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]

Download as PDF 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] sroberts on PROD1PC70 with NOTICES 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 VerDate Nov<24>2008 17:55 Mar 12, 2009 Jkt 217001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 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’’). E:\FR\FM\13MRN1.SGM 13MRN1 Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices 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. sroberts on PROD1PC70 with NOTICES 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 VerDate Nov<24>2008 17:55 Mar 12, 2009 Jkt 217001 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. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 10887 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 E:\FR\FM\13MRN1.SGM 13MRN1 10888 Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices 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. sroberts on PROD1PC70 with NOTICES 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). VerDate Nov<24>2008 17:55 Mar 12, 2009 Jkt 217001 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) PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 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 E:\FR\FM\13MRN1.SGM 13MRN1 Federal Register / Vol. 74, No. 48 / Friday, March 13, 2009 / Notices sroberts on PROD1PC70 with NOTICES 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 VerDate Nov<24>2008 17:55 Mar 12, 2009 Jkt 217001 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 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 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]


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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.
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    \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
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