Final Determination of Sales at Less Than Fair Value and Affirmative Determination of Critical Circumstances, in Part: Light-Walled Rectangular Pipe and Tube from the People's Republic of China, 35652-35655 [E8-14252]
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35652
Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
Act, the ITC will determine, within 45
days, whether the domestic industry in
the United States is materially injured,
or threatened with material injury, by
reason of imports or sales (or the
likelihood of sales) for importation of
the subject merchandise. If the ITC
determines that material injury or threat
of material injury does not exist, the
proceeding will be terminated and all
securities posted will be refunded or
canceled. If the ITC determines that
such injury does exist, the Department
will issue an antidumping duty order
directing CBP to assess antidumping
duties on all imports of the subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the effective date of the suspension
of liquidation.
Notification Regarding APO
This notice also serves as a reminder
to parties subject to administrative
protective order (APO) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305. Timely
notification of return/destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and the terms of an APO is a
sanctionable violation.
This determination is issued and
published pursuant to sections 735(d)
and 777(i)(1) of the Act.
Dated: June 13, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
Appendix
General Issues
Comment 1: Whether to Deny Home
Market Price Adjustments
Comment 2: Whether to Accept
Petitioners’ Targeted Dumping
Allegation
Comment 3: Whether to Subtract
Negative Margins from Positive Margins
(‘‘Zeroing’’)
ebenthall on PRODPC60 with NOTICES
Maquilacero S.A de C.V.
Comment 4: Whether to Treat Export
Rebates as an Adjustment to Sales or
Cost of Production
Comment 5: Whether to Use Affiliated
Party Downstream Sales in the
Department’s Analysis
Productos Laminados de Monterrey S.A.
de C.V.
Comment 6: Whether to Apply Adverse
Facts Available to PROLAMSA’s
Affilated Party Downstream Sales
Comment 7: Whether to Make Changes
to the Department’s Programming for
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Currency Conversions used in its
Preliminary Determination
Comment 8: Whether to Adjust
Reported Costs of Manufacturing
Comment 9: Whether to Use Corrected
Variance Allocation Presented at
Verification
Comment 10: Whether to Calculate Cost
of Manufacturing using Historical
Depreciation Costs
[FR Doc. E8–14249 Filed 6–23–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–914]
Final Determination of Sales at Less
Than Fair Value and Affirmative
Determination of Critical
Circumstances, in Part: Light–Walled
Rectangular Pipe and Tube from the
People’s Republic of China
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: June 24, 2008.
SUMMARY: The Department of Commerce
(the Department) has determined that
light–walled rectangular pipe and tube
(LWR) from the People’s Republic of
China (PRC) is being, or is likely to be,
sold in the United States at less than fair
value (LTFV) as provided in section 735
of the Tariff Act of 1930, as amended
(the Act). The final dumping margins for
this investigation are listed in the ‘‘Final
Determination Margins’’ section below.
The period covered by the investigation
is October 1, 2006, through March 31,
2007 (the POI).
FOR FURTHER INFORMATION CONTACT: Jeff
Pedersen or Drew Jackson, AD/CVD
Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC, 20230;
telephone: (202) 482–2769 and 482–
4406, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
The Department published its
preliminary determination of sales at
LTFV on January 30, 2008. See
Preliminary Determination of Sales at
Less Than Fair Value, Postponement of
Final Determination, and Affirmative
Preliminary Determination of Critical
Circumstances, in Part: Light–Walled
Rectangular Pipe and Tube from the
People’s Republic of China, 73 FR 5500
(January 30, 2008) (Preliminary
Determination). Between February 18,
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2008, and February 29, 2008, the
Department conducted verifications of
Zhangjiagang Zhongyuan Pipe–Making
Co., Ltd. (ZZPC) and Kunshan Lets Win
Steel Machinery Co. Ltd. (Lets Win). See
the ‘‘Verification’’ section below for
additional information.
In response to the Department’s
invitation to comment on the
Preliminary Determination, on April 2,
2008, the petitioners,1 ZZPC, and Lets
Win filed case briefs. The petitioners
and ZZPC filed rebuttal briefs on April
7, 2008.
Analysis of Comments Received
All of the issues that were raised in
the case and rebuttal briefs that were
submitted in this investigation are
addressed in the ‘‘Issues and Decision
Memorandum for the Final
Determination in the Antidumping Duty
Investigation of Light–Walled
Rectangular Pipe and Tube from the
People’s Republic of China,’’ dated June
13, 2008, which is hereby adopted by
this notice (Issues and Decision
Memorandum). Appendix I to this
notice contains a list of the issues that
are addressed in the Issues and Decision
Memorandum. The Issues and Decision
Memorandum, which is a public
document, is on file in the Central
Records Unit (CRU), at the Main
Commerce Building, Room 1117, and is
accessible on the Web at https://
ia.ita.doc.gov/frn. The paper copy and
electronic version of the memorandum
are identical in content.
Changes Since the Preliminary
Determination
Based on our analysis of the
comments received, we have revised
ZZPC’s and Lets Win’s dumping
margins to reflect the following changes:
1. We based ZZPC’s dumping margin
on total adverse facts available.
2. We used different surrogates to
value certain steel inputs and
packing materials.
3. We averaged one additional
surrogate company’s data with
those surrogate companies’ data
used in the Preliminary
Determination to calculate the
surrogate financial ratios.
4. Since the release of the preliminary
determination, more recent labor
data for the PRC has become
available, which we have used in
calculating Lets Win’s final margin.
1 The petitioners in this investigation are Allied
Tube and Conduit, Atlas Tube, Bull Moose Tube
Company, California Steel and Tube, EXLTUBE,
Hannibal Industries, Leavitt Tube Company,
Maruichi American Corporation, Searing Industries,
Southland Tube, Vest Inc., Welded Tube, and
Western Tube and Conduit.
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Federal Register / Vol. 73, No. 122 / Tuesday, June 24, 2008 / Notices
For a detailed analysis of the margin
calculation for Lets Win, see ‘‘Final
Determination in the Investigation of
Light–Walled Rectangular Pipe and
Tube from the People’s Republic of
China: Analysis Memorandum for
Kunshan Lets Win Steel Machinery Co.
Ltd.,’’ dated June 13, 2008.
We assigned the separate rates
applicants the dumping margin that we
calculated for Lets Win.
ebenthall on PRODPC60 with NOTICES
Scope of Investigation
The merchandise that is the subject of
this investigation is certain welded
carbon–quality light–walled steel pipe
and tube, of rectangular (including
square) cross section, having a wall
thickness of less than 4 mm.
The term carbon–quality steel
includes both carbon steel and alloy
steel which contains only small
amounts of alloying elements.
Specifically, the term carbon–quality
includes products in which none of the
elements listed below exceeds the
quantity by weight respectively
indicated: 1.80 percent of manganese, or
2.25 percent of silicon, or 1.00 percent
of copper, or 0.50 percent of aluminum,
or 1.25 percent of chromium, or 0.30
percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30
percent of tungsten, or 0.10 percent of
molybdenum, or 0.10 percent of
niobium, or 0.15 percent vanadium, or
0.15 percent of zirconium. The
description of carbon–quality is
intended to identify carbon–quality
products within the scope. The welded
carbon–quality rectangular pipe and
tube subject to this investigation is
currently classified under the
Harmonized Tariff Schedule of the
United States (HTSUS) subheadings
7306.61.50.00 and 7306.61.70.60. While
HTSUS subheadings are provided for
convenience and Customs purposes, our
written description of the scope of the
investigation is dispositive.
Critical Circumstances
In the Preliminary Determination, the
Department found that there was reason
to believe or suspect that critical
circumstances existed for imports of
subject merchandise from the PRC–wide
entity, and that these imports were
massive during a relatively short period.
See sections 733(e)(1)(A)(ii) and (B) of
the Act. However, the Department did
not preliminarily find that there was
reason to believe or suspect that critical
circumstances existed for imports of
subject merchandise from Lets Win,
ZZPC, or the separate–rate companies.
See Preliminary Determination. No
parties commented on the Department’s
preliminary critical circumstances
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determination and we find no reason to
reconsider this determination.
Therefore, we determine that critical
circumstances exist for the PRC–wide
entity, but that critical circumstances do
not exist for Lets Win, ZZPC, or the
separate–rate companies.
Facts Available and Adverse Facts
Available
Section 776(a)(2)(D) of the Act
provides that, if an interested party
provides information that cannot be
verified, the Department shall use,
subject to sections 782(d) and (e) of the
Act, facts otherwise available in
reaching the applicable determination.
Additionally, section 776(b) of the Act
permits the Department to use an
adverse inference in selecting from
among the facts otherwise available if it
makes the additional finding that ‘‘an
interested party has failed to cooperate
by not acting to the best of its ability to
comply with a request for information.’’
The Department was not able to verify
the steel consumption quantities
reported or the type of steel used by
ZZPC. Furthermore, we have
determined that the use of adverse
inferences is warranted because ZZPC
did not act to the best of its ability in
reporting the quantity of steel consumed
and the type of steel used. Given the
importance of the steel input, we have
based ZZPC’s dumping margin on total
adverse facts available. Specifically, we
based ZZPC’s dumping margin on the
highest rate calculated in this
investigation, 264.64%. See the
accompanying Issues and Decision
memorandum at Comment 1 for details.
We do not need to corroborate this rate
because it is based on information
obtained during the course of this
investigation rather than secondary
information.2
Verification
As provided in section 782(i) of the
Act, we conducted verifications of the
respondents’ information. See the
Department’s verification reports for
ZZPC and Lets Win on file in the CRU.
In conducting the verifications, we used
standard verification procedures,
including examination of relevant
accounting and production records, as
well as original source documents
provided by the respondents.
2 Section 776(c) of the Act requires the
Department to corroborate secondary information,
which the SAA describes as ‘‘information derived
from the petition that gave rise to the investigation
or review, the final determination concerning
subject merchandise, or any previous review under
section 751 concerning the subject
merchandise.’’See SAA at 870.
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35653
Surrogate Country
In the Preliminary Determination, we
selected India as the appropriate
surrogate country noting that India was
on the Department’s list of countries
that are at a level of economic
development comparable to the PRC
and that: (1) India is a significant
producer of merchandise comparable to
subject merchandise; and, (2) reliable
Indian data for valuing factors of
production are readily available. See
Preliminary Determination. While
parties commented on this issue (see
Issues and Decision Memorandum at
Comment 2), for the final determination,
we continue to find India to be the
appropriate surrogate country.
Separate Rates
In proceedings involving non–marketeconomy (NME) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control and, thus, should be assigned a
single antidumping duty deposit rate. It
is the Department’s policy to assign all
exporters of merchandise subject to an
investigation in an NME country this
single rate unless an exporter can
demonstrate that it is sufficiently
independent so as to be entitled to a
separate rate. See Final Determination of
Sales at Less Than Fair Value: Sparklers
from the People’s Republic of China, 56
FR 20588 (May 6, 1991) (Sparklers), as
amplified by Notice of Final
Determination of Sales at Less Than
Fair Value: Silicon Carbide from the
People’s Republic of China, 59 FR 22585
(May 2, 1994) (Silicon Carbide); see also
section 351.107(d) of the Department’s
regulations.
In the Preliminary Determination, the
Department granted separate–rate status
to ZZPC, Lets Win, and the separate rate
applicants, Wuxi Baishun Steel Pipe
Co., Ltd. (Baishun), Guangdong Walsall
Steel Pipe Industrial Co., Ltd. (Walsall),
Wuxi Worldunion Trading Co., Ltd.
(Worldunion), Weifang East Steel Pipe
Co., Ltd. (Weifang), and Jiangyin Jianye
Metal Products Co., Ltd. (Jiangyin).
However, the Department did not grant
separate–rate status to Suns
International Trading Limited, Liaoning
Cold Forming Sectional Company
Limited, or Dalian Brollo Steel Tubes
Ltd. No parties commented on the
Department’s separate rate
determinations. For the final
determination, we continue to find that
the evidence placed on the record of
this investigation by ZZPC, Lets Win,
Baishun, Walsall, Worldunion, Weifang,
and Jiangyin demonstrate both a de jure
and de facto absence of government
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control, with respect to their respective
exports of the merchandise under
investigation and thus they are eligible
for separate rate status.
The PRC–Wide Rate
In the Preliminary Determination, the
Department considered certain non–
responsive PRC producers/exporters to
be part of the PRC–wide entity because
they did not respond to our requests for
information and did not demonstrate
that they operated free of government
control over their export activities. No
additional information regarding these
entities has been placed on the record
after the Preliminary Determination.
Since the PRC–wide entity did not
provide the Department with requested
information, pursuant to section
776(a)(2)(A) of the Act (which covers
situations where an interested party
withholds requested information), we
continue to find it appropriate to base
the PRC–wide rate on facts available.
Moreover, given that the PRC–wide
entity did not respond to our request for
information, we continue to find that it
failed to cooperate to the best of its
ability to comply with a request for
information. Thus, pursuant to section
776(b) of the Act, we have continued to
use an adverse inference in selecting
from among the facts otherwise
available. See Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Cold–Rolled Flat–
Rolled Carbon–Quality Steel Products
from the Russian Federation, 65 FR
5510, 5518 (February 4, 2000) (a case in
which the Department applied an
adverse inference in determining the
Russia–wide rate); see also ‘‘Statement
of Administrative Action’’
accompanying the URAA, H.R. Rep. No.
103–316, vol. 1, at 870 (1994) (SAA).
Specifically, we have assigned the
highest margin calculated in this
proceeding to the PRC–wide entity (as
we have done for ZZPC). We do not
need to corroborate this rate because it
is based on information obtained during
the course of this investigation rather
than secondary information.
Since we begin with the presumption
that all companies within a NME
country are subject to government
control and only the exporters listed
under the ‘‘Final Determination
Margins’’ section below have overcome
that presumption, we are applying a
single antidumping rate (i.e., the PRC–
wide rate) to all exporters of subject
merchandise from the PRC, other than
the exporters listed in the ‘‘Final
Determination Margins’’ sections. See,
e.g., Synthetic Indigo from the People’s
Republic of China: Notice of Final
Determination of Sales at Less Than
Fair Value, 65 FR 25706 (May 3, 2000)
(applying the PRC–wide rate to all
exporters of subject merchandise in the
PRC based on the presumption that the
export activities of the companies that
failed to respond to the Department’s
questionnaire were controlled by the
PRC government). Thus, the PRC–wide
rate will apply to all entries of subject
merchandise except for entries of
subject merchandise from the exporters
that are listed in the ‘‘Final
Determination Margins’’ section below
(except as noted).
Combination Rates
In Initiation of Antidumping Duty
Investigation: Light–Walled Rectangular
Pipe and Tube from Republic of Korea,
Mexico, Turkey, and the People’s
Republic of China, 72 FR 40274 (July 24,
2007) (Initiation Notice), the
Department stated that it would
calculate combination rates for
respondents that are eligible for a
separate rate in this investigation. See
Initiation Notice. This change in
practice is described in Policy Bulletin
05.1, available at https://ia.ita.doc.gov/.
Policy Bulletin 05.1, 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 Policy Bulletin 05.1, ‘‘Separate Rates
Practice and Application of
Combination Rates in Antidumping
Investigations Involving Non–Market
Economy Countries.’’
Final Determination Margins
We determine that the following
weighted–average dumping margins
exist for the period October 1, 2006,
through March 31, 2007:
Exporter / Producer
Weighted–Average Margin
Zhangjiagang Zhongyuan Pipe–Making Co., Ltd./ Zhangjiagang Zhongyuan Pipe–Making Co., Ltd. ...................
Kunshan Lets Win Steel Machinery Co., Ltd./ Kunshan Lets Win Steel Machinery Co., Ltd. ...............................
Wuxi Baishun Steel Pipe Co., Ltd./ Wuxi Baishun Steel Pipe Co., Ltd. .................................................................
Guangdong Walsall Steel Pipe Industrial Co., Ltd./ Guangdong Walsall Steel Pipe Industrial Co., Ltd. ..............
Wuxi Worldunion Trading Co., Ltd./ Wuxi Hongcheng Bicycle Material Co., Ltd. ..................................................
Weifang East Steel Pipe Co., Ltd./ Weifang East Steel Pipe Co., Ltd. ..................................................................
Jiangyin Jianye Metal Products Co., Ltd./ Jiangyin Jianye Metal Products Co., Ltd. ............................................
PRC–Wide Rate ......................................................................................................................................................
ebenthall on PRODPC60 with NOTICES
Disclosure
We will disclose to parties the
calculations performed within five days
of the date of public announcement of
this determination in accordance with
19 CFR 351.224(b).
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12:39 Jun 23, 2008
Jkt 214001
Continuation of Suspension of
Liquidation
In accordance with section
735(c)(1)(B) of the Act, we are directing
U.S. Customs and Border Protection
(CBP) to continue to suspend
liquidation of all imports of subject
merchandise entered or withdrawn from
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264.64%
249.12%
249.12%
249.12%
249.12%
249.12%
249.12%
264.64%
warehouse, for consumption on or after
the following dates: (1) for ZZPC, Lets
Win, and the separate rate companies,
on or after January 30, 2008, the date of
publication of the preliminary
determination in the Federal Register,
(2) for the PRC–wide entity, on or after
November 1, 2007, which is 90 days
prior to the publication of the
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preliminary determination (consistent
with our finding that critical
circumstances exist for the PRC–wide
entity). We will instruct CBP to
continue to require a cash deposit or the
posting of a bond for all companies
based on the estimated weighted–
average dumping margins shown above.
The suspension of liquidation
instructions will remain in effect until
further notice.
ITC Notification
In accordance with section 735(d) of
the Act, we have notified the
International Trade Commission (ITC) of
our final determination of sales at LTFV.
As our final determination is
affirmative, in accordance with section
735(b)(2) of the Act, the ITC will
determine whether the domestic
industry in the United States is
materially injured, or threatened with
material injury, by reason of imports or
sales (or the likelihood of sales) for
importation of the subject merchandise
within 45 days of this final
determination. If the ITC determines
that material injury or threat of material
injury does not exist, the proceeding
will be terminated and all securities
posted will be refunded or canceled. If
the ITC determines that such injury
does exist, the Department will issue an
antidumping duty order directing CBP
to assess upon further instruction by the
Department antidumping duties on all
imports of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding APO
ebenthall on PRODPC60 with NOTICES
This notice also serves as a reminder
to the parties subject to administrative
protective order (APO) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305. Timely
notification of return 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. This
determination and notice are issued and
published in accordance with sections
735(d) and 777(i)(1) of the Act.
Dated: June 13, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–6312 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
Appendix I
Parties’ Comments
Comment 1: Whether ZZPC’s Dumping
Margin Should be Based on Adverse
Facts Available
Comment 2: The Appropriate Surrogate
Country
Comment 3: The Appropriate Surrogate
Financial Ratios
Comment 4: The Appropriate Surrogate
Values for Steel Inputs Used by Lets
Win
Comment 5: The Appropriate Surrogate
Value for Hot–Rolled Steel
Comment 6: The Appropriate Surrogate
Value for Certain Packing Materials
[FR Doc. E8–14252 Filed 6–23–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–859]
Notice of Final Determination of Sales
at Less Than Fair Value: Light–Walled
Rectangular Pipe and Tube from the
Republic of Korea
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On January 31, 2008, the U.S.
Department of Commerce (the
Department) published a preliminary
determination in the antidumping duty
investigation of light–walled rectangular
pipe and tube from the Republic of
Korea. See Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination: Light–Walled
Rectangular Pipe and Tube From the
Republic of Korea, 73 FR 5794 (January
31, 2008) (Preliminary Determination).
We continue to find that light–walled
rectangular pipe and tube from the
Republic of Korea is being, or is likely
to be, sold in the United States at less
than fair value (LTFV), as provided in
section 733(b) of the Tariff Act of 1930,
as amended (the Tariff Act). The
estimated margins of sales at LTFV are
listed below in the section entitled
‘‘Continuation of Suspension of
Liquidation.’’
AGENCY:
EFFECTIVE DATE:
June 24, 2008.
FOR FURTHER INFORMATION CONTACT:
Mark Flessner or Robert James, AD/CVD
Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
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12:39 Jun 23, 2008
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35655
Background
On January 31, 2008, the Department
published the preliminary
determination and invited interested
parties to comment. See Preliminary
Determination. The petitioners in this
investigation are Allied Tube and
Conduit, Atlas Tube, Bull Moose Tube
Company, California Steel and Tube,
EXLTUBE, Hannibal Industries, Leavitt
Tube Company, Maruichi American
Corporation, Searing Industries,
Southland Tube, Vest Inc., Welded
Tube, and Western Tube and Conduit
(Petitioners). The respondents are
Ahshin Pipe & Tube, Dong–A Steel Pipe
Co. Ltd., Han Gyu Rae Steel, Co., Ltd.,
HiSteel Co. Ltd., Jinbang Steel Co. Ltd.,
Joong Won, Kukje Steel Co., Ltd., Miju
Steel Mfg. Co. Ltd., Nexteel Co., Ltd.
(Nexteel), SeAH Steel Corporation, Ltd.,
and Yujin Steel Industry Co.
Only Nexteel responded fully to the
Section A, B, C, and D questionnaires.
(For a complete background concerning
the involvement of companies other
than Nexteel, see Preliminary
Determination.) We gave interested
parties an opportunity to comment on
the preliminary determination. We
received a case brief from Petitioners on
May 9, 2008, and a rebuttal brief from
Nexteel on May 16, 2008. We did not
receive a request for a public hearing.
Based upon the results of verification,
we have made no changes to the
dumping calculations; a revision of
Nexteel’s databases was, however,
required. On December 26, 2007,
Petitioners timely filed with the
Department an allegation of targeted
dumping with respect to Nexteel.
Nexteel filed comments regarding
Petitioners’ allegation on January 3,
2008. Upon review of Petitioners’
allegation, the Department determined
that further information was needed in
order to adequately analyze Petitioners’
allegation. The Department issued a
supplemental questionnaire to
Petitioners on January 14, 2008,
requesting that they address deficiencies
identified by the Department. See Letter
from Richard O. Weible, Director, Office
7, to Petitioners, dated January 14, 2008.
Because there was a need for
supplemental information regarding the
allegation, we did not have sufficient
bases for making a finding regarding
Petitioners’ allegations of targeted
dumping prior to the preliminary
determination. On January 25, 2008,
Petitioners submitted a response to the
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]]>Agencies
[Federal Register Volume 73, Number 122 (Tuesday, June 24, 2008)]
[Notices]
[Pages 35652-35655]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14252]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-914]
Final Determination of Sales at Less Than Fair Value and
Affirmative Determination of Critical Circumstances, in Part: Light-
Walled Rectangular Pipe and Tube from the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: June 24, 2008.
SUMMARY: The Department of Commerce (the Department) has determined
that light-walled rectangular pipe and tube (LWR) from the People's
Republic of China (PRC) is being, or is likely to be, sold in the
United States at less than fair value (LTFV) as provided in section 735
of the Tariff Act of 1930, as amended (the Act). The final dumping
margins for this investigation are listed in the ``Final Determination
Margins'' section below. The period covered by the investigation is
October 1, 2006, through March 31, 2007 (the POI).
FOR FURTHER INFORMATION CONTACT: Jeff Pedersen or Drew Jackson, AD/CVD
Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC, 20230; telephone: (202) 482-
2769 and 482-4406, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published its preliminary determination of sales at
LTFV on January 30, 2008. See Preliminary Determination of Sales at
Less Than Fair Value, Postponement of Final Determination, and
Affirmative Preliminary Determination of Critical Circumstances, in
Part: Light-Walled Rectangular Pipe and Tube from the People's Republic
of China, 73 FR 5500 (January 30, 2008) (Preliminary Determination).
Between February 18, 2008, and February 29, 2008, the Department
conducted verifications of Zhangjiagang Zhongyuan Pipe-Making Co., Ltd.
(ZZPC) and Kunshan Lets Win Steel Machinery Co. Ltd. (Lets Win). See
the ``Verification'' section below for additional information.
In response to the Department's invitation to comment on the
Preliminary Determination, on April 2, 2008, the petitioners,\1\ ZZPC,
and Lets Win filed case briefs. The petitioners and ZZPC filed rebuttal
briefs on April 7, 2008.
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\1\ The petitioners in this investigation are Allied Tube and
Conduit, Atlas Tube, Bull Moose Tube Company, California Steel and
Tube, EXLTUBE, Hannibal Industries, Leavitt Tube Company, Maruichi
American Corporation, Searing Industries, Southland Tube, Vest Inc.,
Welded Tube, and Western Tube and Conduit.
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Analysis of Comments Received
All of the issues that were raised in the case and rebuttal briefs
that were submitted in this investigation are addressed in the ``Issues
and Decision Memorandum for the Final Determination in the Antidumping
Duty Investigation of Light-Walled Rectangular Pipe and Tube from the
People's Republic of China,'' dated June 13, 2008, which is hereby
adopted by this notice (Issues and Decision Memorandum). Appendix I to
this notice contains a list of the issues that are addressed in the
Issues and Decision Memorandum. The Issues and Decision Memorandum,
which is a public document, is on file in the Central Records Unit
(CRU), at the Main Commerce Building, Room 1117, and is accessible on
the Web at https://ia.ita.doc.gov/frn. The paper copy and electronic
version of the memorandum are identical in content.
Changes Since the Preliminary Determination
Based on our analysis of the comments received, we have revised
ZZPC's and Lets Win's dumping margins to reflect the following changes:
1. We based ZZPC's dumping margin on total adverse facts available.
2. We used different surrogates to value certain steel inputs and
packing materials.
3. We averaged one additional surrogate company's data with those
surrogate companies' data used in the Preliminary Determination to
calculate the surrogate financial ratios.
4. Since the release of the preliminary determination, more recent
labor data for the PRC has become available, which we have used in
calculating Lets Win's final margin.
[[Page 35653]]
For a detailed analysis of the margin calculation for Lets Win, see
``Final Determination in the Investigation of Light-Walled Rectangular
Pipe and Tube from the People's Republic of China: Analysis Memorandum
for Kunshan Lets Win Steel Machinery Co. Ltd.,'' dated June 13, 2008.
We assigned the separate rates applicants the dumping margin that
we calculated for Lets Win.
Scope of Investigation
The merchandise that is the subject of this investigation is
certain welded carbon-quality light-walled steel pipe and tube, of
rectangular (including square) cross section, having a wall thickness
of less than 4 mm.
The term carbon-quality steel includes both carbon steel and alloy
steel which contains only small amounts of alloying elements.
Specifically, the term carbon-quality includes products in which none
of the elements listed below exceeds the quantity by weight
respectively indicated: 1.80 percent of manganese, or 2.25 percent of
silicon, or 1.00 percent of copper, or 0.50 percent of aluminum, or
1.25 percent of chromium, or 0.30 percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30 percent of tungsten, or 0.10
percent of molybdenum, or 0.10 percent of niobium, or 0.15 percent
vanadium, or 0.15 percent of zirconium. The description of carbon-
quality is intended to identify carbon-quality products within the
scope. The welded carbon-quality rectangular pipe and tube subject to
this investigation is currently classified under the Harmonized Tariff
Schedule of the United States (HTSUS) subheadings 7306.61.50.00 and
7306.61.70.60. While HTSUS subheadings are provided for convenience and
Customs purposes, our written description of the scope of the
investigation is dispositive.
Critical Circumstances
In the Preliminary Determination, the Department found that there
was reason to believe or suspect that critical circumstances existed
for imports of subject merchandise from the PRC-wide entity, and that
these imports were massive during a relatively short period. See
sections 733(e)(1)(A)(ii) and (B) of the Act. However, the Department
did not preliminarily find that there was reason to believe or suspect
that critical circumstances existed for imports of subject merchandise
from Lets Win, ZZPC, or the separate-rate companies. See Preliminary
Determination. No parties commented on the Department's preliminary
critical circumstances determination and we find no reason to
reconsider this determination. Therefore, we determine that critical
circumstances exist for the PRC-wide entity, but that critical
circumstances do not exist for Lets Win, ZZPC, or the separate-rate
companies.
Facts Available and Adverse Facts Available
Section 776(a)(2)(D) of the Act provides that, if an interested
party provides information that cannot be verified, the Department
shall use, subject to sections 782(d) and (e) of the Act, facts
otherwise available in reaching the applicable determination.
Additionally, section 776(b) of the Act permits the Department to use
an adverse inference in selecting from among the facts otherwise
available if it makes the additional finding that ``an interested party
has failed to cooperate by not acting to the best of its ability to
comply with a request for information.'' The Department was not able to
verify the steel consumption quantities reported or the type of steel
used by ZZPC. Furthermore, we have determined that the use of adverse
inferences is warranted because ZZPC did not act to the best of its
ability in reporting the quantity of steel consumed and the type of
steel used. Given the importance of the steel input, we have based
ZZPC's dumping margin on total adverse facts available. Specifically,
we based ZZPC's dumping margin on the highest rate calculated in this
investigation, 264.64[percnt]. See the accompanying Issues and Decision
memorandum at Comment 1 for details. We do not need to corroborate this
rate because it is based on information obtained during the course of
this investigation rather than secondary information.\2\
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\2\ Section 776(c) of the Act requires the Department to
corroborate secondary information, which the SAA describes as
``information derived from the petition that gave rise to the
investigation or review, the final determination concerning subject
merchandise, or any previous review under section 751 concerning the
subject merchandise.''See SAA at 870.
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Verification
As provided in section 782(i) of the Act, we conducted
verifications of the respondents' information. See the Department's
verification reports for ZZPC and Lets Win on file in the CRU. In
conducting the verifications, we used standard verification procedures,
including examination of relevant accounting and production records, as
well as original source documents provided by the respondents.
Surrogate Country
In the Preliminary Determination, we selected India as the
appropriate surrogate country noting that India was on the Department's
list of countries that are at a level of economic development
comparable to the PRC and that: (1) India is a significant producer of
merchandise comparable to subject merchandise; and, (2) reliable Indian
data for valuing factors of production are readily available. See
Preliminary Determination. While parties commented on this issue (see
Issues and Decision Memorandum at Comment 2), for the final
determination, we continue to find India to be the appropriate
surrogate country.
Separate Rates
In proceedings involving non-market-economy (NME) countries, the
Department begins with a rebuttable presumption that all companies
within the country are subject to government control and, thus, should
be assigned a single antidumping duty deposit rate. It is the
Department's policy to assign all exporters of merchandise subject to
an investigation in an NME country this single rate unless an exporter
can demonstrate that it is sufficiently independent so as to be
entitled to a separate rate. See Final Determination of Sales at Less
Than Fair Value: Sparklers from the People's Republic of China, 56 FR
20588 (May 6, 1991) (Sparklers), as amplified by Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994) (Silicon
Carbide); see also section 351.107(d) of the Department's regulations.
In the Preliminary Determination, the Department granted separate-
rate status to ZZPC, Lets Win, and the separate rate applicants, Wuxi
Baishun Steel Pipe Co., Ltd. (Baishun), Guangdong Walsall Steel Pipe
Industrial Co., Ltd. (Walsall), Wuxi Worldunion Trading Co., Ltd.
(Worldunion), Weifang East Steel Pipe Co., Ltd. (Weifang), and Jiangyin
Jianye Metal Products Co., Ltd. (Jiangyin). However, the Department did
not grant separate-rate status to Suns International Trading Limited,
Liaoning Cold Forming Sectional Company Limited, or Dalian Brollo Steel
Tubes Ltd. No parties commented on the Department's separate rate
determinations. For the final determination, we continue to find that
the evidence placed on the record of this investigation by ZZPC, Lets
Win, Baishun, Walsall, Worldunion, Weifang, and Jiangyin demonstrate
both a de jure and de facto absence of government
[[Page 35654]]
control, with respect to their respective exports of the merchandise
under investigation and thus they are eligible for separate rate
status.
The PRC-Wide Rate
In the Preliminary Determination, the Department considered certain
non-responsive PRC producers/exporters to be part of the PRC-wide
entity because they did not respond to our requests for information and
did not demonstrate that they operated free of government control over
their export activities. No additional information regarding these
entities has been placed on the record after the Preliminary
Determination. Since the PRC-wide entity did not provide the Department
with requested information, pursuant to section 776(a)(2)(A) of the Act
(which covers situations where an interested party withholds requested
information), we continue to find it appropriate to base the PRC-wide
rate on facts available. Moreover, given that the PRC-wide entity did
not respond to our request for information, we continue to find that it
failed to cooperate to the best of its ability to comply with a request
for information. Thus, pursuant to section 776(b) of the Act, we have
continued to use an adverse inference in selecting from among the facts
otherwise available. See Notice of Final Determination of Sales at Less
Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel
Products from the Russian Federation, 65 FR 5510, 5518 (February 4,
2000) (a case in which the Department applied an adverse inference in
determining the Russia-wide rate); see also ``Statement of
Administrative Action'' accompanying the URAA, H.R. Rep. No. 103-316,
vol. 1, at 870 (1994) (SAA). Specifically, we have assigned the highest
margin calculated in this proceeding to the PRC-wide entity (as we have
done for ZZPC). We do not need to corroborate this rate because it is
based on information obtained during the course of this investigation
rather than secondary information.
Since we begin with the presumption that all companies within a NME
country are subject to government control and only the exporters listed
under the ``Final Determination Margins'' section below have overcome
that presumption, we are applying a single antidumping rate (i.e., the
PRC-wide rate) to all exporters of subject merchandise from the PRC,
other than the exporters listed in the ``Final Determination Margins''
sections. See, e.g., Synthetic Indigo from the People's Republic of
China: Notice of Final Determination of Sales at Less Than Fair Value,
65 FR 25706 (May 3, 2000) (applying the PRC-wide rate to all exporters
of subject merchandise in the PRC based on the presumption that the
export activities of the companies that failed to respond to the
Department's questionnaire were controlled by the PRC government).
Thus, the PRC-wide rate will apply to all entries of subject
merchandise except for entries of subject merchandise from the
exporters that are listed in the ``Final Determination Margins''
section below (except as noted).
Combination Rates
In Initiation of Antidumping Duty Investigation: Light-Walled
Rectangular Pipe and Tube from Republic of Korea, Mexico, Turkey, and
the People's Republic of China, 72 FR 40274 (July 24, 2007) (Initiation
Notice), the Department stated that it would calculate combination
rates for respondents that are eligible for a separate rate in this
investigation. See Initiation Notice. This change in practice is
described in Policy Bulletin 05.1, available at https://ia.ita.doc.gov/.
Policy Bulletin 05.1, 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 Policy Bulletin 05.1, ``Separate Rates Practice and Application of
Combination Rates in Antidumping Investigations Involving Non-Market
Economy Countries.''
Final Determination Margins
We determine that the following weighted-average dumping margins
exist for the period October 1, 2006, through March 31, 2007:
------------------------------------------------------------------------
Exporter / Producer Weighted-Average Margin
------------------------------------------------------------------------
Zhangjiagang Zhongyuan Pipe-Making Co., 264.64[percnt]
Ltd./ Zhangjiagang Zhongyuan Pipe-Making
Co., Ltd................................
Kunshan Lets Win Steel Machinery Co., 249.12[percnt]
Ltd./ Kunshan Lets Win Steel Machinery
Co., Ltd................................
Wuxi Baishun Steel Pipe Co., Ltd./ Wuxi 249.12[percnt]
Baishun Steel Pipe Co., Ltd.............
Guangdong Walsall Steel Pipe Industrial 249.12[percnt]
Co., Ltd./ Guangdong Walsall Steel Pipe
Industrial Co., Ltd.....................
Wuxi Worldunion Trading Co., Ltd./ Wuxi 249.12[percnt]
Hongcheng Bicycle Material Co., Ltd.....
Weifang East Steel Pipe Co., Ltd./ 249.12[percnt]
Weifang East Steel Pipe Co., Ltd........
Jiangyin Jianye Metal Products Co., Ltd./ 249.12[percnt]
Jiangyin Jianye Metal Products Co., Ltd.
PRC-Wide Rate............................ 264.64[percnt]
------------------------------------------------------------------------
Disclosure
We will disclose to parties the calculations performed within five
days of the date of public announcement of this determination in
accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all imports of subject merchandise entered or
withdrawn from warehouse, for consumption on or after the following
dates: (1) for ZZPC, Lets Win, and the separate rate companies, on or
after January 30, 2008, the date of publication of the preliminary
determination in the Federal Register, (2) for the PRC-wide entity, on
or after November 1, 2007, which is 90 days prior to the publication of
the
[[Page 35655]]
preliminary determination (consistent with our finding that critical
circumstances exist for the PRC-wide entity). We will instruct CBP to
continue to require a cash deposit or the posting of a bond for all
companies based on the estimated weighted-average dumping margins shown
above. The suspension of liquidation instructions will remain in effect
until further notice.
ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our final determination of
sales at LTFV. As our final determination is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will determine whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports or sales (or the
likelihood of sales) for importation of the subject merchandise within
45 days of this final determination. If the ITC determines that
material injury or threat of material injury does not exist, the
proceeding will be terminated and all securities posted will be
refunded or canceled. If the ITC determines that such injury does
exist, the Department will issue an antidumping duty order directing
CBP to assess upon further instruction by the Department antidumping
duties on all imports of the subject merchandise entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Notification Regarding APO
This notice also serves as a reminder to the parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305. Timely notification of return 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. This determination and
notice are issued and published in accordance with sections 735(d) and
777(i)(1) of the Act.
Dated: June 13, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
Appendix I
Parties' Comments
Comment 1: Whether ZZPC's Dumping Margin Should be Based on Adverse
Facts Available
Comment 2: The Appropriate Surrogate Country
Comment 3: The Appropriate Surrogate Financial Ratios
Comment 4: The Appropriate Surrogate Values for Steel Inputs Used by
Lets Win
Comment 5: The Appropriate Surrogate Value for Hot-Rolled Steel
Comment 6: The Appropriate Surrogate Value for Certain Packing
Materials
[FR Doc. E8-14252 Filed 6-23-08; 8:45 am]
BILLING CODE 3510-DS-S
