Brake Rotors From the People's Republic of China: Preliminary Results of the 2007 Administrative Review and Partial Rescission, 11911-11918 [E9-6174]
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Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Notices
Washington, DC 20230, telephone: (202)
482–0192 or (202) 482–3674.
SUPPLEMENTARY INFORMATION:
Background
On November 25, 2008, the
Department published in the Federal
Register a notice of preliminary results
of the full sunset review of the
suspended antidumping duty
investigation on CTL plate from
Ukraine, pursuant to section 751(c) of
the Act. See Preliminary Results, 73 FR
71603. In our Preliminary Results, we
found that the termination of the
suspended antidumping duty
investigation on CTL plate from Ukraine
would be likely to lead to a continuation
or recurrence of dumping at the margins
determined in the final determination of
the original investigation. Id. We
provided interested parties an
opportunity to comment on our
Preliminary Results. Id. We did not
receive comments from either domestic
or respondent interested parties.
Scope of Review
The products covered by the
Agreement include hot–rolled iron and
non–alloy steel universal mill plates
(i.e., flat–rolled products rolled on four
faces or in a closed box pass, of a width
exceeding 150 mm but not exceeding
1250 mm and of a thickness of not less
than 4 mm, not in coils and without
patterns in relief), of rectangular shape,
neither clad, plated nor coated with
metal, whether or not painted,
varnished, or coated with plastics or
other nonmetallic substances; and
certain iron and non–alloy steel flat–
rolled products not in coils, of
rectangular shape, hot–rolled, neither
clad, plated, nor coated with metal,
whether or not painted, varnished, or
coated with plastics or other
nonmetallic substances, 4.75 mm or
more in thickness and of a width which
exceeds 150 mm and measures at least
twice the thickness. Included as subject
merchandise in the Agreement are flat–
rolled products of nonrectangular cross–
section where such cross–section is
achieved subsequent to the rolling
process (i.e., products which have been
‘‘worked after rolling’’) for example,
products which have been beveled or
rounded at the edges. This merchandise
is currently classified in the
Harmonized Tariff Schedule of the
United States (HTS) under item
numbers 7208.40.3030, 7208.40.3060,
7208.51.0030, 7208.51.0045,
7208.51.0060, 7208.52.0000,
7208.53.0000, 7208.90.0000,
7210.70.3000, 7210.90.9000,
7211.13.0000, 7211.14.0030,
7211.14.0045, 7211.90.0000,
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17:07 Mar 19, 2009
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7212.40.1000, 7212.40.5000, and
7212.50.0000. Although the HTS
subheadings are provided for
convenience and customs purposes, the
written description of the scope of the
Agreement is dispositive. Specifically
excluded from subject merchandise
within the scope of this Agreement is
grade X–70 steel plate.
11911
SUMMARY: The Department of Commerce
(the Department) is currently
conducting the 2007 administrative
review of the antidumping duty order
on brake rotors from the People’s
Republic of China (PRC). We
preliminarily determine that sales have
not been made below normal value (NV)
with respect to those exporters who
participated fully and are entitled to a
Final Results of Review
separate rate in the administrative
We have made no changes to our
review. If these preliminary results are
Preliminary Results, 73 FR 71603. We
adopted in our final results of this
continue to find that termination of the
review, we will instruct U.S. Customs
suspended antidumping duty
and Border Protection (CBP) to liquidate
investigation on CTL plate from Ukraine without regard to antidumping duties,
would likely lead to a continuation or
entries of subject merchandise during
recurrence of dumping at the following
the period of review (POR) from these
percentage weighted–average margins:
exporters.
Interested parties are invited to
Manufacturer/producer/
Weighted-average
exporter
margin percentage comment on these preliminary results.
We will issue the final results no later
Azovstal ........................
81.43 than 120 days from the date of
Ilyich ..............................
155.00 publication of this notice.
Ukraine–wide ................
237.91 EFFECTIVE DATE: March 20, 2009.
FOR FURTHER INFORMATION CONTACT:
In accordance with section 752(c)(3)
Brian Smith or Terre Keaton Stefanova,
of the Act, we will notify the
AD/CVD Operations, Office 2, Import
International Trade Commission of the
Administration, International Trade
final results of this full sunset review.
Administration, U.S. Department of
This notice also serves as the only
Commerce, 14th Street and Constitution
reminder to parties subject to
Avenue, NW., Washington, DC 20230;
administrative protective orders
telephone: (202) 482–1766 or (202) 482–
(‘‘APO’’) of their responsibility
1280, respectively.
concerning the return or destruction of
proprietary information disclosed under Case History
APO in accordance with section 351.305
On April 17, 1997, the Department
of the Department’s regulations. Timely
published in the Federal Register the
notification of the return or destruction
antidumping duty order on brake rotors
of APO materials or conversion to
from the PRC. See Notice of
judicial protective order is hereby
Antidumping Duty Order: Brake Rotors
requested. Failure to comply with the
from the People’s Republic of China, 62
regulations and terms of an APO is a
FR 18740 (April 17, 1997) (the Order).
violation which is subject to sanction.
On April 1, 2008, the Department
We are issuing and publishing this
published a notice of opportunity to
notice in accordance with sections
751(c), 752(c), and 777(i)(1) of the Tariff request an administrative review of the
antidumping duty order on brake rotors
Act.
from the PRC. See Antidumping or
Dated: March 13, 2009.
Countervailing Duty Order, Finding, or
Ronald K. Lorentzen,
Suspended Investigation; Opportunity
Acting Assistant Secretary for Import
To Request Administrative Review, 73
Administration.
FR 17317 (April 1, 2008).
[FR Doc. E9–6160 Filed 3–19–09; 8:45 am]
On April 23 and 30, 2008, the
BILLING CODE 3510–DS–S
Department received timely requests for
an administrative review of this
antidumping duty order in accordance
DEPARTMENT OF COMMERCE
with 19 CFR 351.213 from the following
companies: Longkou Orient Autoparts
International Trade Administration
Co., Ltd. (Longkou Orient), Qingdao
[A–570–846]
Meita Automotive Industry Co., Ltd.
(Meita), Yantai Winhere Auto-Part
Brake Rotors From the People’s
Republic of China: Preliminary Results Manufacturing Co., Ltd. (Winhere),
of the 2007 Administrative Review and Laizhou Auto Brake Equipment Factory
(LABEC), Laizhou City Luqi Machinery
Partial Rescission
Co., Ltd. (Luqi), Longkou Haimeng
AGENCY: Import Administration,
Machinery Co., Ltd. (Haimeng), Laizhou
International Trade Administration,
Hongda Auto Replacement Parts Co.,
Department of Commerce.
Ltd. (Hongda), Dixion Brake System
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Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Notices
(Longkou) Ltd. (Dixion), and Laizhou
Wally Automobile Co., Ltd. (Wally). On
April 30, 2008, the Department also
received timely requests from the
petitioner 1 for an administrative review
of 12 companies (or producer/exporter
combinations).2
On June 4, 2008, the Department
published in the Federal Register a
notice of initiation of the administrative
review of the antidumping duty order
on brake rotors from the PRC for 19
individually named firms covering the
period April 1, 2007, through March 31,
2008. See Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Requests for Revocation in
Part, 73 FR 31813 (June 4, 2008). On
June 25, 2008, the Department
published a notice of revocation of the
antidumping duty order on brake rotors
from the PRC (see Brake Rotors From
the People’s Republic of China:
Revocation of Antidumping Duty Order
Pursuant to Second Five-Year (Sunset)
Review, 73 FR 36039 (June 25, 2008)).
As a result of the revocation of the
order, effective August 14, 2007, the
period of this review was changed from
April 1, 2007, through March 31, 2008,
to April 1, 2007, through August 13,
2007 (see June 27, 2008, Memorandum
to The File entitled ‘‘Change in the
Period of Review’’).
On July 1, 2008, the Department
placed on the record a memorandum
containing CBP data for U.S. imports of
subject merchandise from the PRC made
during the POR. The Department also
stated in that memorandum that it
intended to select respondents for
individual review based on the CBP
import data. The Department provided
parties with an opportunity to comment
on the CBP import data and respondent
selection (see July 1, 2008,
Memorandum to The File entitled
‘‘Release of POR Entry Data from U.S.
Customs and Border Protection’’). On
July 11, 2008, eight respondent
companies submitted comments to the
1 The petitioner is the Coalition for the
Preservation of American Brake Drum and Rotor
Aftermarket Manufacturers.
2 The names of these companies or producer/
exporter combinations are as follows: (1) Meita; (2)
Winhere; (3) Zibo Golden Harvest Machinery
Limited Company (ZGOLD); (4) Longkou TLC
Machinery Co., Ltd. (Longkou TLC); (5) Longkou
Jinzheng Machinery Co. (Jinzheng); (6) Qingdao
Gren Co. (Gren); (7) Xianghe Zichen Casting
Company, Ltd. (Xianghe Zichen); (8) Laizhou Luda
Sedan Fittings Company, Ltd. (Luda); (9) Zibo Botai
Manufacturing Co., Ltd. (Zibo Botai); (10) Laizhou
Sanli (Sanli); (11) China National Automotive
Industry Import & Export Corporation (CAIEC) or
National Automotive Industry Import & Export
Corporation, excluding entries manufactured by
Shandong Laizhou CAPCO Industry (Laizhou
CAPCO); and (12) Laizhou CAPCO, excluding
entries manufactured by Laizhou CAPCO.
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17:07 Mar 19, 2009
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Department on the respondent selection
process. Also, Dixion and Wally
withdrew their requests for an
administrative review.
On July 29, 2008, because it was not
feasible to examine all 19 companies for
which an administrative review was
initiated, the Department selected the
two largest companies based on CBP
import data, Haimeng and Winhere, as
mandatory respondents in accordance
with section 777A(c)(2)(B) of the Tariff
Act of 1930, as amended (the Act). The
remaining 17 respondents were not
selected for individual review. See
Memorandum from Irene Darzenta
Tzafolias to James P. Maeder, Jr., ‘‘2007
Antidumping Duty Administrative
Review of Brake Rotors from the
People’s Republic of China: Selection of
Respondents for Individual Review,’’
dated July 29, 2008 (Respondent
Selection Memo); and ‘‘Separate rates’’
section below.
On August 1, 2008, we issued
Haimeng and Winhere the antidumping
duty questionnaire.
On August 7, 2008, we requested that
the Import Administration’s Office of
Policy (the Office of Policy) issue a
surrogate-country memorandum for the
selection of the appropriate surrogate
countries for this review.3 On the same
date, the Office of Policy provided us
with a list of five countries at a level of
economic development comparable to
that of the PRC.4
Between August 11 and August 26,
2008, the Department issued letters to
the respondents not selected for
individual review requesting (1) a
separate-rate certification or application
or (2) a no-shipment statement if
applicable. Also during this time period,
the Department invited interested
parties participating in this
administrative review to submit
comments on surrogate country
selection and to submit publicly
available information as surrogate
values (SVs) for purposes of calculating
NV.5 No parties submitted surrogate
country comments or publicly available
SV information in this administrative
review.
During July, August and September
2008, the Department received timely
submissions from several companies for
which the review was initiated: Three
companies 6 certified that they had no
shipments of subject merchandise
during the POR; seven companies
withdrew their review requests,
including Haimeng (i.e., one of the
selected mandatory respondents); 7 eight
companies 8 submitted their separaterate certifications in response to the
Department’s request; and Winhere
submitted its responses to the
antidumping duty questionnaire.
On September 9, 2008, the
Department rescinded this review with
respect to Dixion, Haimeng, Longkou
Orient, Luqi, and Wally. See Brake
Rotors from the People’s Republic of
China: Notice of Partial Rescission of
Antidumping Duty Administrative
Review, 73 FR 53193 (September 15,
2008).
On October 10, 2008, we requested
entry documentation from CBP for
certain entries of brake rotors exported
by CAIEC and/or Laizhou CAPCO
during the POR.9
The Department issued a
supplemental questionnaire to Winhere
on November 14, 2008, and received
Winhere’s supplemental questionnaire
response on November 28, 2008.
On December 5, 2008, the Department
placed on the record copies of CBP
documents pertaining to certain entries
of brake rotors from the PRC exported
by CAIEC and/or Laizhou CAPCO to the
United States during the POR.10
On December 11, 2008, the
Department postponed the preliminary
results of this review until March 2,
2009. See Brake Rotors From the
People’s Republic of China: Notice of
Extension of Time Limit for Preliminary
Results of the Antidumping Duty
Administrative Review, 73 FR 77004
(December 18, 2008).
On December 16, 2008, the
Department placed on the record a
3 See the Department’s memorandum entitled,
‘‘Request for Surrogate Country Selection,’’ dated
August 7, 2008.
4 See the Department’s memorandum entitled,
‘‘Administrative Review of the Antidumping Duty
Order on Brake Rotors from the People’s Republic
of China (PRC): Request for a List of Surrogate
Countries,’’ dated August 7, 2008 (Policy
Memorandum).
5 See the Department’s letter entitled, ‘‘2007
Antidumping Duty Administrative Review of the
Antidumping Duty Order on Brake Rotors from the
People’s Republic of China,’’ requesting parties to
provide comments on surrogate-country selection
and provide surrogate factors of production values
from the potential surrogate countries (i.e., India,
Indonesia, the Philippines, Colombia and
Thailand).
6 These three companies are CAIEC, Laizhou
CAPCO, and Longkou Orient.
7 These seven companies are CAIEC, Dixion,
Haimeng, Laizhou CAPCO, Longkou Orient, Luqi,
and Wally.
8 These eight companies are Gren, Longkou
Jinzheng, LABEC, Laizhou Hongda, Longkou TLC,
Meita, Xianghe Zichen, and Zibo Botai.
9 See the Department’s memorandum entitled,
‘‘Request for U.S. Entry Documents—Brake Rotors
from the People’s Republic of China (A–570–846),’’
dated October 10, 2008.
10 See the Department’s memorandum entitled,
‘‘2007 Administrative Review of the Antidumping
Duty Order on Brake Rotors from the People’s
Republic of China, Results of Request for Assistance
from U.S. Customs and Border Protection on U.S.
Entry Documents,’’ dated December 5, 2008.
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memorandum regarding the three
companies (i.e., Luda, Sanli and
ZGOLD) that did not submit a separaterates application or certification in this
administrative review. See
Memorandum to the File entitled
‘‘Efforts to Provide Companies’’ with the
Department’s August 26, 2008, Separate
Rates Questionnaire, Separate Rates
Certification Questionnaire, and No
Shipments Instructions’’ (December 16,
2008 Memorandum to the File).
On March 2, 2009, the Department
further postponed the preliminary
results of this review until March 16,
2009. See Brake Rotors From the
People’s Republic of China: Extension of
Time Limit for Preliminary Results of
the Antidumping Duty Administrative
Review, 74 FR 9787 (March 6, 2009).
Period of Review
The POR is April 1, 2007, through
August 13, 2007.
Scope of the Order
The products covered by this order
are brake rotors made of gray cast iron,
whether finished, semifinished, or
unfinished, ranging in diameter from 8
to 16 inches (20.32 to 40.64 centimeters)
and in weight from 8 to 45 pounds (3.63
to 20.41 kilograms). The size parameters
(weight and dimension) of the brake
rotors limit their use to the following
types of motor vehicles: Automobiles,
all-terrain vehicles, vans and
recreational vehicles under ‘‘one ton
and a half,’’ and light trucks designated
as ‘‘one ton and a half.’’
Finished brake rotors are those that
are ready for sale and installation
without any further operations. Semifinished rotors are those on which the
surface is not entirely smooth, and have
undergone some drilling. Unfinished
rotors are those which have undergone
some grinding or turning.
These brake rotors are for motor
vehicles, and do not contain in the
casting a logo of an original equipment
manufacturer (OEM) which produces
vehicles sold in the United States, (e.g.,
General Motors, Ford, Chrysler, Honda,
Toyota, Volvo). Brake rotors covered in
this order are not certified by OEM
producers of vehicles sold in the United
States. The scope also includes
composite brake rotors that are made of
gray cast iron, which contain a steel
plate, but otherwise meet the above
criteria. Excluded from the scope of this
order are brake rotors made of gray cast
iron, whether finished, semifinished, or
unfinished, with a diameter less than 8
inches or greater than 16 inches (less
than 20.32 centimeters or greater than
40.64 centimeters) and a weight less
than 8 pounds or greater than 45 pounds
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17:07 Mar 19, 2009
Jkt 217001
(less than 3.63 kilograms or greater than
20.41 kilograms).
Brake rotors are currently classifiable
under subheading 8708.39.5010 of the
Harmonized Tariff Schedule of the
United States (HTSUS).11 Although the
HTSUS subheading is provided for
convenience and customs purposes, the
written description of the scope of this
order is dispositive.
Separate Rates
In proceedings involving non-market
economy (NME) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control, and thus, should be assigned a
single antidumping duty deposit rate. It
is the Department’s policy to assign all
exporters of subject merchandise subject
to review in an NME country a single
rate unless an exporter can demonstrate
that it is sufficiently independent of
government control to be entitled to a
separate rate. See, e.g., Honey from the
People’s Republic of China: Preliminary
Results and Partial Rescission of
Antidumping Duty Administrative
Review, 70 FR 74764, 74766 (December
16, 2005) (unchanged in the final
results).
For the administrative review, in
order to demonstrate separate-rate status
eligibility, the Department normally
requires entities, for which a review was
requested, and which were assigned a
separate-rate in a previous segment of
this proceeding, to submit a separaterate certification stating that they
continue to meet the criteria for
obtaining a separate rate. For entities
that were not assigned a separate rate in
the previous segment of a proceeding, to
demonstrate eligibility for such, the
Department requires a separate-rate
application. In this administrative
review, eight entities not selected for
individual review (i.e., separate-rate
respondents) submitted separate-rate
certifications. The mandatory
respondent, Winhere, and the eight
separate-rate respondents 12 provided
company-specific information and each
stated that it meets the criteria for the
assignment of a separate rate.
We considered whether the
mandatory and eight separate-rate
respondents were eligible for a separate
11 As of January 1, 2005, the HTSUS classification
for brake rotors (discs) changed from 8708.39.5010
to 8708.39.5030. As of January 1, 2007, the HTSUS
classification for brake rotors (discs) changed from
8708.39.5030 to 8708.30.5030. See Harmonized
Tariff Schedule of the United States (2007) (Rev. 2),
available at https://www.usitc.gov.
12 The non-mandatory respondents which
submitted separate-rate certifications are as follows:
Gren, Jinzheng, LABEC, Laizhou Hongda, Longkou
TLC, Meita, Xianghe Zichen, and Zibo Botai.
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11913
rate. The Department’s separate-rate
status test to determine whether the
exporter is independent from
government control does not consider,
in general, macroeconomic/border-type
controls (e.g., export licenses, quotas,
and minimum export prices),
particularly if these controls are
imposed to prevent dumping. The test
focuses, rather, on controls over the
investment, pricing, and output
decision-making process at the
individual firm level.13
To establish whether an exporter is
sufficiently independent of government
control to be entitled to a separate rate,
the Department analyzes the exporter in
light of select criteria, discussed below.
See Final Determination of Sales at Less
Than Fair Value: Sparklers from the
People’s Republic of China, 56 FR
20588, 20589 (May 6, 1991) (Sparklers),
and Final Determination of Sales at Less
Than Fair Value: Silicon Carbide from
the People’s Republic of China, 59 FR
22585, 22586, 22587 (May 2, 1994)
(Silicon Carbide). Under this test,
exporters in NME countries are entitled
to separate, company-specific margins
when they can demonstrate an absence
of government control over exports,
both in law (de jure) and in fact (de
facto).
A. Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual company may be
granted a separate rate: (1) An absence
of restrictive stipulations associated
with an individual exporter’s business
and export licenses; (2) any legislative
enactments decentralizing control of
companies; or (3) any other formal
measures by the government
decentralizing control of companies. See
Sparklers, 56 FR 20589. Winhere and
the eight separate-rate respondents each
placed on the administrative record
documents to demonstrate an absence of
de jure control (e.g., the 1994 ‘‘Foreign
Trade Law of the People’s Republic of
China,’’ and the 1999 ‘‘Company Law of
the People’s Republic of China’’). As in
prior cases, we analyzed the laws
presented to us and found them to
establish sufficiently an absence of de
jure control. See, e.g., Honey from the
People’s Republic of China: Preliminary
Results and Partial Rescission of
Antidumping Duty Administrative
13 See Certain Cut-to-Length Carbon Steel Plate
from Ukraine: Final Determination of Sales at Less
than Fair Value, 62 FR 61754, 61758 (November 19,
1997); and Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from the
People’s Republic of China: Final Results of
Antidumping Duty Administrative Review, 62 FR
61276, 61279 (November 17, 1997).
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Review, 72 FR 102, 105 (January 3,
2007), and Hand Trucks and Certain
Parts Thereof from the People’s
Republic of China; Preliminary Results
and Partial Rescission of Administrative
Review and Preliminary Results of New
Shipper Review, 72 FR 937, 944 (January
9, 2007). We have no new information
in this review which would cause us to
reconsider this determination with
regard to Winhere. Therefore, we
believe that evidence on the record
supports a preliminary finding of an
absence of de jure government control
with regard to Winhere.
The eight separate-rate respondents
(Gren, Jinzheng, LABEC, Laizhou
Hongda, Longkou TLC, Meita, Xianghe
Zichen, and Zibo Botai) and Winhere
each certified that as in the previous
period where it was granted a separate
rate, there is an absence of de jure
government control. Each separate-rate
respondent’s certification stated, where
applicable, that it had no relationship
with any level of the PRC government
with respect to ownership, internal
management, and business operations.
In this segment, we have no new
information that would cause us to
reconsider the previous period’s de jure
control determination with regard to
these companies.
B. Absence of De Facto Control
As stated in previous cases, there is
evidence that certain enactments of the
PRC central government have not been
implemented uniformly among different
sectors and/or jurisdictions in the PRC.
See Silicon Carbide, 59 FR at 22586,
22587. Therefore, the Department has
determined that an analysis of de facto
control is critical in determining
whether the respondents are, in fact,
subject to a degree of government
control which would preclude the
Department from assigning separate
rates.
The Department typically considers
four factors in evaluating whether each
respondent is subject to de facto
government control of its export
functions: (1) Whether the export prices
are set by, or subject to the approval of,
a government authority; (2) whether the
respondent has authority to negotiate
and sign contracts and other
agreements; (3) whether the respondent
has autonomy from the government in
making decisions regarding the
selection of management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding the
disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at
22586–87; see also Final Determination
of Sales at Less Than Fair Value:
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17:07 Mar 19, 2009
Jkt 217001
Furfuryl Alcohol from the People’s
Republic of China, 60 FR 22544, 22545
(May 8, 1995).
In this review, Gren, Jinzheng,
LABEC, Laizhou Hongda, Longkou TLC,
Meita, Xianghe Zichen, Zibo Botai, and
Winhere each asserted the following: (1)
It establishes its own export prices; (2)
it negotiates contracts without guidance
from any government entities or
organizations; (3) it makes its own
personnel decisions; and (4) it retains
the proceeds of its export sales, uses
profits according to its business needs,
and has the authority to sell its assets
and to obtain loans. Additionally, each
of these companies’ separate-rates
certifications or questionnaire responses
indicate that its pricing during the POR
does not involve coordination among
exporters.
Thus, we preliminarily determine that
Gren, Jinzheng, LABEC, Laizhou
Hongda, Longkou TLC, Meita, Xianghe
Zichen, Zibo Botai, and Winhere have
each met the criteria for the application
of a separate rate based on the
documentation each of these
respondents has submitted on the
record of this review.
PRC-Wide Entity
As discussed above, in this
administrative review we limited the
selection of respondents using CBP
import data. See Respondent Selection
Memo. In this case, we sent the
separate-rates application and
certification to the companies which
were not selected as mandatory
respondents. See August 26, 2008,
letters to Luda, Sanli and ZGOLD. Luda,
Sanli and ZGOLD did not apply for a
separate rate or provide a separate-rate
certification, as appropriate, nor did
they indicate that they did not make
shipments of the subject merchandise to
the United States during the POR. See
December 16, 2008, Memorandum to the
File. Therefore, Luda, Sanli, and ZGOLD
are considered to be a part of the PRCwide entity. Because the Department
determines preliminarily that there were
exports of merchandise under review
from PRC producers/exporters that did
not demonstrate their eligibility for
separate-rate status, the PRC-wide entity
is now under review.
Preliminary Partial Rescission of 2007
Administrative Review
With respect to CAIEC and Laizhou
CAPCO, each company informed the
Department that it did not export the
subject merchandise to the United
States during the POR. Specifically,
CAIEC stated that it did not export brake
rotors to the United States that were
manufactured by producers other than
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Laizhou CAPCO and Laizhou CAPCO
stated that it did not export brake rotors
to the United States that were
manufactured by producers other than
Laizhou CAPCO. In order to corroborate
their submissions, we reviewed PRC
brake rotor shipment data maintained
by CBP.14 In reviewing the CBP import
data and entry documentation for
certain brake rotor entries made by
CAIEC and/or Laizhou CAPCO, we
found no evidence contradicting
CAIEC’s and Laizhou CAPCO’s claims
of no shipments of subject merchandise
to the United States during the POR.
Based on the record of this review, we
conclude that CAIEC and Laizhou
CAPCO did not export subject
merchandise to the United States during
the POR. Therefore, in accordance with
19 CFR 351.213(d)(3), we are
preliminarily rescinding this
administrative review for CAIEC and
Laizhou CAPCO.
Non-Market Economy Country
In every case conducted by the
Department involving the PRC, the PRC
has been treated as an NME country.
Pursuant to section 771(18)(C)(i) of the
Act, any determination that a foreign
country is an NME country shall remain
in effect until revoked by the
administering authority. See, e.g.,
Freshwater Crawfish Tail Meat from the
People’s Republic of China: Notice of
Final Results of Antidumping Duty
Administrative Review, 71 FR 7013
(February 10, 2006). None of the parties
in this administrative review has
contested such treatment. Accordingly,
we calculated NV in accordance with
section 773(c) of the Act, which applies
to NME countries.
Surrogate Country
Section 773(c)(1) of the Act directs the
Department to base NV on the NME
producer’s factors of production (FOP),
valued in a surrogate market economy
country or countries considered to be
appropriate by the Department. In
accordance with section 773(c)(4) of the
Act, in valuing the FOPs, the
Department shall use, to the extent
possible, the prices or costs of the FOPs
in one or more market-economy
countries that are: (1) At a level of
economic development comparable to
that of the NME country; and (2)
significant producers of comparable
merchandise. The sources of the
surrogate factor values are discussed
under the ‘‘Normal Value’’ section
below. See also the Department’s
14 See December 5, 2008, Memorandum to the
File entitled ‘‘Results of Request for Assistance from
U.S. Customs and Border Protection on U.S. Entry
Documents.’’
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memorandum entitled, ‘‘Preliminary
Results of the 2007 Administrative
Review of the Antidumping Duty Order
on Brake Rotors from the People’s
Republic of China: Surrogate Value
Memorandum,’’ dated March 16, 2009
(Surrogate Value Memorandum).
The Department determined that
India, Indonesia, the Philippines,
Colombia and Thailand are countries
comparable to the PRC in terms of
economic development. See Policy
Memorandum. Customarily, we select
an appropriate surrogate country from
the policy memorandum based on the
availability and reliability of data from
the countries that are significant
producers of comparable merchandise.
In this case, we found that India is at a
comparable level of economic
development to the PRC; is a significant
producer of the subject merchandise
(i.e., brake rotors); and has publicly
available and reliable data. See March
16, 2009, Memorandum to the File
entitled, ‘‘2007 Antidumping Duty
Administrative Review on Brake Rotors
from the People’s Republic of China:
Selection of a Surrogate Country’’
(Surrogate Country Memorandum).
Accordingly, we selected India as the
primary surrogate country for purposes
of valuing the FOPs in the calculation
of NV because it meets the Department’s
criteria for surrogate country selection.
See Surrogate Country Memorandum.
We obtained and relied upon publicly
available information wherever
possible.
In accordance with 19 CFR
351.301(c)(3)(ii), for the final results in
antidumping administrative reviews,
interested parties may submit publicly
available information to value FOPs
within 20 days after the date of
publication of these preliminary results.
Fair Value Comparisons
To determine whether sales of the
subject merchandise by Winhere to the
United States were made at prices below
NV, we compared Winhere’s export
prices (EPs) to NV, as described in the
‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice below, pursuant
to section 773 of the Act.
Export Price
Because Winhere sold subject
merchandise to an unaffiliated
purchaser in the United States prior to
importation into the United States and
use of a constructed-export-price
methodology was not otherwise
indicated, we used EP in accordance
with section 772(a) of the Act.
We calculated EP based on the
reported method of delivery to the first
unaffiliated purchaser in the United
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States. Where appropriate, we made
deductions from the starting price (gross
unit price) for foreign inland freight and
foreign brokerage and handling charges
in the PRC pursuant to section
772(c)(2)(A) of the Act.15 Because
foreign inland freight and foreign
brokerage and handling fees were
provided by PRC service providers or
paid for in renminbi, we based those
charges on surrogate rates from India.
See ‘‘Factor Valuation’’ section below
for further discussion of surrogate rates.
In determining the most appropriate
SVs to use in a given case, the
Department’s stated practice is to use
review period-wide price averages,
prices specific to the input in question,
prices that are net of taxes and import
duties, prices that are contemporaneous
with the POR, and publicly available
data. See, e.g., Certain Cased Pencils
from the People’s Republic of China;
Final Results and Partial Rescission of
Antidumping Duty Administrative
Review, 71 FR 38366 (July 6, 2006), and
accompanying Issues and Decision
Memorandum at Comment 1. The data
we used for brokerage and handling
expenses fulfill all of the foregoing
criteria except that they are not specific
to the subject merchandise. There is no
information of that type on the record of
this review. The Department used three
sources to calculate an SV for domestic
brokerage expenses: (1) Data from
Kejriwal Paper Ltd. (Kejriwal) for the
period of investigation July 1, 2004, to
June 30, 2005 (see Notice of Preliminary
Determination of Sales at Less Than
Fair Value, Postponement of Final
Determination, and Affirmative
Preliminary Determination of Critical
Circumstances in Part: Certain Lined
Paper Products From India, 71 FR 19706
(April 17, 2006) (unchanged in final
determination)); (2) data from Essar
Steel Limited (Essar) for the period of
investigation July 1, 2004, through June
30, 2005 (see Certain Hot-Rolled Carbon
Steel Flat Products from India:
Preliminary Results of Antidumping
Duty Administrative Review, 71 FR
2018, 2021 (January 12, 2006)
(unchanged in final results)); and (3)
data from Agro Dutch Industries Ltd. for
the POR February 1, 2004, through
January 31, 2005 (see Certain Preserved
Mushrooms From India: Final Results of
Antidumping Duty Administrative
Review, 70 FR 37757 (June 30, 2005)
(unchanged in final results)). Because
15 See the Department’s memorandum entitled,
‘‘2007 Administrative Review of the Antidumping
Duty Order on Brake Rotors from the People’s
Republic of China: Analysis of the Preliminary
Results Margin Calculation for Yantai Winhere
Auto-Part Manufacturing Co., Ltd.,’’ dated March
16, 2009 (Winhere Calculation Memo).
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11915
these values were not concurrent with
the POR of this administrative review,
we adjusted these rates for inflation
using the Wholesale Price Index (WPI)
for India as published in the
International Monetary Fund’s
International Financial Statistics,
available at https://ifs.apdi.net/imf, and
then calculated a simple average of the
three companies’ brokerage expense
data.
The Department valued inland truck
freight expenses using a deflated perunit average rate calculated from data
on the following Web site: https://
www.infobanc.com/logistics/
logtruck.htm. The logistics section of
this Web site contains inland freight
truck rates between many large Indian
cities. Because this value is not
contemporaneous with the POR, we
deflated the rate using WPI data. See
Surrogate Value Memorandum.
Winhere reported that its U.S.
customers purchased ball bearing cup
and lug nuts from PRC producers that
were delivered to Winhere in specific
quantities free-of-charge, and that the
components were then incorporated
into certain brake rotor models shipped
to U.S. customers during the POR.
Section 773(c)(3) of the Act states that
‘‘factors of production utilized in
producing merchandise include, but are
not limited to the quantities of raw
materials employed.’’See, e.g., Brake
Rotors From the People’s Republic of
China: Final Results and Partial
Rescission of the 2004/2005
Administrative Review and Notice of
Rescission of 2004/2005 New Shipper
Review, 71 FR 66304, 66305 (November
14, 2006), and accompanying Issues and
Decisions Memorandum at Comment 9;
see also Certain Preserved Mushrooms
From the People’s Republic of China:
Final Results and Final Rescission, in
Part, of Antidumping Duty
Administrative Review, 70 FR 54361
(September 14, 2005), and
accompanying Issues and Decisions
Memorandum at Comment 13.
Therefore, to reflect the U.S. customers’
expenditures for these items, we added
the Indian SV for each component (i.e.,
the ball bearing cups and lug nuts) used
to the U.S. price of the applicable brake
rotor models. For further information,
see Winhere Calculation Memo.
Normal Value
Section 773(c)(1) of the Act provides
that, in the case of an NME, the
Department shall determine NV using
an FOP methodology if the merchandise
is exported from an NME and the
information does not permit the
calculation of NV using home market
prices, third country prices, or
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constructed value under section 773(a)
of the Act. The Department will base NV
on FOP because the presence of
government controls on various aspects
of NMEs renders price comparisons and
the calculation of production costs
invalid under our normal
methodologies. Therefore, we calculated
NV based on FOP in accordance with
sections 773(c)(3) and (4) of the Act and
19 CFR 351.408(c).
For purposes of calculating NV, we
valued the PRC FOPs in accordance
with section 773(c)(1) of the Act. The
FOPs include: (1) Hours of labor
required; (2) quantities of raw materials
employed; (3) amounts of energy and
other utilities consumed; and (4)
representative capital costs. We used the
FOPs reported by Winhere for materials,
energy, labor, and packing. See section
773(c)(3) of the Act.
In examining SVs, we selected, where
possible, the publicly available value,
which was an average non-export value,
representative of a range of prices
within the POR or most
contemporaneous with the POR,
product-specific, and tax-exclusive. See,
e.g., Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination: Chlorinated
Isocyanurates from the People’s
Republic of China, 69 FR 75294, 75300
(December 16, 2004) (Chlorinated
Isocyanurates) (unchanged in final
determination). For a detailed
explanation of the methodology used to
calculate SVs, see Surrogate Value
Memorandum.
Regarding the components supplied
free of charge to Winhere noted above,
section 773(c)(3) of the Act states that
the ‘‘factors of production include but
are not limited to the quantities of raw
materials employed.’’ Therefore,
consistent with the corresponding
adjustment to U.S. price discussed
above, we valued the ball bearing cups
and lug nuts usage amounts reported by
Winhere for specific brake rotor models
by using an Indian SV for each input.
See Winhere Calculation Memo and
Surrogate Value Memorandum.
Factor Valuations
In accordance with section 773(c) of
the Act, we calculated NV based on the
FOPs reported by Winhere for the POR.
We relied on the factor-specific data
submitted by Winhere for the abovementioned inputs in its questionnaire
and supplemental questionnaire
responses, where applicable, for
purposes of selecting SVs.
To calculate NV, we multiplied the
reported per-unit factor consumption
rates by publicly available Indian SVs.
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Jkt 217001
In selecting the SVs, we considered the
quality, specificity, and
contemporaneity of the data. See, e.g.,
Folding Metal Tables and Chairs from
the People’s Republic of China; Final
Results of Antidumping Duty
Administrative Review, 71 FR 71509
(December 11, 2006), and accompanying
Issues and Decision Memorandum at
Comment 9. As appropriate, we
adjusted input prices by including
freight costs to make them delivered
prices. Specifically, we added to Indian
import SVs a surrogate freight cost using
the shorter of the reported distance from
the domestic supplier to the factory or
the distance from the nearest seaport to
the factory, where appropriate. This
adjustment is in accordance with the
decision of the U.S. Court of Appeals for
the Federal Circuit (Federal Circuit). See
Sigma Corp. v. United States, 117 F. 3d
1401, 1408 (Fed. Cir. 1997). Where
necessary, we adjusted the SVs for
inflation/deflation using the WPI as
published in the International Monetary
Fund’s International Financial
Statistics, available at https://
ifs.apdi.net/imf.
We valued the raw materials
(including ball bearing cups and lug
nuts), packing materials, coke input and
firewood input using April 2007
through July 2007,16 weighted-average
unit import values derived from the
Monthly Statistics of the Foreign Trade
of India (MSFTI), as published by the
Directorate General of Commercial
Intelligence and Statistics of the
Ministry of Commerce and Industry,
Government of India and compiled by
the World Trade Atlas (WTA), available
at https://www.gtis.com/wta.htm. The
Indian WTA import data is reported in
rupees and is contemporaneous with the
POR.17 Indian SVs denominated in
Indian rupees were converted to U.S.
dollars using the applicable daily
exchange rate for India for the POR. See
https://www.ia.ita.doc.gov/exchange/
index.html. Where appropriate, we
converted the units of measure to
kilograms. See Surrogate Value
Memorandum.
Furthermore, with regard to the WTA
Indian import-based SVs, we have
disregarded prices from NME
countries 18 and those we have reason to
believe or suspect may be subsidized,
16 Because the POR ends on the 13th day of
August 2007, we obtained the monthly totals for
April 2007 through July 2007 for all WTA data
(including the packing materials and energy inputs
as discussed below).
17 See Surrogate Value Memorandum at
Attachment 1.
18 The NME countries are Armenia, Azerbaijan,
Belarus, Georgia, Kyrgyz Republic, Moldova, PRC,
Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
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Fmt 4703
Sfmt 4703
because we have found in other
proceedings that these exporting
countries maintain broadly available,
non-industry-specific export subsidies
and, therefore, there is reason to believe
or suspect that all exports to all markets
from such countries may be
subsidized.19 We are also guided by the
statute’s legislative history that explains
that it is not necessary to conduct a
formal investigation to ensure that such
prices are not subsidized. See H.R. Rep.
No. 576 100th Cong., 2. Sess. 590–91
(1988). Rather, the Department was
instructed by Congress to base its
decision on information that is available
to it at the time it is making its
determination. Therefore, we excluded
export prices from Indonesia, South
Korea, Thailand, and India when
calculating the Indian import-based
SVs. See Surrogate Value Memorandum.
Finally, we excluded imports that were
labeled as originating from an
‘‘unspecified’’ country from the average
value, because we could not be certain
that they were not from either an NME
or a country with general export
subsidies.
As discussed above, the Department
valued surrogate freight cost by using a
deflated per-unit average rate calculated
from data on the following Web site:
https://www.infobanc.com/logistics/
logtruck.htm. See Polyethylene Retail
Carrier Bags from the People’s Republic
of China: Preliminary Results of
Antidumping Duty Administrative
Review, 73 FR 52282, 52286 (September
9, 2008) (unchanged in Polyethylene
Retail Carrier Bags from the People’s
Republic of China: Final Results of
Antidumping Duty Administrative
Review, 74 FR 6857 (February 11, 2009);
and Surrogate Value Memorandum at
Attachment 8.
To value electricity, the Department
used July 2006 electricity price rates
from Electricity Tariff & Duty and
Average Rates of Electricity Supply in
India, published by the Central
Electricity Authority of the Government
of India. Because this data was not
19 See Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, from the People’s
Republic of China; Final Results of the 1998–1999
Administrative Review, Partial Rescission of
Review, and Determination Not to Revoke Order in
Part, 66 FR 1953 (January 10, 2001), and
accompanying Issues and Decision Memorandum at
Comment 1; Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from the
People’s Republic of China; Final Results of 1999–
2000 Administrative Review, Partial Rescission of
Review, and Determination Not to Revoke Order in
Part, 66 FR 57420 (November 15, 2001), and
accompanying Issues and Decision Memorandum at
Comment 1; and China National Machinery Imp. &
Exp. Corp. v. United States, 293 F. Supp. 2d 1334,
1339 (CIT 2003), as affirmed by the Federal Circuit,
104 Fed. Appx. 183 (Fed. Cir. 2004).
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contemporaneous with the POR, we
adjusted the average value for inflation
using WPI. See Surrogate Value
Memorandum at Attachment 5.
For direct labor, indirect labor and
packing labor, consistent with 19 CFR
351.408(c)(3), we used the PRC
regression-based wage rates reflective of
the observed relationship between
wages and national income in marketeconomy countries as reported on
Import Administration’s Web site. See
‘‘Expected Wages of Selected NME
Countries’’ (revised January 2007)
(available at https://www.trade.gov/ia/).
For further details on the labor
calculation, see Surrogate Value
Memorandum at Attachment 7. Because
the regression-based wage rates do not
separate the labor rates into different
skill levels or types of labor, we applied
the same wage rate to all skill levels and
types of labor reported by Winhere.
Winhere reported that during the
manufacturing process, its subject
merchandise was transported from its
casting facility to its finishing
workshop. Using Winhere’s reported
distance and the reported cast weight of
its rotors, we valued the other PRC
distance (i.e., domestic inland freight
cost of transporting unfinished castings
from the casting facility to Winhere’s
finishing workshop facility) with the
surrogate truck rate discussed above.
This additional freight value was added
to the cost of manufacture (COM). See
Winhere Calculation Memorandum.
For factory overhead, selling, general,
and administrative expenses (SG&A),
and profit values, consistent with 19
CFR 351.408(c)(4), we used the public
information from the 2007 annual report
of Bosch Chassis Systems India Ltd.
(Bosch) and 2007–2008 annual report of
Rico Auto Industries Limited (Rico).20
From this information, we were able to
determine factory overhead as a
percentage of the total raw materials,
labor, and energy (ML&E) costs; SG&A
as a percentage of ML&E plus overhead
(i.e., COM); and the profit rate as a
11917
percentage of the COM plus SG&A.
Where appropriate, we did not include
in the surrogate overhead and SG&A
calculations the excise duty amount
listed in the financial reports. For a full
discussion of the calculation of these
ratios, see Surrogate Value
Memorandum and its accompanying
calculation worksheets at Attachment 6.
Currency Conversion
We made currency conversions into
U.S. dollars, in accordance with section
773A(a) of the Act, based on the
exchange rates in effect on the dates of
the U.S. sales, as certified by the Federal
Reserve Bank. See https://
www.ia.ita.doc.gov/exchange/
index.html.
Preliminary Results of Reviews
As a result of our review, we
preliminarily determine that the
following margins exist for the period
April 1, 2007, through August 13, 2007:
BRAKE ROTORS FROM THE PRC
Individually reviewed exporter 2007 administrative review
Weighted-average percent margin (percent)
Yantai Winhere Auto-Part Manufacturing Co., Ltd ......................................................................
Separate-rate applicant exporters 2007 administrative review
Weighted-average percent margin (percent)
Laizhou Auto Brake Equipment Co., Ltd .....................................................................................
Laizhou Hongda Auto Replacement Parts Co., Ltd ....................................................................
Longkou Jinzheng Machinery Co., Ltd ........................................................................................
Longkou TLC Machinery Co., Ltd ...............................................................................................
Qingdao Gren (Group) Co ...........................................................................................................
Qingdao Meita Automotive Industry Co., Ltd ..............................................................................
Xianghe Zichen Casting Company, Ltd .......................................................................................
Zibo Botai Manufacturing Co., Ltd ...............................................................................................
PRC-Wide Rate
The statute and the Department’s
regulations do not address the
establishment of a rate to be applied to
individual companies not selected for
examination where the Department
limited its examination in an
administrative review pursuant to
section 777A(c)(2) of the Act. Generally
we have looked to section 735(c)(5) of
the Act, which provides instructions for
calculating the all-others rate in an
investigation, for guidance when
20 See Brake Rotors From the People’s Republic of
China: Final Results of Antidumping Duty
Administrative and New Shipper Reviews and
Partial Rescission of the 2005–2006 Administrative
Review, 72 FR 42386, 42389 (August 22, 2007), and
accompanying Issues and Decision Memorandum at
Comment 2 (2005–2006 Brake Rotors).
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17:07 Mar 19, 2009
Jkt 217001
calculating the rate for respondents we
did not examine in an administrative
review. Section 735(c)(5)(A) of the Act
instructs that we are not to calculate an
all-others rate using any zero or de
minimis margins or any margins based
entirely on facts available. Accordingly,
the Department’s practice in this regard,
in reviews involving limited selection
based on exporters accounting for the
largest volumes of trade, has been to
average the rates for the selected
companies excluding zero and de
minimis rates and rates based entirely
on facts available. Section 735(c)(5)(B)
of the Act also provides that, where all
margins are zero, de minimis, or based
entirely on facts available, we may use
‘‘any reasonable method’’ for assigning
the rate to non-selected respondents,
PO 00000
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0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
(de
(de
(de
(de
(de
(de
(de
(de
minimis).
minimis).
minimis).
minimis).
minimis).
minimis).
minimis).
minimis).
Margin (percent)
PRC-wide rate (including Laizhou Luda Sedan Fittings Company, Ltd., Laizhou Sanli and
Zibo Golden Harvest Machinery Limited Company).
Rate for Non-Selected Respondents
0.04 (de minimis).
Fmt 4703
Sfmt 4703
43.32
including ‘‘averaging the estimated
weighted average dumping margins
determined for the exporters and
producers individually investigated.’’
The Department has available in
administrative reviews information that
would not be available in an
investigation, namely rates from prior
administrative and new shipper
reviews. Accordingly, since the final
results of the last review, the
Department has determined that in
cases where we have found dumping
margins in previous segments of a
proceeding, a reasonable method for
determining the rate for non-selected
companies is to use the most recent rate
calculated for the non-selected company
in question, unless we calculated in a
more recent review a rate for any
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company that was not zero, de minimis
or based entirely on facts available. See
Certain Frozen Warmwater Shrimp from
the Socialist Republic of Vietnam: Final
Results and Final Partial Rescission of
Antidumping Duty Administrative
Review, 73 FR 52273, 52275 (September
9, 2008), and accompanying Issues and
Decision Memorandum at Comment 6;
Ball Bearings and Parts Thereof from
France, Germany, Italy, Japan, and the
United Kingdom: Final Results of
Antidumping Duty Administrative
Reviews and Rescission of Review in
Part, 73 FR 52823, 52824 (September 11,
2008), and accompanying Issues and
Decision Memorandum at Comment 16;
see also Certain Fish Fillets from the
Socialist Republic of Vietnam: Notice of
Preliminary Results of the New Shipper
Review and Fourth Antidumping Duty
Administrative Review and Partial
Rescission of the Fourth Administrative
Review, 73 FR 52015 (Sept. 8, 2008)
(changed in final results as final
calculated rate for mandatory
respondent was above de minimis).
While we intend to continue to apply
the policy articulated in the above-cited
cases in future reviews, where
appropriate, we do not believe that any
change in this late stage of the brake
rotors proceeding is warranted.21 For
purposes of consistency and equity to
the parties, the Department does not
believe that it is appropriate to
reexamine the issue in this final
segment of the brake rotors proceeding,
in light of more recent decisions in
other administrative reviews. Thus, we
are assigning the non-selected separate
rate companies the de minimis rate
calculated for the sole mandatory
respondent. With respect to the PRCwide entity (including Luda, Sanli and
ZGOLD), we have assigned the entity’s
current rate and only rate ever
determined for the entity in this
proceeding.
Disclosure
We will disclose the calculations used
in our analysis to parties to this
proceeding within five days of the date
of publication of this notice. See 19 CFR
351.224(b).
Interested parties are invited to
comment on the preliminary results and
may submit case briefs and/or written
comments within 30 days of the date of
publication of this notice. See 19 CFR
351.309(c)(ii). Rebuttal briefs, limited to
issues raised in the case briefs, will be
due five days later, pursuant to 19 CFR
21 Because the brake rotors order was revoked
effective August 14, 2007, this is the last
administrative review that the Department will
conduct.
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17:07 Mar 19, 2009
Jkt 217001
351.309(d). Parties who submit case or
rebuttal briefs in this proceeding are
requested to submit with each argument
(1) a statement of the issue, and (2) a
brief summary of the argument. Parties
are requested to provide a summary of
the arguments not to exceed five pages
and a table of statutes, regulations, and
cases cited. Additionally, parties are
requested to provide their case brief and
rebuttal briefs in electronic format (e.g.,
Microsoft Word, pdf, etc.). Interested
parties who wish to request a hearing or
to participate if one is requested, must
submit a written request to the Assistant
Secretary for Import Administration
within 30 days of the date of publication
of this notice. Requests should contain:
(1) The party’s name, address, and
telephone number; (2) the number of
participants; and (3) a list of issues to be
discussed. See 19 CFR 351.310(c). Issues
raised in the hearing will be limited to
those raised in case and rebuttal briefs.
The Department will issue the final
results of this review, including the
results of its analysis of issues raised in
any such written briefs or at the hearing,
if held, not later than 120 days after the
date of publication of this notice.
Assessment Rates
Upon issuance of the final results, the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries covered by this
review. The Department intends to issue
assessment instructions to CBP 15 days
after the publication date of the final
results of this review. In accordance
with 19 CFR 351.212(b)(1), for Winhere,
we calculated an importer (or
customer)-specific assessment rate for
the merchandise subject to this review.
Because we do not have entered values
on the record for Winhere’s sales, we
calculated a per-unit assessment rate by
aggregating the antidumping duties due
for all U.S. sales to each importer (or
customer) and dividing this amount by
the total quantity sold to that importer
(or customer). See 19 CFR 351.212(b)(1).
To determine whether the duty
assessment rates are de minimis, in
accordance with the requirement set
forth in 19 CFR 351.106(c)(2), we
calculated importer (or customer)specific ad valorem ratios based on the
estimated entered value. Where an
importer (or customer)-specific ad
valorem rate is zero or de minimis, we
will instruct CBP to liquidate
appropriate entries without regard to
antidumping duties. See 19 CFR
351.106(c)(2).
For the companies receiving a
separate-rate that were not selected for
individual review (i.e., Gren, Jinzheng,
LABEC, Laizhou Hongda, Longkou TLC,
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
Meita, Xianghe Zichen, and Zibo Botai),
we will calculate an assessment rate
based on the weighted-average margins
calculated for the companies selected
for individual review pursuant to
section 735(c)(5)(B) of the Act. As
Winhere is the only mandatory
respondent in this review and its margin
is de minimis, we will instruct CBP to
liquidate appropriate entries without
regard to antidumping duties with
respect to the eight separate-rate
respondents. See 19 CFR 351.106(c)(2).
With respect to the PRC-wide entity
(including Luda, Sanli and ZGOLD), we
will instruct CBP to liquidate
appropriate entries at the PRC-wide rate
of 43.32 percent.
Cash Deposit Requirements
The antidumping duty order on brake
rotors from the PRC was revoked
effective August 14, 2007 (see Brake
Rotors From the People’s Republic of
China: Revocation of Antidumping Duty
Order Pursuant to Second Five-Year
(Sunset) Review, 73 FR 36039 (June 25,
2008)). As a result, we instructed CBP
to terminate the suspension of
liquidation of entries of the subject
merchandise. Therefore, the collection
of cash deposits of antidumping duties
on entries of the subject merchandise is
no longer required.
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This administrative review and notice
are in accordance with sections
751(a)(1), 751(a)(2)(B), and 777(i) of the
Act and 19 CFR 351.221.
Dated: March 16, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations.
[FR Doc. E9–6174 Filed 3–19–09; 8:45 am]
BILLING CODE 3510–DS–P
E:\FR\FM\20MRN1.SGM
20MRN1
Agencies
[Federal Register Volume 74, Number 53 (Friday, March 20, 2009)]
[Notices]
[Pages 11911-11918]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6174]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-846]
Brake Rotors From the People's Republic of China: Preliminary
Results of the 2007 Administrative Review and Partial Rescission
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is currently
conducting the 2007 administrative review of the antidumping duty order
on brake rotors from the People's Republic of China (PRC). We
preliminarily determine that sales have not been made below normal
value (NV) with respect to those exporters who participated fully and
are entitled to a separate rate in the administrative review. If these
preliminary results are adopted in our final results of this review, we
will instruct U.S. Customs and Border Protection (CBP) to liquidate
without regard to antidumping duties, entries of subject merchandise
during the period of review (POR) from these exporters.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
Effective Date: March 20, 2009.
FOR FURTHER INFORMATION CONTACT: Brian Smith or Terre Keaton Stefanova,
AD/CVD Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
1766 or (202) 482-1280, respectively.
Case History
On April 17, 1997, the Department published in the Federal Register
the antidumping duty order on brake rotors from the PRC. See Notice of
Antidumping Duty Order: Brake Rotors from the People's Republic of
China, 62 FR 18740 (April 17, 1997) (the Order).
On April 1, 2008, the Department published a notice of opportunity
to request an administrative review of the antidumping duty order on
brake rotors from the PRC. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 73 FR 17317 (April 1, 2008).
On April 23 and 30, 2008, the Department received timely requests
for an administrative review of this antidumping duty order in
accordance with 19 CFR 351.213 from the following companies: Longkou
Orient Autoparts Co., Ltd. (Longkou Orient), Qingdao Meita Automotive
Industry Co., Ltd. (Meita), Yantai Winhere Auto-Part Manufacturing Co.,
Ltd. (Winhere), Laizhou Auto Brake Equipment Factory (LABEC), Laizhou
City Luqi Machinery Co., Ltd. (Luqi), Longkou Haimeng Machinery Co.,
Ltd. (Haimeng), Laizhou Hongda Auto Replacement Parts Co., Ltd.
(Hongda), Dixion Brake System
[[Page 11912]]
(Longkou) Ltd. (Dixion), and Laizhou Wally Automobile Co., Ltd.
(Wally). On April 30, 2008, the Department also received timely
requests from the petitioner \1\ for an administrative review of 12
companies (or producer/exporter combinations).\2\
---------------------------------------------------------------------------
\1\ The petitioner is the Coalition for the Preservation of
American Brake Drum and Rotor Aftermarket Manufacturers.
\2\ The names of these companies or producer/exporter
combinations are as follows: (1) Meita; (2) Winhere; (3) Zibo Golden
Harvest Machinery Limited Company (ZGOLD); (4) Longkou TLC Machinery
Co., Ltd. (Longkou TLC); (5) Longkou Jinzheng Machinery Co.
(Jinzheng); (6) Qingdao Gren Co. (Gren); (7) Xianghe Zichen Casting
Company, Ltd. (Xianghe Zichen); (8) Laizhou Luda Sedan Fittings
Company, Ltd. (Luda); (9) Zibo Botai Manufacturing Co., Ltd. (Zibo
Botai); (10) Laizhou Sanli (Sanli); (11) China National Automotive
Industry Import & Export Corporation (CAIEC) or National Automotive
Industry Import & Export Corporation, excluding entries manufactured
by Shandong Laizhou CAPCO Industry (Laizhou CAPCO); and (12) Laizhou
CAPCO, excluding entries manufactured by Laizhou CAPCO.
---------------------------------------------------------------------------
On June 4, 2008, the Department published in the Federal Register a
notice of initiation of the administrative review of the antidumping
duty order on brake rotors from the PRC for 19 individually named firms
covering the period April 1, 2007, through March 31, 2008. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Requests for Revocation in Part, 73 FR 31813 (June 4,
2008). On June 25, 2008, the Department published a notice of
revocation of the antidumping duty order on brake rotors from the PRC
(see Brake Rotors From the People's Republic of China: Revocation of
Antidumping Duty Order Pursuant to Second Five-Year (Sunset) Review, 73
FR 36039 (June 25, 2008)). As a result of the revocation of the order,
effective August 14, 2007, the period of this review was changed from
April 1, 2007, through March 31, 2008, to April 1, 2007, through August
13, 2007 (see June 27, 2008, Memorandum to The File entitled ``Change
in the Period of Review'').
On July 1, 2008, the Department placed on the record a memorandum
containing CBP data for U.S. imports of subject merchandise from the
PRC made during the POR. The Department also stated in that memorandum
that it intended to select respondents for individual review based on
the CBP import data. The Department provided parties with an
opportunity to comment on the CBP import data and respondent selection
(see July 1, 2008, Memorandum to The File entitled ``Release of POR
Entry Data from U.S. Customs and Border Protection''). On July 11,
2008, eight respondent companies submitted comments to the Department
on the respondent selection process. Also, Dixion and Wally withdrew
their requests for an administrative review.
On July 29, 2008, because it was not feasible to examine all 19
companies for which an administrative review was initiated, the
Department selected the two largest companies based on CBP import data,
Haimeng and Winhere, as mandatory respondents in accordance with
section 777A(c)(2)(B) of the Tariff Act of 1930, as amended (the Act).
The remaining 17 respondents were not selected for individual review.
See Memorandum from Irene Darzenta Tzafolias to James P. Maeder, Jr.,
``2007 Antidumping Duty Administrative Review of Brake Rotors from the
People's Republic of China: Selection of Respondents for Individual
Review,'' dated July 29, 2008 (Respondent Selection Memo); and
``Separate rates'' section below.
On August 1, 2008, we issued Haimeng and Winhere the antidumping
duty questionnaire.
On August 7, 2008, we requested that the Import Administration's
Office of Policy (the Office of Policy) issue a surrogate-country
memorandum for the selection of the appropriate surrogate countries for
this review.\3\ On the same date, the Office of Policy provided us with
a list of five countries at a level of economic development comparable
to that of the PRC.\4\
---------------------------------------------------------------------------
\3\ See the Department's memorandum entitled, ``Request for
Surrogate Country Selection,'' dated August 7, 2008.
\4\ See the Department's memorandum entitled, ``Administrative
Review of the Antidumping Duty Order on Brake Rotors from the
People's Republic of China (PRC): Request for a List of Surrogate
Countries,'' dated August 7, 2008 (Policy Memorandum).
---------------------------------------------------------------------------
Between August 11 and August 26, 2008, the Department issued
letters to the respondents not selected for individual review
requesting (1) a separate-rate certification or application or (2) a
no-shipment statement if applicable. Also during this time period, the
Department invited interested parties participating in this
administrative review to submit comments on surrogate country selection
and to submit publicly available information as surrogate values (SVs)
for purposes of calculating NV.\5\ No parties submitted surrogate
country comments or publicly available SV information in this
administrative review.
---------------------------------------------------------------------------
\5\ See the Department's letter entitled, ``2007 Antidumping
Duty Administrative Review of the Antidumping Duty Order on Brake
Rotors from the People's Republic of China,'' requesting parties to
provide comments on surrogate-country selection and provide
surrogate factors of production values from the potential surrogate
countries (i.e., India, Indonesia, the Philippines, Colombia and
Thailand).
---------------------------------------------------------------------------
During July, August and September 2008, the Department received
timely submissions from several companies for which the review was
initiated: Three companies \6\ certified that they had no shipments of
subject merchandise during the POR; seven companies withdrew their
review requests, including Haimeng (i.e., one of the selected mandatory
respondents); \7\ eight companies \8\ submitted their separate-rate
certifications in response to the Department's request; and Winhere
submitted its responses to the antidumping duty questionnaire.
---------------------------------------------------------------------------
\6\ These three companies are CAIEC, Laizhou CAPCO, and Longkou
Orient.
\7\ These seven companies are CAIEC, Dixion, Haimeng, Laizhou
CAPCO, Longkou Orient, Luqi, and Wally.
\8\ These eight companies are Gren, Longkou Jinzheng, LABEC,
Laizhou Hongda, Longkou TLC, Meita, Xianghe Zichen, and Zibo Botai.
---------------------------------------------------------------------------
On September 9, 2008, the Department rescinded this review with
respect to Dixion, Haimeng, Longkou Orient, Luqi, and Wally. See Brake
Rotors from the People's Republic of China: Notice of Partial
Rescission of Antidumping Duty Administrative Review, 73 FR 53193
(September 15, 2008).
On October 10, 2008, we requested entry documentation from CBP for
certain entries of brake rotors exported by CAIEC and/or Laizhou CAPCO
during the POR.\9\
---------------------------------------------------------------------------
\9\ See the Department's memorandum entitled, ``Request for U.S.
Entry Documents--Brake Rotors from the People's Republic of China
(A-570-846),'' dated October 10, 2008.
---------------------------------------------------------------------------
The Department issued a supplemental questionnaire to Winhere on
November 14, 2008, and received Winhere's supplemental questionnaire
response on November 28, 2008.
On December 5, 2008, the Department placed on the record copies of
CBP documents pertaining to certain entries of brake rotors from the
PRC exported by CAIEC and/or Laizhou CAPCO to the United States during
the POR.\10\
---------------------------------------------------------------------------
\10\ See the Department's memorandum entitled, ``2007
Administrative Review of the Antidumping Duty Order on Brake Rotors
from the People's Republic of China, Results of Request for
Assistance from U.S. Customs and Border Protection on U.S. Entry
Documents,'' dated December 5, 2008.
---------------------------------------------------------------------------
On December 11, 2008, the Department postponed the preliminary
results of this review until March 2, 2009. See Brake Rotors From the
People's Republic of China: Notice of Extension of Time Limit for
Preliminary Results of the Antidumping Duty Administrative Review, 73
FR 77004 (December 18, 2008).
On December 16, 2008, the Department placed on the record a
[[Page 11913]]
memorandum regarding the three companies (i.e., Luda, Sanli and ZGOLD)
that did not submit a separate-rates application or certification in
this administrative review. See Memorandum to the File entitled
``Efforts to Provide Companies'' with the Department's August 26, 2008,
Separate Rates Questionnaire, Separate Rates Certification
Questionnaire, and No Shipments Instructions'' (December 16, 2008
Memorandum to the File).
On March 2, 2009, the Department further postponed the preliminary
results of this review until March 16, 2009. See Brake Rotors From the
People's Republic of China: Extension of Time Limit for Preliminary
Results of the Antidumping Duty Administrative Review, 74 FR 9787
(March 6, 2009).
Period of Review
The POR is April 1, 2007, through August 13, 2007.
Scope of the Order
The products covered by this order are brake rotors made of gray
cast iron, whether finished, semifinished, or unfinished, ranging in
diameter from 8 to 16 inches (20.32 to 40.64 centimeters) and in weight
from 8 to 45 pounds (3.63 to 20.41 kilograms). The size parameters
(weight and dimension) of the brake rotors limit their use to the
following types of motor vehicles: Automobiles, all-terrain vehicles,
vans and recreational vehicles under ``one ton and a half,'' and light
trucks designated as ``one ton and a half.''
Finished brake rotors are those that are ready for sale and
installation without any further operations. Semi-finished rotors are
those on which the surface is not entirely smooth, and have undergone
some drilling. Unfinished rotors are those which have undergone some
grinding or turning.
These brake rotors are for motor vehicles, and do not contain in
the casting a logo of an original equipment manufacturer (OEM) which
produces vehicles sold in the United States, (e.g., General Motors,
Ford, Chrysler, Honda, Toyota, Volvo). Brake rotors covered in this
order are not certified by OEM producers of vehicles sold in the United
States. The scope also includes composite brake rotors that are made of
gray cast iron, which contain a steel plate, but otherwise meet the
above criteria. Excluded from the scope of this order are brake rotors
made of gray cast iron, whether finished, semifinished, or unfinished,
with a diameter less than 8 inches or greater than 16 inches (less than
20.32 centimeters or greater than 40.64 centimeters) and a weight less
than 8 pounds or greater than 45 pounds (less than 3.63 kilograms or
greater than 20.41 kilograms).
Brake rotors are currently classifiable under subheading
8708.39.5010 of the Harmonized Tariff Schedule of the United States
(HTSUS).\11\ Although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the scope of this
order is dispositive.
---------------------------------------------------------------------------
\11\ As of January 1, 2005, the HTSUS classification for brake
rotors (discs) changed from 8708.39.5010 to 8708.39.5030. As of
January 1, 2007, the HTSUS classification for brake rotors (discs)
changed from 8708.39.5030 to 8708.30.5030. See Harmonized Tariff
Schedule of the United States (2007) (Rev. 2), available at https://
www.usitc.gov.
---------------------------------------------------------------------------
Separate Rates
In proceedings involving non-market economy (NME) countries, the
Department begins with a rebuttable presumption that all companies
within the country are subject to government control, and thus, should
be assigned a single antidumping duty deposit rate. It is the
Department's policy to assign all exporters of subject merchandise
subject to review in an NME country a single rate unless an exporter
can demonstrate that it is sufficiently independent of government
control to be entitled to a separate rate. See, e.g., Honey from the
People's Republic of China: Preliminary Results and Partial Rescission
of Antidumping Duty Administrative Review, 70 FR 74764, 74766 (December
16, 2005) (unchanged in the final results).
For the administrative review, in order to demonstrate separate-
rate status eligibility, the Department normally requires entities, for
which a review was requested, and which were assigned a separate-rate
in a previous segment of this proceeding, to submit a separate-rate
certification stating that they continue to meet the criteria for
obtaining a separate rate. For entities that were not assigned a
separate rate in the previous segment of a proceeding, to demonstrate
eligibility for such, the Department requires a separate-rate
application. In this administrative review, eight entities not selected
for individual review (i.e., separate-rate respondents) submitted
separate-rate certifications. The mandatory respondent, Winhere, and
the eight separate-rate respondents \12\ provided company-specific
information and each stated that it meets the criteria for the
assignment of a separate rate.
---------------------------------------------------------------------------
\12\ The non-mandatory respondents which submitted separate-rate
certifications are as follows: Gren, Jinzheng, LABEC, Laizhou
Hongda, Longkou TLC, Meita, Xianghe Zichen, and Zibo Botai.
---------------------------------------------------------------------------
We considered whether the mandatory and eight separate-rate
respondents were eligible for a separate rate. The Department's
separate-rate status test to determine whether the exporter is
independent from government control does not consider, in general,
macroeconomic/border-type controls (e.g., export licenses, quotas, and
minimum export prices), particularly if these controls are imposed to
prevent dumping. The test focuses, rather, on controls over the
investment, pricing, and output decision-making process at the
individual firm level.\13\
---------------------------------------------------------------------------
\13\ See Certain Cut-to-Length Carbon Steel Plate from Ukraine:
Final Determination of Sales at Less than Fair Value, 62 FR 61754,
61758 (November 19, 1997); and Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from the People's Republic of
China: Final Results of Antidumping Duty Administrative Review, 62
FR 61276, 61279 (November 17, 1997).
---------------------------------------------------------------------------
To establish whether an exporter is sufficiently independent of
government control to be entitled to a separate rate, the Department
analyzes the exporter in light of select criteria, discussed below. See
Final Determination of Sales at Less Than Fair Value: Sparklers from
the People's Republic of China, 56 FR 20588, 20589 (May 6, 1991)
(Sparklers), and Final Determination of Sales at Less Than Fair Value:
Silicon Carbide from the People's Republic of China, 59 FR 22585,
22586, 22587 (May 2, 1994) (Silicon Carbide). Under this test,
exporters in NME countries are entitled to separate, company-specific
margins when they can demonstrate an absence of government control over
exports, both in law (de jure) and in fact (de facto).
A. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) An absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; or (3) any other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR 20589. Winhere and the eight separate-rate respondents
each placed on the administrative record documents to demonstrate an
absence of de jure control (e.g., the 1994 ``Foreign Trade Law of the
People's Republic of China,'' and the 1999 ``Company Law of the
People's Republic of China''). As in prior cases, we analyzed the laws
presented to us and found them to establish sufficiently an absence of
de jure control. See, e.g., Honey from the People's Republic of China:
Preliminary Results and Partial Rescission of Antidumping Duty
Administrative
[[Page 11914]]
Review, 72 FR 102, 105 (January 3, 2007), and Hand Trucks and Certain
Parts Thereof from the People's Republic of China; Preliminary Results
and Partial Rescission of Administrative Review and Preliminary Results
of New Shipper Review, 72 FR 937, 944 (January 9, 2007). We have no new
information in this review which would cause us to reconsider this
determination with regard to Winhere. Therefore, we believe that
evidence on the record supports a preliminary finding of an absence of
de jure government control with regard to Winhere.
The eight separate-rate respondents (Gren, Jinzheng, LABEC, Laizhou
Hongda, Longkou TLC, Meita, Xianghe Zichen, and Zibo Botai) and Winhere
each certified that as in the previous period where it was granted a
separate rate, there is an absence of de jure government control. Each
separate-rate respondent's certification stated, where applicable, that
it had no relationship with any level of the PRC government with
respect to ownership, internal management, and business operations. In
this segment, we have no new information that would cause us to
reconsider the previous period's de jure control determination with
regard to these companies.
B. Absence of De Facto Control
As stated in previous cases, there is evidence that certain
enactments of the PRC central government have not been implemented
uniformly among different sectors and/or jurisdictions in the PRC. See
Silicon Carbide, 59 FR at 22586, 22587. Therefore, the Department has
determined that an analysis of de facto control is critical in
determining whether the respondents are, in fact, subject to a degree
of government control which would preclude the Department from
assigning separate rates.
The Department typically considers four factors in evaluating
whether each respondent is subject to de facto government control of
its export functions: (1) Whether the export prices are set by, or
subject to the approval of, a government authority; (2) whether the
respondent has authority to negotiate and sign contracts and other
agreements; (3) whether the respondent has autonomy from the government
in making decisions regarding the selection of management; and (4)
whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding the disposition of profits or
financing of losses. See Silicon Carbide, 59 FR at 22586-87; see also
Final Determination of Sales at Less Than Fair Value: Furfuryl Alcohol
from the People's Republic of China, 60 FR 22544, 22545 (May 8, 1995).
In this review, Gren, Jinzheng, LABEC, Laizhou Hongda, Longkou TLC,
Meita, Xianghe Zichen, Zibo Botai, and Winhere each asserted the
following: (1) It establishes its own export prices; (2) it negotiates
contracts without guidance from any government entities or
organizations; (3) it makes its own personnel decisions; and (4) it
retains the proceeds of its export sales, uses profits according to its
business needs, and has the authority to sell its assets and to obtain
loans. Additionally, each of these companies' separate-rates
certifications or questionnaire responses indicate that its pricing
during the POR does not involve coordination among exporters.
Thus, we preliminarily determine that Gren, Jinzheng, LABEC,
Laizhou Hongda, Longkou TLC, Meita, Xianghe Zichen, Zibo Botai, and
Winhere have each met the criteria for the application of a separate
rate based on the documentation each of these respondents has submitted
on the record of this review.
PRC-Wide Entity
As discussed above, in this administrative review we limited the
selection of respondents using CBP import data. See Respondent
Selection Memo. In this case, we sent the separate-rates application
and certification to the companies which were not selected as mandatory
respondents. See August 26, 2008, letters to Luda, Sanli and ZGOLD.
Luda, Sanli and ZGOLD did not apply for a separate rate or provide a
separate-rate certification, as appropriate, nor did they indicate that
they did not make shipments of the subject merchandise to the United
States during the POR. See December 16, 2008, Memorandum to the File.
Therefore, Luda, Sanli, and ZGOLD are considered to be a part of the
PRC-wide entity. Because the Department determines preliminarily that
there were exports of merchandise under review from PRC producers/
exporters that did not demonstrate their eligibility for separate-rate
status, the PRC-wide entity is now under review.
Preliminary Partial Rescission of 2007 Administrative Review
With respect to CAIEC and Laizhou CAPCO, each company informed the
Department that it did not export the subject merchandise to the United
States during the POR. Specifically, CAIEC stated that it did not
export brake rotors to the United States that were manufactured by
producers other than Laizhou CAPCO and Laizhou CAPCO stated that it did
not export brake rotors to the United States that were manufactured by
producers other than Laizhou CAPCO. In order to corroborate their
submissions, we reviewed PRC brake rotor shipment data maintained by
CBP.\14\ In reviewing the CBP import data and entry documentation for
certain brake rotor entries made by CAIEC and/or Laizhou CAPCO, we
found no evidence contradicting CAIEC's and Laizhou CAPCO's claims of
no shipments of subject merchandise to the United States during the
POR.
---------------------------------------------------------------------------
\14\ See December 5, 2008, Memorandum to the File entitled
``Results of Request for Assistance from U.S. Customs and Border
Protection on U.S. Entry Documents.''
---------------------------------------------------------------------------
Based on the record of this review, we conclude that CAIEC and
Laizhou CAPCO did not export subject merchandise to the United States
during the POR. Therefore, in accordance with 19 CFR 351.213(d)(3), we
are preliminarily rescinding this administrative review for CAIEC and
Laizhou CAPCO.
Non-Market Economy Country
In every case conducted by the Department involving the PRC, the
PRC has been treated as an NME country. Pursuant to section
771(18)(C)(i) of the Act, any determination that a foreign country is
an NME country shall remain in effect until revoked by the
administering authority. See, e.g., Freshwater Crawfish Tail Meat from
the People's Republic of China: Notice of Final Results of Antidumping
Duty Administrative Review, 71 FR 7013 (February 10, 2006). None of the
parties in this administrative review has contested such treatment.
Accordingly, we calculated NV in accordance with section 773(c) of the
Act, which applies to NME countries.
Surrogate Country
Section 773(c)(1) of the Act directs the Department to base NV on
the NME producer's factors of production (FOP), valued in a surrogate
market economy country or countries considered to be appropriate by the
Department. In accordance with section 773(c)(4) of the Act, in valuing
the FOPs, the Department shall use, to the extent possible, the prices
or costs of the FOPs in one or more market-economy countries that are:
(1) At a level of economic development comparable to that of the NME
country; and (2) significant producers of comparable merchandise. The
sources of the surrogate factor values are discussed under the ``Normal
Value'' section below. See also the Department's
[[Page 11915]]
memorandum entitled, ``Preliminary Results of the 2007 Administrative
Review of the Antidumping Duty Order on Brake Rotors from the People's
Republic of China: Surrogate Value Memorandum,'' dated March 16, 2009
(Surrogate Value Memorandum).
The Department determined that India, Indonesia, the Philippines,
Colombia and Thailand are countries comparable to the PRC in terms of
economic development. See Policy Memorandum. Customarily, we select an
appropriate surrogate country from the policy memorandum based on the
availability and reliability of data from the countries that are
significant producers of comparable merchandise. In this case, we found
that India is at a comparable level of economic development to the PRC;
is a significant producer of the subject merchandise (i.e., brake
rotors); and has publicly available and reliable data. See March 16,
2009, Memorandum to the File entitled, ``2007 Antidumping Duty
Administrative Review on Brake Rotors from the People's Republic of
China: Selection of a Surrogate Country'' (Surrogate Country
Memorandum).
Accordingly, we selected India as the primary surrogate country for
purposes of valuing the FOPs in the calculation of NV because it meets
the Department's criteria for surrogate country selection. See
Surrogate Country Memorandum. We obtained and relied upon publicly
available information wherever possible.
In accordance with 19 CFR 351.301(c)(3)(ii), for the final results
in antidumping administrative reviews, interested parties may submit
publicly available information to value FOPs within 20 days after the
date of publication of these preliminary results.
Fair Value Comparisons
To determine whether sales of the subject merchandise by Winhere to
the United States were made at prices below NV, we compared Winhere's
export prices (EPs) to NV, as described in the ``Export Price'' and
``Normal Value'' sections of this notice below, pursuant to section 773
of the Act.
Export Price
Because Winhere sold subject merchandise to an unaffiliated
purchaser in the United States prior to importation into the United
States and use of a constructed-export-price methodology was not
otherwise indicated, we used EP in accordance with section 772(a) of
the Act.
We calculated EP based on the reported method of delivery to the
first unaffiliated purchaser in the United States. Where appropriate,
we made deductions from the starting price (gross unit price) for
foreign inland freight and foreign brokerage and handling charges in
the PRC pursuant to section 772(c)(2)(A) of the Act.\15\ Because
foreign inland freight and foreign brokerage and handling fees were
provided by PRC service providers or paid for in renminbi, we based
those charges on surrogate rates from India. See ``Factor Valuation''
section below for further discussion of surrogate rates.
---------------------------------------------------------------------------
\15\ See the Department's memorandum entitled, ``2007
Administrative Review of the Antidumping Duty Order on Brake Rotors
from the People's Republic of China: Analysis of the Preliminary
Results Margin Calculation for Yantai Winhere Auto-Part
Manufacturing Co., Ltd.,'' dated March 16, 2009 (Winhere Calculation
Memo).
---------------------------------------------------------------------------
In determining the most appropriate SVs to use in a given case, the
Department's stated practice is to use review period-wide price
averages, prices specific to the input in question, prices that are net
of taxes and import duties, prices that are contemporaneous with the
POR, and publicly available data. See, e.g., Certain Cased Pencils from
the People's Republic of China; Final Results and Partial Rescission of
Antidumping Duty Administrative Review, 71 FR 38366 (July 6, 2006), and
accompanying Issues and Decision Memorandum at Comment 1. The data we
used for brokerage and handling expenses fulfill all of the foregoing
criteria except that they are not specific to the subject merchandise.
There is no information of that type on the record of this review. The
Department used three sources to calculate an SV for domestic brokerage
expenses: (1) Data from Kejriwal Paper Ltd. (Kejriwal) for the period
of investigation July 1, 2004, to June 30, 2005 (see Notice of
Preliminary Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Affirmative Preliminary
Determination of Critical Circumstances in Part: Certain Lined Paper
Products From India, 71 FR 19706 (April 17, 2006) (unchanged in final
determination)); (2) data from Essar Steel Limited (Essar) for the
period of investigation July 1, 2004, through June 30, 2005 (see
Certain Hot-Rolled Carbon Steel Flat Products from India: Preliminary
Results of Antidumping Duty Administrative Review, 71 FR 2018, 2021
(January 12, 2006) (unchanged in final results)); and (3) data from
Agro Dutch Industries Ltd. for the POR February 1, 2004, through
January 31, 2005 (see Certain Preserved Mushrooms From India: Final
Results of Antidumping Duty Administrative Review, 70 FR 37757 (June
30, 2005) (unchanged in final results)). Because these values were not
concurrent with the POR of this administrative review, we adjusted
these rates for inflation using the Wholesale Price Index (WPI) for
India as published in the International Monetary Fund's International
Financial Statistics, available at https://ifs.apdi.net/imf, and then
calculated a simple average of the three companies' brokerage expense
data.
The Department valued inland truck freight expenses using a
deflated per-unit average rate calculated from data on the following
Web site: https://www.infobanc.com/logistics/logtruck.htm. The logistics
section of this Web site contains inland freight truck rates between
many large Indian cities. Because this value is not contemporaneous
with the POR, we deflated the rate using WPI data. See Surrogate Value
Memorandum.
Winhere reported that its U.S. customers purchased ball bearing cup
and lug nuts from PRC producers that were delivered to Winhere in
specific quantities free-of-charge, and that the components were then
incorporated into certain brake rotor models shipped to U.S. customers
during the POR. Section 773(c)(3) of the Act states that ``factors of
production utilized in producing merchandise include, but are not
limited to the quantities of raw materials employed.''See, e.g., Brake
Rotors From the People's Republic of China: Final Results and Partial
Rescission of the 2004/2005 Administrative Review and Notice of
Rescission of 2004/2005 New Shipper Review, 71 FR 66304, 66305
(November 14, 2006), and accompanying Issues and Decisions Memorandum
at Comment 9; see also Certain Preserved Mushrooms From the People's
Republic of China: Final Results and Final Rescission, in Part, of
Antidumping Duty Administrative Review, 70 FR 54361 (September 14,
2005), and accompanying Issues and Decisions Memorandum at Comment 13.
Therefore, to reflect the U.S. customers' expenditures for these items,
we added the Indian SV for each component (i.e., the ball bearing cups
and lug nuts) used to the U.S. price of the applicable brake rotor
models. For further information, see Winhere Calculation Memo.
Normal Value
Section 773(c)(1) of the Act provides that, in the case of an NME,
the Department shall determine NV using an FOP methodology if the
merchandise is exported from an NME and the information does not permit
the calculation of NV using home market prices, third country prices,
or
[[Page 11916]]
constructed value under section 773(a) of the Act. The Department will
base NV on FOP because the presence of government controls on various
aspects of NMEs renders price comparisons and the calculation of
production costs invalid under our normal methodologies. Therefore, we
calculated NV based on FOP in accordance with sections 773(c)(3) and
(4) of the Act and 19 CFR 351.408(c).
For purposes of calculating NV, we valued the PRC FOPs in
accordance with section 773(c)(1) of the Act. The FOPs include: (1)
Hours of labor required; (2) quantities of raw materials employed; (3)
amounts of energy and other utilities consumed; and (4) representative
capital costs. We used the FOPs reported by Winhere for materials,
energy, labor, and packing. See section 773(c)(3) of the Act.
In examining SVs, we selected, where possible, the publicly
available value, which was an average non-export value, representative
of a range of prices within the POR or most contemporaneous with the
POR, product-specific, and tax-exclusive. See, e.g., Notice of
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination: Chlorinated Isocyanurates from the
People's Republic of China, 69 FR 75294, 75300 (December 16, 2004)
(Chlorinated Isocyanurates) (unchanged in final determination). For a
detailed explanation of the methodology used to calculate SVs, see
Surrogate Value Memorandum.
Regarding the components supplied free of charge to Winhere noted
above, section 773(c)(3) of the Act states that the ``factors of
production include but are not limited to the quantities of raw
materials employed.'' Therefore, consistent with the corresponding
adjustment to U.S. price discussed above, we valued the ball bearing
cups and lug nuts usage amounts reported by Winhere for specific brake
rotor models by using an Indian SV for each input. See Winhere
Calculation Memo and Surrogate Value Memorandum.
Factor Valuations
In accordance with section 773(c) of the Act, we calculated NV
based on the FOPs reported by Winhere for the POR. We relied on the
factor-specific data submitted by Winhere for the above-mentioned
inputs in its questionnaire and supplemental questionnaire responses,
where applicable, for purposes of selecting SVs.
To calculate NV, we multiplied the reported per-unit factor
consumption rates by publicly available Indian SVs. In selecting the
SVs, we considered the quality, specificity, and contemporaneity of the
data. See, e.g., Folding Metal Tables and Chairs from the People's
Republic of China; Final Results of Antidumping Duty Administrative
Review, 71 FR 71509 (December 11, 2006), and accompanying Issues and
Decision Memorandum at Comment 9. As appropriate, we adjusted input
prices by including freight costs to make them delivered prices.
Specifically, we added to Indian import SVs a surrogate freight cost
using the shorter of the reported distance from the domestic supplier
to the factory or the distance from the nearest seaport to the factory,
where appropriate. This adjustment is in accordance with the decision
of the U.S. Court of Appeals for the Federal Circuit (Federal Circuit).
See Sigma Corp. v. United States, 117 F. 3d 1401, 1408 (Fed. Cir.
1997). Where necessary, we adjusted the SVs for inflation/deflation
using the WPI as published in the International Monetary Fund's
International Financial Statistics, available at https://ifs.apdi.net/
imf.
We valued the raw materials (including ball bearing cups and lug
nuts), packing materials, coke input and firewood input using April
2007 through July 2007,\16\ weighted-average unit import values derived
from the Monthly Statistics of the Foreign Trade of India (MSFTI), as
published by the Directorate General of Commercial Intelligence and
Statistics of the Ministry of Commerce and Industry, Government of
India and compiled by the World Trade Atlas (WTA), available at https://
www.gtis.com/wta.htm. The Indian WTA import data is reported in rupees
and is contemporaneous with the POR.\17\ Indian SVs denominated in
Indian rupees were converted to U.S. dollars using the applicable daily
exchange rate for India for the POR. See https://www.ia.ita.doc.gov/
exchange/. Where appropriate, we converted the units of
measure to kilograms. See Surrogate Value Memorandum.
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\16\ Because the POR ends on the 13th day of August 2007, we
obtained the monthly totals for April 2007 through July 2007 for all
WTA data (including the packing materials and energy inputs as
discussed below).
\17\ See Surrogate Value Memorandum at Attachment 1.
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Furthermore, with regard to the WTA Indian import-based SVs, we
have disregarded prices from NME countries \18\ and those we have
reason to believe or suspect may be subsidized, because we have found
in other proceedings that these exporting countries maintain broadly
available, non-industry-specific export subsidies and, therefore, there
is reason to believe or suspect that all exports to all markets from
such countries may be subsidized.\19\ We are also guided by the
statute's legislative history that explains that it is not necessary to
conduct a formal investigation to ensure that such prices are not
subsidized. See H.R. Rep. No. 576 100th Cong., 2. Sess. 590-91 (1988).
Rather, the Department was instructed by Congress to base its decision
on information that is available to it at the time it is making its
determination. Therefore, we excluded export prices from Indonesia,
South Korea, Thailand, and India when calculating the Indian import-
based SVs. See Surrogate Value Memorandum. Finally, we excluded imports
that were labeled as originating from an ``unspecified'' country from
the average value, because we could not be certain that they were not
from either an NME or a country with general export subsidies.
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\18\ The NME countries are Armenia, Azerbaijan, Belarus,
Georgia, Kyrgyz Republic, Moldova, PRC, Tajikistan, Turkmenistan,
Uzbekistan, and Vietnam.
\19\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from the People's Republic of China; Final Results of
the 1998-1999 Administrative Review, Partial Rescission of Review,
and Determination Not to Revoke Order in Part, 66 FR 1953 (January
10, 2001), and accompanying Issues and Decision Memorandum at
Comment 1; Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from the People's Republic of China; Final Results of
1999-2000 Administrative Review, Partial Rescission of Review, and
Determination Not to Revoke Order in Part, 66 FR 57420 (November 15,
2001), and accompanying Issues and Decision Memorandum at Comment 1;
and China National Machinery Imp. & Exp. Corp. v. United States, 293
F. Supp. 2d 1334, 1339 (CIT 2003), as affirmed by the Federal
Circuit, 104 Fed. Appx. 183 (Fed. Cir. 2004).
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As discussed above, the Department valued surrogate freight cost by
using a deflated per-unit average rate calculated from data on the
following Web site: https://www.infobanc.com/logistics/logtruck.htm. See
Polyethylene Retail Carrier Bags from the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review, 73 FR
52282, 52286 (September 9, 2008) (unchanged in Polyethylene Retail
Carrier Bags from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 74 FR 6857 (February 11, 2009);
and Surrogate Value Memorandum at Attachment 8.
To value electricity, the Department used July 2006 electricity
price rates from Electricity Tariff & Duty and Average Rates of
Electricity Supply in India, published by the Central Electricity
Authority of the Government of India. Because this data was not
[[Page 11917]]
contemporaneous with the POR, we adjusted the average value for
inflation using WPI. See Surrogate Value Memorandum at Attachment 5.
For direct labor, indirect labor and packing labor, consistent with
19 CFR 351.408(c)(3), we used the PRC regression-based wage rates
reflective of the observed relationship between wages and national
income in market-economy countries as reported on Import
Administration's Web site. See ``Expected Wages of Selected NME
Countries'' (revised January 2007) (available at https://www.trade.gov/
ia/). For further details on the labor calculation, see Surrogate Value
Memorandum at Attachment 7. Because the regression-based wage rates do
not separate the labor rates into different skill levels or types of
labor, we applied the same wage rate to all skill levels and types of
labor reported by Winhere.
Winhere reported that during the manufacturing process, its subject
merchandise was transported from its casting facility to its finishing
workshop. Using Winhere's reported distance and the reported cast
weight of its rotors, we valued the other PRC distance (i.e., domestic
inland freight cost of transporting unfinished castings from the
casting facility to Winhere's finishing workshop facility) with the
surrogate truck rate discussed above. This additional freight value was
added to the cost of manufacture (COM). See Winhere Calculation
Memorandum.
For factory overhead, selling, general, and administrative expenses
(SG&A), and profit values, consistent with 19 CFR 351.408(c)(4), we
used the public information from the 2007 annual report of Bosch
Chassis Systems India Ltd. (Bosch) and 2007-2008 annual report of Rico
Auto Industries Limited (Rico).\20\ From this information, we were able
to determine factory overhead as a percentage of the total raw
materials, labor, and energy (ML&E) costs; SG&A as a percentage of ML&E
plus overhead (i.e., COM); and the profit rate as a percentage of the
COM plus SG&A. Where appropriate, we did not include in the surrogate
overhead and SG&A calculations the excise duty amount listed in the
financial reports. For a full discussion of the calculation of these
ratios, see Surrogate Value Memorandum and its accompanying calculation
worksheets at Attachment 6.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales, as certified by the Federal Reserve Bank.
See https://www.ia.ita.doc.gov/exchange/.
Preliminary Results of Reviews
As a result of our review, we preliminarily determine that the
following margins exist for the period April 1, 2007, through August
13, 2007:
Brake Rotors From the PRC
------------------------------------------------------------------------
Individually reviewed exporter 2007 Weighted-average percent
administrative review margin (percent)
------------------------------------------------------------------------
Yantai Winhere Auto-Part Manufacturing 0.04 (de minimis).
Co., Ltd.
------------------------------------------------------------------------
Separate-rate applicant exporters 2007 Weighted-average percent
administrative review margin (percent)
------------------------------------------------------------------------
Laizhou Auto Brake Equipment Co., Ltd..... 0.04 (de minimis).
Laizhou Hongda Auto Replacement Parts Co., 0.04 (de minimis).
Ltd.
Longkou Jinzheng Machinery Co., Ltd....... 0.04 (de minimis).
Longkou TLC Machinery Co., Ltd............ 0.04 (de minimis).
Qingdao Gren (Group) Co................... 0.04 (de minimis).
Qingdao Meita Automotive Industry Co., Ltd 0.04 (de minimis).
Xianghe Zichen Casting Company, Ltd....... 0.04 (de minimis).
Zibo Botai Manufacturing Co., Ltd......... 0.04 (de minimis).
------------------------------------------------------------------------
PRC-Wide Rate Margin (percent)
------------------------------------------------------------------------
PRC-wide rate (including Laizhou Luda 43.32
Sedan Fittings Company, Ltd., Laizhou
Sanli and Zibo Golden Harvest Machinery
Limited Company).
------------------------------------------------------------------------
Rate for Non-Selected Respondents
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\20\ See Brake Rotors From the People's Republic of China: Final
Results of Antidumping Duty Administrative and New Shipper Reviews
and Partial Rescission of the 2005-2006 Administrative Review, 72 FR
42386, 42389 (August 22, 2007), and accompanying Issues and Decision
Memorandum at Comment 2 (2005-2006 Brake Rotors).
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The statute and the Department's regulations do not address the
establishment of a rate to be applied to individual companies not
selected for examination where the Department limited its examination
in an administrative review pursuant to section 777A(c)(2) of the Act.
Generally we have looked to section 735(c)(5) of the Act, which
provides instructions for calculating the all-others rate in an
investigation, for guidance when calculating the rate for respondents
we did not examine in an administrative review. Section 735(c)(5)(A) of
the Act instructs that we are not to calculate an all-others rate using
any zero or de minimis margins or any margins based entirely on facts
available. Accordingly, the Department's practice in this regard, in
reviews involving limited selection based on exporters accounting for
the largest volumes of trade, has been to average the rates for the
selected companies excluding zero and de minimis rates and rates based
entirely on facts available. Section 735(c)(5)(B) of the Act also
provides that, where all margins are zero, de minimis, or based
entirely on facts available, we may use ``any reasonable method'' for
assigning the rate to non-selected respondents, including ``averaging
the estimated weighted average dumping margins determined for the
exporters and producers individually investigated.''
The Department has available in administrative reviews information
that would not be available in an investigation, namely rates from
prior administrative and new shipper reviews. Accordingly, since the
final results of the last review, the Department has determined that in
cases where we have found dumping margins in previous segments of a
proceeding, a reasonable method for determining the rate for non-
selected companies is to use the most recent rate calculated for the
non-selected company in question, unless we calculated in a more recent
review a rate for any
[[Page 11918]]
company that was not zero, de minimis or based entirely on facts
available. See Certain Frozen Warmwater Shrimp from the Socialist
Republic of Vietnam: Final Results and Final Partial Rescission of
Antidumping Duty Administrative Review, 73 FR 52273, 52275 (September
9, 2008), and accompanying Issues and Decision Memorandum at Comment 6;
Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and
the United Kingdom: Final Results of Antidumping Duty Administrative
Reviews and Rescission of Review in Part, 73 FR 52823, 52824 (September
11, 2008), and accompanying Issues and Decision Memorandum at Comment
16; see also Certain Fish Fillets from the Socialist Republic of
Vietnam: Notice of Preliminary Results of the New Shipper Review and
Fourth Antidumping Duty Administrative Review and Partial Rescission of
the Fourth Administrative Review, 73 FR 52015 (Sept. 8, 2008) (changed
in final results as final calculated rate for mandatory respondent was
above de minimis).
While we intend to continue to apply the policy articulated in the
above-cited cases in future reviews, where appropriate, we do not
believe that any change in this late stage of the brake rotors
proceeding is warranted.\21\ For purposes of consistency and equity to
the parties, the Department does not believe that it is appropriate to
reexamine the issue in this final segment of the brake rotors
proceeding, in light of more recent decisions in other administrative
reviews. Thus, we are assigning the non-selected separate rate
companies the de minimis rate calculated for the sole mandatory
respondent. With respect to the PRC-wide entity (including Luda, Sanli
and ZGOLD), we have assigned the entity's current rate and only rate
ever determined for the entity in this proceeding.
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\21\ Because the brake rotors order was revoked effective August
14, 2007, this is the last administrative review that the Department
will conduct.
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Disclosure
We will disclose the calculations used in our analysis to parties
to this proceeding within five days of the date of publication of this
notice. See 19 CFR 351.224(b).
Interested parties are invited to comment on the preliminary
results and may submit case briefs and/or written comments within 30
days of the date of publication of this notice. See 19 CFR
351.309(c)(ii). Rebuttal briefs, limited to issues raised in the case
briefs, will be due five days later, pursuant to 19 CFR 351.309(d).
Parties who submit case or rebuttal briefs in this proceeding are
requested to submit with each argument (1) a statement of the issue,
and (2) a brief summary of the argument. Parties are requested to
provide a summary of the arguments not to exceed five pages and a table
of statutes, regulations, and cases cited. Additionally, parties are
requested to provide their case brief and rebuttal briefs in electronic
format (e.g., Microsoft Word, pdf, etc.). Interested parties who wish
to request a hearing or to participate if one is requested, must submit
a written request to the Assistant Secretary for Import Administration
within 30 days of the date of publication of this notice. Requests
should contain: (1) The party's name, address, and telephone number;
(2) the number of participants; and (3) a list of issues to be
discussed. See 19 CFR 351.310(c). Issues raised in the hearing will be
limited to those raised in case and rebuttal briefs. The Department
will issue the final results of this review, including the results of
its analysis of issues raised in any such written briefs or at the
hearing, if held, not later than 120 days after the date of publication
of this notice.
Assessment Rates
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries
covered by this review. The Department intends to issue assessment
instructions to CBP 15 days after the publication date of the final
results of this review. In accordance with 19 CFR 351.212(b)(1), for
Winhere, we calculated an importer (or customer)-specific assessment
rate for the merchandise subject to this review. Because we do not have
entered values on the record for Winhere's sales, we calculated a per-
unit assessment rate by aggregating the antidumping duties due for all
U.S. sales to each importer (or customer) and dividing this amount by
the total quantity sold to that importer (or customer). See 19 CFR
351.212(b)(1). To determine whether the duty assessment rates are de
minimis, in accordance with the requirement set forth in 19 CFR
351.106(c)(2), we calculated importer (or customer)-specific ad valorem
ratios based on the estimated entered value. Where an importer (or
customer)-specific ad valorem rate is zero or de minimis, we will
instruct CBP to liquidate appropriate entries without regard to
antidumping duties. See 19 CFR 351.106(c)(2).
For the companies receiving a separate-rate that were not selected
for individual review (i.e., Gren, Jinzheng, LABEC, Laizhou Hongda,
Longkou TLC, Meita, Xianghe Zichen, and Zibo Botai), we will calculate
an assessment rate based on the weighted-average margins calculated for
the companies selected for individual review pursuant to section
735(c)(5)(B) of the Act. As Winhere is the only mandatory respondent in
this review and its margin is de minimis, we will instruct CBP to
liquidate appropriate entries without regard to antidumping duties with
respect to the eight separate-rate respondents. See 19 CFR
351.106(c)(2).
With respect to the PRC-wide entity (including Luda, Sanli and
ZGOLD), we will instruct CBP to liquidate appropriate entries at the
PRC-wide rate of 43.32 percent.
Cash Deposit Requirements
The antidumping duty order on brake rotors from the PRC was revoked
effective August 14, 2007 (see Brake Rotors From the People's Republic
of China: Revocation of Antidumping Duty Order Pursuant to Second Five-
Year (Sunset) Review, 73 FR 36039 (June 25, 2008)). As a result, we
instructed CBP to terminate the suspension of liquidation of entries of
the subject merchandise. Therefore, the collection of cash deposits of
antidumping duties on entries of the subject merchandise is no longer
required.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This administrative review and notice are in accordance with
sections 751(a)(1), 751(a)(2)(B), and 777(i) of the Act and 19 CFR
351.221.
Dated: March 16, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing
Duty Operations.
[FR Doc. E9-6174 Filed 3-19-09; 8:45 am]
BILLING CODE 3510-DS-P