Circular Welded Austenitic Stainless Pressure Pipe from the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 51787-51796 [E8-20508]
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Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
COMMITTEE FOR PURCHASE FROM
PEOPLE WHO ARE BLIND OR
SEVERELY DISABLED
Procurement List: Proposed Additions
and Deletions
Committee for Purchase From
People Who Are Blind or Severely
Disabled.
ACTION: Proposed Additions to and
Deletions from Procurement List.
AGENCY:
SUMMARY: The Committee is proposing
to add to the Procurement List
product(s) and/or service(s) to be
furnished by nonprofit agencies
employing persons who are blind or
have other severe disabilities, and to
delete product(s) and/or service(s)
previously furnished by such agencies.
Comments Must be Received on or
Before: October 5, 2008.
ADDRESSES: Committee for Purchase
From People Who Are Blind or Severely
Disabled, Jefferson Plaza 2, Suite 10800,
1421 Jefferson Davis Highway,
Arlington, Virginia 22202–3259.
FOR FURTHER INFORMATION OR TO SUBMIT
COMMENTS CONTACT: Kimberly M. Zeich,
Telephone: (703) 603–7740, Fax: (703)
603–0655, or e-mail
CMTEFedReg@AbilityOne.gov.
This
notice is published pursuant to 41
U.S.C. 47(a)(2) and 41 CFR 51–2.3. Its
purpose is to provide interested persons
an opportunity to submit comments on
the proposed actions.
SUPPLEMENTARY INFORMATION:
Additions
If the Committee approves the
proposed additions, the entities of the
Federal Government identified in this
notice for each product or service will
be required to procure the product(s)
and/or service(s) listed below from
nonprofit agencies employing persons
who are blind or have other severe
disabilities.
mstockstill on PROD1PC66 with NOTICES
Regulatory Flexibility Act Certification
I certify that the following action will
not have a significant impact on a
substantial number of small entities.
The major factors considered for this
certification were:
1. If approved, the action will not
result in any additional reporting,
recordkeeping or other compliance
requirements for small entities other
than the small organizations that will
furnish the product(s) and/or service(s)
to the Government.
2. If approved, the action will result
in authorizing small entities to furnish
the product(s) and/or service(s) to the
Government.
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3. There are no known regulatory
alternatives which would accomplish
the objectives of the Javits-WagnerO’Day Act (41 U.S.C. 46–48c) in
connection with the product(s) and/or
service(s) proposed for addition to the
Procurement List.
Comments on this certification are
invited. Commenters should identify the
statement(s) underlying the certification
on which they are providing additional
information.
End of Certification
51787
Ctr.—Paper Products, New York, NY.
Kimberly M. Zeich,
Director, Program Operations.
[FR Doc. E8–20609 Filed 9–4–08; 8:45 am]
BILLING CODE 6353–01–P
COMMISSION ON CIVIL RIGHTS
Sunshine Act Notice
United States Commission on
Civil Rights.
AGENCY:
The following service is proposed for
addition to Procurement List for
production by the nonprofit agencies
listed:
ACTION:
Notice of briefing and meeting.
DATE AND TIME:
Friday, September 12,
Services
Service Type/Location: Custodial and
Landscaping, FBI Building, Houston,
Texas, 1 Justice Park, Houston, TX.
NPA: On Our Own Services, Inc., Houston,
TX.
Contracting Activity: General Services
Administration, Public Buildings
Service, Fort Worth, TX.
2008; 9:30 a.m.
Deletions
I. Introductory Remarks by Chairman
II. Speakers’ Presentations
III. Questions by Commissioners and
Staff Director
IV. Adjourn Briefing
Regulatory Flexibility Act Certification
I certify that the following action will
not have a significant impact on a
substantial number of small entities.
The major factors considered for this
certification were:
1. If approved, the action may result
in additional reporting, recordkeeping
or other compliance requirements for
small entities.
2. If approved, the action may result
in authorizing small entities to furnish
the products to the Government.
3. There are no known regulatory
alternatives which would accomplish
the objectives of the Javits-WagnerO’Day Act (41 U.S.C. 46–48c) in
connection with the products proposed
for deletion from the Procurement List.
End of Certification
The following products are proposed
for deletion from the Procurement List:
Products
624 Ninth Street, NW., Rm. 540,
Washington, DC 20425.
PLACE:
Briefing Agenda
Topic: Encouraging Minority Students
To Pursue Careers in Science,
Technology, Engineering and Math
Meeting Agenda
I. Approval of Agenda
II. Approval of Minutes
• July 11, 2008 Meeting
• August 19, 2008 Meeting
• September 6, 2008 Meeting
III. Announcements
IV. Staff Director’s Report
V. Program Planning
• FY 2008 Statutory Report: Enforcing
Prohibitions of Religious Discrimination
in Prison
• FY 2009 Briefing Topics
• FY 2009 Statutory Report
VI. Future Agenda Items
VII. Adjourn
Hose Assembly, Nonmetallic
NSN: 4210–00–892–5494—Hose Assembly,
Nonmetallic.
NPA: The Oklahoma League for the Blind,
Oklahoma City, OK.
Contracting Activity: GSA/FAS Southwest
Supply Center (QSDAC), Fort Worth, TX.
Acting
Chief, Public Affairs Unit (202) 376–
8582.
Label, Pressure-Sensitive Adhesive
NSN: 7530–00–054–1575—Label, PressureSensitive Adhesive.
NPA: North Central Sight Services, Inc.,
Williamsport, PA.
Contracting Activity: GSA/FSS OFC Sup
BILLING CODE 6335–01–P
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CONTACT PERSON FOR FURTHER
INFORMATION: Lenore Ostrowsky,
Dated: September 3, 2008.
David Blackwood,
General Counsel.
[FR Doc. E8–20740 Filed 9–3–08; 4:15 pm]
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Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–930]
Circular Welded Austenitic Stainless
Pressure Pipe from the People’s
Republic of China: Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 5, 2008.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that circular welded
austenitic stainless pressure pipe
(CWASPP) 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
733 of the Tariff Act of 1930, as
amended (the Act). The estimated
dumping margins are shown in the
‘‘Preliminary Determination’’ section of
this notice.
FOR FURTHER INFORMATION CONTACT:
Melissa Blackledge or Howard Smith,
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) 482–3518 or 482–5193,
respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
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Background
On January 30, 2008, the Department
received a petition concerning imports
of CWASPP from the PRC filed in
proper form by Bristol Metals, L.P.,
Felker Brothers Corp., Marcegaglia USA,
Inc., Outokumpu Stainless Pipe Inc.,
and the United Steel Workers of
America (collectively, petitioners). The
Department initiated an antidumping
duty investigation of CWASPP from the
PRC on February 19, 2008. See Circular
Welded Austenitic Stainless Pressure
Pipe from the People’s Republic of
China: Initiation of Antidumping Duty
Investigation, 73 FR 10221 (February 26,
2008) (Initiation Notice).
On February 20, 2008, the Department
requested quantity and value (Q&V)
information from the 11 companies that
are identified in the petition as potential
producers or exporters of CWASPP from
the PRC. See Exhibit I–6, Volume I, of
the January 30, 2008, Petition for the
Imposition of Antidumping and
Countervailing Duties (the petition). The
Department received timely responses
to its Q&V questionnaire from the
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following companies: Zhejiang Jiuli Hi–
Tech Metals Co., Ltd. (Jiuli), Winner
Stainless Steel Tube Co., Ltd. and
Winner Machinery Enterprise Co., Ltd
(collectively Winner). The other nine
companies to which the Department
sent Q&V questionnaires received the
questionnaires but did not respond to
them.
On March 14, 2008, the International
Trade Commission (ITC) preliminarily
determined that there is a reasonable
indication that an industry in the
United States is materially injured or
threatened with material injury by
reason of imports of CWASPP from the
PRC. See Welded Stainless Steel
Pressure Pipe From China, Investigation
Nos. 701–TA–454 and 731–TA–1144
(Preliminary), 73 FR 16911 (March 31,
2008). Also, in March 2008, petitioners
and Winner submitted comments to the
Department regarding the physical
characteristics of subject merchandise
that should be used in comparing sales
prices with normal value.
On April 28, 2008, the Department
received separate–rate applications from
Jiuli and Winner. On April 15, 2008, the
Department selected Winner as a
mandatory respondent and issued an
antidumping questionnaire to the
company. See memorandum regarding
‘‘Selection of Respondents in the
Antidumping Investigation of Circular
Welded Austenitic Stainless Pressure
Pipe from the People’s Republic of
China,’’ dated April 15, 2008
(Respondent Selection Memorandum).
Winner submitted timely responses to
the Department’s questionnaire on May
13, 2008, and June 3, 2008.
The Department issued supplemental
questionnaires to, and received
responses from Winner and Jiuli from
April through August 2008. Petitioners
submitted comments to the Department
regarding Winner’s questionnaire and
supplemental questionnaire responses
from June through July 2008.
On June 2, 2008, the Department
released a memorandum to interested
parties which listed potential surrogate
countries and invited interested parties
to comment on surrogate country and
surrogate value selection. During June
and July 2008, petitioners and Winner
submitted comments on the appropriate
surrogate country and surrogate values.
The submitted surrogate value data are
from India, Thailand, the United States,
and international websites.
On June 10, 2008, petitioners
requested postponement of the
preliminary determination. On June 24,
2008, the Department extended this
preliminary determination by fifty days.
See Notice of Postponement of
Preliminary Determination in the
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Antidumping Duty Investigation of
Circular Welded Austenitic Stainless
Pressure Pipe from the People’s
Republic of China, 73 FR 35658 (June
24, 2008).
On August 15, 2008, Winner
requested that the Department extend
the final determination in this case. On
August 20, 2008, Winner clarified and
supplemented its extension request by
identifying the length of the requested
extension and by including a request to
extend the provisional measures to six
months. See the ‘‘Postponement of Final
Determination and Extension of
Provisional Measures’’ section of this
notice below.
Period of Investigation
The period of investigation (POI) is
July 1, 2007, through December 31,
2007. This period comprises the two
most recently completed fiscal quarters
as of the month preceding the month in
which the petition was filed (i.e.,
January 2008). See 19 CFR
351.204(b)(1).
Scope of the Investigation
The merchandise covered by this
investigation is circular welded
austenitic stainless pressure pipe not
greater than 14 inches in outside
diameter. This merchandise includes,
but is not limited to, the American
Society for Testing and Materials
(‘‘ASTM’’) A–312 or ASTM A–778
specifications, or comparable domestic
or foreign specifications. ASTM A–358
products are only included when they
are produced to meet ASTM A–312 or
ASTM A–778 specifications, or
comparable domestic or foreign
specifications.
Excluded from the scope are: (1)
welded stainless mechanical tubing,
meeting ASTM A–554 or comparable
domestic or foreign specifications; (2)
boiler, heat exchanger, superheater,
refining furnace, feedwater heater, and
condenser tubing, meeting ASTM A–
249, ASTM A–688 or comparable
domestic or foreign specifications; and
(3) specialized tubing, meeting ASTM
A–269, ASTM A–270 or comparable
domestic or foreign specifications.
The subject imports are normally
classified in subheadings 7306.40.5005;
7306.40.5040, 7306.40.5062,
7306.40.5064, and 7306.40.5085 of the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’). They may
also enter under HTSUS subheadings
7306.40.1010; 7306.40.1015;
7306.40.5042, 7306.40.5044,
7306.40.5080, and 7306.40.5090. The
HTSUS subheadings are provided for
convenience and customs purposes
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only, the written description of the
scope of this investigation is dispositive.
Scope Comments
In accordance with the preamble to
the Department’s regulations, we set
aside a period of time in our Initiation
Notice for parties to raise issues
regarding product coverage, and
encouraged all parties to submit
comments within 20 calendar days of
publication of that notice. See
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27323 (May 19,
1997) and Initiation Notice. The
Department received comments
concerning the scope of the CWASPP
antidumping and countervailing duty
investigations from Prudential Stainless
& Alloy LP (Prudential), a U.S. importer
and distributor of subject merchandise,
on March 10, 2008, and rebuttal
comments from petitioners on March
14, 2008. In addition, Prudential
responded to petitioners rebuttal
comments on April 28, 2008. Prudential
requests that the Department limit the
scope of the investigations by excluding
from the scope all grades of ASTM A–
312, except the 304 and 316 series, and
all Schedules (wall thickness) of
stainless pressure pipe except
Schedules 40S and 10S. Prudential
contends that the grades of pipe that
they seek to exclude from the scope are
premium–priced, low–volume, specialty
grades that do not compete with high–
volume commodity products in the 304
and 316 series. Moreover, Prudential
contends that the Schedules that they
seek to exclude from the scope
constitute a minority of what is
produced by the domestic industry and
thus these Schedules do not represent a
threat to petitioners. Petitioners urge the
Department not to modify the scope,
noting that (1) the current scope is an
accurate reflection of the products for
which the domestic industry is seeking
relief, (2) the proposed change to the
scope would exclude products that are
both manufactured by, and important to,
the domestic industry and (3) the
products that Prudential seeks to
exclude were defined by the ITC as
like–products in its preliminary
investigation questionnaire. In rebuttal,
Prudential adds that although some of
the domestic industry does produce the
products that it requests to be excluded
from the scope (‘‘the products at issue’’),
these products are not important to the
domestic industry. Prudential asks the
Department to determine whether or not
the products at issue are important to
the domestic industry by calculating the
percentage of U.S. production of the
merchandise under investigation
represented by the products at issue.
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18:40 Sep 04, 2008
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After considering parties’ comments,
the Department has decided not to
modify the scope of the investigations.
The starting point for determining
whether merchandise is subject to an
investigation is the petition. See 19 CFR
351.225(k)(1) (2001). See also Eckstrom
Industries, Inc. v. United States, 254
F.3d 1068, 1071–72 (Fed. Cir. 2001)
(citing Smith Corona Corp. v. United
States, 915 F.2d 683, 685 (Fed. Cir.
1990)). While the Department does have
the authority to define or clarify the
scope of an investigation, the
Department ‘‘must exercise this
authority in a manner which reflects the
intent of the petition and the
Department generally should not use its
authority to define the scope of an
investigation in a manner that would
thwart the statutory mandate to provide
the relief requested in the petition.’’ See
Notice of Final Determination of Sales
at Less Than Fair Value: Certain
Softwood Lumber Products From
Canada, 67 FR 15539 (April 2, 2002)
and accompanying Issues and Decision
Memorandum under Scope Issues (after
Comment 49). Thus, ‘‘absent an
overarching reason to modify the scope
in the petition, the Department accepts
it.’’ See id. The description of subject
merchandise in the petition indicates
that the products at issue are to be
covered by the antidumping and
countervailing investigations of
CWASPP from the PRC. Additionally, in
their comments, petitioners have
confirmed that the scope, as currently
written, is an accurate reflection of the
products for which they seek relief.
Therefore, the scope modifications
proposed by Prudential are inconsistent
with the intent of the petition and
‘‘would thwart the statutory mandate to
provide the relief requested in the
petition.’’ See id. Furthermore,
Prudential’s claims that the products at
issue are ‘‘small–volume’’ products that
are unimportant to the domestic
industry do not provide a basis for
modifying the scope. For the above
reasons, the Department has not
modified the scope.
Non–Market Economy Treatment
The Department considers the PRC to
be a non–market economy (NME)
country. In accordance with section
771(18)(c)(i) of the Act, any
determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See Tapered Roller Bearings and Parts
Thereof (TRBs), Finished and
Unfinished, From the People’s Republic
of China: Preliminary Results of 2001–
2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500
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51789
(February 14, 2003), unchanged in
TRBs, Finished and Unfinished, from
the People’s Republic of China: Final
Results of 2001–2002 Administrative
Review and Partial Rescission of
Review, 68 FR 70488 (December 18,
2003). The Department has not revoked
the PRC’s status as an NME country.
Therefore, in this preliminary
determination, we have treated the PRC
as an NME country and applied our
current NME methodology.
Selection of a Surrogate Country
In antidumping proceedings involving
NME countries, the Department,
pursuant to section 773(c)(1) of the Act,
will generally base normal value (NV)
on the value of the NME producer’s
factors of production. In accordance
with section 773(c)(4) of the Act, in
valuing the factors of production, the
Department shall utilize, to the extent
possible, the prices or costs of factors of
production in one or more market
economy countries that are at a level of
economic development comparable to
that of the NME country and are
significant producers of merchandise
comparable to the subject merchandise.
The Department has determined that
India, Indonesia, the Philippines,
Colombia, and Thailand are countries
that are at a level of economic
development comparable to that of the
PRC. See memorandum regarding
‘‘Antidumping Duty Investigation of
Circular Welded Austenitic Stainless
Pressure Pipe (‘‘C–WASP) Pipe’’) from
the People’s Republic of China (PRC):
Request for a List of Surrogate
Countries,’’ dated May 22, 2008 (Policy
Memorandum).
As noted above, during June and July
2008, petitioners and Winner submitted
comments on the appropriate surrogate
country and surrogate values.
Petitioners argue that India is the most
appropriate surrogate country because
(1) it is a market economy (ME) country
at a level of economic development
comparable to the PRC in terms of gross
national income (GNI), (2) it is a
significant producer of subject
merchandise for which public financial
statements are available, (3) it maintains
public data for many of the factors of
production, and (4) the Department has
traditionally selected India as a
surrogate country for the PRC.
Petitioners add that Thai surrogate
values are less appropriate than Indian
values because the financial statements
provided by Winner are not from
producers of subject merchandise.
Winner argues that Thailand, rather
than India, should be selected as the
surrogate country. Specifically, Winner
contends that Thailand is the
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Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
appropriate surrogate country in this
case because: (1) it is an ME country
that is economically comparable to the
PRC, (2) it is a significant producer of
subject merchandise (the ITC identified
Thailand (not India) as one of four
substantial suppliers of CWASPP to the
United States), and (3) Thai CWASPP is
more comparable to the PRC’s than
India’s CWASPP because, based on ITC
data, U.S. importers did not purchase
Indian CWASPP. Moreover, Winner
maintains that India and Thailand
should not be considered to be equally
comparable to the PRC because
Thailand’s per capita GNI is closer to
the PRC’s than India’s and the
difference between Thailand’s GNI and
India’s GNI is vast. In addition, Winner
argues that the Department should not
have listed India as a potential surrogate
country because, in doing so, the
Department skipped over nineteen other
countries each with a GNI closer to that
of the PRC. Winner also notes that
predictability is not a basis for selecting
India as the surrogate country; rather it
is the Department’s obligation to use the
best’ available information to calculate
dumping margins as accurately as
possible. Lastly, Winner claims India
should not be selected as a surrogate
country because studies indicate its
import statistics are flawed due to
misclassifications and thus they should
not be used to calculate surrogate
values.
After evaluating interested parties’
comments, the Department has selected
India as the surrogate country for this
investigation. Although Winner has
argued that Thailand’s level of
economic development is closer to that
of the PRC than India’s, the statute does
not require the Department to use a
surrogate country at a level of economic
development closest to the NME
country; it merely requires that the
surrogate country used be economically
comparable to the NME country. See
section 773 (c)(2) of the Act. Thus, the
Department does not rank–order
countries’ comparability according to
how close their per capita GNI is to that
of the NME country in question. Rather,
in NME proceedings, the Department
creates a list of possible surrogate
countries that it considers equivalent in
terms of economic comparability. In
addition, the potential surrogate
countries identified reflect countries
that, in the Department’s experience, are
most likely to offer data necessary to
conduct the proceeding. Given the
foregoing, and the spectrum of
economic development across the
world, (e.g., the World Development
Report used by the Department to select
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18:40 Sep 04, 2008
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potential surrogate countries list 133
countries with GNIs ranging from $100
to $66,530), we continue to find it
appropriate to consider India to be at a
level of economic development
comparable to the PRC. See Winner’s
June 27, 2008, submission to the
Department at Exhibit 2.
With respect to the criterion that the
surrogate country be a significant
producer of merchandise that is
comparable to subject merchandise,
record evidence indicates that both
India and Thailand are significant
producers of comparable merchandise.
See memorandum from Melissa
Blackledge, to the File regarding
‘‘Potential Surrogate Countries:
Significant Production of Comparable
Merchandise’’ dated concurrently with
this notice.
Since both India and Thailand satisfy
the statutory criteria for selecting a
surrogate country, we examined
whether one country is a more
appropriate surrogate than the other
based on data availability and quality.
After examining the surrogate value
information provided by the petitioners
and Winner, we find the Indian
surrogate financial data better reflect the
overall experience of producers of
subject merchandise in a surrogate
country. The Indian financial statements
from Jindal SAW Ltd. and Ratnamani
Metals & Tubes Ltd. are from companies
that produce subject and like
merchandise, and while one is
contemporaneous with the POI, the
other includes the year ending March
31, 2007, just three months prior to the
beginning of the POI. The only usable
Thai financial statement, for Great
Central (International) Co., Ltd., is not
contemporaneous with the POI and
states that it ‘‘manufactures and
distributes stainless steel,’’ yet it lacks
information regarding the type of
stainless steel produced, the type and
extent of manufacturing, the raw
materials produced and/or consumed,
and its associations with other
companies or group of companies.
Generally, where available, we prefer to
use more than one financial statement
in order to obtain a broader industry
representation.1
While petitioners and Winner have
submitted financial statements in
addition to those identified above, we
have concluded that these financial
statements are not useable. Specifically,
the financial statements the Department
finds not useable are: (1) two Thai
1 See Fresh Garlic From the People’s Republic of
China: Final Results of Antidumping Duty New
Shipper Review, 67 FR 72139 (December 4, 2002),
and accompanying Issues and Decision
Memorandum at Comment 5.
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financial statements, one from Thai–
German Products Public Co., Ltd. and
one from Lokahit Metal Public Co., Ltd.,
which indicate receipt of subsidies, and
(2) one Indian financial statement, from
Suraj Stainless Ltd., which also
indicates receipt of subsidies.
In Crawfish from the PRC, the
Department discussed its practice with
respect to financial statements that
contain evidence of subsidization:
{T}he statute directs Commerce to
base the valuation of the factors of
production on ‘‘the best available
information regarding the values of
such factors in a market economy
country or countries considered to
be appropriate . . . .’’ Section
773(c)(1) of the Act. Moreover, in
valuing such factors, Congress
further directed Commerce to
‘‘avoid using any prices which it
has reason to believe or suspect
may be dumped or subsidized
prices.’’ Omnibus Trade and
Competitiveness Act of 1988, H.R.
Rep. No. 576, 100 nth Cong., 2 nd
Sess., at 590–91 (1988). The
Department calculates the financial
ratios based on financial statements
of companies producing
comparable merchandise from the
surrogate country, some of which
may contain evidence of
subsidization. However, where the
Department has a reason to believe
or suspect that the company may
have received subsidies, the
Department may consider that the
financial ratios derived from that
company’s financial statements are
less representative of the financial
experience of that company or the
relevant industry than the ratios
derived from financial statements
that do not contain evidence of
subsidization. Consequently, {those
statements that appear to reflect
subsidies} do not constitute the best
available information to value the
surrogate financial ratios. 2
Given the record information regarding
these three companies’ receipt of
subsidies, and the fact that we have
other acceptable financial statements to
use as surrogates,3 we have not
considered the financial data from these
three companies in our surrogate ratio
calculations.
2 See Crawfish from the PRC, and accompanying
Issues and Decision Memorandum at Comment 1.
3 As noted above, those financial statements
include statements from Jindal SAW Ltd. Although
Winner noted that Jindal SAW Ltd.’s financial
statement listed ‘‘export benefits/government grants
receivable,’’ the Department has insufficient
information to determine whether these items relate
to programs that have been countervailed.
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Petitioners and Winner also submitted
import statistics from which they
calculated surrogate values. Although
Winner has contested the quality of the
Indian import data based on certain
studies, the studies submitted by
Winner do not reference the inputs used
to produce CWASPP. In Wooden
Bedroom Furniture from the PRC, the
Department examined these studies and
found they were not sufficiently specific
to the inputs used in that case to
support finding the Indian import data
to be inaccurate.4 Likewise, the
evidence that has been placed on the
record of this proceeding by Winner
does not cause the Department to
question the quality of the Indian
import statistics used here. Therefore,
because India better represents the
experience of producers of subject
merchandise and provides better
financial data; we have selected India as
the surrogate country.
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Separate Rates
In the Initiation Notice, the
Department notified parties of the
application process by which exporters
and producers may obtain separate–rate
status in NME investigations. See
Initiation Notice, 73 FR at 10221. The
process requires exporters and
producers to submit a separate–rate
status application. See also Policy
Bulletin 05.1: Separate–Rates Practice
and Application of Combination Rates
in Antidumping Investigations involving
Non–Market Economy Countries, (April
5, 2005), (‘‘Policy Bulletin 05.1’’)
available at https://ia.ita.doc.gov.5
However, the standard for eligibility for
a separate rate (which is whether a firm
can demonstrate an absence of both de
4 See Amended Final Results of Antidumping
Duty Administrative Review and New Shipper
Reviews: Wooden Bedroom Furniture from the
People’s Republic of China, 72 FR 46957 (August
22, 2007) and accompanying Issues and Decision
Memorandum, dated August 8, 2007, at Comment
1.
5 Policy Bulletin 05.1 states: ‘‘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 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 applied 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 cashdeposit 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 at 6.
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jure and de facto governmental control
over its export activities) has not
changed.
In proceedings involving NME
countries, the Department has a
rebuttable presumption that all
companies within the country are
subject to government control and thus
should be assessed a single antidumping
duty rate. It is the Department’s policy
to assign all exporters of merchandise
subject to 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. Exporters can
demonstrate this independence through
the absence of both de jure and de facto
governmental control over export
activities. The Department analyzes
each entity exporting the subject
merchandise under a test arising from
the Notice of 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 further developed in 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’’).
However, if the Department determines
that a company is wholly foreign–
owned or located in a market economy,
then a separate rate analysis is not
necessary to determine whether it is
independent from government control.
A. Separate Rate Applicants 6
1. Wholly Foreign–Owned
Winner, the mandatory respondent,
reported that it is wholly owned by
individuals or companies located in a
market economy in its separate–rate
application (‘‘Foreign–owned SR
Applicant’’). Therefore, because it is
wholly foreign–owned, and we have no
evidence indicating that it is under the
control of the PRC, further separate rates
analysis is not necessary to determine
whether this company is independent
from government control. See Notice of
Final Determination of Sales at Less
Than Fair Value: Creatine Monohydrate
from the People’s Republic of China, 64
FR 71104–05 (December 20, 1999)
(where the respondent was wholly
foreign–owned and, thus, qualified for a
separate rate). Accordingly, we have
preliminarily granted a separate rate to
Winner Machinery Enterprise Company
Limited.
6 All separate rate applicants receiving a separate
rate are hereby referred to collectively as the ‘‘SR
Recipients.’’
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2. Wholly Chinese–Owned
One separate rate applicant, Jiuli, stated
that it is a wholly Chinese–owned
company. Therefore, the Department
must analyze whether this respondent
can demonstrate the absence of both de
jure and de facto governmental control
over export activities.
a. Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual company may be
granted a separate rate: (1) an absence of
restrictive stipulations associated with
an individual exporter’s business and
export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) other formal
measures by the government
decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by Jiuli
supports a preliminary finding of de
jure absence of governmental control
based on the following: (1) an absence
of restrictive stipulations associated
with the exporter’s business and export
licenses; (2) there are applicable
legislative enactments decentralizing
control of the company; and (3) and
there are formal measures by the
government decentralizing control of
the company. See Jiuli’s Separate Rate
Application, (Jiuli’s SRA) dated April
28, 2008.
b. Absence of De Facto Control
Typically the Department considers
four factors in evaluating whether each
respondent is subject to de facto
governmental control of its export
functions: (1) whether the export prices
are set by or are subject to the approval
of a governmental agency; (2) whether
the respondent has authority to
negotiate and sign contracts and other
agreements; (3) whether the respondent
has autonomy from the government in
making decisions regarding the
selection of management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding
disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at
22586–87; see also Notice of Final
Determination of Sales at Less Than
Fair Value: Furfuryl Alcohol From the
People’s Republic of China, 60 FR
22544, 22545 (May 8, 1995). The
Department has determined that an
analysis of de facto control is critical in
determining whether respondents are,
in fact, subject to a degree of
governmental control which would
preclude the Department from assigning
separate rates.
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We determine that the evidence on
the record supports a preliminary
finding of de facto absence of
governmental control with respect to
Jiuli based on record statements and
supporting documentation showing that
the company: 1) sets its own export
prices independent of the government
and without the approval of a
government authority; 2) retains the
proceeds from its sales and makes
independent decisions regarding
disposition of profits or financing of
losses; 3) has the authority to negotiate
and sign contracts and other
agreements; and 4) has autonomy from
the government regarding the selection
of management. See, e.g., Jiuli’s SRA.
The evidence placed on the record of
this investigation by Winner and Jiuli
demonstrates an absence of de jure and
de facto government control with
respect to the exporters’ exports of the
merchandise under investigation, in
accordance with the criteria identified
in Sparklers and Silicon Carbide.
Therefore, we have preliminary granted
Winner and Jiuli separate rate status.
We calculated a company–specific
dumping margin for Winner and also
assigned this margin to Jiuli.
The PRC–Wide Entity
Although PRC exporters of subject
merchandise to the United States were
given an opportunity to provide Q&V
information to the Department, not all
exporters responded to the Department’s
request for Q&V information.7 Based
upon our knowledge of the volume of
imports of subject merchandise from the
PRC, we have concluded that the
companies that responded to the Q&V
questionnaire do not account for all U.S.
imports of subject merchandise from the
PRC made during the POI. We have
treated the non–responsive PRC
producers/exporters as part of the PRC–
wide entity because they did not qualify
for a separate rate.
Section 776(a)(2) of the Act provides
that the Department shall, subject to
subsection 782(d) of the Act, use facts
otherwise available in reaching the
applicable determination if an
interested party: (A) withholds
information that has been requested by
the Department; (B) fails to provide such
information in a timely manner or in the
form or manner requested, subject to
subsections 782(c)(1) and (e) of the Act;
(C) significantly impedes a proceeding
under the antidumping statute; or (D)
7 The Department received only two timely
responses to the requests for Q&V information that
it sent to 11 potential exporters identified in the
petition. The record indicates the questionnaires
were received by the exporters. See Respondent
Selection Memorandum.
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provides such information but the
information cannot be verified.
As noted above, the PRC–wide entity
withheld information requested by the
Department. As a result, pursuant to
section 776(a)(2)(A) of the Act, we find
it appropriate to base the PRC–wide
dumping margin on facts available. See
Notice of Preliminary Determination of
Sales at Less Than Fair Value,
Affirmative Preliminary Determination
of Critical Circumstances and
Postponement of Final Determination:
Certain Frozen Fish Fillets From the
Socialist Republic of Vietnam, 68 FR
4986 (January 31, 2003), unchanged in
Notice of Final Antidumping Duty
Determination of Sales at Less Than
Fair Value and Affirmative Critical
Circumstances: Certain Frozen Fish
Fillets from the Socialist Republic of
Vietnam, 68 FR 37116 (June 23, 2003).
Section 776(b) of the Act provides
that, in selecting from among the facts
otherwise available, the Department
may employ an adverse inference if an
interested party fails to cooperate by not
acting to the best of its ability to comply
with requests for information. 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); see
also Statement of Administrative
Action, accompanying the Uruguay
Round Agreements Act , H.R. Rep. No.
103–316, Vol. I at 843 (1994) (SAA),
reprinted in 1994 U.S.C.C.A.N. 4040 at
870. Because the PRC–wide entity did
not respond to the Department’s request
for information, the Department has
concluded that the PRC–wide entity has
failed to cooperate to the best of its
ability. Therefore, the Department
preliminarily finds that, in selecting
from among the facts available, an
adverse inference is appropriate.
Section 776(b) of the Act authorizes
the Department to use, as adverse facts
available (AFA): (1) information derived
from the petition; (2) the final
determination from the LTFV
investigation; (3) a previous
administrative review; or (4) any other
information placed on the record. In
selecting a rate for AFA, the Department
selects one that is sufficiently adverse
‘‘as to effectuate the purpose of the facts
available rule to induce respondents to
provide the Department with complete
and accurate information in a timely
manner.’’ See Notice of Final
Determination of Sales at Less Than
Fair Value: Static Random Access
Memory Semiconductors From Taiwan,
63 FR 8909 (February 23, 1998). It is the
Department’s practice to select, as AFA,
the higher of: (a) the highest margin
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alleged in the petition or (b) the highest
calculated rate for any respondent in the
investigation. See Final Determination
of Sales at Less Than Fair Value:
Certain Cold–Rolled Flat–Rolled Carbon
Quality Steel Products From the
People’s Republic of China, 65 FR 34660
(May 31, 2000) and accompanying
Issues and Decisions Memorandum at
Facts Available. Here, we assigned the
PRC–wide entity the dumping margin
calculated for Winner, which exceeds
the highest margin alleged in the
petition and is the highest rate
calculated in this investigation.
Pursuant to section 776(c) of the Act, 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. See SAA at 870. The
dumping margin for the PRC–wide
entity applies to all entries of the
merchandise under investigation except
for entries of subject merchandise
produced and exported by Winner and
produced and exported by Jiuli.
Fair Value Comparisons
To determine whether Winner sold
CWASPP to the United States at LTFV,
we compared the weighted–average
export price (EP) of the CWASPP to the
NV of the CWASPP, as described in the
‘‘U.S. Price,’’ and ‘‘NV’’ sections of this
notice.
U.S. Price
EP
In accordance with section 772(a) of
the Act, we based the U.S. price of sales
on EP because the first sale to
unaffiliated purchasers was made prior
to importation and the use of
constructed export price methodology
was not otherwise warranted.
In accordance with section 772(c) of
the Act, we calculated EP by deducting,
where applicable, the following
expenses from the starting price (gross
unit price) charged to the first
unaffiliated customer in the United
States: foreign movement expenses,
marine insurance, international freight,
and foreign brokerage and handling
expenses.
We based these movement expenses
on surrogate values where a PRC
company provided the service and was
paid in Renminbi (RMB). Where market
economy service providers, who were
paid in a market economy currency,
provided movement services for over 33
percent of subject merchandise
shipments, by volume, we based the
movement expenses on the actual price
charged by the service provider. See
Antidumping Methodologies: Market
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Economy Inputs, Expected Non–Market
Economy Wages, Duty Drawback; and
Request for Comments, 71 FR 61716
(October 19, 2006); see also
Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27366 (May 19, 1997) (Final
Rule). For details regarding our EP
calculation, see Circular Welded
Austenitic Stainless Pressure Pipe from
the People’s Republic of China –
Preliminary Analysis Memorandum for
Winner Machinery Enterprise Co., Ltd.
NV
In accordance with section 773(c) of
the Act, we constructed NV from the
factors of production employed by
Winner to manufacture subject
merchandise during the POI.
Specifically, we calculated NV by
adding together the value of the factors
of production, general expenses, profit,
and packing costs. We valued the factors
of production using prices and financial
statements from the surrogate country,
India. If market economy suppliers, who
were paid in a market economy
currency, supplied over 33 percent of
the total volume of a material input
purchased from all sources during the
POI, we based the input value on the
actual price charged by the supplier. If
market economy suppliers, who were
paid in a market economy currency,
supplied less than 33 percent of the
total volume of a material input
purchased from all sources during the
POI, we calculated the value by weight–
averaging surrogate values with the
actual price charged by the suppliers.
See Antidumping Methodologies:
Market Economy Inputs, Expected Non–
Market Economy Wages, Duty
Drawback; and Request for Comments,
71 FR 61716 (October 19, 2006); see also
Final Rule. In selecting surrogate values,
we followed, to the extent practicable,
the Department’s practice of choosing
values which are non–export average
values, contemporaneous with, or
closest in time to, the POI, product–
specific, and tax–exclusive. See, e.g.,
Notice of Preliminary Determination of
Sales at Less Than Fair Value, Negative
Preliminary Determination of Critical
Circumstances and Postponement of
Final Determination: Certain Frozen
and Canned Warmwater Shrimp From
the Socialist Republic of Vietnam, 69 FR
42672, 42682 (July 16, 2004), unchanged
in Final Determination of Sales at Less
Than Fair Value: Certain Frozen and
Canned Warmwater Shrimp from the
Socialist Republic of Vietnam, 69 FR
71005 (December 8, 2004). We also
considered the quality of the source of
surrogate information in selecting
surrogate values.
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Jkt 214001
We valued material inputs and
packing by multiplying the amount of
the factor consumed in producing
subject merchandise by the average unit
value of the factor. In addition, we
added freight costs to the surrogate costs
that we calculated for material inputs.
We calculated freight costs by
multiplying surrogate freight rates by
the shorter of the reported distance from
the domestic supplier to the factory that
produced the subject merchandise or
the distance from the nearest seaport to
the factory that produced the subject
merchandise, as appropriate. This
adjustment is in accordance with the
Court of Appeals for the Federal
Circuit’s decision in Sigma Corp. v.
United States, 117 F. 3d 1401, 1407
(Fed. Cir. 1997). Where we could only
obtain surrogate values that were not
contemporaneous with the POI, we
inflated (or deflated) the surrogate
values using the Indian Wholesale Price
Index (WPI) as published in the
International Financial Statistics of the
International Monetary Fund.
Further, in calculating surrogate
values from Indian imports, we
disregarded imports from Indonesia,
South Korea, and Thailand because in
other proceedings the Department found
that these countries maintain broadly
available, non–industry-specific export
subsidies. Therefore, it is reasonable to
infer that all exports to all markets from
these countries may be subsidized. See
Notice of Amended Final Determination
of Sales at Less Than Fair Value:
Certain Automotive Replacement Glass
Windshields from the People’s Republic
of China, 67 FR 11670 (March 15, 2002);
see also Notice of Final Determination
of Sales at Less Than Fair Value and
Negative Final Determination of Critical
Circumstances: Certain Color Television
Receivers From the People’s Republic of
China, 69 FR 20594 (April 16, 2004).8
Thus, we have not used prices from
these countries in calculating the Indian
import–based surrogate values.
We valued raw materials and packing
materials using Indian import statistics,
except as noted below. Winner reported
both ME and NME purchases of grades
304 and 316 stainless steel coil (coil)
used to produce the merchandise under
investigation. Petitioners argue that
Winner purchased coil at dumped and
subsidized prices. Specifically, they
argue that the Department should not
use Winner’s ME purchase price to
8 In addition, we note that legislative history
explains that the Department is not required to
conduct a formal investigation to ensure that such
prices are not subsidized. See H.R. Rep. 100-576 at
590 (1988). As such, it is the Department’s practice
to base its decision on information that is available
to it at the time it makes its determination.
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value coil because: (1) the Department
has a dumping order on U.S. imports of
coil from Taiwan, and Winner’s coil
supplier has received an adverse facts
available (AFA) dumping margin in the
proceeding; (2) the European Union
(EU) initiated a dumping investigation
on stainless steel cold rolled flat
products from Taiwan which covers the
period during which the respondent
purchased coil from its supplier; ( 3) the
European Community (EC) imposed
countervailing duties (CVD) on
Taiwanese hot–rolled flat steel coils,
(specifically, petitioners argue that the
CVD programs existed during the
instant POI, and, although Winner’s coil
supplier was not examined in the EC’s
CVD investigation, it is reasonable to
believe that this supplier could have
benefitted from these programs since the
programs are broadly available, non–
industry specific, and were likely used
by steel producers); (4) Winner’s ME
purchase prices are well below the
prices of 304 and 316 stainless steel coil
from the Steel Authority of India
Limited (SAIL), prices reported by the
publication American Metal Market
(AMM), and prices quoted on
metalprices.com; and (5) Winner’s ME
purchase prices are below the estimated
cost of producing grades 304 and 316
stainless steel, even where one
conservatively treats alloys as the only
material input used to produce the
stainless steel (petitioners constructed
the cost of grades 304 and 316 stainless
steel using market prices for alloys and
Indian surrogate overhead and profit
ratios).
Winner counters that its ME
purchases of grades 304 and 316 coil
(which constitute over 33% of its total
purchases of coil) have not been
dumped or subsidized and should be
used to value the coils that it consumed.
Specifically, Winner argues that: (1) in
the latest review in the U.S.
antidumping proceeding cited by
petitioners, another company, not its
coil supplier, received the AFA
dumping margin, while the review of
Winner’s supplier covering the instant
POI was rescinded; (2) the EU has made
no determination in its dumping
investigation; (3) evidence of third–
country (EC and US) dumping is
irrelevant; (4) there is no evidence that
Winner’s coil supplier received
subsidies or that there are subsidies
available for coil, (5) the EC CVD order
is outdated (2000), expired in 2005,
does not cover stainless coil (only hot–
rolled coil), and does not name
Winner’s coil supplier, and (6)
petitioners’ price and cost comparisons
are unreliable because: (a) Indian SAIL
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price quotes do not indicate the seller or
buyer, are not certified by anyone, and
do not include discounts, rebates, etc.,
(b) AMM prices are U.S.-specific
representing industry averages and do
not reasonably reflect Taiwanese
stainless prices, and (c) petitioners’
calculation of the cost used in their
comparison is inaccurate. Lastly,
Winner claims that Asia MEPS
(International) Ltd. (MEPS) data
corroborates Winner’s coil supplier’s
coil prices (petitioners identified MEPS
as a leading source of pricing data in the
stainless steel industry.)
Petitioners then argue that import
statistics, regardless of the selected
surrogate country, should not be used to
value coil because they do not
differentiate between basic coil and
grades 304 and 316 coil. Petitioners
claim that differentiating between other
grades of coil and grades 304 and 316
coil is critical because grades 304 and
316 coil contain high concentrations of
expensive alloys, such as nickel and
molybdenum, and cost several times
more than basic coil. Specifically,
petitioners contend that the average unit
values from Indian import data for the
HTS classification for coil, for example,
do not approach the cost of the nickel
and molybdenum contained in grades
304 and 316 coils, and therefore, the
Department should use SAIL prices as
the surrogate value for 304 and 316
coil.9
The Department finds no evidence
that Winner’s ME purchases were
dumped or subsidized because: (1)
neither the U.S. AD order on coil from
Taiwan nor the EU investigation have
relevance to the prices paid in the
PRC,10 (2) the countervailing duty
proceeding conducted by the EC (a)
does not cover merchandise produced
by the Taiwanese coil supplier, (b) does
not cover stainless coil, (c) does not
name the Taiwanese coil supplier as a
respondent, and (d) expired in 2005,
and (3) there is no evidence on the
record that any of the subsidies on hot
rolled steel found by the EC to be
countervailable still exist or, even if
they exist, that the Taiwanese coil
9 Although not mentioned by petitioners, we
noted that SAIL is specifically named in the EC
CVD order on hot-rolled steel.
10 The Department has previously noted that it
will ‘‘disregard market economy prices for imported
inputs as dumped only when the importing country
has an antidumping duty order in effect for the
products in question * * * dumping is specific to
competitive conditions in particular markets and
cannot be assumed to apply globally.’’ See Notice
of Final Determination of Sales at Less Than Fair
Value: Lawn and Garden Steel Fence Posts From
the People’s Republic of China, 68 FR 20373 (April
25, 2003), and accompanying Issues and Decision
Memorandum at Comment 2.
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Jkt 214001
supplier would be eligible to receive
them. Moreover, although Winner’s ME
purchase prices for stainless coil are
lower than the prices and constructed
costs submitted by petitioners, prices
can be affected by numerous
indeterminate factors. Thus, these price
differences do not provide a basis to
believe or suspect that the product may
be dumped or subsidized. Therefore,
because the quantity of ME purchases of
coil exceeded 33% of Winner’s total
purchases of coil, the Department has
used the ME purchase price as its
surrogate value for all purchases of coil.
We valued water using data from the
Maharashtra Industrial Development
Corporation (www.midcindia.org)
because it includes a wide range of
industrial water tariffs. This source
provides 386 industrial water rates
within the Maharashtra province from
June 2003, 193 for the ‘‘inside industrial
areas’’ usage category, and 193 for the
‘‘outside industrial areas’’ usage
category. Because the rate was not
contemporaneous with the POI, we
inflated the rate using the WPI. See the
Memorandum Regarding ‘‘Investigation
of Circular Welded Austenitic Stainless
Pressure Pipe from the People’s
Republic of China: Surrogate Values
Selected’’ for Winner dated
concurrently with this notice (Factor
Value Memorandum).
We valued electricity using price data
for small, medium, and large industries,
as published by the Central Electricity
Authority of the Government of India in
its publication titled Electricity Tariff &
Duty and Average Rates of Electricity
Supply in India, dated July 2006. These
electricity rates represent actual
country–wide, publicly–available
information on tax–exclusive electricity
rates charged to industries in India.
Since the rates are not contemporaneous
with the POI, we inflated the values
using the WPI. See Factor Value
Memorandum.
We valued natural gas using a value
obtained from the Gas Authority of
India Ltd.’s website, a supplier of
natural gas in India. See https://
www.gailonline.com/gailnewsite/
index.html. The value relates to the
period January through June 2002.
Therefore, we inflated the value using
the WPI. In addition, we added
transportation charges to the value. See
Surrogate Value Memorandum and
Polyvinyl Alcohol From the People’s
Republic of China: Final Results of
Antidumping Duty Administrative
Review, 71 FR 27991 (May 15, 2006),
and accompanying Issues and Decision
Memorandum at Comment 2.
We valued fuel oil/diesel using the
prices for petrol from Indian Oil Corp.
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Ltd. from June 2007, after inflating the
value using the WPI for the POI. See
Factor Value Memorandum.
For direct labor, indirect labor, and
packing labor, consistent with 19 CFR
351.408(c)(3), we used the most recently
calculated regression–based wage rate,
which relies on 2005 data. This wage
rate can be found on the Department’s
website on Import Administration’s
home page. See Expected Wages of
Selected NME Countries (revised May
2008) (available at https://ia.ita.doc.gov/
wages/). The source of these
wage rate data on the Import
Administration’s web site is the
International Labour Organization,
Geneva, Labour Statistics Database
Chapter 5B: Wages in Manufacturing.
Since this regression–based wage rate
does not separate the labor rates into
different skill levels or types of labor,
we have applied the same wage rate to
all skill levels and types of labor
reported by Winner. See Factor Value
Memorandum.
We valued truck freight expenses
using a per–unit average rate calculated
from data on the following web site:
https://www.infobanc.com/logistics/
logtruck.htm. The logistics section of
this website contains inland freight
truck rates between many large Indian
cities. Since this value is not
contemporaneous with the POI, we
deflated the rate using the WPI. See
Factor Value Memorandum.
We valued brokerage and handling
using a simple average of the brokerage
and handling costs that were reported in
public submissions that were filed in
three antidumping duty cases.
Specifically, we averaged the public
brokerage and handling expenses
reported by Agro Dutch Industries Ltd.
in the antidumping duty administrative
review of certain preserved mushrooms
from India, Kejirwal Paper Ltd. in the
LTFV investigation of certain lined
paper products from India, and Essar
Steel in the antidumping duty
administrative review of hot–rolled
carbon steel flat products from India.
See Certain Preserved Mushrooms From
India: Final Results of Antidumping
Duty Administrative Review, 71 FR
10646 (March 2, 2006); see also Notice
of Preliminary Determination of Sales at
Less Than Fair Value, Postponement of
Final Determination, and Affirmative
Preliminary Determination of Critical
Circumstances in Part: Certain Lined
Paper Products From India, 71 FR 19706
(April 17, 2006), unchanged in Notice of
Final Determination of Sales at Less
Than Fair Value, and Negative
Determination of Critical
Circumstances: Certain Lined Paper
Products from India, 71 FR 45012
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05SEN1
Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
(August 8, 2006) and Certain hot–Rolled
Carbon Steel Flat Products From India:
Preliminary Results of Antidumping
Duty Administrative Review, 71 FR
2018,2021 (January 12, 2006)
(unchanged in Certain Hot–Rolled
Carbon Steel Flat Products From India:
Final Results of Antidumping
Administrative Review, 71 FR 40694
(July 18, 2006). Since the resulting value
is not contemporaneous with the POI,
we inflated the rate using the WPI. See
Factor Value Memorandum. We valued
international freight and marine
insurance using purchase prices. See
analysis memorandum for Winner dated
concurrently with this notice.
We valued factory overhead, selling,
general, and administrative (SG&A)
expenses, and profit, using the 2006–
2007 audited financial statements of
Jindal SAW Ltd. and Ratnamani Metals
& Tubes Ltd. See Factor Value
Memorandum. For additional
information regarding the selection of
financial ratios, see the ‘‘Surrogate
Country’’ section above.
In accordance with 19 CFR
351.301(c)(3)(i), interested parties may
submit publicly available information
with which to value factors of
production in the final determination
within 40 days after the date of
publication of the preliminary
determination.
Currency Conversion
We made currency conversions into
U.S. dollars, in accordance with section
773A(a) of the Act, based on the
exchange rates in effect on the dates of
the U.S. sales as certified by the Federal
Reserve Bank.
mstockstill on PROD1PC66 with NOTICES
Verification
As provided in section 782(i)(1) of the
Act, we intend to verify the information
upon which we will rely in making our
final determination.
Combination Rates
In the Initiation Notice, the
Department stated that it would
calculate combination rates for certain
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
VerDate Aug<31>2005
18:40 Sep 04, 2008
Jkt 214001
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.’’
51795
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we have notified the ITC of our
preliminary affirmative determination of
sales at LTFV. Section 735(b)(2) of the
Act requires the ITC to make its final
determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
CWASPP, or sales (or the likelihood of
sales) for importation, of the subject
merchandise within 45 days of our final
determination.
Public Comment
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Import Administration no
later than seven days after the date the
final verification report is issued in this
proceeding and rebuttal briefs, limited
to issues raised in case briefs, no later
than five days after the deadline for
submitting case briefs. See 19 CFR
351.309(c)(1)(i) and 19 CFR
351.309(d)(1). A list of authorities used
Preliminary Determination
and an executive summary of issues
The weighted–average dumping margins should accompany any briefs submitted
are as follows:
to the Department. This summary
should be limited to five pages total,
Weighted– including footnotes.
Exporter & Producer
Average
In accordance with section 774 of the
Margin
Act, we will hold a public hearing, if
ZHEJIANG JIULI HI–TECH METALS
requested, to afford interested parties an
CO., LTD. Produced by:
opportunity to comment on arguments
Zhejiang Jiuli Hi–Tech Metals
raised in case or rebuttal briefs. If a
Co., Ltd. ..................................
22.03%
request for a hearing is made, we intend
WINNER MACHINERY ENTERPRISE
to hold the hearing three days after the
CO., LTD. Produced by: Windeadline of submission of rebuttal briefs
ner Stainless Steel Tube Co.,
Ltd. ..........................................
22.03% at the U.S. Department of Commerce,
PRC–WIDE RATE .........................
22.03% 14th Street and Constitution Ave, NW,
Washington, DC 20230, at a time and
location to be determined. Parties
Disclosure
should confirm by telephone the date,
We will disclose the calculations
time, and location of the hearing two
performed within five days of the date
days before the scheduled date.
of publication of this notice to parties in
Interested parties that wish to request
this proceeding in accordance with 19
a hearing, or to participate if one is
CFR 351.224(b).
requested, must submit a written
request to the Assistant Secretary for
Suspension of Liquidation
Import Administration, U.S. Department
In accordance with section 733(d) of
of Commerce, Room 1870, within 30
the Act, we will instruct CBP to suspend days after the date of publication of this
liquidation of all entries of CWASPP
notice. See 19 CFR 351.310(c). Requests
from the PRC as described in the ‘‘Scope should contain the party’s name,
of Investigation’’ section, entered, or
address, and telephone number, the
withdrawn from warehouse, for
number of participants, and a list of the
consumption on or after the date of
issues to be discussed. At the hearing,
publication of this notice in the Federal each party may make an affirmative
Register. We will instruct CBP to
presentation only on issues raised in
require a cash deposit or the posting of
that party’s case brief and may make
a bond equal to the weighted–average
rebuttal presentations only on
amount by which the normal value
arguments included in that party’s
exceeds U.S. price, as indicated above.
rebuttal brief.
PO 00000
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Fmt 4703
Sfmt 4703
E:\FR\FM\05SEN1.SGM
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51796
Federal Register / Vol. 73, No. 173 / Friday, September 5, 2008 / Notices
Postponement of Final Determination
and Extension of Provisional Measures
Pursuant to section 735(a)(2) of the
Act, on August 15, 2008, as amended on
August 22, 2008, Winner requested that
in the event of an affirmative
preliminary determination in this
investigation, the Department postpone
its final determination by 60 days. At
the same time, Winner agreed that the
Department may extend the application
of the provisional measures prescribed
under 19 CFR 351.210(e)(2) from a 4–
month period to a 6–month period. In
accordance with section 733(d) of the
Act and 19 CFR 351.210(b), we are
granting the request and are postponing
the final determination until no later
than 135 days after the publication of
this notice in the Federal Register
because: (1) our preliminary
determination is affirmative, (2) the
requesting exporters account for a
significant proportion of exports of the
subject merchandise, and (3) no
compelling reasons for denial exist.
Suspension of liquidation will be
extended accordingly.
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act.
Dated: August 27, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E8–20508 Filed 9–4–08 8:45 am]
Special Accommodations
The meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to M.
Jan Bryan at the Mid-Atlantic Council
Office, (302) 674–2331 extension 18, at
least 5 days prior to the meeting date.
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XK22
Mid-Atlantic Fishery Management
Council; Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of a public meeting.
mstockstill on PROD1PC66 with NOTICES
AGENCY:
SUMMARY: The Mid-Atlantic Council’s
Squid, Mackerel, and Butterfish
Committee will hold a public meeting
on Amendment 10 to the Atlantic
Mackerel, Squid, and Butterfish Fishery
Management Plan and if time allows,
also on Amendment 11.
DATES: The meeting will be held on
Tuesday, September 23, 2008, from 10
a.m. to 6 p.m.
ADDRESSES: The meeting will be held at
the Sheraton Newark Airport Hotel, 128
Frontage Road, Newark, NJ 07114;
telephone: (973) 690–5500.
VerDate Aug<31>2005
18:40 Sep 04, 2008
Jkt 214001
Council address: Mid-Atlantic Fishery
Management Council, 300 S. New
Street, Room 2115, Dover, DE 19904;
telephone: (302) 674–2331.
FOR FURTHER INFORMATION CONTACT:
Daniel T. Furlong, Executive Director,
Mid-Atlantic Fishery Management
Council, 300 S. New Street, Room 2115,
Dover, DE 19904; telephone: (302) 674–
2331, extension 19.
SUPPLEMENTARY INFORMATION: The
purposes of this meeting are: to finalize
Amendment 10’s butterfish rebuilding
and bycatch reduction preferred
alternatives; and, if time allows, review
progress on Amendment 11 (especially,
but not limited to, alternatives dealing
with instituting limited access in the
mackerel fishery).
Although non-emergency issues not
contained in this agenda may come
before this group for discussion, in
accordance with the Magnuson-Stevens
Fishery Conservation and Management
Act (Magnuson-Stevens Act), those
issues may not be the subject of formal
action during this meeting. Actions will
be restricted to those issues specifically
identified in this notice and any issues
arising after publication of this notice
that require emergency action under
section 305(c) of the Magnuson-Stevens
Act, provided the public has been
notified of the Council’s intent to take
final action to address the emergency.
Dated: September 2, 2008.
Tracey L. Thompson,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. E8–20605 Filed 9–4–08; 8:45 am]
BILLING CODE 3510–22–S
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XK21
North Pacific Fishery Management
Council; Public Meetings
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meetings.
AGENCY:
SUMMARY: The North Pacific Fishery
Management Council (Council) and its
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
advisory committees will hold public
meetings, September 29 - October 7,
2008 at Sheraton Hotel, 401 East 6th
Avenue, Anchorage, AK.
DATES: The Council will begin its
plenary session at 8 a.m. on Wednesday,
October 1 continuing through Tuesday
October 7, 2008. The Council’s Advisory
Panel (AP) will begin at 8 a.m., Monday,
September 29 and continue through
Saturday October 4. The Scientific and
Statistical Committee (SSC) will begin at
8 a.m. on Monday, September 29 and
continue through Wednesday October 1,
2008. The Ecosystem Committee will
meet Tuesday, September 30, from 9
a.m. to 5 p.m. The Enforcement
Committee will meet Tuesday,
September 30, from 1 p.m. to 5 p.m. in
the. All meetings are open to the public,
except executive sessions.
ADDRESSES: The meetings will be held at
the Sheraton Hotel, 401 East 6th
Avenue, Anchorage, AK.
Council address: North Pacific
Fishery Management Council, 605 W.
4th Avenue, Suite 306, Anchorage, AK
99501–2252.
FOR FURTHER INFORMATION CONTACT:
David Witherell, Council staff,
telephone: (907) 271–2809.
SUPPLEMENTARY INFORMATION: Council
Plenary Session: The agenda for the
Council’s plenary session will include
the following issues. The Council may
take appropriate action on any of the
issues identified.
1. Reports
Executive Director’s Report (including
Joint Protocol Committee report)
NMFS Management Report (including
update on halibut area 2C regulations;
update on Community Development
Quota oversight regulations, and annual
Bering Sea and Aleutian Islands (BSAI)
crab report.)
Alaska Department of Fish & Game
Report
U.S. Coast Guard Report
U.S. Fish & Wildlife Service Report
Protected Species Report (including
update on the BiOp schedule)
2. Halibut Management: Report from
ADF&G on Charter halibut harvests;
final action on Charter Halibut Catch
Sharing Plan; Final action on Area 3A
Guideline Harvest measures.
3. BSAI Crab Issues: Receive Plan
Team report, approve Crab Stock
Assessment Fishery Evaluation Report
and adopt Overfishing Levels (OFLs);
Final action on St. George Protection
Measures; receive BSAI Crab Program 3year review report; receive Crab
Committee report/crew proposals;
preliminary review of BSAI 90.10
Amendment package; receive report on
Crab Economic Data report metadata;
E:\FR\FM\05SEN1.SGM
05SEN1
Agencies
[Federal Register Volume 73, Number 173 (Friday, September 5, 2008)]
[Notices]
[Pages 51787-51796]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20508]
[[Page 51788]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-930]
Circular Welded Austenitic Stainless Pressure Pipe from the
People's Republic of China: Preliminary Determination of Sales at Less
Than Fair Value and Postponement of Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 5, 2008.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that circular welded austenitic stainless pressure pipe
(CWASPP) 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 733 of the Tariff Act of 1930, as amended (the
Act). The estimated dumping margins are shown in the ``Preliminary
Determination'' section of this notice.
FOR FURTHER INFORMATION CONTACT: Melissa Blackledge or Howard Smith,
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-
3518 or 482-5193, respectively.
SUPPLEMENTARY INFORMATION:
Background
On January 30, 2008, the Department received a petition concerning
imports of CWASPP from the PRC filed in proper form by Bristol Metals,
L.P., Felker Brothers Corp., Marcegaglia USA, Inc., Outokumpu Stainless
Pipe Inc., and the United Steel Workers of America (collectively,
petitioners). The Department initiated an antidumping duty
investigation of CWASPP from the PRC on February 19, 2008. See Circular
Welded Austenitic Stainless Pressure Pipe from the People's Republic of
China: Initiation of Antidumping Duty Investigation, 73 FR 10221
(February 26, 2008) (Initiation Notice).
On February 20, 2008, the Department requested quantity and value
(Q&V) information from the 11 companies that are identified in the
petition as potential producers or exporters of CWASPP from the PRC.
See Exhibit I-6, Volume I, of the January 30, 2008, Petition for the
Imposition of Antidumping and Countervailing Duties (the petition). The
Department received timely responses to its Q&V questionnaire from the
following companies: Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (Jiuli),
Winner Stainless Steel Tube Co., Ltd. and Winner Machinery Enterprise
Co., Ltd (collectively Winner). The other nine companies to which the
Department sent Q&V questionnaires received the questionnaires but did
not respond to them.
On March 14, 2008, the International Trade Commission (ITC)
preliminarily determined that there is a reasonable indication that an
industry in the United States is materially injured or threatened with
material injury by reason of imports of CWASPP from the PRC. See Welded
Stainless Steel Pressure Pipe From China, Investigation Nos. 701-TA-454
and 731-TA-1144 (Preliminary), 73 FR 16911 (March 31, 2008). Also, in
March 2008, petitioners and Winner submitted comments to the Department
regarding the physical characteristics of subject merchandise that
should be used in comparing sales prices with normal value.
On April 28, 2008, the Department received separate-rate
applications from Jiuli and Winner. On April 15, 2008, the Department
selected Winner as a mandatory respondent and issued an antidumping
questionnaire to the company. See memorandum regarding ``Selection of
Respondents in the Antidumping Investigation of Circular Welded
Austenitic Stainless Pressure Pipe from the People's Republic of
China,'' dated April 15, 2008 (Respondent Selection Memorandum). Winner
submitted timely responses to the Department's questionnaire on May 13,
2008, and June 3, 2008.
The Department issued supplemental questionnaires to, and received
responses from Winner and Jiuli from April through August 2008.
Petitioners submitted comments to the Department regarding Winner's
questionnaire and supplemental questionnaire responses from June
through July 2008.
On June 2, 2008, the Department released a memorandum to interested
parties which listed potential surrogate countries and invited
interested parties to comment on surrogate country and surrogate value
selection. During June and July 2008, petitioners and Winner submitted
comments on the appropriate surrogate country and surrogate values. The
submitted surrogate value data are from India, Thailand, the United
States, and international websites.
On June 10, 2008, petitioners requested postponement of the
preliminary determination. On June 24, 2008, the Department extended
this preliminary determination by fifty days. See Notice of
Postponement of Preliminary Determination in the Antidumping Duty
Investigation of Circular Welded Austenitic Stainless Pressure Pipe
from the People's Republic of China, 73 FR 35658 (June 24, 2008).
On August 15, 2008, Winner requested that the Department extend the
final determination in this case. On August 20, 2008, Winner clarified
and supplemented its extension request by identifying the length of the
requested extension and by including a request to extend the
provisional measures to six months. See the ``Postponement of Final
Determination and Extension of Provisional Measures'' section of this
notice below.
Period of Investigation
The period of investigation (POI) is July 1, 2007, through December
31, 2007. This period comprises the two most recently completed fiscal
quarters as of the month preceding the month in which the petition was
filed (i.e., January 2008). See 19 CFR 351.204(b)(1).
Scope of the Investigation
The merchandise covered by this investigation is circular welded
austenitic stainless pressure pipe not greater than 14 inches in
outside diameter. This merchandise includes, but is not limited to, the
American Society for Testing and Materials (``ASTM'') A-312 or ASTM A-
778 specifications, or comparable domestic or foreign specifications.
ASTM A-358 products are only included when they are produced to meet
ASTM A-312 or ASTM A-778 specifications, or comparable domestic or
foreign specifications.
Excluded from the scope are: (1) welded stainless mechanical
tubing, meeting ASTM A-554 or comparable domestic or foreign
specifications; (2) boiler, heat exchanger, superheater, refining
furnace, feedwater heater, and condenser tubing, meeting ASTM A-249,
ASTM A-688 or comparable domestic or foreign specifications; and (3)
specialized tubing, meeting ASTM A-269, ASTM A-270 or comparable
domestic or foreign specifications.
The subject imports are normally classified in subheadings
7306.40.5005; 7306.40.5040, 7306.40.5062, 7306.40.5064, and
7306.40.5085 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). They may also enter under HTSUS subheadings 7306.40.1010;
7306.40.1015; 7306.40.5042, 7306.40.5044, 7306.40.5080, and
7306.40.5090. The HTSUS subheadings are provided for convenience and
customs purposes
[[Page 51789]]
only, the written description of the scope of this investigation is
dispositive.
Scope Comments
In accordance with the preamble to the Department's regulations, we
set aside a period of time in our Initiation Notice for parties to
raise issues regarding product coverage, and encouraged all parties to
submit comments within 20 calendar days of publication of that notice.
See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May
19, 1997) and Initiation Notice. The Department received comments
concerning the scope of the CWASPP antidumping and countervailing duty
investigations from Prudential Stainless & Alloy LP (Prudential), a
U.S. importer and distributor of subject merchandise, on March 10,
2008, and rebuttal comments from petitioners on March 14, 2008. In
addition, Prudential responded to petitioners rebuttal comments on
April 28, 2008. Prudential requests that the Department limit the scope
of the investigations by excluding from the scope all grades of ASTM A-
312, except the 304 and 316 series, and all Schedules (wall thickness)
of stainless pressure pipe except Schedules 40S and 10S. Prudential
contends that the grades of pipe that they seek to exclude from the
scope are premium-priced, low-volume, specialty grades that do not
compete with high-volume commodity products in the 304 and 316 series.
Moreover, Prudential contends that the Schedules that they seek to
exclude from the scope constitute a minority of what is produced by the
domestic industry and thus these Schedules do not represent a threat to
petitioners. Petitioners urge the Department not to modify the scope,
noting that (1) the current scope is an accurate reflection of the
products for which the domestic industry is seeking relief, (2) the
proposed change to the scope would exclude products that are both
manufactured by, and important to, the domestic industry and (3) the
products that Prudential seeks to exclude were defined by the ITC as
like-products in its preliminary investigation questionnaire. In
rebuttal, Prudential adds that although some of the domestic industry
does produce the products that it requests to be excluded from the
scope (``the products at issue''), these products are not important to
the domestic industry. Prudential asks the Department to determine
whether or not the products at issue are important to the domestic
industry by calculating the percentage of U.S. production of the
merchandise under investigation represented by the products at issue.
After considering parties' comments, the Department has decided not
to modify the scope of the investigations. The starting point for
determining whether merchandise is subject to an investigation is the
petition. See 19 CFR 351.225(k)(1) (2001). See also Eckstrom
Industries, Inc. v. United States, 254 F.3d 1068, 1071-72 (Fed. Cir.
2001) (citing Smith Corona Corp. v. United States, 915 F.2d 683, 685
(Fed. Cir. 1990)). While the Department does have the authority to
define or clarify the scope of an investigation, the Department ``must
exercise this authority in a manner which reflects the intent of the
petition and the Department generally should not use its authority to
define the scope of an investigation in a manner that would thwart the
statutory mandate to provide the relief requested in the petition.''
See Notice of Final Determination of Sales at Less Than Fair Value:
Certain Softwood Lumber Products From Canada, 67 FR 15539 (April 2,
2002) and accompanying Issues and Decision Memorandum under Scope
Issues (after Comment 49). Thus, ``absent an overarching reason to
modify the scope in the petition, the Department accepts it.'' See id.
The description of subject merchandise in the petition indicates that
the products at issue are to be covered by the antidumping and
countervailing investigations of CWASPP from the PRC. Additionally, in
their comments, petitioners have confirmed that the scope, as currently
written, is an accurate reflection of the products for which they seek
relief. Therefore, the scope modifications proposed by Prudential are
inconsistent with the intent of the petition and ``would thwart the
statutory mandate to provide the relief requested in the petition.''
See id. Furthermore, Prudential's claims that the products at issue are
``small-volume'' products that are unimportant to the domestic industry
do not provide a basis for modifying the scope. For the above reasons,
the Department has not modified the scope.
Non-Market Economy Treatment
The Department considers the PRC to be a non-market economy (NME)
country. In accordance with section 771(18)(c)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See Tapered Roller
Bearings and Parts Thereof (TRBs), Finished and Unfinished, From the
People's Republic of China: Preliminary Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 7500
(February 14, 2003), unchanged in TRBs, Finished and Unfinished, from
the People's Republic of China: Final Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 70488
(December 18, 2003). The Department has not revoked the PRC's status as
an NME country. Therefore, in this preliminary determination, we have
treated the PRC as an NME country and applied our current NME
methodology.
Selection of a Surrogate Country
In antidumping proceedings involving NME countries, the Department,
pursuant to section 773(c)(1) of the Act, will generally base normal
value (NV) on the value of the NME producer's factors of production. In
accordance with section 773(c)(4) of the Act, in valuing the factors of
production, the Department shall utilize, to the extent possible, the
prices or costs of factors of production in one or more market economy
countries that are at a level of economic development comparable to
that of the NME country and are significant producers of merchandise
comparable to the subject merchandise. The Department has determined
that India, Indonesia, the Philippines, Colombia, and Thailand are
countries that are at a level of economic development comparable to
that of the PRC. See memorandum regarding ``Antidumping Duty
Investigation of Circular Welded Austenitic Stainless Pressure Pipe
(``C-WASP) Pipe'') from the People's Republic of China (PRC): Request
for a List of Surrogate Countries,'' dated May 22, 2008 (Policy
Memorandum).
As noted above, during June and July 2008, petitioners and Winner
submitted comments on the appropriate surrogate country and surrogate
values. Petitioners argue that India is the most appropriate surrogate
country because (1) it is a market economy (ME) country at a level of
economic development comparable to the PRC in terms of gross national
income (GNI), (2) it is a significant producer of subject merchandise
for which public financial statements are available, (3) it maintains
public data for many of the factors of production, and (4) the
Department has traditionally selected India as a surrogate country for
the PRC. Petitioners add that Thai surrogate values are less
appropriate than Indian values because the financial statements
provided by Winner are not from producers of subject merchandise.
Winner argues that Thailand, rather than India, should be selected
as the surrogate country. Specifically, Winner contends that Thailand
is the
[[Page 51790]]
appropriate surrogate country in this case because: (1) it is an ME
country that is economically comparable to the PRC, (2) it is a
significant producer of subject merchandise (the ITC identified
Thailand (not India) as one of four substantial suppliers of CWASPP to
the United States), and (3) Thai CWASPP is more comparable to the PRC's
than India's CWASPP because, based on ITC data, U.S. importers did not
purchase Indian CWASPP. Moreover, Winner maintains that India and
Thailand should not be considered to be equally comparable to the PRC
because Thailand's per capita GNI is closer to the PRC's than India's
and the difference between Thailand's GNI and India's GNI is vast. In
addition, Winner argues that the Department should not have listed
India as a potential surrogate country because, in doing so, the
Department skipped over nineteen other countries each with a GNI closer
to that of the PRC. Winner also notes that predictability is not a
basis for selecting India as the surrogate country; rather it is the
Department's obligation to use the best' available information to
calculate dumping margins as accurately as possible. Lastly, Winner
claims India should not be selected as a surrogate country because
studies indicate its import statistics are flawed due to
misclassifications and thus they should not be used to calculate
surrogate values.
After evaluating interested parties' comments, the Department has
selected India as the surrogate country for this investigation.
Although Winner has argued that Thailand's level of economic
development is closer to that of the PRC than India's, the statute does
not require the Department to use a surrogate country at a level of
economic development closest to the NME country; it merely requires
that the surrogate country used be economically comparable to the NME
country. See section 773 (c)(2) of the Act. Thus, the Department does
not rank-order countries' comparability according to how close their
per capita GNI is to that of the NME country in question. Rather, in
NME proceedings, the Department creates a list of possible surrogate
countries that it considers equivalent in terms of economic
comparability. In addition, the potential surrogate countries
identified reflect countries that, in the Department's experience, are
most likely to offer data necessary to conduct the proceeding. Given
the foregoing, and the spectrum of economic development across the
world, (e.g., the World Development Report used by the Department to
select potential surrogate countries list 133 countries with GNIs
ranging from $100 to $66,530), we continue to find it appropriate to
consider India to be at a level of economic development comparable to
the PRC. See Winner's June 27, 2008, submission to the Department at
Exhibit 2.
With respect to the criterion that the surrogate country be a
significant producer of merchandise that is comparable to subject
merchandise, record evidence indicates that both India and Thailand are
significant producers of comparable merchandise. See memorandum from
Melissa Blackledge, to the File regarding ``Potential Surrogate
Countries: Significant Production of Comparable Merchandise'' dated
concurrently with this notice.
Since both India and Thailand satisfy the statutory criteria for
selecting a surrogate country, we examined whether one country is a
more appropriate surrogate than the other based on data availability
and quality. After examining the surrogate value information provided
by the petitioners and Winner, we find the Indian surrogate financial
data better reflect the overall experience of producers of subject
merchandise in a surrogate country. The Indian financial statements
from Jindal SAW Ltd. and Ratnamani Metals & Tubes Ltd. are from
companies that produce subject and like merchandise, and while one is
contemporaneous with the POI, the other includes the year ending March
31, 2007, just three months prior to the beginning of the POI. The only
usable Thai financial statement, for Great Central (International) Co.,
Ltd., is not contemporaneous with the POI and states that it
``manufactures and distributes stainless steel,'' yet it lacks
information regarding the type of stainless steel produced, the type
and extent of manufacturing, the raw materials produced and/or
consumed, and its associations with other companies or group of
companies. Generally, where available, we prefer to use more than one
financial statement in order to obtain a broader industry
representation.\1\
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\1\ See Fresh Garlic From the People's Republic of China: Final
Results of Antidumping Duty New Shipper Review, 67 FR 72139
(December 4, 2002), and accompanying Issues and Decision Memorandum
at Comment 5.
---------------------------------------------------------------------------
While petitioners and Winner have submitted financial statements in
addition to those identified above, we have concluded that these
financial statements are not useable. Specifically, the financial
statements the Department finds not useable are: (1) two Thai financial
statements, one from Thai-German Products Public Co., Ltd. and one from
Lokahit Metal Public Co., Ltd., which indicate receipt of subsidies,
and (2) one Indian financial statement, from Suraj Stainless Ltd.,
which also indicates receipt of subsidies.
In Crawfish from the PRC, the Department discussed its practice
with respect to financial statements that contain evidence of
subsidization:
{T{time} he statute directs Commerce to base the valuation of the
factors of production on ``the best available information regarding the
values of such factors in a market economy country or countries
considered to be appropriate . . . .'' Section 773(c)(1) of the Act.
Moreover, in valuing such factors, Congress further directed Commerce
to ``avoid using any prices which it has reason to believe or suspect
may be dumped or subsidized prices.'' Omnibus Trade and Competitiveness
Act of 1988, H.R. Rep. No. 576, 100 nth Cong., 2 nd Sess., at 590-91
(1988). The Department calculates the financial ratios based on
financial statements of companies producing comparable merchandise from
the surrogate country, some of which may contain evidence of
subsidization. However, where the Department has a reason to believe or
suspect that the company may have received subsidies, the Department
may consider that the financial ratios derived from that company's
financial statements are less representative of the financial
experience of that company or the relevant industry than the ratios
derived from financial statements that do not contain evidence of
subsidization. Consequently, {those statements that appear to reflect
subsidies{time} do not constitute the best available information to
value the surrogate financial ratios.\2\
---------------------------------------------------------------------------
\2\ See Crawfish from the PRC, and accompanying Issues and
Decision Memorandum at Comment 1.
---------------------------------------------------------------------------
Given the record information regarding these three companies' receipt
of subsidies, and the fact that we have other acceptable financial
statements to use as surrogates,\3\ we have not considered the
financial data from these three companies in our surrogate ratio
calculations.
---------------------------------------------------------------------------
\3\ As noted above, those financial statements include
statements from Jindal SAW Ltd. Although Winner noted that Jindal
SAW Ltd.'s financial statement listed ``export benefits/government
grants receivable,'' the Department has insufficient information to
determine whether these items relate to programs that have been
countervailed.
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[[Page 51791]]
Petitioners and Winner also submitted import statistics from which
they calculated surrogate values. Although Winner has contested the
quality of the Indian import data based on certain studies, the studies
submitted by Winner do not reference the inputs used to produce CWASPP.
In Wooden Bedroom Furniture from the PRC, the Department examined these
studies and found they were not sufficiently specific to the inputs
used in that case to support finding the Indian import data to be
inaccurate.\4\ Likewise, the evidence that has been placed on the
record of this proceeding by Winner does not cause the Department to
question the quality of the Indian import statistics used here.
Therefore, because India better represents the experience of producers
of subject merchandise and providesbetter financial data; we have
selected India as the surrogate country.
---------------------------------------------------------------------------
\4\ See Amended Final Results of Antidumping Duty Administrative
Review and New Shipper Reviews: Wooden Bedroom Furniture from the
People's Republic of China, 72 FR 46957 (August 22, 2007) and
accompanying Issues and Decision Memorandum, dated August 8, 2007,
at Comment 1.
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Separate Rates
In the Initiation Notice, the Department notified parties of the
application process by which exporters and producers may obtain
separate-rate status in NME investigations. See Initiation Notice, 73
FR at 10221. The process requires exporters and producers to submit a
separate-rate status application. See also Policy Bulletin 05.1:
Separate-Rates Practice and Application of Combination Rates in
Antidumping Investigations involving Non-Market Economy Countries,
(April 5, 2005), (``Policy Bulletin 05.1'') available at https://
ia.ita.doc.gov.\5\ However, the standard for eligibility for a separate
rate (which is whether a firm can demonstrate an absence of both de
jure and de facto governmental control over its export activities) has
not changed.
---------------------------------------------------------------------------
\5\ Policy Bulletin 05.1 states: ``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
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
applied 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 at 6.
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In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and thus should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of merchandise subject to 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.
Exporters can demonstrate this independence through the absence of both
de jure and de facto governmental control over export activities. The
Department analyzes each entity exporting the subject merchandise under
a test arising from the Notice of 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 further developed in 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''). However, if the Department determines that a
company is wholly foreign-owned or located in a market economy, then a
separate rate analysis is not necessary to determine whether it is
independent from government control.
A. Separate Rate Applicants \6\
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\6\ All separate rate applicants receiving a separate rate are
hereby referred to collectively as the ``SR Recipients.''
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1. Wholly Foreign-Owned
Winner, the mandatory respondent, reported that it is wholly owned
by individuals or companies located in a market economy in its
separate-rate application (``Foreign-owned SR Applicant''). Therefore,
because it is wholly foreign-owned, and we have no evidence indicating
that it is under the control of the PRC, further separate rates
analysis is not necessary to determine whether this company is
independent from government control. See Notice of Final Determination
of Sales at Less Than Fair Value: Creatine Monohydrate from the
People's Republic of China, 64 FR 71104-05 (December 20, 1999) (where
the respondent was wholly foreign-owned and, thus, qualified for a
separate rate). Accordingly, we have preliminarily granted a separate
rate to Winner Machinery Enterprise Company Limited.
2. Wholly Chinese-Owned
One separate rate applicant, Jiuli, stated that it is a wholly Chinese-
owned company. Therefore, the Department must analyze whether this
respondent can demonstrate the absence of both de jure and de facto
governmental control over export activities.
a. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) an absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by Jiuli supports a preliminary finding of de
jure absence of governmental control based on the following: (1) an
absence of restrictive stipulations associated with the exporter's
business and export licenses; (2) there are applicable legislative
enactments decentralizing control of the company; and (3) and there are
formal measures by the government decentralizing control of the
company. See Jiuli's Separate Rate Application, (Jiuli's SRA) dated
April 28, 2008.
b. Absence of De Facto Control
Typically the Department considers four factors in evaluating
whether each respondent is subject to de facto governmental control of
its export functions: (1) whether the export prices are set by or are
subject to the approval of a governmental agency; (2) whether the
respondent has authority to negotiate and sign contracts and other
agreements; (3) whether the respondent has autonomy from the government
in making decisions regarding the selection of management; and (4)
whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding disposition of profits or
financing of losses. See Silicon Carbide, 59 FR at 22586-87; see also
Notice of Final Determination of Sales at Less Than Fair Value:
Furfuryl Alcohol From the People's Republic of China, 60 FR 22544,
22545 (May 8, 1995). The Department has determined that an analysis of
de facto control is critical in determining whether respondents are, in
fact, subject to a degree of governmental control which would preclude
the Department from assigning separate rates.
[[Page 51792]]
We determine that the evidence on the record supports a preliminary
finding of de facto absence of governmental control with respect to
Jiuli based on record statements and supporting documentation showing
that the company: 1) sets its own export prices independent of the
government and without the approval of a government authority; 2)
retains the proceeds from its sales and makes independent decisions
regarding disposition of profits or financing of losses; 3) has the
authority to negotiate and sign contracts and other agreements; and 4)
has autonomy from the government regarding the selection of management.
See, e.g., Jiuli's SRA.
The evidence placed on the record of this investigation by Winner
and Jiuli demonstrates an absence of de jure and de facto government
control with respect to the exporters' exports of the merchandise under
investigation, in accordance with the criteria identified in Sparklers
and Silicon Carbide. Therefore, we have preliminary granted Winner and
Jiuli separate rate status. We calculated a company-specific dumping
margin for Winner and also assigned this margin to Jiuli.
The PRC-Wide Entity
Although PRC exporters of subject merchandise to the United States
were given an opportunity to provide Q&V information to the Department,
not all exporters responded to the Department's request for Q&V
information.\7\ Based upon our knowledge of the volume of imports of
subject merchandise from the PRC, we have concluded that the companies
that responded to the Q&V questionnaire do not account for all U.S.
imports of subject merchandise from the PRC made during the POI. We
have treated the non-responsive PRC producers/exporters as part of the
PRC-wide entity because they did not qualify for a separate rate.
---------------------------------------------------------------------------
\7\ The Department received only two timely responses to the
requests for Q&V information that it sent to 11 potential exporters
identified in the petition. The record indicates the questionnaires
were received by the exporters. See Respondent Selection Memorandum.
---------------------------------------------------------------------------
Section 776(a)(2) of the Act provides that the Department shall,
subject to subsection 782(d) of the Act, use facts otherwise available
in reaching the applicable determination if an interested party: (A)
withholds information that has been requested by the Department; (B)
fails to provide such information in a timely manner or in the form or
manner requested, subject to subsections 782(c)(1) and (e) of the Act;
(C) significantly impedes a proceeding under the antidumping statute;
or (D) provides such information but the information cannot be
verified.
As noted above, the PRC-wide entity withheld information requested
by the Department. As a result, pursuant to section 776(a)(2)(A) of the
Act, we find it appropriate to base the PRC-wide dumping margin on
facts available. See Notice of Preliminary Determination of Sales at
Less Than Fair Value, Affirmative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain Frozen
Fish Fillets From the Socialist Republic of Vietnam, 68 FR 4986
(January 31, 2003), unchanged in Notice of Final Antidumping Duty
Determination of Sales at Less Than Fair Value and Affirmative Critical
Circumstances: Certain Frozen Fish Fillets from the Socialist Republic
of Vietnam, 68 FR 37116 (June 23, 2003).
Section 776(b) of the Act provides that, in selecting from among
the facts otherwise available, the Department may employ an adverse
inference if an interested party fails to cooperate by not acting to
the best of its ability to comply with requests for information. 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); see also Statement of
Administrative Action, accompanying the Uruguay Round Agreements Act ,
H.R. Rep. No. 103-316, Vol. I at 843 (1994) (SAA), reprinted in 1994
U.S.C.C.A.N. 4040 at 870. Because the PRC-wide entity did not respond
to the Department's request for information, the Department has
concluded that the PRC-wide entity has failed to cooperate to the best
of its ability. Therefore, the Department preliminarily finds that, in
selecting from among the facts available, an adverse inference is
appropriate.
Section 776(b) of the Act authorizes the Department to use, as
adverse facts available (AFA): (1) information derived from the
petition; (2) the final determination from the LTFV investigation; (3)
a previous administrative review; or (4) any other information placed
on the record. In selecting a rate for AFA, the Department selects one
that is sufficiently adverse ``as to effectuate the purpose of the
facts available rule to induce respondents to provide the Department
with complete and accurate information in a timely manner.'' See Notice
of Final Determination of Sales at Less Than Fair Value: Static Random
Access Memory Semiconductors From Taiwan, 63 FR 8909 (February 23,
1998). It is the Department's practice to select, as AFA, the higher
of: (a) the highest margin alleged in the petition or (b) the highest
calculated rate for any respondent in the investigation. See Final
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled
Flat-Rolled Carbon Quality Steel Products From the People's Republic of
China, 65 FR 34660 (May 31, 2000) and accompanying Issues and Decisions
Memorandum at Facts Available. Here, we assigned the PRC-wide entity
the dumping margin calculated for Winner, which exceeds the highest
margin alleged in the petition and is the highest rate calculated in
this investigation. Pursuant to section 776(c) of the Act, 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. See SAA at 870. The dumping margin for the PRC-wide entity
applies to all entries of the merchandise under investigation except
for entries of subject merchandise produced and exported by Winner and
produced and exported by Jiuli.
Fair Value Comparisons
To determine whether Winner sold CWASPP to the United States at
LTFV, we compared the weighted-average export price (EP) of the CWASPP
to the NV of the CWASPP, as described in the ``U.S. Price,'' and ``NV''
sections of this notice.
U.S. Price
EP
In accordance with section 772(a) of the Act, we based the U.S.
price of sales on EP because the first sale to unaffiliated purchasers
was made prior to importation and the use of constructed export price
methodology was not otherwise warranted.
In accordance with section 772(c) of the Act, we calculated EP by
deducting, where applicable, the following expenses from the starting
price (gross unit price) charged to the first unaffiliated customer in
the United States: foreign movement expenses, marine insurance,
international freight, and foreign brokerage and handling expenses.
We based these movement expenses on surrogate values where a PRC
company provided the service and was paid in Renminbi (RMB). Where
market economy service providers, who were paid in a market economy
currency, provided movement services for over 33 percent of subject
merchandise shipments, by volume, we based the movement expenses on the
actual price charged by the service provider. See Antidumping
Methodologies: Market
[[Page 51793]]
Economy Inputs, Expected Non-Market Economy Wages, Duty Drawback; and
Request for Comments, 71 FR 61716 (October 19, 2006); see also
Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27366 (May 19, 1997)
(Final Rule). For details regarding our EP calculation, see Circular
Welded Austenitic Stainless Pressure Pipe from the People's Republic of
China - Preliminary Analysis Memorandum for Winner Machinery Enterprise
Co., Ltd.
NV
In accordance with section 773(c) of the Act, we constructed NV
from the factors of production employed by Winner to manufacture
subject merchandise during the POI. Specifically, we calculated NV by
adding together the value of the factors of production, general
expenses, profit, and packing costs. We valued the factors of
production using prices and financial statements from the surrogate
country, India. If market economy suppliers, who were paid in a market
economy currency, supplied over 33 percent of the total volume of a
material input purchased from all sources during the POI, we based the
input value on the actual price charged by the supplier. If market
economy suppliers, who were paid in a market economy currency, supplied
less than 33 percent of the total volume of a material input purchased
from all sources during the POI, we calculated the value by weight-
averaging surrogate values with the actual price charged by the
suppliers. See Antidumping Methodologies: Market Economy Inputs,
Expected Non-Market Economy Wages, Duty Drawback; and Request for
Comments, 71 FR 61716 (October 19, 2006); see also Final Rule. In
selecting surrogate values, we followed, to the extent practicable, the
Department's practice of choosing values which are non-export average
values, contemporaneous with, or closest in time to, the POI, product-
specific, and tax-exclusive. See, e.g., Notice of Preliminary
Determination of Sales at Less Than Fair Value, Negative Preliminary
Determination of Critical Circumstances and Postponement of Final
Determination: Certain Frozen and Canned Warmwater Shrimp From the
Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004),
unchanged in Final Determination of Sales at Less Than Fair Value:
Certain Frozen and Canned Warmwater Shrimp from the Socialist Republic
of Vietnam, 69 FR 71005 (December 8, 2004). We also considered the
quality of the source of surrogate information in selecting surrogate
values.
We valued material inputs and packing by multiplying the amount of
the factor consumed in producing subject merchandise by the average
unit value of the factor. In addition, we added freight costs to the
surrogate costs that we calculated for material inputs. We calculated
freight costs by multiplying surrogate freight rates by the shorter of
the reported distance from the domestic supplier to the factory that
produced the subject merchandise or the distance from the nearest
seaport to the factory that produced the subject merchandise, as
appropriate. This adjustment is in accordance with the Court of Appeals
for the Federal Circuit's decision in Sigma Corp. v. United States, 117
F. 3d 1401, 1407 (Fed. Cir. 1997). Where we could only obtain surrogate
values that were not contemporaneous with the POI, we inflated (or
deflated) the surrogate values using the Indian Wholesale Price Index
(WPI) as published in the International Financial Statistics of the
International Monetary Fund.
Further, in calculating surrogate values from Indian imports, we
disregarded imports from Indonesia, South Korea, and Thailand because
in other proceedings the Department found that these countries maintain
broadly available, non-industry-specific export subsidies. Therefore,
it is reasonable to infer that all exports to all markets from these
countries may be subsidized. See Notice of Amended Final Determination
of Sales at Less Than Fair Value: Certain Automotive Replacement Glass
Windshields from the People's Republic of China, 67 FR 11670 (March 15,
2002); see also Notice of Final Determination of Sales at Less Than
Fair Value and Negative Final Determination of Critical Circumstances:
Certain Color Television Receivers From the People's Republic of China,
69 FR 20594 (April 16, 2004).\8\ Thus, we have not used prices from
these countries in calculating the Indian import-based surrogate
values.
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\8\ In addition, we note that legislative history explains that
the Department is not required to conduct a formal investigation to
ensure that such prices are not subsidized. See H.R. Rep. 100-576 at
590 (1988). As such, it is the Department's practice to base its
decision on information that is available to it at the time it makes
its determination.
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We valued raw materials and packing materials using Indian import
statistics, except as noted below. Winner reported both ME and NME
purchases of grades 304 and 316 stainless steel coil (coil) used to
produce the merchandise under investigation. Petitioners argue that
Winner purchased coil at dumped and subsidized prices. Specifically,
they argue that the Department should not use Winner's ME purchase
price to value coil because: (1) the Department has a dumping order on
U.S. imports of coil from Taiwan, and Winner's coil supplier has
received an adverse facts available (AFA) dumping margin in the
proceeding; (2) the European Union (EU) initiated a dumping
investigation on stainless steel cold rolled flat products from Taiwan
which covers the period during which the respondent purchased coil from
its supplier; ( 3) the European Community (EC) imposed countervailing
duties (CVD) on Taiwanese hot-rolled flat steel coils, (specifically,
petitioners argue that the CVD programs existed during the instant POI,
and, although Winner's coil supplier was not examined in the EC's CVD
investigation, it is reasonable to believe that this supplier could
have benefitted from these programs since the programs are broadly
available, non-industry specific, and were likely used by steel
producers); (4) Winner's ME purchase prices are well below the prices
of 304 and 316 stainless steel coil from the Steel Authority of India
Limited (SAIL), prices reported by the publication American Metal
Market (AMM), and prices quoted on metalprices.com; and (5) Winner's ME
purchase prices are below the estimated cost of producing grades 304
and 316 stainless steel, even where one conservatively treats alloys as
the only material input used to produce the stainless steel
(petitioners constructed the cost of grades 304 and 316 stainless steel
using market prices for alloys and Indian surrogate overhead and profit
ratios).
Winner counters that its ME purchases of grades 304 and 316 coil
(which constitute over 33[percnt] of its total purchases of coil) have
not been dumped or subsidized and should be used to value the coils
that it consumed. Specifically, Winner argues that: (1) in the latest
review in the U.S. antidumping proceeding cited by petitioners, another
company, not its coil supplier, received the AFA dumping margin, while
the review of Winner's supplier covering the instant POI was rescinded;
(2) the EU has made no determination in its dumping investigation; (3)
evidence of third-country (EC and US) dumping is irrelevant; (4) there
is no evidence that Winner's coil supplier received subsidies or that
there are subsidies available for coil, (5) the EC CVD order is
outdated (2000), expired in 2005, does not cover stainless coil (only
hot-rolled coil), and does not name Winner's coil supplier, and (6)
petitioners' price and cost comparisons are unreliable because: (a)
Indian SAIL
[[Page 51794]]
price quotes do not indicate the seller or buyer, are not certified by
anyone, and do not include discounts, rebates, etc., (b) AMM prices are
U.S.-specific representing industry averages and do not reasonably
reflect Taiwanese stainless prices, and (c) petitioners' calculation of
the cost used in their comparison is inaccurate. Lastly, Winner claims
that Asia MEPS (International) Ltd. (MEPS) data corroborates Winner's
coil supplier's coil prices (petitioners identified MEPS as a leading
source of pricing data in the stainless steel industry.)
Petitioners then argue that import statistics, regardless of the
selected surrogate country, should not be used to value coil because
they do not differentiate between basic coil and grades 304 and 316
coil. Petitioners claim that differentiating between other grades of
coil and grades 304 and 316 coil is critical because grades 304 and 316
coil contain high concentrations of expensive alloys, such as nickel
and molybdenum, and cost several times more than basic coil.
Specifically, petitioners contend that the average unit values from
Indian import data for the HTS classification for coil, for example, do
not approach the cost of the nickel and molybdenum contained in grades
304 and 316 coils, and therefore, the Department should use SAIL prices
as the surrogate value for 304 and 316 coil.\9\
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\9\ Although not mentioned by petitioners, we noted that SAIL is
specifically named in the EC CVD order on hot-rolled steel.
---------------------------------------------------------------------------
The Department finds no evidence that Winner's ME purchases were
dumped or subsidized because: (1) neither the U.S. AD order on coil
from Taiwan nor the EU investigation have relevance to the prices paid
in the PRC,\10\ (2) the countervailing duty proceeding conducted by the
EC (a) does not cover merchandise produced by the Taiwanese coil
supplier, (b) does not cover stainless coil, (c) does not name the
Taiwanese coil supplier as a respondent, and (d) expired in 2005, and
(3) there is no evidence on the record that any of the subsidies on hot
rolled steel found by the EC to be countervailable still exist or, even
if they exist, that the Taiwanese coil supplier would be eligible to
receive them. Moreover, although Winner's ME purchase prices for
stainless coil are lower than the prices and constructed costs
submitted by petitioners, prices can be affected by numerous
indeterminate factors. Thus, these price differences do not provide a
basis to believe or suspect that the product may be dumped or
subsidized. Therefore, because the quantity of ME purchases of coil
exceeded 33[percnt] of Winner's total purchases of coil, the Department
has used the ME purchase price as its surrogate value for all purchases
of coil.
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\10\ The Department has previously noted that it will
``disregard market economy prices for imported inputs as dumped only
when the importing country has an antidumping duty order in effect
for the products in question * * * dumping is specific to
competitive conditions in particular markets and cannot be assumed
to apply globally.'' See Notice of Final Determination of Sales at
Less Than Fair Value: Lawn and Garden Steel Fence Posts From the
People's Republic of China, 68 FR 20373 (April 25, 2003), and
accompanying Issues and Decision Memorandum at Comment 2.
---------------------------------------------------------------------------
We valued water using data from the Maharashtra Industrial
Development Corporation (www.midcindia.org) because it includes a wide
range of industrial water tariffs. This source provides 386 industrial
water rates within the Maharashtra province from June 2003, 193 for the
``inside industrial areas'' usage category, and 193 for the ``outside
industrial areas'' usage category. Because the rate was not
contemporaneous with the POI, we inflated the rate using the WPI. See
the Memorandum Regarding ``Investigation of Circular Welded Austenitic
Stainless Pressure Pipe from the People's Republic of China: Surrogate
Values Selected'' for Winner dated concurrently with this notice
(Factor Value Memorandum).
We valued electricity using price data for small, medium, and large
industries, as published by the Central Electricity Authority of the
Government of India in its publication titled Electricity Tariff & Duty
and Average Rates of Electricity Supply in India, dated July 2006.
These electricity rates represent actual country-wide, publicly-
available information on tax-exclusive electricity rates charged to
industries in India. Since the rates are not contemporaneous with the
POI, we inflated the values using the WPI. See Factor Value Memorandum.
We valued natural gas using a value obtained from the Gas Authority
of India Ltd.'s website, a supplier of natural gas in India. See http:/
/www.gailonline.com/gailnewsite/. The value relates to the
period January through June 2002. Therefore, we inflated the value
using the WPI. In addition, we added transportation charges to the
value. See Surrogate Value Memorandum and Polyvinyl Alcohol From the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review, 71 FR 27991 (May 15, 2006), and accompanying
Issues and Decision Memorandum at Comment 2.
We valued fuel oil/diesel using the prices for petrol from Indian
Oil Corp. Ltd. from June 2007, after inflating the value using the WPI
for the POI. See Factor Value Memorandum.
For direct labor, indirect labor, and packing labor, consistent
with 19 CFR 351.408(c)(3), we used the most recently calculated
regression-based wage rate, which relies on 2005 data. This wage rate
can be found on the Department's website on Import Administration's
home page. See Expected Wages of Selected NME Countries (revised May
2008) (available at https://ia.ita.doc.gov/wages/). The source
of these wage rate data on the Import Administration's web site is the
International Labour Organization, Geneva, Labour Statistics Database
Chapter 5B: Wages in Manufacturing. Since this regression-based wage
rate does not separate the labor rates into different skill levels or
types of labor, we have applied the same wage rate to all skill levels
and types of labor reported by Winner. See Factor Value Memorandum.
We valued truck freight expenses using a per-unit average rate
calculated from data on the following web site: https://
www.infobanc.com/logistics/logtruck.htm. The logistics section of this
website contains inland freight truck rates between many large Indian
cities. Since this value is not contemporaneous with the POI, we
deflated the rate using the WPI. See Factor Value Memorandum.
We valued brokerage and handling using a simple average of the
brokerage and handling costs that were reported in public submissions
that were filed in three antidumping duty cases. Specifically, we
averaged the public brokerage and handling expenses reported by Agro
Dutch Industries Ltd. in the antidumping duty administrative review of
certain preserved mushrooms from India, Kejirwal Paper Ltd. in the LTFV
investigation of certain lined paper products from India, and Essar
Steel in the antidumping duty administrative review of hot-rolled
carbon steel flat products from India. See Certain Preserved Mushrooms
From India: Final Results of Antidumping Duty Administrative Review, 71
FR 10646 (March 2, 2006); see also Notice of Preliminary Determination
of Sales at Less Than Fair Value, Postponement of Final Determination,
and Affirmative Preliminary Determination of Critical Circumstances in
Part: Certain Lined Paper Products From India, 71 FR 19706 (April 17,
2006), unchanged in Notice of Final Determination of Sales at Less Than
Fair Value, and Negative Determination of Critical Circumstances:
Certain Lined Paper Products from India, 71 FR 45012
[[Page 51795]]
(August 8, 2006) and Certain hot-Rolled Carbon Steel Flat Products From
India: Preliminary Results of Antidumping Duty Administrative Review,
71 FR 2018,2021 (January 12, 2006) (unchanged in Certain Hot-Rolled
Carbon Steel Flat Products From India: Final Results of Antidumping
Administrative Review, 71 FR 40694 (July 18, 2006). Since the resulting
value is not contemporaneous with the POI, we inflated the rate using
the WPI. See Factor Value Memorandum. We valued international freight
and marine insurance using purchase prices. See analysis memorandum for
Winner dated concurrently with this notice.
We valued factory overhead, selling, general, and administrative
(SG&A) expenses, and profit, using the 2006-2007 audited financial
statements of Jindal SAW Ltd. and Ratnamani Metals & Tubes Ltd. See
Factor Value Memorandum. For additional information regarding the
selection of financial ratios, see the ``Surrogate Country'' section
above.
In accordance with 19 CFR 351.301(c)(3)(i), interested parties may
submit publicly available information with which to value factors of
production in the final determination within 40 days after the date of
publication of the preliminary determination.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales as certified by the Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information upon which we will rely in making our final
determination.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for certain 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.''
Preliminary Determination
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
Exporter & Producer Average Margin
------------------------------------------------------------------------
Zhejiang Jiuli Hi-Tech Metals Co., Ltd. Produced by: 22.03[percnt]
Zhejiang Jiuli Hi-Tech Metals Co., Ltd................
Winner Machinery Enterprise Co., Ltd. Produced by: 22.03[percnt]
Winner Stainless Steel Tube Co., Ltd..................
PRC-Wide Rate.......................................... 22.03[percnt]
------------------------------------------------------------------------
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d) of the Act, we will instruct CBP
to suspend liquidation of all entries of CWASPP from the PRC as
described in the ``Scope of Investigation'' section, entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. We will instruct
CBP to require a cash deposit or the posting of a bond equal to the
weighted-average amount by which the normal value exceeds U.S. price,
as indicated above.
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our preliminary affirmative determination of sales at LTFV.
Section 735(b)(2) of the Act requires the ITC to make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of CWASPP, or sales (or the likelihood of sales) for
importation, of the subject merchandise within 45 days of our final
determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Import Administration no later than seven days
after the date the final verification report is issued in this
proceeding and rebuttal briefs, limited to issues raised in case
briefs, no later than five days after the deadline for submitting case
briefs. See 19 CFR 351.309(c)(1)(i) and 19 CFR 351.309(d)(1). A list of
authorities used and an executive summary of issues should accompany
any briefs submitted to the Department. This summary should be limited
to five pages total, including footnotes.
In accordance with section 774 of the Act, we will hold a public
hearing, if requested, to afford interested parties an opportunity to
comment on arguments raised in case or rebuttal briefs. If a request
for a hearing is made, we intend to hold the hearing three days after
the deadline of submission of rebuttal briefs at the U.S. Department of
Commerce, 14th Street and Constitution Ave, NW, Washington, DC 20230,
at a time and location to be determined. Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
Interested parties that wish to request a hearing, or to
participate if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days after the date of publication of
this notice. See 19 CFR 351.310(c). Requests should contain the party's
name, address, and telephone number, the number of participants, and a
list of the issues to be discussed. At the hearing, each party may make
an affirmative presentation only on issues raised in that party's case
brief and may make rebuttal presentations only on arguments included in
that party's rebuttal brief.
[[Page 51796]]
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to section 735(a)(2) of the Act, on August 15, 2008, as
amended on August 22, 2008, Winner requested that in the event of an
affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, Winner agreed that the Department may extend the application of
the provisional measures prescribed under 19 CFR 351.210(e)(2) from a
4-month period to a 6-month period. In accordance with section 733(d)
of the Act and 19 CFR 351.210(b), we are granting the request and are
postponing the final determination until no later than 135 days after
the publication of this notice in the Federal Register because: (1) our
preliminary determination is affirmative, (2) the requesting exporters
account for a significant proportion of exports of the subject
merchandise, and (3) no compelling reasons for denial exist. Suspension
of liquidation will be extended accordingly.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act.
Dated: August 27, 2008.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E8-20508 Filed 9-4-08 8:45 am]
BILLING CODE 3510-DS-S