Frontseating Service Valves From the People's Republic of China: Final Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances, 10886-10890 [E9-5480]
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10886
Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices
The preliminary results for these
administrative reviews are currently due
no later than April 2, 2009.
DEPARTMENT OF COMMERCE
Statutory Time Limits
[A–570–933]
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (‘‘the Act’’),
requires the Department to issue the
preliminary results of an administrative
review within 245 days after the last day
of the anniversary month of an order for
which a review is requested and a final
determination within 120 days after the
date on which the preliminary results
are published. If it is not practicable to
complete the review within the time
period, section 751(a)(3)(A) of the Act
allows the Department to extend these
deadlines to a maximum of 365 days
and 180 days, respectively.
Frontseating Service Valves From the
People’s Republic of China: Final
Determination of Sales at Less Than
Fair Value and Final Negative
Determination of Critical
Circumstances
Extension of Time Limit for Preliminary
Results
The Department finds that it is not
practicable to complete the preliminary
results of this review within the original
time frame because additional
information from the respondents is
necessary to complete our analysis and
we will not have sufficient time to
obtain and analyze the new information
prior to the current deadline for the
preliminary results (i.e., 245 days).
Furthermore, we require additional time
to conduct verifications in the review of
stainless steel sheet and strip in coils
from Japan. Therefore, the Department
is extending the time limit for
completion of the preliminary results by
120 days, in accordance with section
751(a)(3)(A) of the Act. The preliminary
results are now due no later than July
31, 2009. The final results continue to
be due 120 days after publication of the
preliminary results.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: March 9, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. E9–5493 Filed 3–12–09; 8:45 am]
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BILLING CODE 3510–DS–S
International Trade Administration
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: March 13, 2009.
SUMMARY: The Department of Commerce
(the ‘‘Department’’) has determined that
frontseating service valves (‘‘FSVs’’)
from the People’s Republic of China
(‘‘PRC’’) are being, or are likely to be,
sold in the United States at less than fair
value (‘‘LTFV’’) as provided in section
735 of the Tariff Act of 1930, as
amended (‘‘the Act’’). The estimated
margins of sales at LTFV are shown in
the ‘‘Final Determination Margins’’
section of this notice.
FOR FURTHER INFORMATION CONTACT:
Eugene Degnan or Lori Apodaca, AD/
CVD Operations, Office 8, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0414 or (202) 482–
4551, respectively.
SUPPLEMENTARY INFORMATION:
Case History
The Department published its
preliminary determination of sales at
LTFV on October 22, 2008. See
Frontseating Service Valves from the
People’s Republic of China: Preliminary
Determination of Sales at Less Than
Fair Value, Preliminary Negative
Determination of Critical
Circumstances, and Postponement of
Final Determination, 73 FR 62952
(October 22, 2008) (‘‘Preliminary
Determination’’). The period of
investigation (‘‘POI’’) is July 1, 2007, to
December 31, 2007.
Between November 10 and December
18, 2008, the Department conducted
verifications of Zhejiang DunAn
Precision Industries Co., Ltd., Zhejiang
DunAn Hetian Metal Co., Ltd. (‘‘DunAn
Hetian’’) and their U.S. subsidiary,
DunAn Precision, Inc. (‘‘DunAn
Precision’’) (collectively, ‘‘DunAn’’) 1
1 See Verification of the Sales and Factors
Response of DunAn in the Antidumping
Investigation of Frontseating Service Valves from
the People’s Republic of China, dated January 15,
2009 (‘‘DunAn Verification Report’’); and
Verification of the U.S. sales questionnaire
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and Zhejiang Sanhua Co., Ltd.
(‘‘Zhejiang Sanhua’’) and Sanhua
International Inc. (‘‘Sanhua
International’’) (collectively
‘‘Sanhua’’).2 See the ‘‘Verification’’
section below for additional
information.
We invited interested parties to
comment on the Preliminary
Determination and on January 26, 2009,
Parker-Hannifin Corporation
(‘‘Petitioner’’) and DunAn filed case
briefs. On February 2, 2009, Petitioner,
DunAn and Sanhua filed rebuttal briefs.
The Department held a hearing on
February 12, 2009.
Verification
As provided in section 782(i) of the
Act, we verified the information
submitted by DunAn and Sanhua for
use in our final determination. See the
Department’s verification reports on the
record of this investigation in the
Central Records Unit (‘‘CRU’’), Room
1117 of the main Department building,
with respect to these entities. For all
verified companies, we used standard
verification procedures, including
examination of relevant accounting and
production records, as well as original
source documents provided by
respondents.
Analysis of Comments Received
All issues raised in the case and
rebuttal briefs by parties to this
investigation are addressed in the
‘‘Investigation of Frontseating Service
Valves from the People’s Republic of
China: Issues and Decision
Memorandum’’ (‘‘Issues and Decision
Memorandum’’), dated concurrently
with this notice and which is hereby
adopted by this notice. A list of the
issues which parties raised and to
which we respond in the Issues and
Decision Memorandum is attached to
this notice as Appendix I. The Issues
and Decision Memorandum is a public
document and is on file in the CRU, and
is accessible on the Web https://
trade.gov/ia/index.asp. The paper copy
responses of Zhejiang DunAn Precision Industries
Co., Ltd., Zhejiang DunAn Hetian Metal Co., Ltd.,
and their U.S. subsidiary DunAn Precision Inc. in
the Antidumping Investigation of Frontseating
Service Valves from the People’s Republic of China,
dated January 14, 2009 (‘‘DunAn CEP Verification
Report’’).
2 See Verification of the Sales and Factors
Response of Zhejiang Sanhua Co., Ltd. in the
Antidumping Investigation of Frontseating Service
Valves from the People’s Republic of China, dated
January 16, 2009 (‘‘Sanhua Verification Report’’),
and Verification of the U.S. Sales Response of
Zhejiang Sanhua Co., Ltd. and Sanhua International
Inc. in the Antidumping Investigation of
Frontseating Service Valves from the People’s
Republic of China, dated January 16, 2009 (‘‘Sanhua
CEP Verification Report’’).
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and electronic version of the
memorandum are identical in content.
Changes Since the Preliminary
Determination
Based on our analysis of information
on the record of this investigation, we
have made changes to the margin
calculations for the final determination
for all mandatory respondents.
General Issues
Calculation of Surrogate Financial
Ratios
• For the final determination, we are
calculating the surrogate financial ratios
using the statements of Siddhi Cast
Private Limited (‘‘Siddhi’’), Pyrocast
India Private Ltd. (‘‘Pyrocast’’), and
Dharpat Casting Private Ltd (‘‘Dharpat’’).
See Issues and Decision Memorandum
at Comment 1.
Calculation of Surrogate Values
• For the final determination, we are
valuing the inputs of brass connection
tube heads and connection tube caps
using WTA data for Indian HTS
category 7412.20.19. See Issues and
Decision Memorandum at Comments 6f
and 6h.
• For the final determination, we are
valuing valve cores using WTA data for
Indian HTS category 8481.90.90. See
Issues and Decision Memorandum at 7.
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Company-Specific Issues
DunAn
• For the final determination, we are
using the U.S. sales and factor of
production (‘‘FOP’’) databases
submitted by DunAn on January 22,
2009.
• For the final determination, we
applied, as partial AFA to certain of
DunAn’s December 2007 sales, a rate of
55.62 percent (the rate from the
initiation of this proceeding) which
constitutes the highest rate from this
proceeding. See Memorandum regarding
‘‘Application of Partial Adverse Facts
Available for Zhejiang DunAn Precision
Industries Co., Ltd., Zhejiang DunAn
Hetian Metal Co., Ltd., and their U.S.
subsidiary DunAn Precision Inc. in the
Antidumping Investigation of
Frontseating Service Valves from the
People’s Republic of China’’ (March 6,
2009) (‘‘Partial AFA Memo’’) and Issues
and Decision Memorandum at Comment
12c.
• For the final determination, we
applied, as partial AFA to the inventory
carrying cost (‘‘ICC’’) for all of DunAn’s
sales during the months of October,
November and December 2007, the
highest ICC calculated for any sale
during the POI. See Partial AFA Memo
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and Issues and Decision Memorandum
at Comment 12c.
• For the final determination, we are
allowing, in part, DunAn’s claimed byproduct offsets for scrap sold, and scrap
recycled into the production of subject
merchandise. See Issues and Decision
Memorandum at Comment 12j, and
DunAn Analysis Memorandum for the
Final Determination, dated March 6,
2009.
Sanhua
• For the final determination, we are
using the U.S. sales and FOP databases
submitted by Sanhua on January 22,
2009. However, for eight transactions in
the U.S. sales database, which did not
contain price or selling expense data,
we are applying, as facts available, the
average margin calculated for each of
the CONNUMs associated with these
sales. See Use of Facts Available, below.
• For the final determination, we are
allowing, in part, the by-product offset
for scrap claimed by Sanhua. See Issues
and Decision Memorandum at Comment
10g.
• For the final determination, to
calculate normal value for certain sales
that were sold during the POI but
produced prior to the POI, we are using
the FOPs of subject merchandise
produced during the POI with the
nearest similar physical characteristics
(as demonstrated by the control
numbers (‘‘CONNUMs’’)) to those
products. See Sanhua Analysis
Memorandum for the Final
Determination.
Scope of Investigation
The merchandise covered by this
investigation is frontseating service
valves, assembled or unassembled,
complete or incomplete, and certain
parts thereof. Frontseating service
valves contain a sealing surface on the
front side of the valve stem that allows
the indoor unit or outdoor unit to be
isolated from the refrigerant stream
when the air conditioning or
refrigeration unit is being serviced.
Frontseating service valves rely on an
elastomer seal when the stem cap is
removed for servicing and the stem cap
metal to metal seat to create this seal to
the atmosphere during normal
operation.3
3 The frontseating service valve differs from a
backseating service valve in that a backseating
service valve has two sealing surfaces on the valve
stem. This difference typically incorporates a valve
stem on a backseating service valve to be machined
of steel, where a frontseating service valve has a
brass stem. The backseating service valve dual stem
seal (on the back side of the stem), creates a metal
to metal seal when the valve is in the open position,
thus, sealing the stem from the atmosphere.
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For purposes of the scope, the term
‘‘unassembled’’ frontseating service
valve means a brazed subassembly
requiring any one or more of the
following processes: the insertion of a
valve core pin, the insertion of a valve
stem and/or O ring, the application or
installation of a stem cap, charge port
cap or tube dust cap. The term
‘‘complete’’ frontseating service valve
means a product sold ready for
installation into an air conditioning or
refrigeration unit. The term
‘‘incomplete’’ frontseating service valve
means a product that when sold is in
multiple pieces, sections, subassemblies
or components and is incapable of being
installed into an air conditioning or
refrigeration unit as a single, unified
valve without further assembly.
The major parts or components of
frontseating service valves intended to
be covered by the scope under the term
‘‘certain parts thereof’’ are any brazed
subassembly consisting of any two or
more of the following components: a
valve body, field connection tube,
factory connection tube or valve charge
port. The valve body is a rectangular
block, or brass forging, machined to be
hollow in the interior, with a generally
square shaped seat (bottom of body).
The field connection tube and factory
connection tube consist of copper or
other metallic tubing, cut to length,
shaped and brazed to the valve body in
order to create two ports, the factory
connection tube and the field
connection tube, each on opposite sides
of the valve assembly body. The valve
charge port is a service port via which
a hose connection can be used to charge
or evacuate the refrigerant medium or to
monitor the system pressure for
diagnostic purposes.
The scope includes frontseating
service valves of any size, configuration,
material composition or connection
type. Frontseating service valves are
classified under subheading
8481.80.1095, and also have been
classified under subheading
8415.90.80.85, of the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’). It is possible for
frontseating service valves to be
manufactured out of primary materials
other than copper and brass, in which
case they would be classified under
HTSUS subheadings 8481.80.3040,
8481.80.3090, or 8481.80.5090. In
addition, if unassembled or incomplete
frontseating service valves are imported,
the various parts or components would
be classified under HTSUS subheadings
8481.90.1000, 8481.90.3000, or
8481.90.5000. The HTSUS subheadings
are provided for convenience and
customs purposes, but the written
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addressed in the Preliminary
Determination. Therefore, we are not
making any changes to scope of the
proceeding in this final determination.
description of the scope of this
proceeding is dispositive.
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Scope Comments
We set aside a period for interested
parties to raise issues regarding product
coverage. See Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997). In our
Initiation Notice, we encouraged parties
to submit comments regarding the scope
of the merchandise under investigation
by April 28, 2008. On April 28, 2008,
Sanhua submitted scope comments. No
other party submitted scope comments.
On May 8, 2008, Petitioner submitted
rebuttal scope comments. No other party
submitted rebuttal comments. Sanhua
requested that the Department limit the
scope to FSVs made of brass or copper
and not include forged products with
integrated feet because it believes the
scope as written covers too broad a
range of service valves. Sanhua argues
that service valves may erroneously be
classified as FSVs when they enter the
United States under the current scope
description. Specifically, Sanhua
contends that the scope as written
currently suggests that FSVs are made of
any material. Sanhua argues that, in
fact, FSVs must stand up to certain
operating conditions and brass FSVs are
the only product that meet those
conditions and demands. Petitioner
argues that the Department should not
consider any changes that would limit
the scope to specific material
composition or mounting type or that
would attempt to remove all forged
valve bodies from the scope.
In the Initiation Notice,4 we stated
that the scope of merchandise includes
FSVs of any size, configuration, material
composition or connection type. FSVs
are classified under subheading
8481.80.1095, and also have been
classified under subheading
8415.90.80.85 of the HTSUS.
Additionally, we stated that it is
possible for FSVs to be manufactured
out of primary materials other than
copper and brass, in which case they
would be classified under HTSUS
subheadings 8481.80.3040,
8481.80.3090, or 8481.80.5090. In the
Preliminary Determination we stated
that, based upon the above, we have
preliminarily determined that the scope
of the merchandise under consideration
as it is currently written clearly
describes the scope of the merchandise
under consideration. No party
submitted comments on scope issues
4 See Frontseating Service Valves from the
People’s Republic of China: Notice of Initiation of
Antidumping Duty Investigation, 73 FR at 20250,
2025 (April 15, 2008).
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Surrogate Country
In the Preliminary Determination, we
stated that we had selected India as the
appropriate surrogate country to use in
this investigation for the following
reasons: (1) It is a significant producer
of comparable merchandise; (2) it is at
a similar level of economic development
comparable to that of the PRC; and (3)
we have reliable data from India that we
can use to value the factors of
production. See Preliminary
Determination at 62954. For the final
determination, we received no
comments and made no changes to our
findings with respect to the selection of
a surrogate country.
Separate Rates
In proceedings involving nonmarket
economy (‘‘NME’’) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control and, thus, should be assigned a
single antidumping duty deposit rate. It
is the Department’s policy to assign all
exporters of merchandise subject to an
investigation in an NME country this
single rate unless an exporter can
demonstrate that it is sufficiently
independent so as to be entitled to a
separate rate. See Final Determination of
Sales at Less Than Fair Value: Sparklers
from the People’s Republic of China, 56
FR 20588 (May 6, 1991) (‘‘Sparklers’’),
as amplified by Notice of Final
Determination of Sales at Less Than
Fair Value: Silicon Carbide from the
People’s Republic of China, 59 FR 22585
(May 2, 1994) (‘‘Silicon Carbide’’), and
19 CFR 351.107(d).
In the Preliminary Determination, we
found that DunAn and Sanhua
demonstrated their eligibility for
separate-rate status. For the final
determination, we continue to find that
the evidence placed on the record of
this investigation by DunAn and Sanhua
demonstrates both a de jure and de facto
absence of government control, with
respect to their respective exports of the
merchandise under investigation, and,
thus both are eligible for separate rate
status.
Use of Facts Available
Section 776(a)(2) of the Act, provides
that, 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 sections 782(c)(1)
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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 provided in
section 782(i) of the Act, the Department
shall, subject to subsection 782(d) of the
Act, use facts otherwise available in
reaching the applicable determination.
Section 782(e) of the Act states that
the Department shall not decline to
consider information deemed
‘‘deficient’’ under section 782(d) of the
Act if: (1) The information is submitted
by the established deadline; (2) the
information can be verified; (3) the
information is not so incomplete that it
cannot serve as a reliable basis for
reaching the applicable determination;
(4) the interested party has
demonstrated that it acted to the best of
its ability; and (5) the information can
be used without undue difficulties.
Furthermore, section 776(b) of the Act
states that if the Department ‘‘finds that
an interested party has failed to
cooperate by not acting to the best of its
ability to comply with a request for
information from the administering
authority or the Commission, the
administering authority or the
Commission (as the case may be), in
reaching the applicable determination
under this title, may use an inference
that is adverse to the interests of that
party in selecting from among the facts
otherwise available.’’ See also
Statement of Administrative Action
accompanying the Uruguay Round
Agreements Act, H.R. Rep. No. 103–316,
Vol. 1 (1994) (‘‘SAA’’) at 870.
For this final determination, in
accordance with sections 773(c)(3)(A)
and (B) of the Act and section 776(a)(2)
and 776(b) of the Act, we have
determined that the use of total adverse
facts available (‘‘AFA’’) is warranted for
the PRC entity, and partial adverse facts
available is warranted for both DunAn
and Sanhua, as discussed below.
The PRC-Wide Entity
Because we begin with the
presumption that all companies within
an NME country are subject to
government control and because only
the companies listed under the ‘‘Final
Determination Margins’’ section below
have overcome that presumption, we are
applying a single antidumping rate—the
PRC-wide rate—to all other exporters of
subject merchandise from the PRC. See,
e.g., Synthetic Indigo from the People’s
Republic of China: Notice of Final
Determination of Sales at Less Than
Fair Value, 65 FR 25706 (May 3, 2000).
The PRC-wide rate applies to all entries
of subject merchandise except for
entries from the respondents identified
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as receiving a separate rate in the ‘‘Final
Determination Margins’’ section below.
In the Preliminary Determination, the
Department found that the PRC-wide
entity did not respond to our requests
for information because record evidence
indicates there were more exporters of
FSVs from the PRC during the POI than
those that responded to the Q&V
questionnaire or the full antidumping
questionnaire. Therefore, in the
Preliminary Determination, we treated
these PRC exporters as part of the PRCwide entity because they did not
demonstrate that they operate free of
government control over their export
activities. No additional information
was placed on the record with respect
to these entities after the Preliminary
Determination. In addition, because the
PRC-wide entity has not provided the
Department with the requested
information, pursuant to section
776(a)(2)(A), (B) and (C) of the Act, the
Department continues to find that the
use of facts available is appropriate to
determine the PRC-wide rate. 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 ColdRolled Flat-Rolled Carbon-Quality Steel
Products from the Russian Federation,
65 FR 5510, 5518 (February 4, 2000).
See also SAA at 870. We have
determined that, because the PRC-wide
entity did not respond to our request for
information, it has failed to cooperate to
the best of its ability. Therefore, the
Department finds that, in selecting from
among the facts otherwise available, an
adverse inference is warranted.
DunAn
The Department finds that it has
insufficient information on the record to
construct an accurate and otherwise
reliable margin with respect to certain of
DunAn’s December 2007 U.S. sales, and
to value DunAn’s inventory carrying
cost (‘‘ICC’’) for all sales for the months
of October, November and December
2007. Further, we find that the
information is not on the record, and
that DunAn significantly impeded this
proceeding, and provided information
that could not be verified, pursuant to
sections 776(a)(1) and (2) of the Act.
Accordingly, the Department is using
the facts otherwise available. Moreover,
because the Department finds that
DunAn failed to cooperate to the best of
its ability, pursuant to Section 776(b) of
the Act, the Department has determined
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to use an adverse inference when
applying partial facts available in this
review. Accordingly, as partial AFA for
certain U.S. sales, the Department is
applying the rate from the initiation,
which is 55.62 percent.
Additionally, to value ICC for sales
that took place in the months of
October, November or December 2007,
we have selected as partial AFA the
highest ICC expense calculated for any
sale during the POI. For a full
discussion of this issue see Partial AFA
Memo.
Sanhua
On January 16, 2009, subsequent to
the verification of Sanhua, we requested
that Sanhua submit revised FOP and
U.S. sales data bases, incorporating all
prior corrections and any additional
corrections to its data based on the
results of the verification. In that
request, we notified Sanhua that upon
receipt of a response that is incomplete
or deficient, the Department may
proceed with the use of facts available.
Analysis of the data submitted in the
U.S. sales database shows that for eight
transactions Sanhua did not include
either the sales prices of the FSVs or the
selling expenses associated with those
sales. Because the Department did not
alert Sanhua to this deficiency, and
because these eight sales comprise a
very small percentage of overall sales
that would not have a significant effect
on the margin calculation, we have
determined to apply to these sales, as
facts available, the average margin
calculated for each of the CONNUMs
associated with these sales.
Corroboration
Section 776(c) of the Act provides
that, when the Department relies on
secondary information in using the facts
otherwise available, it must, to the
extent practicable, corroborate that
information from independent sources
that are reasonably at its disposal. We
have interpreted ‘‘corroborate’’ to mean
that we will, to the extent practicable,
examine the reliability and relevance of
the information submitted. See Notice of
Final Determination of Sales at Less
Than Fair Value: Certain Cold-Rolled
Flat-Rolled Carbon-Quality Steel
Products From Brazil, 65 FR 5554, 5568
(February 4, 2000); see, e.g., Tapered
Roller Bearings and Parts Thereof,
Finished and Unfinished, From Japan,
and Tapered Roller Bearings, Four
Inches or Less in Outside Diameter, and
Components Thereof, From Japan;
Preliminary Results of Antidumping
Duty Administrative Reviews and
Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November
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10889
6, 1996), unchanged in Tapered Roller
Bearings and Parts Thereof, Finished
and Unfinished, From Japan, and
Tapered Roller Bearings, Four Inches or
Less in Outside Diameter, and
Components Thereof, From Japan: Final
Results of Antidumping Duty
Administrative Reviews and
Termination in Part, 62 FR 11825
(March 13, 1997).
At the Preliminary Determination, in
accordance with section 776(c) of the
Act, we corroborated our AFA margin
by comparing it to the margins we found
for the respondents. We found that the
margin from the initiation, 55.62
percent, had probative value because it
was in the range of margins we found
for the mandatory respondents.
Similarly, for the final determination,
we have also compared the margin from
the initiation to the margins calculated
for the respondents. We found that the
margin from the initiation is within the
range of the margins calculated for the
mandatory respondents in this
investigation.
Because no parties commented on the
selection of the PRC-wide rate, we
continue to find that the margin of 55.62
percent has probative value.
Accordingly, we find that the rate of
55.62 percent is corroborated within the
meaning of section 776(c) of the Act.
Critical Circumstances
In the Preliminary Determination, we
did not find that critical circumstances
exist with respect to either the PRCwide entity or the mandatory
respondents. For this final
determination, we continue to find that
critical circumstances do not exist with
respect to either the PRC-wide entity or
the mandatory respondents. For a
detailed discussion of our findings, see
Issues and Decision Memorandum at
Comment 2.
Combination Rates
In the Preliminary Determination, the
Department stated that it would
calculate combination rates for the
respondents that are eligible for a
separate rate in this investigation. See
Preliminary Determination, 73 FR at
62961. This change in practice is
described in Policy Bulletin 05.1,
‘‘Separate Rates Practice and
Application of Combination Rates in
Antidumping Investigations Involving
Non-Market Economy Countries.’’
available at https://ia.ita.doc.gov/policy/
index.html.
Final Determination Margins
We determine that the following
percentage weighted-average margins
exist for the POI:
E:\FR\FM\13MRN1.SGM
13MRN1
10890
Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices
Exporter/Producer combination
Exporter: Zhejiang Sanhua Co., Ltd.
Producer: Zhejiang Sanhua Co., Ltd.
Exporter: Zhejiang DunAn Hetian
Metal Co., Ltd.
Producer: Zhejiang DunAn Hetian
Metal Co., Ltd.
PRC-Wide Entity * .............................
Percent
margin
28.44
12.95
55.62
* The PRC-wide entity includes Tianda.
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).
Continuation of Suspension of
Liquidation
In accordance with section
735(c)(1)(B) of the Act, we are directing
U.S. Customs and Border Protection
(‘‘CBP’’) to continue to suspend
liquidation of all imports of subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after October 22, 2008, the date of
publication of the Preliminary
Determination in the Federal Register.
We will instruct CBP to continue to
require a cash deposit or the posting of
a bond for all companies based on the
estimated weighted-average dumping
margins shown above. The suspension
of liquidation instructions will remain
in effect until further notice.
sroberts on PROD1PC70 with NOTICES
ITC Notification
In accordance with section 735(d) of
the Act, we have notified the
International Trade Commission (‘‘ITC’’)
of our final determination of sales at
LTFV. As our final determination is
affirmative, in accordance with section
735(b)(2) of the Act, within 45 days the
ITC will determine whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports or
sales (or the likelihood of sales) for
importation of the subject merchandise.
If the ITC determines that material
injury or threat of material injury does
not exist, the proceeding will be
terminated and all securities posted will
be refunded or canceled. If the ITC
determines that such injury does exist,
the Department will issue an
antidumping duty order directing CBP
to assess antidumping duties on all
imports of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the effective
date of the suspension of liquidation.
VerDate Nov<24>2008
17:55 Mar 12, 2009
Jkt 217001
Notification Regarding APO
This notice also serves as a reminder
to the parties subject to administrative
protective order (‘‘APO’’) of their
responsibility concerning the
disposition of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305. Timely
notification of return or destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and the terms of an APO is a
sanctionable violation.
This determination and notice are
issued and published in accordance
with sections 735(d) and 777(i)(1) of the
Act.
Dated: March 6, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import
Administration.
APPENDIX I—LIST OF ISSUES IN THE
ACCOMPANYING ISSUES AND
DECISION MEMORANDUM
I. General Issues
Comment 1: Selection of Surrogate Financial
Statements and Calculation of the
Surrogate Financial Ratios
Comment 1a: Treatment of Job Work
Expenses
Comment 1b: Treatment of Commissions,
Advertising and Other Selling Expenses
Comment 1c: Treatment of Other Income
Earned From Non-Essential Business
Comment 1d: Treatment of Taxes Other
Than Corporate Income Tax or Value
Added Tax
Comment 1e: Treatment of Generator
Expenses
Comment 1f: Treatment of ‘‘Gratuity’’
Benefit Program Expenses
Comment 2: Whether Critical Circumstances
Exist for Both Respondents and the PRCEntity
Comment 3: Regression Analysis for the
Labor Wage Rate
Comment 4: Whether to Exclude Imports
from Japan, France and the UAE in the
Surrogate Value Calculation for Brass Bar
Comment 5: Whether to Exclude Imports of
Sri Lankan Re-Melted Brass Ingots and
Cast ‘‘Wire Bars’’ from the Surrogate
Value Calculation for Brass Bar
Comment 6: Valuation of Valve Components
Other Than Valve Cores
Comment 7: Valuation of Valve Cores
Comment 8: Surrogate Value Source for
Electricity
II. Sanhua-Specific Issues
Comment 9: Whether to Apply Total Adverse
Facts Available to Sanhua
Comment 10: Whether to Apply Partial
Adverse Facts Available to Sanhua
Comment 10a: Certain Unreported U.S.
Sales
Comment 10b: Certain Omitted Credit
Memos
Comment 10c: Unreported Shrink Wrap
Comment 10d: Pallet Use
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
Comment 10e: Material and Exchange Rate
Surcharges
Comment 10f: Missing International
Movement Expenses
Comment 10g: Scrap Offsets
Comment 10h: Unreported Electricity
Consumption
Comment 10i: Unreported Ammonia
Consumption
Comment 10j: Weight of Cardboard Cartons
Comment 10k: Plastic Bags for Scrap
III. DunAn-Specific Issues
Comment 11: Whether to Apply Total
Adverse Facts Available to DunAn
Comment 12: Whether to Apply Partial
Adverse Facts Available to DunAn
Comment 12a: Affiliation With U.S.
Customer
Comment 12b: Whether DunAn Reported
Wrong Date of Sale
Comment 12c: Whether DunAn Failed to
Reconcile Quantity and Value and
Completeness
Comment 12d: Reported Weights
Comment 12e: Cost Reconciliation
Comment 12f: Brass Bar and Other
Materials
Comment 12g: Electricity Consumption
Comment 12h: Ammonia Consumption
Comment 12i: Labor Consumption
Comment 12j: By-Product Offset for Brass
Scrap
Comment 13: Weight of Pallets Consumed
[FR Doc. E9–5480 Filed 3–12–09; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Mission Statement; Aerospace
Supplier Development Mission to
Canada; May 5–6, 2009
Department of Commerce.
Notice.
AGENCY:
ACTION:
Mission Description
The U.S. Department of Commerce,
International Trade Administration,
U.S. and Foreign Commercial Service in
Canada is organizing an Aerospace
Supplier Development Mission to
Montreal, May 5–6, 2009. This
aerospace mission is designed to
provide U.S. aerospace export-ready,
small to medium-sized companies
(SMEs) with a highly efficient and costeffective opportunity to establish
profitable commercial relations with
prospective agents, distributors and
end-users in Canada’s aerospace market.
Participating U.S. companies will
receive market intelligence briefings by
Canadian industry experts, networking
opportunities and most importantly,
pre-scheduled, pre-screened one-on-one
meetings with Canadian aerospace
company representatives. Mission
participants will also benefit from
E:\FR\FM\13MRN1.SGM
13MRN1
Agencies
[Federal Register Volume 74, Number 48 (Friday, March 13, 2009)]
[Notices]
[Pages 10886-10890]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5480]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-933]
Frontseating Service Valves From the People's Republic of China:
Final Determination of Sales at Less Than Fair Value and Final Negative
Determination of Critical Circumstances
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: March 13, 2009.
SUMMARY: The Department of Commerce (the ``Department'') has determined
that frontseating service valves (``FSVs'') from the People's Republic
of China (``PRC'') are being, or are likely to be, sold in the United
States at less than fair value (``LTFV'') as provided in section 735 of
the Tariff Act of 1930, as amended (``the Act''). The estimated margins
of sales at LTFV are shown in the ``Final Determination Margins''
section of this notice.
FOR FURTHER INFORMATION CONTACT: Eugene Degnan or Lori Apodaca, AD/CVD
Operations, Office 8, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0414 or (202) 482-4551, respectively.
SUPPLEMENTARY INFORMATION:
Case History
The Department published its preliminary determination of sales at
LTFV on October 22, 2008. See Frontseating Service Valves from the
People's Republic of China: Preliminary Determination of Sales at Less
Than Fair Value, Preliminary Negative Determination of Critical
Circumstances, and Postponement of Final Determination, 73 FR 62952
(October 22, 2008) (``Preliminary Determination''). The period of
investigation (``POI'') is July 1, 2007, to December 31, 2007.
Between November 10 and December 18, 2008, the Department conducted
verifications of Zhejiang DunAn Precision Industries Co., Ltd.,
Zhejiang DunAn Hetian Metal Co., Ltd. (``DunAn Hetian'') and their U.S.
subsidiary, DunAn Precision, Inc. (``DunAn Precision'') (collectively,
``DunAn'') \1\ and Zhejiang Sanhua Co., Ltd. (``Zhejiang Sanhua'') and
Sanhua International Inc. (``Sanhua International'') (collectively
``Sanhua'').\2\ See the ``Verification'' section below for additional
information.
---------------------------------------------------------------------------
\1\ See Verification of the Sales and Factors Response of DunAn
in the Antidumping Investigation of Frontseating Service Valves from
the People's Republic of China, dated January 15, 2009 (``DunAn
Verification Report''); and Verification of the U.S. sales
questionnaire responses of Zhejiang DunAn Precision Industries Co.,
Ltd., Zhejiang DunAn Hetian Metal Co., Ltd., and their U.S.
subsidiary DunAn Precision Inc. in the Antidumping Investigation of
Frontseating Service Valves from the People's Republic of China,
dated January 14, 2009 (``DunAn CEP Verification Report'').
\2\ See Verification of the Sales and Factors Response of
Zhejiang Sanhua Co., Ltd. in the Antidumping Investigation of
Frontseating Service Valves from the People's Republic of China,
dated January 16, 2009 (``Sanhua Verification Report''), and
Verification of the U.S. Sales Response of Zhejiang Sanhua Co., Ltd.
and Sanhua International Inc. in the Antidumping Investigation of
Frontseating Service Valves from the People's Republic of China,
dated January 16, 2009 (``Sanhua CEP Verification Report'').
---------------------------------------------------------------------------
We invited interested parties to comment on the Preliminary
Determination and on January 26, 2009, Parker-Hannifin Corporation
(``Petitioner'') and DunAn filed case briefs. On February 2, 2009,
Petitioner, DunAn and Sanhua filed rebuttal briefs. The Department held
a hearing on February 12, 2009.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by DunAn and Sanhua for use in our final
determination. See the Department's verification reports on the record
of this investigation in the Central Records Unit (``CRU''), Room 1117
of the main Department building, with respect to these entities. For
all verified companies, we used standard verification procedures,
including examination of relevant accounting and production records, as
well as original source documents provided by respondents.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the ``Investigation of Frontseating
Service Valves from the People's Republic of China: Issues and Decision
Memorandum'' (``Issues and Decision Memorandum''), dated concurrently
with this notice and which is hereby adopted by this notice. A list of
the issues which parties raised and to which we respond in the Issues
and Decision Memorandum is attached to this notice as Appendix I. The
Issues and Decision Memorandum is a public document and is on file in
the CRU, and is accessible on the Web https://trade.gov/ia/index.asp.
The paper copy
[[Page 10887]]
and electronic version of the memorandum are identical in content.
Changes Since the Preliminary Determination
Based on our analysis of information on the record of this
investigation, we have made changes to the margin calculations for the
final determination for all mandatory respondents.
General Issues
Calculation of Surrogate Financial Ratios
For the final determination, we are calculating the
surrogate financial ratios using the statements of Siddhi Cast Private
Limited (``Siddhi''), Pyrocast India Private Ltd. (``Pyrocast''), and
Dharpat Casting Private Ltd (``Dharpat''). See Issues and Decision
Memorandum at Comment 1.
Calculation of Surrogate Values
For the final determination, we are valuing the inputs of
brass connection tube heads and connection tube caps using WTA data for
Indian HTS category 7412.20.19. See Issues and Decision Memorandum at
Comments 6f and 6h.
For the final determination, we are valuing valve cores
using WTA data for Indian HTS category 8481.90.90. See Issues and
Decision Memorandum at 7.
Company-Specific Issues
DunAn
For the final determination, we are using the U.S. sales
and factor of production (``FOP'') databases submitted by DunAn on
January 22, 2009.
For the final determination, we applied, as partial AFA to
certain of DunAn's December 2007 sales, a rate of 55.62 percent (the
rate from the initiation of this proceeding) which constitutes the
highest rate from this proceeding. See Memorandum regarding
``Application of Partial Adverse Facts Available for Zhejiang DunAn
Precision Industries Co., Ltd., Zhejiang DunAn Hetian Metal Co., Ltd.,
and their U.S. subsidiary DunAn Precision Inc. in the Antidumping
Investigation of Frontseating Service Valves from the People's Republic
of China'' (March 6, 2009) (``Partial AFA Memo'') and Issues and
Decision Memorandum at Comment 12c.
For the final determination, we applied, as partial AFA to
the inventory carrying cost (``ICC'') for all of DunAn's sales during
the months of October, November and December 2007, the highest ICC
calculated for any sale during the POI. See Partial AFA Memo and Issues
and Decision Memorandum at Comment 12c.
For the final determination, we are allowing, in part,
DunAn's claimed by-product offsets for scrap sold, and scrap recycled
into the production of subject merchandise. See Issues and Decision
Memorandum at Comment 12j, and DunAn Analysis Memorandum for the Final
Determination, dated March 6, 2009.
Sanhua
For the final determination, we are using the U.S. sales
and FOP databases submitted by Sanhua on January 22, 2009. However, for
eight transactions in the U.S. sales database, which did not contain
price or selling expense data, we are applying, as facts available, the
average margin calculated for each of the CONNUMs associated with these
sales. See Use of Facts Available, below.
For the final determination, we are allowing, in part, the
by-product offset for scrap claimed by Sanhua. See Issues and Decision
Memorandum at Comment 10g.
For the final determination, to calculate normal value for
certain sales that were sold during the POI but produced prior to the
POI, we are using the FOPs of subject merchandise produced during the
POI with the nearest similar physical characteristics (as demonstrated
by the control numbers (``CONNUMs'')) to those products. See Sanhua
Analysis Memorandum for the Final Determination.
Scope of Investigation
The merchandise covered by this investigation is frontseating
service valves, assembled or unassembled, complete or incomplete, and
certain parts thereof. Frontseating service valves contain a sealing
surface on the front side of the valve stem that allows the indoor unit
or outdoor unit to be isolated from the refrigerant stream when the air
conditioning or refrigeration unit is being serviced. Frontseating
service valves rely on an elastomer seal when the stem cap is removed
for servicing and the stem cap metal to metal seat to create this seal
to the atmosphere during normal operation.\3\
---------------------------------------------------------------------------
\3\ The frontseating service valve differs from a backseating
service valve in that a backseating service valve has two sealing
surfaces on the valve stem. This difference typically incorporates a
valve stem on a backseating service valve to be machined of steel,
where a frontseating service valve has a brass stem. The backseating
service valve dual stem seal (on the back side of the stem), creates
a metal to metal seal when the valve is in the open position, thus,
sealing the stem from the atmosphere.
---------------------------------------------------------------------------
For purposes of the scope, the term ``unassembled'' frontseating
service valve means a brazed subassembly requiring any one or more of
the following processes: the insertion of a valve core pin, the
insertion of a valve stem and/or O ring, the application or
installation of a stem cap, charge port cap or tube dust cap. The term
``complete'' frontseating service valve means a product sold ready for
installation into an air conditioning or refrigeration unit. The term
``incomplete'' frontseating service valve means a product that when
sold is in multiple pieces, sections, subassemblies or components and
is incapable of being installed into an air conditioning or
refrigeration unit as a single, unified valve without further assembly.
The major parts or components of frontseating service valves
intended to be covered by the scope under the term ``certain parts
thereof'' are any brazed subassembly consisting of any two or more of
the following components: a valve body, field connection tube, factory
connection tube or valve charge port. The valve body is a rectangular
block, or brass forging, machined to be hollow in the interior, with a
generally square shaped seat (bottom of body). The field connection
tube and factory connection tube consist of copper or other metallic
tubing, cut to length, shaped and brazed to the valve body in order to
create two ports, the factory connection tube and the field connection
tube, each on opposite sides of the valve assembly body. The valve
charge port is a service port via which a hose connection can be used
to charge or evacuate the refrigerant medium or to monitor the system
pressure for diagnostic purposes.
The scope includes frontseating service valves of any size,
configuration, material composition or connection type. Frontseating
service valves are classified under subheading 8481.80.1095, and also
have been classified under subheading 8415.90.80.85, of the Harmonized
Tariff Schedule of the United States (``HTSUS''). It is possible for
frontseating service valves to be manufactured out of primary materials
other than copper and brass, in which case they would be classified
under HTSUS subheadings 8481.80.3040, 8481.80.3090, or 8481.80.5090. In
addition, if unassembled or incomplete frontseating service valves are
imported, the various parts or components would be classified under
HTSUS subheadings 8481.90.1000, 8481.90.3000, or 8481.90.5000. The
HTSUS subheadings are provided for convenience and customs purposes,
but the written
[[Page 10888]]
description of the scope of this proceeding is dispositive.
Scope Comments
We set aside a period for interested parties to raise issues
regarding product coverage. See Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997). In our
Initiation Notice, we encouraged parties to submit comments regarding
the scope of the merchandise under investigation by April 28, 2008. On
April 28, 2008, Sanhua submitted scope comments. No other party
submitted scope comments. On May 8, 2008, Petitioner submitted rebuttal
scope comments. No other party submitted rebuttal comments. Sanhua
requested that the Department limit the scope to FSVs made of brass or
copper and not include forged products with integrated feet because it
believes the scope as written covers too broad a range of service
valves. Sanhua argues that service valves may erroneously be classified
as FSVs when they enter the United States under the current scope
description. Specifically, Sanhua contends that the scope as written
currently suggests that FSVs are made of any material. Sanhua argues
that, in fact, FSVs must stand up to certain operating conditions and
brass FSVs are the only product that meet those conditions and demands.
Petitioner argues that the Department should not consider any changes
that would limit the scope to specific material composition or mounting
type or that would attempt to remove all forged valve bodies from the
scope.
In the Initiation Notice,\4\ we stated that the scope of
merchandise includes FSVs of any size, configuration, material
composition or connection type. FSVs are classified under subheading
8481.80.1095, and also have been classified under subheading
8415.90.80.85 of the HTSUS. Additionally, we stated that it is possible
for FSVs to be manufactured out of primary materials other than copper
and brass, in which case they would be classified under HTSUS
subheadings 8481.80.3040, 8481.80.3090, or 8481.80.5090. In the
Preliminary Determination we stated that, based upon the above, we have
preliminarily determined that the scope of the merchandise under
consideration as it is currently written clearly describes the scope of
the merchandise under consideration. No party submitted comments on
scope issues addressed in the Preliminary Determination. Therefore, we
are not making any changes to scope of the proceeding in this final
determination.
---------------------------------------------------------------------------
\4\ See Frontseating Service Valves from the People's Republic
of China: Notice of Initiation of Antidumping Duty Investigation, 73
FR at 20250, 2025 (April 15, 2008).
---------------------------------------------------------------------------
Surrogate Country
In the Preliminary Determination, we stated that we had selected
India as the appropriate surrogate country to use in this investigation
for the following reasons: (1) It is a significant producer of
comparable merchandise; (2) it is at a similar level of economic
development comparable to that of the PRC; and (3) we have reliable
data from India that we can use to value the factors of production. See
Preliminary Determination at 62954. For the final determination, we
received no comments and made no changes to our findings with respect
to the selection of a surrogate country.
Separate Rates
In proceedings involving nonmarket economy (``NME'') countries, the
Department begins with a rebuttable presumption that all companies
within the country are subject to government control and, thus, should
be assigned a single antidumping duty deposit rate. It is the
Department's policy to assign all exporters of merchandise subject to
an investigation in an NME country this single rate unless an exporter
can demonstrate that it is sufficiently independent so as to be
entitled to a separate rate. See Final Determination of Sales at Less
Than Fair Value: Sparklers from the People's Republic of China, 56 FR
20588 (May 6, 1991) (``Sparklers''), as amplified by Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon
Carbide''), and 19 CFR 351.107(d).
In the Preliminary Determination, we found that DunAn and Sanhua
demonstrated their eligibility for separate-rate status. For the final
determination, we continue to find that the evidence placed on the
record of this investigation by DunAn and Sanhua demonstrates both a de
jure and de facto absence of government control, with respect to their
respective exports of the merchandise under investigation, and, thus
both are eligible for separate rate status.
Use of Facts Available
Section 776(a)(2) of the Act, provides that, 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 sections 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 provided in section 782(i) of the
Act, the Department shall, subject to subsection 782(d) of the Act, use
facts otherwise available in reaching the applicable determination.
Section 782(e) of the Act states that the Department shall not
decline to consider information deemed ``deficient'' under section
782(d) of the Act if: (1) The information is submitted by the
established deadline; (2) the information can be verified; (3) the
information is not so incomplete that it cannot serve as a reliable
basis for reaching the applicable determination; (4) the interested
party has demonstrated that it acted to the best of its ability; and
(5) the information can be used without undue difficulties.
Furthermore, section 776(b) of the Act states that if the
Department ``finds that an interested party has failed to cooperate by
not acting to the best of its ability to comply with a request for
information from the administering authority or the Commission, the
administering authority or the Commission (as the case may be), in
reaching the applicable determination under this title, may use an
inference that is adverse to the interests of that party in selecting
from among the facts otherwise available.'' See also Statement of
Administrative Action accompanying the Uruguay Round Agreements Act,
H.R. Rep. No. 103-316, Vol. 1 (1994) (``SAA'') at 870.
For this final determination, in accordance with sections
773(c)(3)(A) and (B) of the Act and section 776(a)(2) and 776(b) of the
Act, we have determined that the use of total adverse facts available
(``AFA'') is warranted for the PRC entity, and partial adverse facts
available is warranted for both DunAn and Sanhua, as discussed below.
The PRC-Wide Entity
Because we begin with the presumption that all companies within an
NME country are subject to government control and because only the
companies listed under the ``Final Determination Margins'' section
below have overcome that presumption, we are applying a single
antidumping rate--the PRC-wide rate--to all other exporters of subject
merchandise from the PRC. See, e.g., Synthetic Indigo from the People's
Republic of China: Notice of Final Determination of Sales at Less Than
Fair Value, 65 FR 25706 (May 3, 2000). The PRC-wide rate applies to all
entries of subject merchandise except for entries from the respondents
identified
[[Page 10889]]
as receiving a separate rate in the ``Final Determination Margins''
section below.
In the Preliminary Determination, the Department found that the PRC-
wide entity did not respond to our requests for information because
record evidence indicates there were more exporters of FSVs from the
PRC during the POI than those that responded to the Q&V questionnaire
or the full antidumping questionnaire. Therefore, in the Preliminary
Determination, we treated these PRC exporters as part of the PRC-wide
entity because they did not demonstrate that they operate free of
government control over their export activities. No additional
information was placed on the record with respect to these entities
after the Preliminary Determination. In addition, because the PRC-wide
entity has not provided the Department with the requested information,
pursuant to section 776(a)(2)(A), (B) and (C) of the Act, the
Department continues to find that the use of facts available is
appropriate to determine the PRC-wide rate. 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 SAA at 870. We have determined that,
because the PRC-wide entity did not respond to our request for
information, it has failed to cooperate to the best of its ability.
Therefore, the Department finds that, in selecting from among the facts
otherwise available, an adverse inference is warranted.
DunAn
The Department finds that it has insufficient information on the
record to construct an accurate and otherwise reliable margin with
respect to certain of DunAn's December 2007 U.S. sales, and to value
DunAn's inventory carrying cost (``ICC'') for all sales for the months
of October, November and December 2007. Further, we find that the
information is not on the record, and that DunAn significantly impeded
this proceeding, and provided information that could not be verified,
pursuant to sections 776(a)(1) and (2) of the Act. Accordingly, the
Department is using the facts otherwise available. Moreover, because
the Department finds that DunAn failed to cooperate to the best of its
ability, pursuant to Section 776(b) of the Act, the Department has
determined to use an adverse inference when applying partial facts
available in this review. Accordingly, as partial AFA for certain U.S.
sales, the Department is applying the rate from the initiation, which
is 55.62 percent.
Additionally, to value ICC for sales that took place in the months
of October, November or December 2007, we have selected as partial AFA
the highest ICC expense calculated for any sale during the POI. For a
full discussion of this issue see Partial AFA Memo.
Sanhua
On January 16, 2009, subsequent to the verification of Sanhua, we
requested that Sanhua submit revised FOP and U.S. sales data bases,
incorporating all prior corrections and any additional corrections to
its data based on the results of the verification. In that request, we
notified Sanhua that upon receipt of a response that is incomplete or
deficient, the Department may proceed with the use of facts available.
Analysis of the data submitted in the U.S. sales database shows that
for eight transactions Sanhua did not include either the sales prices
of the FSVs or the selling expenses associated with those sales.
Because the Department did not alert Sanhua to this deficiency, and
because these eight sales comprise a very small percentage of overall
sales that would not have a significant effect on the margin
calculation, we have determined to apply to these sales, as facts
available, the average margin calculated for each of the CONNUMs
associated with these sales.
Corroboration
Section 776(c) of the Act provides that, when the Department relies
on secondary information in using the facts otherwise available, it
must, to the extent practicable, corroborate that information from
independent sources that are reasonably at its disposal. We have
interpreted ``corroborate'' to mean that we will, to the extent
practicable, examine the reliability and relevance of the information
submitted. See Notice of Final Determination of Sales at Less Than Fair
Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products
From Brazil, 65 FR 5554, 5568 (February 4, 2000); see, e.g., Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, From Japan; Preliminary Results of Antidumping
Duty Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996), unchanged in Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, From Japan: Final Results of Antidumping Duty
Administrative Reviews and Termination in Part, 62 FR 11825 (March 13,
1997).
At the Preliminary Determination, in accordance with section 776(c)
of the Act, we corroborated our AFA margin by comparing it to the
margins we found for the respondents. We found that the margin from the
initiation, 55.62 percent, had probative value because it was in the
range of margins we found for the mandatory respondents. Similarly, for
the final determination, we have also compared the margin from the
initiation to the margins calculated for the respondents. We found that
the margin from the initiation is within the range of the margins
calculated for the mandatory respondents in this investigation.
Because no parties commented on the selection of the PRC-wide rate,
we continue to find that the margin of 55.62 percent has probative
value. Accordingly, we find that the rate of 55.62 percent is
corroborated within the meaning of section 776(c) of the Act.
Critical Circumstances
In the Preliminary Determination, we did not find that critical
circumstances exist with respect to either the PRC-wide entity or the
mandatory respondents. For this final determination, we continue to
find that critical circumstances do not exist with respect to either
the PRC-wide entity or the mandatory respondents. For a detailed
discussion of our findings, see Issues and Decision Memorandum at
Comment 2.
Combination Rates
In the Preliminary Determination, the Department stated that it
would calculate combination rates for the respondents that are eligible
for a separate rate in this investigation. See Preliminary
Determination, 73 FR at 62961. This change in practice is described in
Policy Bulletin 05.1, ``Separate Rates Practice and Application of
Combination Rates in Antidumping Investigations Involving Non-Market
Economy Countries.'' available at https://ia.ita.doc.gov/policy/
index.html.
Final Determination Margins
We determine that the following percentage weighted-average margins
exist for the POI:
[[Page 10890]]
------------------------------------------------------------------------
Exporter/Producer combination Percent margin
------------------------------------------------------------------------
Exporter: Zhejiang Sanhua Co., Ltd........... 28.44
Producer: Zhejiang Sanhua Co., Ltd...........
Exporter: Zhejiang DunAn Hetian Metal Co., 12.95
Ltd.
Producer: Zhejiang DunAn Hetian Metal Co.,
Ltd.
PRC-Wide Entity *............................ 55.62
------------------------------------------------------------------------
* The PRC-wide entity includes Tianda.
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).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing U.S. Customs and Border Protection (``CBP'') to continue to
suspend liquidation of all imports of subject merchandise entered, or
withdrawn from warehouse, for consumption on or after October 22, 2008,
the date of publication of the Preliminary Determination in the Federal
Register. We will instruct CBP to continue to require a cash deposit or
the posting of a bond for all companies based on the estimated
weighted-average dumping margins shown above. The suspension of
liquidation instructions will remain in effect until further notice.
ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (``ITC'') of our final determination of
sales at LTFV. As our final determination is affirmative, in accordance
with section 735(b)(2) of the Act, within 45 days the ITC will
determine whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports or sales (or the likelihood of sales) for importation of the
subject merchandise. If the ITC determines that material injury or
threat of material injury does not exist, the proceeding will be
terminated and all securities posted will be refunded or canceled. If
the ITC determines that such injury does exist, the Department will
issue an antidumping duty order directing CBP to assess antidumping
duties on all imports of the subject merchandise entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Notification Regarding APO
This notice also serves as a reminder to the parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305. Timely notification of return or
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and the
terms of an APO is a sanctionable violation.
This determination and notice are issued and published in
accordance with sections 735(d) and 777(i)(1) of the Act.
Dated: March 6, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
APPENDIX I--LIST OF ISSUES IN THE ACCOMPANYING ISSUES AND DECISION
MEMORANDUM
I. General Issues
Comment 1: Selection of Surrogate Financial Statements and
Calculation of the Surrogate Financial Ratios
Comment 1a: Treatment of Job Work Expenses
Comment 1b: Treatment of Commissions, Advertising and Other
Selling Expenses
Comment 1c: Treatment of Other Income Earned From Non-Essential
Business
Comment 1d: Treatment of Taxes Other Than Corporate Income Tax
or Value Added Tax
Comment 1e: Treatment of Generator Expenses
Comment 1f: Treatment of ``Gratuity'' Benefit Program Expenses
Comment 2: Whether Critical Circumstances Exist for Both Respondents
and the PRC-Entity
Comment 3: Regression Analysis for the Labor Wage Rate
Comment 4: Whether to Exclude Imports from Japan, France and the UAE
in the Surrogate Value Calculation for Brass Bar
Comment 5: Whether to Exclude Imports of Sri Lankan Re-Melted Brass
Ingots and Cast ``Wire Bars'' from the Surrogate Value Calculation
for Brass Bar
Comment 6: Valuation of Valve Components Other Than Valve Cores
Comment 7: Valuation of Valve Cores
Comment 8: Surrogate Value Source for Electricity
II. Sanhua-Specific Issues
Comment 9: Whether to Apply Total Adverse Facts Available to Sanhua
Comment 10: Whether to Apply Partial Adverse Facts Available to
Sanhua
Comment 10a: Certain Unreported U.S. Sales
Comment 10b: Certain Omitted Credit Memos
Comment 10c: Unreported Shrink Wrap
Comment 10d: Pallet Use
Comment 10e: Material and Exchange Rate Surcharges
Comment 10f: Missing International Movement Expenses
Comment 10g: Scrap Offsets
Comment 10h: Unreported Electricity Consumption
Comment 10i: Unreported Ammonia Consumption
Comment 10j: Weight of Cardboard Cartons
Comment 10k: Plastic Bags for Scrap
III. DunAn-Specific Issues
Comment 11: Whether to Apply Total Adverse Facts Available to DunAn
Comment 12: Whether to Apply Partial Adverse Facts Available to
DunAn
Comment 12a: Affiliation With U.S. Customer
Comment 12b: Whether DunAn Reported Wrong Date of Sale
Comment 12c: Whether DunAn Failed to Reconcile Quantity and
Value and Completeness
Comment 12d: Reported Weights
Comment 12e: Cost Reconciliation
Comment 12f: Brass Bar and Other Materials
Comment 12g: Electricity Consumption
Comment 12h: Ammonia Consumption
Comment 12i: Labor Consumption
Comment 12j: By-Product Offset for Brass Scrap
Comment 13: Weight of Pallets Consumed
[FR Doc. E9-5480 Filed 3-12-09; 8:45 am]
BILLING CODE 3510-DS-P