Steel Wire Garment Hangers from the People's Republic of China: Initiation of Antidumping Duty Investigation, 52855-52859 [E7-18247]
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Federal Register / Vol. 72, No. 179 / Monday, September 17, 2007 / Notices
Separate Rates and Combination Rates
Bulletin, at 6, explains that, while
continuing the practice of assigning
separate rates only to exporters, all
separate rates that the Department will
now assign in its NME investigations
will be specific to those producers that
supplied the exporter during the POI.
Note, however, that one rate is
calculated for the exporter and all of the
producers which supplied subject
merchandise to it during the POI. This
practice applies both to mandatory
respondents receiving an individually
calculated separate rate as well as the
pool of non–investigated firms receiving
the weighted–average of the
individually calculated rates. This
practice is referred to as the application
of ‘‘combination rates’’ because such
rates apply to specific combinations of
exporters and one or more producers.
The cash–deposit rate assigned to an
exporter will apply only to merchandise
both exported by the firm in question
and produced by a firm that supplied
the exporter during the POI.
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act, a copy of the
public version of the Petitions has been
provided to representatives of the
governments of Australia and the PRC.
We will attempt to provide a copy of the
public version of the Petitions to all
exporters named in the Petitions, as
provided for in 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
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The ITC will preliminarily determine
no later than October 9, 2007, whether
there is a reasonable indication that
imports of EMD from Australia and the
PRC are materially injuring or
threatening material injury to a U.S.
industry. A negative ITC determination
for any country will result in the
investigation being terminated with
respect to that country; otherwise, these
investigations will proceed according to
statutory and regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: September 11, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E7–18257 Filed 9–14–07; 8:45 am]
BILLING CODE 3510–DS–S
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DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–918]
Steel Wire Garment Hangers from the
People’s Republic of China: Initiation
of Antidumping Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 17, 2007.
FOR FURTHER INFORMATION CONTACT: Julia
Hancock or Irene Gorelik, 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) 482–1394 or (202) 482–
6905, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On July 31, 2007, the Department of
Commerce (‘‘Department’’) received a
petition concerning imports of steel
wire garment hangers from the People’s
Republic of China (‘‘PRC’’) (‘‘Petition’’)
filed in proper form by M&B Metal
Products Company, Inc. (‘‘Petitioner’’).
In accordance with section 732(b) of the
Tariff Act of 1930, as amended (‘‘Act’’),
Petitioner alleges that imports of steel
wire garment hangers from the PRC are
being, or are likely to be, sold in the
United States at less than fair value,
within the meaning of section 731 of the
Act, and that such imports are
materially injuring, or threatening
material injury to, an industry in the
United States.
On August 3, 2007, the Department
issued a request for additional
information and clarification of certain
areas of the Petition. Based on the
Department’s request, Petitioner filed its
response on August 8, 2007. On August
16, 2007, the Department issued polling
questionnaires to the domestic industry.
In addition, the Department extended
the initiation deadline because,
pursuant to section 732(c)(1)(B) of the
Act, the Department determined that it
needed to poll the domestic industry to
determine support for the Petition. See
Steel Wire Garment Hangers from the
People’s Republic of China: Extension of
the Deadline for Determining the
Adequacy of the Antidumping Duty
Petition, 72 FR 46606 (August 21, 2007)
(‘‘Extension of Initiation Deadline’’).1
1 Twenty days from the original deadline is
September 9, 2007. However, Department practice
dictates that where a deadline falls on a weekend,
the appropriate deadline is the next business day.
See Notice of Clarification: Application of ‘‘Next
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On August 17, 2007, the Department
issued a second request for additional
information and clarification of certain
areas of the Petition, to which Petitioner
responded on August 27, 2007.
The Department finds that Petitioner
filed this Petition on behalf of the
domestic industry because Petitioner is
an interested party as defined in section
771(9)(C) and (D) of the Act, and has
demonstrated sufficient industry
support with respect to the antidumping
duty investigation that Petitioner is
requesting that the Department initiate
(see ‘‘Determination of Industry Support
for the Petition’’ section below). The
period of investigation (‘‘POI’’) is
January 1, 2007, through June 30, 2007.
See 19 CFR 351.204(b).
Scope of Investigation
The merchandise that is subject to
this investigation is steel wire garment
hangers, fabricated from carbon steel
wire, whether or not galvanized or
painted, whether or not coated with
latex or epoxy or similar gripping
materials, and/or whether or not
fashioned with paper covers or capes
(with or without printing) and/or
nonslip features such as saddles or
tubes. These products may also be
referred to by a commercial designation,
such as shirt, suit, strut, caped, or latex
(industrial) hangers. Specifically
excluded from the scope of this
investigation are wooden, plastic, and
other garment hangers that are classified
under separate subheadings of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). The products
subject to this investigation are
currently classified under HTSUS
subheading 7326.20.0020. Although the
HTSUS subheading is provided for
convenience and customs purposes, the
written description of the merchandise
is dispositive.
Comments on the Scope of Investigation
During our review of the Petition, we
discussed the scope with Petitioner to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
regulations, we are setting aside a
period for interested parties to raise
issues regarding product coverage. See
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323
(May 19, 1997). The Department
encourages all interested parties to
submit such comments within 20
calendar days of signature of this notice.
Business Day’’ Rule for Administrative
Determination Deadlines Pursuant to the Act, 70 FR
24533 (May 10, 2005).
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Federal Register / Vol. 72, No. 179 / Monday, September 17, 2007 / Notices
Comments should be addressed to
Import Administration’s Central
Records Unit (‘‘CRU’’), Room 1870, U.S.
Department of Commerce, 14th Street
and Constitution Avenue, NW,
Washington, DC 20230 - Attention: Julia
Hancock and Irene Gorelik, Room
2814B. The period of scope
consultations is intended to provide the
Department with ample opportunity to
consider all comments and to consult
with parties prior to the issuance of the
preliminary determination.
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Comments on Product Characteristics
for Antidumping Duty Questionnaire
We are requesting comments from
interested parties regarding the
appropriate physical characteristics of
steel wire garment hangers to be
reported in response to the
Department’s antidumping
questionnaire. For example, we are
considering whether physical
characteristics such as steel grade, types
of steel wire and/or steel wire rod, steel
wire gauge, hanger length, whether or
not painted, type of latex, fashioned
with a strut or saddle, fashioned with
paper covers or capes, and the bottom
bar length are relevant. This information
will be used to identify the key physical
characteristics of the subject
merchandise in order for respondents to
report more accurately the relevant
factors of production, in accordance
with the Department’s non–market
economy (‘‘NME’’) methodology, as
described in the ‘‘Normal Value’’
section below.
Interested parties may provide any
information or comments that they
believe are relevant to the development
of an accurate listing of physical
characteristics. Specifically, they may
provide comments as to which
characteristics are appropriate to use as
the product reporting criteria. We note
that it is not always appropriate to use
all product characteristics as product
reporting criteria.
In order to consider the suggestions of
interested parties in developing and
issuing the antidumping duty
questionnaire, we must receive non–
proprietary comments at the above–
referenced address by October 1, 2007,
and rebuttal comments must be timely
filed by October 11, 2007.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) at least 25
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percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A), or (ii) determine
industry support using a statistically
valid sampling method.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The International
Trade Commission (‘‘ITC’’), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law. See USEC, Inc. v.
United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp. Ltd. v.
United States, 688 F. Supp. 639, 644
(CIT 1988), aff’d 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this subtitle.’’ Thus,
the reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation,’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
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record, we have determined that wire
hangers constitute a single domestic like
product and we have analyzed industry
support in terms of that domestic like
product. For a discussion of the
domestic like product analysis in this
case, see the Antidumping Duty
Investigation Initiation Checklist: Steel
Wire Garment Hangers from the
People’s Republic of China (PRC),
Industry Support at Attachment II
(‘‘Initiation Checklist’’), on file in the
CRU.
As stated above, on August 21, 2007,
the Department published a notice
extending the initiation deadline by 20
days to poll the domestic industry, in
accordance with section 732(c)(4)D) of
the Act, because it was ‘‘not clear from
the Petition whether the industry
support criteria have been met...’’ See
Extension of Initiation Deadline, 72 FR
at 46606. On August 16, 2007, we issued
polling questionnaires to all known
domestic producers of wire hangers
identified in the Petition and by the
Department’s research. The
questionnaires are on file in the CRU.
For a detailed discussion of the
responses received, see Initiation
Checklist at Attachment II.
Based on an analysis of the data
collected from polling the domestic
industry, we determine that the
domestic producers or workers who
support the Petition account for at least
25 percent of the total production of the
domestic like product, and the
requirements of section 732(c)(4)(A)(i)
of the Act are met. Furthermore, given
that Petitioner and supporters of the
Petition represent more than 50 percent
of the production of the domestic like
product provided by that portion of the
industry expressing support or
opposition to the Petition, the
requirements of section 732(c)(4)(A)(ii)
of the Act are also met. Accordingly, we
determine that this Petition is filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act. See Initiation Checklist at
Attachment II.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in sections
771(9)(C) and (D) of the Act and it has
demonstrated sufficient industry
support with respect to the antidumping
duty investigation that it is requesting
the Department initiate. See Initiation
Checklist at Attachment II.
Allegations and Evidence of Material
Injury and Causation
Petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured by
reason of the imports of the subject
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merchandise sold at less than NV.
Petitioner contends that the industry’s
injured condition is illustrated by
reduced market share, production,
capacity and capacity utilization,
shipments, by underselling and price
depressing and suppressing effects, by
lost revenue and sales, by reduced
employment, by decline in financial
performance, and by an increase in
import penetration. We have assessed
the allegations and supporting evidence
regarding material injury, threat of
material injury, and causation, and we
have determined that these allegations
are properly supported by adequate
evidence and meet the statutory
requirements for initiation. See
Initiation Checklist at Attachment III.
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Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which the Department based its
decision to initiate this investigation of
imports of steel wire garment hangers
from the PRC. The sources of data for
the deductions and adjustments relating
to the U.S. price and the factors of
production are also discussed in the
Initiation Checklist. See Initiation
Checklist. Should the need arise to use
any of this information as facts
available, pursuant to section 776 of the
Act, in our preliminary or final
determination, we will reexamine the
information and revise the margin
calculations, if appropriate.
Export Price
Petitioner relied on 12 U.S. prices for
steel wire garment hangers
manufactured in the PRC and offered for
sale in the United States. The prices
quoted were for four different types of
steel wire garment hangers falling
within the scope of the this Petition, for
delivery to the U.S. customer within the
POI. Petitioner deducted from the prices
the costs associated with exporting and
delivering the product, including ocean
freight and insurance charges, and U.S.
duty, port and wharfage fees. See
Initiation Checklist. Petitioner provided
declarations indicating the importer
profit margin and based international
freight on its knowledge and experience.
See Petition at Exhibit 36, and
Supplement to the Petition, dated
August 8, 2007, at pages 16–17.
Additionally, Petitioner deducted from
the prices a U.S. credit adjustment using
the average prime rate for the POI from
the U.S. Federal Reserve, at https://
www.federalreserve.gov. See Initiation
Checklist, at Attachment V; Supplement
to the Petition, dated August 27, 2007,
at Attachment 3.
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Petitioner also calculated a margin
based on the weighted average unit
value (‘‘AUV’’) data for the POI of
imports from the PRC under HTSUS
subheading 7326.20.0020, which
contains only subject merchandise.
Since the AUV for HTS 7326.20.0020 is
on an FOB basis, there were no
deductions made from the AUV to
obtain the U.S. price.
Normal Value
Petitioner stated that the PRC remains
an NME country and no determination
to the contrary has yet been made by the
Department. Recently, the Department
examined the PRC’s market status and
determined that NME status should
continue for the PRC. See Memorandum
from the Office of Policy to David M.
Spooner, Assistant Secretary for Import
Administration, Regarding the People’s
Republic of China Status as a Non–
Market Economy, dated May 15, 2006.
(This document is available online at
https://ia.ita.doc.gov/download /prc–
nme-status/prc–nme-status–memo.pdf.)
In addition, in two recent investigations,
the Department also determined that the
PRC is an NME country. See Final
Determination of Sales at Less Than
Fair Value: Certain Activated Carbon
from the People’s Republic of China, 72
FR 9508 (March 2, 2007); Final
Determination of Sales at Less Than
Fair Value and Partial Affirmative
Determination of Critical
Circumstances: Certain Polyester Staple
Fiber from the People’s Republic of
China, 72 FR 19690 (April 19, 2007). In
accordance with section 771(18)(C)(i) of
the Act, the presumption of NME status
remains in effect until revoked by the
Department. The presumption of NME
status for the PRC has not been revoked
by the Department and remains in effect
for purposes of the initiation of this
investigation. Accordingly, the NV of
the product is appropriately based on
factors of production valued in a
surrogate market economy country in
accordance with section 773(c) of the
Act. In the course of this investigation,
all parties will have the opportunity to
provide relevant information related to
the issues of the PRC’s NME status and
the granting of separate rates to
individual exporters.
Petitioner selected India as the
surrogate country arguing that, pursuant
to section 773(c)(4) of the Act, India is
an appropriate surrogate because it is a
market economy country that is at a
level of economic development
comparable to that of the PRC and there
is publicly available information from
India. See Petition at 39. Although India
is not a significant producer of steel
wire garment hangers, Petitioner argued
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that India is a significant producer of
comparable steel wire products. Id. at
40. Moreover, Petitioner argued that
other potential surrogate countries, i.e.,
Egypt, Indonesia, the Philippines, and
Sri Lanka, not only are not significant
producers of steel wire garment hangers,
but also are not significant producers of
comparable steel wire products. Based
on the information provided by
Petitioner, we believe that the use of
India as a surrogate country is
appropriate for purposes of initiation.
After the initiation of the investigation,
we will solicit comments regarding
surrogate country selection. Also,
pursuant to 19 CFR 351.301(c)(3)(i),
interested parties will be provided an
opportunity to submit publicly available
information to value factors of
production within 40 days of the date of
signature of the preliminary
determination.
Petitioner provided dumping margin
calculations using the Department’s
NME methodology as required by 19
CFR 351.202(b)(7)(i)(C) and 19 CFR
351.408. Petitioner calculated NVs for
each U.S. price discussed above based
on the consumption rates for producing
steel wire garment hangers from a U.S.
producer, which it stated should be
similar to the consumption of PRC
producers. See Petition at 41. Petitioner
used this U.S. producer’s consumption
figures for October 2005 to September
2006. See Supplement to the Petition,
dated August 8, 2007, at Exhibit I.
For the NV calculations, Petitioner
was unable to obtain surrogate value
figures contemporaneous with the POI
for all material inputs, and accordingly
relied upon the most recent information
available. The source of this data is the
World Trade Atlas compilation of
Indian import statistics, which provided
data through December 2006 at the time
the Petition was filed. See Petition at
Exhibit 29. To value certain factors of
production, Petitioner used official
Indian government import statistics,
excluding those values from countries
previously determined by the
Department to be NME countries and
excluding imports into India from
Indonesia, the Republic of Korea, and
Thailand, because the Department has
previously excluded prices from these
countries because they maintain broadly
available, non–industry specific export
subsidies. See Final Results of
Administrative Review and Final
Results of New Shipper Review: Hand
Trucks and Certain Parts Thereof from
the People’s Republic of China, 72 FR
27287 (May 15, 2007), and
accompanying Issues and Decision
Memorandum at Comment 23.
Additionally, Petitioner also
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disregarded prices from North Korea, as
the Department has in previous cases.
See Final Results of Antidumping Duty
Administrative Review: Chrome–Plated
Lug Nuts from the People’s Republic of
China, 61 FR 58514 (November 15,
1996); Preliminary Results of
Antidumping Duty Administrative
Review: Certain Frozen Fish Fillets from
the Socialist Republic of Vietnam, 71 FR
53387, 53399 (September 11, 2006).
For inputs valued in Indian rupees
and not contemporaneous with the POI,
Petitioner used information from the
wholesale price indices (‘‘WPI’’) in
India as published in International
Financial Statistics by the International
Monetary Fund to inflate the input
prices. See Petition at Exhibits 33 and
34; Supplement to the Petition, dated
August 27, 2007, at Attachment 1. In
addition, Petitioner made currency
conversions, where necessary, based on
the average rupee/U.S. dollar exchange
rate for the POI, as reported on the
Department’s Web site at https://
ia.ita.doc.gov/exchange/.
Petitioner valued electricity in the
production of steel wire garment
hangers based on the Indian electricity
rate as reported in the Key World
Energy Statistics 2003, published by the
International Energy Agency for the year
2000. See Petition at Exhibit 30
(Memorandum to the File, through Alex
Villanueva, Program Manager, Office 9,
Import Administration, from Matthew
Renkey, Senior Analyst, RE:
Antidumping Duty Administrative
Review of Glycine from the People’s
Republic of China: Surrogate Values for
the Preliminary Results, dated April 2,
2007 (‘‘Glycine from the PRC’’)).
Petitioner valued water using the value
from Glycine from the PRC, which was
calculated from the simple average rate
of water for industrial use from various
regions as reported by the Maharashtra
Industrial Development Corporation at
https://midcindia.org., dated June 1,
2003. Id. Petitioner valued natural gas
using the 2005 rate for India published
by the American Chemistry Council. See
Petition at Exhibit 31. In each case,
Petitioner adjusted these figures for
inflation to the POI using WPI data. See
Supplement to the Petition, dated
August 27, 2007, at Attachments 1–2.
For the NV calculations, Petitioner
calculated the surrogate financial ratios
from the factory overhead, selling,
general and administrative expenses,
and profitability of an Indian
manufacturer of steel fasteners, Lakshmi
Precision Screws Ltd. (‘‘Lakshmi’’),
which were used in the initiation of
certain steel nails from the PRC. See
Initiation of Antidumping Investigation:
Certain Steel Nails from the People’s
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Republic of China and the United Arab
Emirates, 72 FR 38816 (July 16, 2007)
(‘‘Initiation of Nails from the PRC’’); see
also Petition at 42 and Exhibit 35.
Petitioner claims that Lakshmi is an
appropriate source for surrogate
financial ratios because the company
produces fabricated wire products that
use the same input, steel wire, as steel
wire garment hangers and the
company’s data is publicly available.
Petitioner states that Lakshmi produces
its finished downstream wire products
in a manner similar to steel wire
garment hangers, i.e., specifically
feeding the steel wire from coils into a
machine where the wire is straightened,
cut to the designated length, and formed
into the finished product. See
Supplement to the Petition, dated
August 8, 2007, at 26. Petitioner stated
that it was unable to find public
financial statements from Indian steel
wire garment hanger producers because
India does not have a domestic garment
hanger industry; therefore, Petitioner
argues, Lakshmi provides the best
information reasonably available as a
surrogate for the production of steel
wire garment hangers in the PRC. See
Supplement to the Petition, dated
August 8, 2007, at 19.
The Department finds that Petitioner’s
use of Lakshmi as the source for the
surrogate financial expenses is
appropriate for purposes of initiation.
Specifically, the Department finds that
Lakshmi is the best publicly available
source for the surrogate financial ratios
because Lakshmi produces wire
products using a main input and a
production process similar to that of
steel wire garment hangers. However,
the Department made minor
modifications to the surrogate financial
ratios calculated by Petitioner.
Additionally, the Department made a
minor modification to the weighted
average NV for the POI of imports from
the PRC under HTSUS subheading
7326.20.0020. As a result, the
calculations for the 12 NVs, the
weighted–average NV, and the resulting
margin calculations changed slightly.
See Initiation Checklist at Attachment
V.
Fair Value Comparisons
Based on the data provided by
Petitioner, there is reason to believe that
imports of steel wire garment hangers
from the PRC are being, or are likely to
be, sold in the United States at less than
fair value. Based on comparisons of
export price to NV, calculated in
accordance with section 773(c) of the
Act, the estimated dumping margins for
steel wire garment hangers from the PRC
range from 203.02 to 618 percent.
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However, the Department may re–
examine these carefully if it becomes
necessary to consider the Petition
margins for purposes of applying
adverse facts available.
Initiation of Antidumping Investigation
Based upon the examination of
Petition on steel wire garment hangers
from the PRC, the Department finds that
the Petition meets the requirements of
section 732 of the Act. Therefore, we are
initiating this antidumping duty
investigation to determine whether
imports of steel wire garment hangers
from the PRC are being, or are likely to
be, sold in the United States at less than
fair value. In accordance with section
733(b)(1)(A) of the Act, unless
postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
Separate Rates
The Department recently modified the
process by which exporters and
producers may obtain separate–rate
status in NME investigations. See Policy
Bulletin 05.1: Separate–Rates Practice
and Application of Combination Rates
in Antidumping Investigations
involving Non–Market Economy
Countries (April 5, 2005) (Separate
Rates and Combination Rates Bulletin),
available on the Department’s website at
https://ia.ita.doc.gov/policy/bull05–
1.pdf. The process requires the
submission of a separate–rate status
application. Based on our experience in
processing the separate–rate
applications in the following
antidumping duty investigations, we
have modified the application for this
investigation to make it more
administrable and easier for applicants
to complete. See Initiation of
Antidumping Duty Investigation:
Certain New Pneumatic Off–the-Road
Tires from the People’s Republic of
China, 72 FR 43591 (August 6, 2007)
(‘‘Tires from the PRC’’); Initiation of
Nails from the PRC, 72 FR 38816;
Initiation of Antidumping Duty
Investigation: Circular Welded Carbon
Quality Steel Pipe from the People’s
Republic of China, 72 FR 36663 (July 5,
2007); and Initiation of Antidumping
Duty Investigations: Coated Free Sheet
Paper from Indonesia, the People’s
Republic of China, and the Republic of
Korea, 71 FR 68537 (November 27,
2006). The specific requirements for
submitting the separate–rate application
in this investigation are outlined in
detail in the application itself, which
will be available on the Department’s
website at https://ia.ita.doc.gov/ia–
highlights-and–news.html on the date of
publication of this initiation notice in
E:\FR\FM\17SEN1.SGM
17SEN1
Federal Register / Vol. 72, No. 179 / Monday, September 17, 2007 / Notices
the Federal Register. The separate–rate
application is due no later than
November 9, 2007.
Respondent Selection and Quantity and
Value Questionnaire
In recent NME investigations, it has
been the Department’s practice to
request quantity and value information
from all known exporters identified in
the petition. See Initiation of Nails from
the PRC, 72 FR at 38821; Tires from the
PRC, 72 FR at 43595. However, for this
investigation, because HTSUS
subheading 7326.20.00.20, as discussed
above in the ‘‘Scope of the
Investigation,’’ provides comprehensive
coverage of imports of steel wire
garment hangers, the Department
expects to select respondents in this
investigation based on U.S. Customs
and Border Protection (‘‘CBP’’) data of
U.S. imports under HTSUS subheading
7326.20.0020 from the POI.
jlentini on PROD1PC65 with NOTICES
Use of Combination Rates in an NME
Investigation
The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in this investigation. The
Separate Rates and Combination Rates
Bulletin, states:
{w}hile continuing the practice of
assigning separate rates only to
exporters, all separate rates that the
Department will now assign in its
NME investigations will be specific
to those producers that supplied the
exporter during the period of
investigation. Note, however, that
one rate is calculated for the
exporter and all of the producers
which supplied subject
merchandise to it during the period
of investigation. This practice
applies both to mandatory
respondents receiving an
individually calculated separate
rate as well as the pool of non–
investigated firms receiving the
weighted–average of the
individually calculated rates. This
practice is referred to as the
application of ‘‘combination rates’’
because such rates apply to specific
combinations of exporters and one
or more producers. The cash–
deposit rate assigned to an exporter
will apply only to merchandise
both exported by the firm in
question and produced by a firm
that supplied the exporter during
the period of investigation.
See Separate Rates and Combination
Rates Bulletin, at 6.
VerDate Aug<31>2005
17:00 Sep 14, 2007
Jkt 211001
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act, copies of the
public version of the Petition have been
provided to the representative of the
Government of the PRC. We will
attempt to provide a copy of the public
version of the Petition to the foreign
producers/exporters, consistent with 19
CFR 351.203(c)(2).
International Trade Commission
Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the
International Trade Commission
The ITC will preliminarily determine,
within 25 days after the date on which
it receives notice of this initiation,
whether there is a reasonable indication
that imports of steel wire garment
hangers from the PRC are causing, or
threatening to cause, material injury to
a U.S. industry. See section
733(a)(2)(A)(i) of the Act. A negative ITC
determination will result in the
investigation being terminated;
otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: September 10, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E7–18247 Filed 9–14–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–913]
Certain New Pneumatic Off–the-Road
Tires from the People’s Republic of
China: Postponement of Preliminary
Determination in the Countervailing
Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 17, 2007.
FOR FURTHER INFORMATION CONTACT:
Mark Hoadley, Toni Page, or Jack Zhao,
AD/CVD Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–3148, (202) 482–
1398 and (202) 482–1396, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
52859
Background
On July 30, 2007, the Department of
Commerce (Department) initiated the
countervailing duty investigation of
certain new pneumatic off–the-road
tires (OTR tires) from the People’s
Republic of China. See Certain New
Pneumatic Off–the-Road Tires From the
People’s Republic of China: Initiation of
Countervailing Duty Investigation, 72 FR
44122 (August 7, 2007). Currently, the
preliminary determination is due no
later than October 3, 2007.
Postponement of Due Date for
Preliminary Determination
On August 23, 2007, Titan Tire
Corporation and United Steel, Paper and
Forestry, Rubber, Manufacturing, Energy
Allied Industrial and Service Workers
International Union, AFL–CIO-CLC
(collectively, petitioners), submitted a
letter requesting that the Department
postpone the preliminary determination
of the countervailing duty investigation
of OTR tires from the People’s Republic
of China by 65 days. Under section
703(c)(1)(A) of the Tariff Act of 1930, as
amended (the Act), the Department may
extend the period for reaching a
preliminary determination in a
countervailing duty investigation until
not later than the 130th day after the
date on which the administering
authority initiates an investigation if the
petitioner makes a timely request for an
extension of the period within which
the determination must be made under
section 703(b) of the Act. Pursuant to
section 351.205(e) of the Department’s
regulations, the petitioners’ request for
postponement of the preliminary
determination was made 25 days or
more before the scheduled date of the
preliminary determination.
Accordingly, we are extending the due
date for the preliminary determination
by 65 days to December 7, 2007.
This notice is issued and published
pursuant to section 703(c)(2) of the Act.
Dated: September 11, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. E7–18256 Filed 9–14–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
National Institute of Standards and
Technology
National Institute of Standards and
Technology Performance Review
Board Membership
The National Institute of Standards
and Technology (NIST PRB) reviews
E:\FR\FM\17SEN1.SGM
17SEN1
Agencies
[Federal Register Volume 72, Number 179 (Monday, September 17, 2007)]
[Notices]
[Pages 52855-52859]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18247]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-918]
Steel Wire Garment Hangers from the People's Republic of China:
Initiation of Antidumping Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 17, 2007.
FOR FURTHER INFORMATION CONTACT: Julia Hancock or Irene Gorelik, 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-
1394 or (202) 482-6905, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On July 31, 2007, the Department of Commerce (``Department'')
received a petition concerning imports of steel wire garment hangers
from the People's Republic of China (``PRC'') (``Petition'') filed in
proper form by M&B Metal Products Company, Inc. (``Petitioner''). In
accordance with section 732(b) of the Tariff Act of 1930, as amended
(``Act''), Petitioner alleges that imports of steel wire garment
hangers from the PRC are being, or are likely to be, sold in the United
States at less than fair value, within the meaning of section 731 of
the Act, and that such imports are materially injuring, or threatening
material injury to, an industry in the United States.
On August 3, 2007, the Department issued a request for additional
information and clarification of certain areas of the Petition. Based
on the Department's request, Petitioner filed its response on August 8,
2007. On August 16, 2007, the Department issued polling questionnaires
to the domestic industry. In addition, the Department extended the
initiation deadline because, pursuant to section 732(c)(1)(B) of the
Act, the Department determined that it needed to poll the domestic
industry to determine support for the Petition. See Steel Wire Garment
Hangers from the People's Republic of China: Extension of the Deadline
for Determining the Adequacy of the Antidumping Duty Petition, 72 FR
46606 (August 21, 2007) (``Extension of Initiation Deadline'').\1\ On
August 17, 2007, the Department issued a second request for additional
information and clarification of certain areas of the Petition, to
which Petitioner responded on August 27, 2007.
---------------------------------------------------------------------------
\1\ Twenty days from the original deadline is September 9, 2007.
However, Department practice dictates that where a deadline falls on
a weekend, the appropriate deadline is the next business day. See
Notice of Clarification: Application of ``Next Business Day'' Rule
for Administrative Determination Deadlines Pursuant to the Act, 70
FR 24533 (May 10, 2005).
---------------------------------------------------------------------------
The Department finds that Petitioner filed this Petition on behalf
of the domestic industry because Petitioner is an interested party as
defined in section 771(9)(C) and (D) of the Act, and has demonstrated
sufficient industry support with respect to the antidumping duty
investigation that Petitioner is requesting that the Department
initiate (see ``Determination of Industry Support for the Petition''
section below). The period of investigation (``POI'') is January 1,
2007, through June 30, 2007. See 19 CFR 351.204(b).
Scope of Investigation
The merchandise that is subject to this investigation is steel wire
garment hangers, fabricated from carbon steel wire, whether or not
galvanized or painted, whether or not coated with latex or epoxy or
similar gripping materials, and/or whether or not fashioned with paper
covers or capes (with or without printing) and/or nonslip features such
as saddles or tubes. These products may also be referred to by a
commercial designation, such as shirt, suit, strut, caped, or latex
(industrial) hangers. Specifically excluded from the scope of this
investigation are wooden, plastic, and other garment hangers that are
classified under separate subheadings of the Harmonized Tariff Schedule
of the United States (``HTSUS''). The products subject to this
investigation are currently classified under HTSUS subheading
7326.20.0020. Although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the merchandise is
dispositive.
Comments on the Scope of Investigation
During our review of the Petition, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the regulations, we are setting aside a
period for interested parties to raise issues regarding product
coverage. See Antidumping Duties; Countervailing Duties; Final Rule, 62
FR 27296, 27323 (May 19, 1997). The Department encourages all
interested parties to submit such comments within 20 calendar days of
signature of this notice.
[[Page 52856]]
Comments should be addressed to Import Administration's Central Records
Unit (``CRU''), Room 1870, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230 - Attention: Julia
Hancock and Irene Gorelik, Room 2814B. The period of scope
consultations is intended to provide the Department with ample
opportunity to consider all comments and to consult with parties prior
to the issuance of the preliminary determination.
Comments on Product Characteristics for Antidumping Duty Questionnaire
We are requesting comments from interested parties regarding the
appropriate physical characteristics of steel wire garment hangers to
be reported in response to the Department's antidumping questionnaire.
For example, we are considering whether physical characteristics such
as steel grade, types of steel wire and/or steel wire rod, steel wire
gauge, hanger length, whether or not painted, type of latex, fashioned
with a strut or saddle, fashioned with paper covers or capes, and the
bottom bar length are relevant. This information will be used to
identify the key physical characteristics of the subject merchandise in
order for respondents to report more accurately the relevant factors of
production, in accordance with the Department's non-market economy
(``NME'') methodology, as described in the ``Normal Value'' section
below.
Interested parties may provide any information or comments that
they believe are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as the product reporting
criteria. We note that it is not always appropriate to use all product
characteristics as product reporting criteria.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping duty questionnaire, we must
receive non-proprietary comments at the above-referenced address by
October 1, 2007, and rebuttal comments must be timely filed by October
11, 2007.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A), or (ii) determine industry support using a
statistically valid sampling method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (``ITC''),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United
States, 688 F. Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this subtitle.'' Thus, the reference point from which the
domestic like product analysis begins is ``the article subject to an
investigation,'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that wire hangers constitute a single
domestic like product and we have analyzed industry support in terms of
that domestic like product. For a discussion of the domestic like
product analysis in this case, see the Antidumping Duty Investigation
Initiation Checklist: Steel Wire Garment Hangers from the People's
Republic of China (PRC), Industry Support at Attachment II
(``Initiation Checklist''), on file in the CRU.
As stated above, on August 21, 2007, the Department published a
notice extending the initiation deadline by 20 days to poll the
domestic industry, in accordance with section 732(c)(4)D) of the Act,
because it was ``not clear from the Petition whether the industry
support criteria have been met...'' See Extension of Initiation
Deadline, 72 FR at 46606. On August 16, 2007, we issued polling
questionnaires to all known domestic producers of wire hangers
identified in the Petition and by the Department's research. The
questionnaires are on file in the CRU. For a detailed discussion of the
responses received, see Initiation Checklist at Attachment II.
Based on an analysis of the data collected from polling the
domestic industry, we determine that the domestic producers or workers
who support the Petition account for at least 25 percent of the total
production of the domestic like product, and the requirements of
section 732(c)(4)(A)(i) of the Act are met. Furthermore, given that
Petitioner and supporters of the Petition represent more than 50
percent of the production of the domestic like product provided by that
portion of the industry expressing support or opposition to the
Petition, the requirements of section 732(c)(4)(A)(ii) of the Act are
also met. Accordingly, we determine that this Petition is filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act. See Initiation Checklist at Attachment II.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in sections 771(9)(C) and (D) of the Act and it has demonstrated
sufficient industry support with respect to the antidumping duty
investigation that it is requesting the Department initiate. See
Initiation Checklist at Attachment II.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that the U.S. industry producing the domestic
like product is being materially injured by reason of the imports of
the subject
[[Page 52857]]
merchandise sold at less than NV. Petitioner contends that the
industry's injured condition is illustrated by reduced market share,
production, capacity and capacity utilization, shipments, by
underselling and price depressing and suppressing effects, by lost
revenue and sales, by reduced employment, by decline in financial
performance, and by an increase in import penetration. We have assessed
the allegations and supporting evidence regarding material injury,
threat of material injury, and causation, and we have determined that
these allegations are properly supported by adequate evidence and meet
the statutory requirements for initiation. See Initiation Checklist at
Attachment III.
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate this investigation of imports of steel wire garment hangers
from the PRC. The sources of data for the deductions and adjustments
relating to the U.S. price and the factors of production are also
discussed in the Initiation Checklist. See Initiation Checklist. Should
the need arise to use any of this information as facts available,
pursuant to section 776 of the Act, in our preliminary or final
determination, we will reexamine the information and revise the margin
calculations, if appropriate.
Export Price
Petitioner relied on 12 U.S. prices for steel wire garment hangers
manufactured in the PRC and offered for sale in the United States. The
prices quoted were for four different types of steel wire garment
hangers falling within the scope of the this Petition, for delivery to
the U.S. customer within the POI. Petitioner deducted from the prices
the costs associated with exporting and delivering the product,
including ocean freight and insurance charges, and U.S. duty, port and
wharfage fees. See Initiation Checklist. Petitioner provided
declarations indicating the importer profit margin and based
international freight on its knowledge and experience. See Petition at
Exhibit 36, and Supplement to the Petition, dated August 8, 2007, at
pages 16-17. Additionally, Petitioner deducted from the prices a U.S.
credit adjustment using the average prime rate for the POI from the
U.S. Federal Reserve, at https://www.federalreserve.gov. See Initiation
Checklist, at Attachment V; Supplement to the Petition, dated August
27, 2007, at Attachment 3.
Petitioner also calculated a margin based on the weighted average
unit value (``AUV'') data for the POI of imports from the PRC under
HTSUS subheading 7326.20.0020, which contains only subject merchandise.
Since the AUV for HTS 7326.20.0020 is on an FOB basis, there were no
deductions made from the AUV to obtain the U.S. price.
Normal Value
Petitioner stated that the PRC remains an NME country and no
determination to the contrary has yet been made by the Department.
Recently, the Department examined the PRC's market status and
determined that NME status should continue for the PRC. See Memorandum
from the Office of Policy to David M. Spooner, Assistant Secretary for
Import Administration, Regarding the People's Republic of China Status
as a Non-Market Economy, dated May 15, 2006. (This document is
available online at https://ia.ita.doc.gov/download/prc-nme-status/prc-
nme-status-memo.pdf.) In addition, in two recent investigations, the
Department also determined that the PRC is an NME country. See Final
Determination of Sales at Less Than Fair Value: Certain Activated
Carbon from the People's Republic of China, 72 FR 9508 (March 2, 2007);
Final Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances: Certain Polyester
Staple Fiber from the People's Republic of China, 72 FR 19690 (April
19, 2007). In accordance with section 771(18)(C)(i) of the Act, the
presumption of NME status remains in effect until revoked by the
Department. The presumption of NME status for the PRC has not been
revoked by the Department and remains in effect for purposes of the
initiation of this investigation. Accordingly, the NV of the product is
appropriately based on factors of production valued in a surrogate
market economy country in accordance with section 773(c) of the Act. In
the course of this investigation, all parties will have the opportunity
to provide relevant information related to the issues of the PRC's NME
status and the granting of separate rates to individual exporters.
Petitioner selected India as the surrogate country arguing that,
pursuant to section 773(c)(4) of the Act, India is an appropriate
surrogate because it is a market economy country that is at a level of
economic development comparable to that of the PRC and there is
publicly available information from India. See Petition at 39. Although
India is not a significant producer of steel wire garment hangers,
Petitioner argued that India is a significant producer of comparable
steel wire products. Id. at 40. Moreover, Petitioner argued that other
potential surrogate countries, i.e., Egypt, Indonesia, the Philippines,
and Sri Lanka, not only are not significant producers of steel wire
garment hangers, but also are not significant producers of comparable
steel wire products. Based on the information provided by Petitioner,
we believe that the use of India as a surrogate country is appropriate
for purposes of initiation. After the initiation of the investigation,
we will solicit comments regarding surrogate country selection. Also,
pursuant to 19 CFR 351.301(c)(3)(i), interested parties will be
provided an opportunity to submit publicly available information to
value factors of production within 40 days of the date of signature of
the preliminary determination.
Petitioner provided dumping margin calculations using the
Department's NME methodology as required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. Petitioner calculated NVs for each U.S. price
discussed above based on the consumption rates for producing steel wire
garment hangers from a U.S. producer, which it stated should be similar
to the consumption of PRC producers. See Petition at 41. Petitioner
used this U.S. producer's consumption figures for October 2005 to
September 2006. See Supplement to the Petition, dated August 8, 2007,
at Exhibit I.
For the NV calculations, Petitioner was unable to obtain surrogate
value figures contemporaneous with the POI for all material inputs, and
accordingly relied upon the most recent information available. The
source of this data is the World Trade Atlas compilation of Indian
import statistics, which provided data through December 2006 at the
time the Petition was filed. See Petition at Exhibit 29. To value
certain factors of production, Petitioner used official Indian
government import statistics, excluding those values from countries
previously determined by the Department to be NME countries and
excluding imports into India from Indonesia, the Republic of Korea, and
Thailand, because the Department has previously excluded prices from
these countries because they maintain broadly available, non-industry
specific export subsidies. See Final Results of Administrative Review
and Final Results of New Shipper Review: Hand Trucks and Certain Parts
Thereof from the People's Republic of China, 72 FR 27287 (May 15,
2007), and accompanying Issues and Decision Memorandum at Comment 23.
Additionally, Petitioner also
[[Page 52858]]
disregarded prices from North Korea, as the Department has in previous
cases. See Final Results of Antidumping Duty Administrative Review:
Chrome-Plated Lug Nuts from the People's Republic of China, 61 FR 58514
(November 15, 1996); Preliminary Results of Antidumping Duty
Administrative Review: Certain Frozen Fish Fillets from the Socialist
Republic of Vietnam, 71 FR 53387, 53399 (September 11, 2006).
For inputs valued in Indian rupees and not contemporaneous with the
POI, Petitioner used information from the wholesale price indices
(``WPI'') in India as published in International Financial Statistics
by the International Monetary Fund to inflate the input prices. See
Petition at Exhibits 33 and 34; Supplement to the Petition, dated
August 27, 2007, at Attachment 1. In addition, Petitioner made currency
conversions, where necessary, based on the average rupee/U.S. dollar
exchange rate for the POI, as reported on the Department's Web site at
https://ia.ita.doc.gov/exchange/.
Petitioner valued electricity in the production of steel wire
garment hangers based on the Indian electricity rate as reported in the
Key World Energy Statistics 2003, published by the International Energy
Agency for the year 2000. See Petition at Exhibit 30 (Memorandum to the
File, through Alex Villanueva, Program Manager, Office 9, Import
Administration, from Matthew Renkey, Senior Analyst, RE: Antidumping
Duty Administrative Review of Glycine from the People's Republic of
China: Surrogate Values for the Preliminary Results, dated April 2,
2007 (``Glycine from the PRC'')). Petitioner valued water using the
value from Glycine from the PRC, which was calculated from the simple
average rate of water for industrial use from various regions as
reported by the Maharashtra Industrial Development Corporation at
https://midcindia.org., dated June 1, 2003. Id. Petitioner valued
natural gas using the 2005 rate for India published by the American
Chemistry Council. See Petition at Exhibit 31. In each case, Petitioner
adjusted these figures for inflation to the POI using WPI data. See
Supplement to the Petition, dated August 27, 2007, at Attachments 1-2.
For the NV calculations, Petitioner calculated the surrogate
financial ratios from the factory overhead, selling, general and
administrative expenses, and profitability of an Indian manufacturer of
steel fasteners, Lakshmi Precision Screws Ltd. (``Lakshmi''), which
were used in the initiation of certain steel nails from the PRC. See
Initiation of Antidumping Investigation: Certain Steel Nails from the
People's Republic of China and the United Arab Emirates, 72 FR 38816
(July 16, 2007) (``Initiation of Nails from the PRC''); see also
Petition at 42 and Exhibit 35. Petitioner claims that Lakshmi is an
appropriate source for surrogate financial ratios because the company
produces fabricated wire products that use the same input, steel wire,
as steel wire garment hangers and the company's data is publicly
available. Petitioner states that Lakshmi produces its finished
downstream wire products in a manner similar to steel wire garment
hangers, i.e., specifically feeding the steel wire from coils into a
machine where the wire is straightened, cut to the designated length,
and formed into the finished product. See Supplement to the Petition,
dated August 8, 2007, at 26. Petitioner stated that it was unable to
find public financial statements from Indian steel wire garment hanger
producers because India does not have a domestic garment hanger
industry; therefore, Petitioner argues, Lakshmi provides the best
information reasonably available as a surrogate for the production of
steel wire garment hangers in the PRC. See Supplement to the Petition,
dated August 8, 2007, at 19.
The Department finds that Petitioner's use of Lakshmi as the source
for the surrogate financial expenses is appropriate for purposes of
initiation. Specifically, the Department finds that Lakshmi is the best
publicly available source for the surrogate financial ratios because
Lakshmi produces wire products using a main input and a production
process similar to that of steel wire garment hangers. However, the
Department made minor modifications to the surrogate financial ratios
calculated by Petitioner. Additionally, the Department made a minor
modification to the weighted average NV for the POI of imports from the
PRC under HTSUS subheading 7326.20.0020. As a result, the calculations
for the 12 NVs, the weighted-average NV, and the resulting margin
calculations changed slightly. See Initiation Checklist at Attachment
V.
Fair Value Comparisons
Based on the data provided by Petitioner, there is reason to
believe that imports of steel wire garment hangers from the PRC are
being, or are likely to be, sold in the United States at less than fair
value. Based on comparisons of export price to NV, calculated in
accordance with section 773(c) of the Act, the estimated dumping
margins for steel wire garment hangers from the PRC range from 203.02
to 618 percent. However, the Department may re-examine these carefully
if it becomes necessary to consider the Petition margins for purposes
of applying adverse facts available.
Initiation of Antidumping Investigation
Based upon the examination of Petition on steel wire garment
hangers from the PRC, the Department finds that the Petition meets the
requirements of section 732 of the Act. Therefore, we are initiating
this antidumping duty investigation to determine whether imports of
steel wire garment hangers from the PRC are being, or are likely to be,
sold in the United States at less than fair value. In accordance with
section 733(b)(1)(A) of the Act, unless postponed, we will make our
preliminary determination no later than 140 days after the date of this
initiation.
Separate Rates
The Department recently modified the process by which exporters and
producers may obtain separate-rate status in NME investigations. See
Policy Bulletin 05.1: Separate-Rates Practice and Application of
Combination Rates in Antidumping Investigations involving Non-Market
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates
Bulletin), available on the Department's website at https://
ia.ita.doc.gov/policy/bull05-1.pdf. The process requires the submission
of a separate-rate status application. Based on our experience in
processing the separate-rate applications in the following antidumping
duty investigations, we have modified the application for this
investigation to make it more administrable and easier for applicants
to complete. See Initiation of Antidumping Duty Investigation: Certain
New Pneumatic Off-the-Road Tires from the People's Republic of China,
72 FR 43591 (August 6, 2007) (``Tires from the PRC''); Initiation of
Nails from the PRC, 72 FR 38816; Initiation of Antidumping Duty
Investigation: Circular Welded Carbon Quality Steel Pipe from the
People's Republic of China, 72 FR 36663 (July 5, 2007); and Initiation
of Antidumping Duty Investigations: Coated Free Sheet Paper from
Indonesia, the People's Republic of China, and the Republic of Korea,
71 FR 68537 (November 27, 2006). The specific requirements for
submitting the separate-rate application in this investigation are
outlined in detail in the application itself, which will be available
on the Department's website at https://ia.ita.doc.gov/ia-highlights-and-
news.html on the date of publication of this initiation notice in
[[Page 52859]]
the Federal Register. The separate-rate application is due no later
than November 9, 2007.
Respondent Selection and Quantity and Value Questionnaire
In recent NME investigations, it has been the Department's practice
to request quantity and value information from all known exporters
identified in the petition. See Initiation of Nails from the PRC, 72 FR
at 38821; Tires from the PRC, 72 FR at 43595. However, for this
investigation, because HTSUS subheading 7326.20.00.20, as discussed
above in the ``Scope of the Investigation,'' provides comprehensive
coverage of imports of steel wire garment hangers, the Department
expects to select respondents in this investigation based on U.S.
Customs and Border Protection (``CBP'') data of U.S. imports under
HTSUS subheading 7326.20.0020 from the POI.
Use of Combination Rates in an NME Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin,
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the pool
of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.
See Separate Rates and Combination Rates Bulletin, at 6.
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, copies of the
public version of the Petition have been provided to the representative
of the Government of the PRC. We will attempt to provide a copy of the
public version of the Petition to the foreign producers/exporters,
consistent with 19 CFR 351.203(c)(2).
International Trade Commission Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the International Trade Commission
The ITC will preliminarily determine, within 25 days after the date
on which it receives notice of this initiation, whether there is a
reasonable indication that imports of steel wire garment hangers from
the PRC are causing, or threatening to cause, material injury to a U.S.
industry. See section 733(a)(2)(A)(i) of the Act. A negative ITC
determination will result in the investigation being terminated;
otherwise, this investigation will proceed according to statutory and
regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: September 10, 2007.
Joseph A. Spetrini,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E7-18247 Filed 9-14-07; 8:45 am]
BILLING CODE 3510-DS-S