received a timely response from
BGH on November 29, 2005. We also issued supplemental questionnaires to
BGH on November 22, 2005, January 11, and January 20, 2006. We received
timely responses from BGH on December 20, 2005, January 23, and January
24, 2006, respectively.
Scope of the Order
For the purposes of this order, the term ``stainless steel bar''
includes articles of stainless steel in straight lengths that have been
either hot-rolled, forged, turned, cold-drawn, cold-rolled or otherwise
cold-finished, or ground, having a uniform solid cross section along
their whole length in the shape of circles, segments of circles, ovals,
rectangles (including squares), triangles, hexagons, octagons, or other
convex polygons. Stainless steel bar includes cold-finished stainless
steel bars that are turned or ground in straight lengths, whether
produced from hot-rolled bar or from straightened and cut rod or wire,
and reinforcing bars that have indentations, ribs, grooves, or other
deformations produced during the rolling process.
Except as specified above, the term does not include stainless
steel semi-finished products, cut length flat-rolled products (i.e.,
cut length rolled products which if less than 4.75 mm in thickness have
a width measuring at least 10 times the thickness, or if 4.75 mm or
more in thickness having a width which exceeds 150 mm and measures at
least twice the thickness), products that have been cut from stainless
steel sheet, strip or plate, wire (i.e., cold-formed products in coils,
of any uniform solid cross section along their whole length, which do
not conform to the definition of flat-rolled products), and angles,
shapes and sections.
The stainless steel bar subject to this review is currently
classifiable under subheadings 7222.11.00.05, 7222.11.00.50,
7222.19.00.05, 7222.19.00.50, 7222.20.00.05, 7222.20.00.45,
7222.20.00.75, and 7222.30.00.00 of the Harmonized Tariff Schedule of
the United States (``HTSUS''). Although the HTSUS subheadings are
provided for convenience and customs purposes, the written description
of the scope of the order is dispositive.
Fair Value Comparisons
To determine whether sales of stainless steel bar by BGH to the
United States were made at less than normal value (``NV''), we compared
the export price (``EP'') to NV, as described in the ``Export Price''
and ``Normal Value'' sections of this notice, below.
Pursuant to section 777A(d)(2) of the Tariff Act of 1930, as
amended (``the Act''), we compared the EPs of individual U.S.
transactions to the weighted-average NV of the foreign like product,
where there were sales made in the ordinary course of trade, as
discussed in the ``Normal Value'' section of this notice.
Product Comparisons
In accordance with section 771(16) of the Act, we considered all
products produced by BGH covered by the description in the ``Scope of
the Order'' section, above, to be foreign like products for purposes of
determining appropriate product comparisons to U.S. sales. In
accordance with section 773(a)(1)(C)(ii) of the Act, in order to
determine whether there was a sufficient volume of sales in the home
market to serve as a viable basis for calculating NV, we compared BGH's
volume of home market sales of the foreign like product to the volume
of its U.S. sales of the subject merchandise. (For further details, see
the ``Normal Value'' section of this notice.)
We compared U.S. sales to sales made in the comparison market
within the contemporaneous window period, which extends from three
months prior to the POR until two months after the POR. Where there
were no sales of identical merchandise in the comparison market made in
the ordinary course of trade to compare to U.S. sales, we compared U.S.
sales to sales of the most similar foreign like product made in the
ordinary course of trade. In making product comparisons, consistent
with the Notice of Final Determination of Sales at Less Than Fair
Value: Stainless Steel Bar from Germany, 67 FR 3159 (January 23, 2002)
and Notice of Amended Final Determination of Sales at Less Than Fair
Value and Antidumping Duty Order: Stainless Steel Bar from Germany, 67
FR 10382 (March 7, 2002) (collectively ``LTFV Final''), we matched
foreign like products based on the physical characteristics reported by
BGH in the following order: general type of finish; grade; remelting
process; type of final finishing operation; shape; and size.
Export Price
We calculated EP in accordance with section 772(a) of the Act
because the merchandise was sold to the first unaffiliated purchaser in
the United States prior to importation by the exporter or producer
outside the United States and because constructed export price
methodology was not otherwise warranted. We based EP on the packed ex-
works, cost, insurance and freight, or delivered price to unaffiliated
purchasers in the United States. We calculated the correct starting
price by accounting for billing adjustments and early payment
discounts. We also made deductions from the starting price for movement
expenses in accordance with section 772(c)(2)(A) of the Act. These
deductions included foreign inland freight, international freight,
brokerage and handling, U.S. other transportation expense, country of
manufacture inland insurance, U.S. inland insurance, U.S. customs
duties (including harbor maintenance fees and merchandise processing
fees), and U.S. inland freight, where applicable.
Normal Value
A. Home Market Viability
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating NV
(i.e., whether the aggregate volume of home market sales of the foreign
like product is equal to or greater than five percent of the aggregate
volume of U.S. sales), we compared BGH's volume of home market sales of
the foreign like product to the volume of its U.S. sales of the subject
merchandise, in accordance with 19 CFR 351.404(b)(2). Because BGH's
aggregate volume of home market sales of the foreign like product was
greater than five percent of its aggregate volume of U.S. sales for the
subject
[[Page 5813]]
merchandise, we determined that the home market was viable.
B. Affiliated-Party Transactions and Arm's-Length Test
The Department's practice with respect to the use of home market
sales to affiliated parties for NV is to determine whether such sales
are at arm's-length prices. See 19 CFR 351.403(c). BGH made sales in
the home market to affiliated and unaffiliated customers. To test
whether the sales to affiliates were made at arm's-length prices, we
compared the starting prices of sales to affiliated and unaffiliated
customers net of all movement charges, direct selling expenses,
discounts, and packing. Where the price to the affiliated party was, on
average, within a range of 98 to 102 percent of the price of the same
or comparable merchandise to the unaffiliated parties, we determined
that the sales made to the affiliated party were at arm's length. See
Antidumping Proceedings: Affiliated Party Sales in the Ordinary Course
of Trade, 67 FR 69186 (November 15, 2002). In accordance with the
Department's practice, we only included in our margin analysis those
sales to affiliated parties that were made at arm's length (and which
passed the cost test described below).
C. Cost of Production
Because we disregarded sales below the cost of production (``COP'')
in the last completed review for BGH (see Notice of Final Results of
Antidumping Duty Administrative Review: Stainless Steel Bar from
Germany, 70 FR 19419 (April 13, 2005)), we had reasonable grounds to
believe or suspect that sales of the foreign like product under
consideration for the determination of NV in this review may have been
made at prices below the COP, as provided by section 773(b)(2)(A)(ii)
of the Act. Therefore, pursuant to section 773(b)(1) of the Act, we
requested that BGH respond to section D, the cost of production/
constructed value section of the questionnaire.
We conducted the COP analysis described below.
1. Calculation of COP
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of BGH's cost of materials and fabrication for the
foreign like product, plus amounts for general and administrative
expenses (``G&A''), and interest expenses. We relied on the COP
information provided by BGH, except in the following instances.
According to section 773(f)(3) of the Act and 19 CFR 351.407(b)
(``Major Input Rule''), the Secretary normally will determine the value
of a major input purchased from an affiliated person based on the
higher of: (1) the price paid by the exporter or producer to the
affiliated person for the major input; (2) the amount usually reflected
in sales of the major input in the market under consideration; or (3)
the cost to the affiliated person of producing the major input. In its
June 22, 2005, Section D response at Exhibit D-4, BGH reported that it
purchases scrap and alloy inputs from affiliated trading companies.
We have not applied the Major Input Rule to BGH's scrap or alloy
purchases because the purchases were from affiliated trading companies
that did not produce the inputs that they supplied to BGH. Instead, we
have applied the valuation rules described in section 773(f)(2) of the
Act, the ``Transactions Disregarded Rule.'' Under the Transactions
Disregarded Rule, a transaction directly or indirectly between
affiliated persons may be disregarded if, in the case of any element of
value required to be considered, the amount representing that element
does not fairly reflect the amount usually reflected in sales of
merchandise under consideration in the market under consideration.
We applied the Transactions Disregarded Rule to BGH's scrap and
alloy input purchases from affiliated trading companies during the POR,
comparing the transfer prices to BGH's third-party purchase prices, as
provided in Exhibit SD-19 of the November 29, 2005, supplemental
Section D questionnaire response. As a result of this comparison, we
have determined that BGH received affiliated party inputs at less than
market value prices. Therefore, we made an upward adjustment to BGH's
cost of manufacturing, for all products, for affiliated party
transactions occurring at less than market value in accordance with
section 773(f)(2) of the Act.
In addition, BGH reported unique G&A expense ratios for each
production company, and weight-averaged those ratios to create a single
BGH G&A expense ratio for all CONNUMs. We calculated CONNUM-specific
G&A expenses by weighting the G&A ratios for each production company by
the production of each CONNUM at each facility. In our revised G&A
ratios, we also included the administrative expenses incurred by BGH's
parent company, Boschgotthardshutte O. Breyer Gmbh (``BOB''), which
were not allocable to BOB's cost of leasing fixed assets. For further
explanation about these cost adjustments, see Memorandum from Case
Accountant to Neal Halper, Director, ``Cost of Production and
Constructed Value Calculation Adjustments for the Preliminary
Determination - BGH Group, Inc.,'' dated January 30, 2006.
2. Test of Home Market Sales Prices
On a product-specific basis, we compared the adjusted, weighted-
average COP to the home market sales of the foreign like product during
the POR, as required under section 773(b) of the Act, in order to
determine whether the sales prices were below the COP. The prices were
exclusive of any applicable movement charges, billing adjustments,
commissions, discounts, rebates and indirect selling expenses. In
determining whether to disregard home market sales made at prices below
the COP, we examined, in accordance with section 773(b)(1)(A) of the
Act, whether such sales were made (1) within an extended period of time
in substantial quantities, and (2) at prices which did not permit the
recovery of all costs within a reasonable period of time.
3. Results of the COP Test
Pursuant to section 773(b)(1) of the Act, where less than 20
percent of the respondent's sales of a given product are made at prices
below the COP, we do not disregard any below-cost sales of that product
because we determine that in such instances the below-cost sales were
not made in ``substantial quantities.'' Where 20 percent or more of a
respondent's sales of a given product are at prices less than the COP,
we determine that in such instances the below cost sales represent
``substantial quantities'' within an extended period of time in
accordance with section 773(b)(1)(A) of the Act. In such cases, we also
determine whether such sales are made at prices which would not permit
recovery of all costs within a reasonable period of time, in accordance
with section 773(b)(1)(B) of the Act.
We found that, for certain specific products, more than 20 percent
of the comparison market sales were at prices less than the COP and,
thus, the below-cost sales were made within an extended period of time
in substantial quantities. In addition, these sales were made at prices
that did not provide for the recovery of costs within a reasonable
period of time. We therefore excluded these sales and used the
remaining sales as the basis for determining NV, in accordance with
section 773(b)(1).
D. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
[[Page 5814]]
sales in the comparison market at the same level of trade (``LOT'') as
the EP transaction or constructed export price (``CEP'') transaction.
The LOT in the comparison market is the LOT of the starting-price sales
in the comparison market or, when NV is based on CV, the LOT of the
sales from which we derive SG&A expenses and profit. With respect to
U.S. price for EP transactions, the LOT is also that of the starting-
price sale, which is usually from the exporter to the importer. For
CEP, the LOT is that of the constructed sale from the exporter to the
importer. To determine whether comparison market sales are at a
different LOT from U.S. sales, we examined stages in the marketing
process and selling functions along the chain of distribution between
the producer and the unaffiliated customer. If the comparison market
sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison
market sales at the LOT of the export transaction, the Department makes
an LOT adjustment in accordance with section 773(a)(7)(A) of the Act.
For CEP sales, we examine stages in the marketing process and selling
functions along the chain of distribution between the producer and the
unaffiliated customer. We analyze whether different selling activities
are performed, and whether any price differences (other than those for
which other allowances are made under the Act) are shown to be wholly
or partly due to a difference in LOT between the CEP and NV. Under
section 773(a)(7)(A) of the Act, we make an upward or downward
adjustment to NV for LOT if the difference in LOT involves the
performance of different selling activities and is demonstrated to
affect price comparability, based on a pattern of consistent price
differences between sales at different LOTs in the country in which NV
is determined. Finally, if the NV LOT is at a more advanced stage of
distribution than the LOT of the CEP, but the data available do not
provide an appropriate basis to determine an LOT adjustment, we reduce
NV by the amount of indirect selling expenses incurred in the foreign
comparison market on sales of the foreign like product, but by no more
than the amount of the indirect selling expenses incurred for CEP
sales. See section 773(a)(7)(B) of the Act (the CEP offset provision).
In analyzing differences in selling functions, we determine whether the
LOTs identified by the respondent are meaningful. See Antidumping
Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27371 (May 19,
1997). If the claimed LOTs are the same, we expect that the functions
and activities of the seller should be similar. Conversely, if a party
claims that LOTs are different for different groups of sales, the
functions and activities of the seller should be dissimilar. See
Porcelain-on-Steel Cookware from Mexico: Final Results of
Administrative Review, 65 FR 30068 (May 10, 2000).
BGH reported four channels of distribution in the home market.
Channels 1 and 2 were made-to-order sales to distributors and end-
users, respectively. Channels 3 and 4 were sales from inventory to
distributors and end-users, respectively. We examined the selling
functions reported by BGH for each of these channels and found that
made-to-order sales in channels 1 and 2 were similar with respect to
sales process, freight services, inventory maintenance, and warranty
service. We also found that because channel 3 sales were made from
inventory, they differed from channel 1 and 2 made-to-order sales with
respect to inventory services, but that they were otherwise similar to
channels 1 and 2 with respect to sales process, freight services, and
warranty service. Therefore, we found that channels of distribution 1,
2 and 3 were sufficiently similar to constitute a distinct level of
trade (LOTH 1).
BGH included in distribution channel 4 any sale made from inventory
in which ``other revenue'' was reported on the invoice. BGH considered
these channel 4 sales to be a separate LOT because of service center
selling functions provided for bar sold through this channel. ``Other
revenue'' is a separate charge appearing on the invoice for special
services performed by the inventory warehouse, such as cutting,
grinding, special finishing and additional testing. We agree with BGH
that the ``other revenue'' charged on certain sales is indicative of
service center functions and that these sales are distinct from LOTH 1
with respect to sales process and inventory maintenance, and as such
constitute a separate level of trade, LOTH 2.
BGH reported EP sales through two channels of distribution, made-
to-order sales to distributors (channel 1) and warehouse inventory
sales to distributors (channel 3). We examined the chain of
distribution and the selling activities associated with sales through
these channels and found them to be similar with respect to sales
process, freight services, and warranty service. Therefore, we
determine that the two EP channels of distribution constitute a single
LOT (LOTU 1).
The EP LOT differed considerably from LOTH 2 with respect to sales
process and warehousing/inventory maintenance. However, the EP LOT is
similar to LOTH 1 with respect to sales process, freight services,
warehouse/inventory maintenance and warranty service. Consequently, we
matched the EP sales to sales at the same LOT in the home market (LOTH
1). Where no matches at the same LOT were possible, we matched to sales
in LOTH 2 and we made a LOT adjustment. See section 773(a)(7)(A) of the
Act.
E. Calculation of Normal Value Based on Comparison Market Prices
We calculated NV based on the ex-works or delivered price to
unaffiliated customers or prices to affiliated customers that we
determined to be at arm's length. We identified the correct starting
price by accounting for billing adjustments, early payment discounts,
other discounts, rebates and interest revenue. In accordance with
section 773(a)(6)(B)(ii) of the Act, we made deductions for inland
freight and inland insurance. We also made adjustments, in accordance
with 19 CFR 351.410(e), for indirect selling expenses incurred in the
home market or on U.S. sales where commissions were granted on sales in
one market but not in the other (the commission offset).
Furthermore, we made adjustments for differences in costs
attributable to differences in the physical characteristics of the
merchandise in accordance with section 773(a)(6)(C)(ii) of the Act and
19 CFR 351.411. In addition, where appropriate, we made adjustments for
differences in circumstances of sale (``COS'') in accordance with
section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410 by deducting
direct selling expenses incurred on comparison market sales (credit
expenses), and adding U.S. direct selling expenses (credit expenses).
Where payment dates were unreported, we recalculated the credit
expenses using the last date of new information received in place of
actual date of payment. We deducted home market packing costs and added
U.S. packing costs in accordance with sections 773(a)(6)(A) and (B) of
the Act.
Finally, where appropriate, we made an adjustment for differences
in LOT under section 773(a)(7)(A) of the Act and 19 CFR 351.412(b)-(e).
Preliminary Results of Review
We preliminarily find that the following dumping margin exists for
the period March 1, 2004, through February 28, 2005.
[[Page 5815]]
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Manufacturer/Exporter Margin
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BGH................................................. 1.06 percent
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Assessment Rates
Upon completion of this administrative review, the Department will
determine, and U.S. Customs and Border Protection (``CBP'') shall
assess, antidumping duties on all appropriate entries. Pursuant to 19
CFR 351.212(b), the Department calculates an assessment rate for each
importer of the subject merchandise. Upon issuance of the final results
of this administrative review, if any importer (or customer)-specific
assessment rates calculated in the final results are above de minimis
(i.e., at or above 0.5 percent), the Department will issue appraisement
instructions directly to CBP to assess antidumping duties on
appropriate entries. To determine whether the duty assessment rates
covering the period were de minimis, in accordance with the requirement
set forth in 19 CFR 351.106(c)(2), we calculated importer (or
customer)-specific ad valorem rates by aggregating the dumping margins
calculated for all U.S. sales to that importer (or customer) and
dividing this amount by the entered value of the sales to that importer
(or customer).
The Department will issue appropriate assessment instructions
directly to CBP within 15 days of publication of the final results of
this review.
Cash Deposit Rates
The following deposit requirements will be effective upon
completion of the final results of this administrative review for all
shipments of stainless steel bar from Germany entered, or withdrawn
from warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act: (1) The cash deposit rate listed above for each
specific company will be the rate established in the final results of
this review, except if a rate is less than 0.5 percent, and therefore
de minimis, the cash deposit will be zero; (2) for previously reviewed
or investigated companies not listed above, the cash deposit rate will
continue to be the company-specific rate published for the most recent
period; (3) if the exporter is not a firm covered in this review, a
prior review, or the original less-than-fair-value investigation, but
the producer is, the cash deposit rate will be the rate established for
the most recent period for the manufacturer of the merchandise; and (4)
if neither the exporter nor the manufacturer is a firm covered in this
review, the cash deposit rate will be 16.96 percent, the ``all others''
rate established in the LTFV Final.
Public Comment
Any interested party may request a hearing within 30 days of
publication of this notice. A hearing, if requested, will be 37 days
after the publication of this notice, or the first business day
thereafter. Issues raised in the hearing will be limited to those
raised in the case and rebuttal briefs. Interested parties may submit
case briefs within 30 days of the date of publication of this notice.
Rebuttal briefs, which must be limited to issues raised in the case
briefs, may be filed not later than 35 days after the date of
publication of this notice. Parties who submit case briefs or rebuttal
briefs in this proceeding are requested to submit with each argument
(1) a statement of the issue and (2) a brief summary of the argument
with an electronic version included.
The Department will issue the final results of this administrative
review, including the results of its analysis of issues raised in any
such written briefs or hearing, within 120 days of publication of these
preliminary results.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) 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.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: January 27, 2006.
David M. Spooner,
Assistant Secretaryfor Import Administration.
[FR Doc. E6-1508 Filed 2-2-06; 8:45 am]
BILLING CODE 3510-DS-S