Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, 40064-40067 [E6-11123]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 71, Number 135 (Friday, July 14, 2006)]
[Notices]
[Pages 40064-40067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11123]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-801, A-428-801, A-475-801, A-588-804, A 412-801]


Ball Bearings and Parts Thereof from France, Germany, Italy, 
Japan, and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 9, 2006, the Department of Commerce published the 
preliminary results of the administrative reviews of the antidumping 
duty orders on ball bearings and parts thereof from France, Germany, 
Italy, Japan, and the United Kingdom. The reviews cover 14 
manufacturers/exporters. The period of review is May 1, 2004, through 
April 30, 2005.
    Based on our analysis of the comments received, we have made 
changes, including corrections of certain programming and other 
ministerial errors, in the margin calculations. Therefore, the final 
results differ from the preliminary results. The final weighted-average 
dumping margins for the reviewed firms are listed below in

[[Page 40065]]

the section entitled ``Final Results of the Reviews.''

EFFECTIVE DATE: July 14, 2006.

FOR FURTHER INFORMATION CONTACT: Lyn Johnson or Richard Rimlinger, AD/
CVD Operations, Office 5, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14\th\ Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5287 or (202) 482-4477.

SUPPLEMENTARY INFORMATION:

Background

    On March 9, 2006, the Department of Commerce (the Department) 
published the preliminary results of the administrative reviews of the 
antidumping duty orders on ball bearings and parts thereof from France, 
Germany, Italy, Japan, and the United Kingdom. See Ball Bearings and 
Parts Thereof from France, Germany, Italy, Japan, and the United 
Kingdom: Preliminary Results of Antidumping Duty Administrative 
Reviews, 71 FR 12170 (March 9, 2006). The period of review is May 1, 
2004, through April 30, 2005. The companies for which we are conducting 
administrative reviews are as follows:

France:

    [ast] SKF France S.A. or SKF Aerospace France (formally Sarma) 
(collectively, SKF France)
    [ast] SNR Roulements or SNR Europe (SNR)

Germany:

    [ast] Gebr[uuml]der Reinfurt GmbH & Co., KG, Wurzberg, Germany 
(collectively, GRW)
    [ast] INA-Schaeffler KG; INA Vermogensverwaltungsgesellschaft GmbH; 
INA Holding Schaeffler KG; FAG Kugelfischer Georg-Schaefer AG; FAG 
Automobiltechnik AG; FAG OEM und Handel AG; FAG Komponenten AG; FAG 
Aircraft/ Super Precision Bearings GmbH; FAG Industrial Bearings AG; 
FAG Sales Europe GmbH; FAG International Sales and Service GmbH 
(collectively, INA/FAG)
    [ast] SKF GmbH (SKF Germany)

Italy:

    [ast] FAG Italia S.p.A.; FAG Automobiltechnik AG; FAG OEM und 
Handel AG (collectively FAG Italy)
    [ast] SKF Industrie S.p.A.; SKF RIV-SKF Officine di Villas Perosa 
S.p.A.; RFT S.p.A.; OMVP S.p.A. (collectively SKF Italy)

Japan:

    [ast] JTEKT Corporation (JTEKT-formerly known as Koyo Seiko Co., 
Ltd.)
    [ast] NSK Ltd. (NSK)
    [ast] NTN Corporation (NTN)
    [ast] Nachi-Fujikoshi Corporation (Nachi)
    [ast] Nippon Pillow Block Company, Ltd. (NPB)
    [ast] Sapporo Precision Inc. (Sapporo)
    [ast] The Barden Corporation (UK) Limited; FAG (U.K.) Limited 
(collectively Barden/FAG)

United Kingdom:

    [ast] The Barden Corporation (UK) Limited; FAG (U.K.) Limited 
(collectively Barden/FAG)
    We invited interested parties to comment on the preliminary 
results. At the request of certain parties, we held a hearing for 
Japan-specific issues on May 11, 2006. The Department has conducted 
these administrative reviews in accordance with section 751 of the 
Tariff Act of 1930, as amended (the Act).

Scope of Orders

    The products covered by these orders are ball bearings (other than 
tapered roller bearings) and parts thereof. These products include all 
bearings that employ balls as the rolling element. Imports of these 
products are classified under the following categories: antifriction 
balls, ball bearings with integral shafts, ball bearings (including 
radial ball bearings) and parts thereof, and housed or mounted ball 
bearing units and parts thereof.
    Imports of these products are classified under the following 
Harmonized Tariff Schedules of the United States (HTSUS) subheadings: 
3926.90.45, 4016.93.00, 4016.93.10, 4016.93.50, 6909.19.5010, 
8431.20.00, 8431.39.0010, 8482.10.10, 8482.10.50, 8482.80.00, 
8482.91.00, 8482.99.05, 8482.99.2580, 8482.99.35, 8482.99.6595, 
8483.20.40, 8483.20.80, 8483.50.8040, 8483.50.90, 8483.90.20, 
8483.90.30, 8483.90.70, 8708.50.50, 8708.60.50, 8708.60.80, 
8708.70.6060, 8708.70.8050, 8708.93.30, 8708.93.5000, 8708.93.6000, 
8708.93.75, 8708.99.06, 8708.99.31, 8708.99.4960, 8708.99.50, 
8708.99.5800, 8708.99.8080, 8803.10.00, 8803.20.00, 8803.30.00, 
8803.90.30, and 8803.90.90.
    Although the HTSUS item numbers above are provided for convenience 
and customs purposes, written descriptions of the scope of these orders 
remain dispositive.
    The size or precision grade of a bearing does not influence whether 
the bearing is covered by one of the orders. These orders cover all the 
subject bearings and parts thereof (inner race, outer race, cage, 
rollers, balls, seals, shields, etc.) outlined above with certain 
limitations. With regard to finished parts, all such parts are included 
in the scope of the these orders. For unfinished parts, such parts are 
included if (1) they have been heat-treated, or (2) heat treatment is 
not required to be performed on the part. Thus, the only unfinished 
parts that are not covered by these orders are those that will be 
subject to heat treatment after importation. The ultimate application 
of a bearing also does not influence whether the bearing is covered by 
the orders. Any of the subject bearings, regardless of whether they may 
ultimately be utilized in aircraft, automobiles, or other equipment, 
are within the scope of these orders.
    For a listing of scope determinations which pertain to the orders, 
see the Scope Determination Memorandum (Scope Memorandum) from the 
Antifriction Bearings Team to Laurie Parkhill, dated March 2, 2006. The 
Scope Memorandum is on file in the Central Records Unit (CRU), main 
Commerce building, Room B-099, in the General Issues record (A-100-001) 
for the 04/05 reviews.

Analysis of the Comments Received

    All issues raised in the case and rebuttal briefs by parties to the 
concurrent administrative reviews of the orders on ball bearings and 
parts thereof are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memo) from Stephen J. Claeys, Deputy Assistant Secretary, to 
David M. Spooner, Assistant Secretary, dated July 7, 2006, which is 
hereby adopted by this notice. A list of the issues which parties have 
raised and to which we have responded is in the Decision Memo and 
attached to this notice as an Appendix. The Decision Memo, which is a 
public document, is on file in the CRU, main Commerce building, Room B-
099, and is accessible on the Web at https://ia.ita.doc.gov/frn/
index.html. The paper copy and electronic version of the Decision Memo 
are identical in content.

Sales Below Cost in the Home Market

    The Department disregarded home-market sales that failed the cost-
of-production test for the following firms for these final results of 
reviews:

[[Page 40066]]



------------------------------------------------------------------------
           Country                              Company
------------------------------------------------------------------------
France.......................                                   SKF, SNR
Germany......................                  GRW, INA/FAG, SKF Germany
Italy........................                       FAG Italy, SKF Italy
Japan........................                JTEKT, NPB, NSK, NTN, Nachi
United Kingdom...............                                 Barden/FAG
------------------------------------------------------------------------

Use of Adverse Facts Available

    In accordance with section 776(a) of the Act, we determine that the 
use of partial facts available as the basis for the weighted-average 
dumping margin is appropriate for Nachi. As explained in our report of 
the verification of Nachi dated February 9, 2006, we found that Nachi 
reported incorrect physical characteristics for 16 of the 40 models we 
examined at verification. Consequently, we find that for Nachi's U.S. 
sales with nonidentical matches, it is impossible for us to ascertain 
whether the match we might select using Nachi's reported 
characteristics is, in fact, the appropriate match. Therefore, we find 
that, for such U.S. sales, we have to rely on the facts available to 
calculate the margins for these sales.
    In addition, we find that Nachi did not act to the best of its 
ability in reporting its physical characteristics because Nachi had the 
correct data available to it. Accordingly, it is appropriate to use 
adverse inferences in addressing the errors in the characteristics 
Nachi reported in accordance with section 776(b) of the Act. See 
Comment 4 of the Decision Memo for a complete discussion of this issue.
    As adverse facts available, we have selected the highest margin we 
have determined for Nachi in any previous segment of this proceeding 
and applied this rate to all U.S. sales for which we found no identical 
match. This rate is 48.69 percent which we established for Nachi in 
Final Determinations of Sales at Less Than Fair Value; Antifriction 
Bearings (Other Than Tapered Roller Bearings) and Parts Thereof from 
Japan, 54 FR 19101 (May 3, 1989). Furthermore, as required by section 
776(c) of the Act, we were able to corroborate this margin with respect 
to Nachi. For a detailed explanation of how we corroborated this 
margin, see our preliminary analysis memorandum for Nachi dated March 
2, 2006.

Other Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made revisions 
that have changed the results for certain firms. We have corrected 
programming and ministerial errors in the preliminary results, where 
applicable. Any alleged programming or ministerial errors about which 
we or the parties do not agree are discussed in Section 9 of the 
Decision Memo.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins 
on ball bearings and parts thereof exist for the period May 1, 2004, 
through April 30, 2005:

----------------------------------------------------------------------------------------------------------------
                       Country                                   Company                       Margin
----------------------------------------------------------------------------------------------------------------
France..............................................                    SKF France                         12.57
                                                                               SNR                         11.75
Germany.............................................                       FAG/INA                          4.04
                                                                               GRW                          1.14
                                                                       SKF Germany                          7.35
Italy...............................................                     FAG Italy                          2.52
                                                                         SKF Italy                          7.65
Japan...............................................                         JTEKT                         19.76
                                                                             Nachi                         16.02
                                                                               NSK                          6.93
                                                                               NTN                          9.32
                                                                               NPB                         25.91
                                                                           Sapporo                          9.00
United Kingdom......................................                    Barden/FAG                          0.23
----------------------------------------------------------------------------------------------------------------

Assessment Rates

    The Department will determine and U.S. Customs and Boarder 
Protection (CBP) shall assess antidumping duties on all appropriate 
entries. We intend to issue appropriate assessment instructions 
directly to CBP within 15 days of publication of these final results of 
reviews. In accordance with 19 CFR 351.212(b)(1), we have calculated, 
whenever possible, an importer/customer-specific assessment rate or 
value for subject merchandise.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Notice of Policy Concerning Assessment of Antidumping 
Duties, 68 FR 23954 (May 6, 2003) (Assessment-Policy Notice). This 
clarification will apply to entries of subject merchandise during the 
period of review produced by companies included in these final results 
of reviews for which the reviewed companies did not know that the 
merchandise it sold to the intermediary (e.g., a reseller, trading 
company, or exporter) was destined for the United States. In such 
instances, we will instruct CBP to liquidate unreviewed entries at the 
all-others rate if there is no rate for the intermediary involved in 
the transaction. See the Assessment-Policy Notice for a full discussion 
of this clarification.

a. Export Price

    With respect to export-price (EP) sales, we divided the total 
dumping margins (calculated as the difference between normal value and 
the EP) for each exporter's importer or customer by the total number of 
units the exporter sold to that importer or customer. We will direct 
CBP to assess the resulting per-unit dollar amount against each unit of 
merchandise on each of that importer's or customer's entries under the 
relevant order during the review period.

[[Page 40067]]

b. Constructed Export Price

    For constructed export-price (CEP) sales (sampled and non-sampled), 
we divided the total dumping margins for the reviewed sales by the 
total entered value of those reviewed sales for each importer. We will 
direct CBP to assess the resulting percentage margin against the 
entered customs values for the subject merchandise on each of that 
importer's entries under the relevant order during the review period. 
See 19 CFR 351.212(b)(1).

Cash-Deposit Requirements

    To calculate the cash-deposit rate for each respondent (i.e., each 
exporter and/or manufacturer included in these reviews), we divided the 
total dumping margins for each company by the total net value of that 
company's sales of merchandise during the review period subject to each 
order.
    To derive a single deposit rate for each respondent, we weight-
averaged the EP and CEP deposit rates (using the EP and CEP, 
respectively, as the weighting factors). To accomplish this when we 
sampled CEP sales, we first calculated the total dumping margins for 
all CEP sales during the review period by multiplying the sample CEP 
margins by the ratio of total days in the review period to days in the 
sample weeks. We then calculated a total net value for all CEP sales 
during the review period by multiplying the sample CEP total net value 
by the same ratio. Finally, we divided the combined total dumping 
margins for both EP and CEP sales by the combined total value for both 
EP and CEP sales to obtain the deposit rate.
    We will direct CBP to collect the resulting percentage deposit rate 
against the entered customs value of each of the exporter's entries of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice. Entries 
of parts incorporated into finished bearings before sales to an 
unaffiliated customer in the United States will receive the 
respondent's deposit rate applicable to the order.
    Furthermore, the following deposit requirements will be effective 
upon publication of this notice of final results of administrative 
reviews for all shipments of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication, consistent with section 751(a)(1) of the Act: (1) The 
cash-deposit rates for the reviewed companies will be the rates shown 
above; (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 (LTFV) investigation but the manufacturer is, the cash-
deposit rate will be the rate established for the most recent period 
for the manufacturer of the merchandise; (4) the cash-deposit rate for 
all other manufacturers or exporters will continue to be the ``All 
Others'' rate for the relevant order made effective by the final 
results of review published on July 26, 1993. See Antifriction Bearings 
(Other Than Tapered Roller Bearings) and Parts Thereof from France, et 
al: Final Results of Antidumping Duty Administrative Reviews and 
Revocation in Part of an Antidumping Duty Order, 58 FR 39729 (July 26, 
1993). For ball bearings from Italy, see Antifriction Bearings (Other 
Than Tapered Roller Bearings) and Parts Thereof from France, et al; 
Final Results of Antidumping Duty Administrative Reviews and Partial 
Termination of Administrative Reviews, 61 FR 66471, 66521 (December 17, 
1996). These rates are the ``All Others'' rates from the relevant LTFV 
investigation.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative reviews.
    This notice serves as a 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 these review periods. Failure to comply with 
this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i) of the Act.

    Dated: July 7, 2006.
Joseph A. Spetrini,
Acting Assistant Secretaryfor Import Administration.

Appendix

Comments and Responses

1. Offsetting of Negative Margins
2. Model-Match Methodology
3. Sample and Prototype Sales
4. Use of Adverse Facts Available
5. Inventory Carrying Costs
6. Freight Expenses
7. Affiliation
8. Billing and Other Post-Sale Price Adjustments
9. Ministerial Errors
10. Miscellaneous Issues
    A. U.S. Indirect Selling Expenses
    B. Bearing Design Types
    C. Home-Market Packing
    D. Warehousing Expenses
    E. Expansion of Window Period
[FR Doc. E6-11123 Filed 7-13-06; 8:45 am]
BILLING CODE 3510-DS-S