Commodity Matchbooks From India: Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 26366-26371 [E9-12826]
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26366
Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
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AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: We preliminarily determine
that commodity matchbooks from India
are being, or are likely to be, sold in the
United States at less than fair value
(LTFV), as provided in section 733(b) of
the Tariff Act of 1930, as amended (the
Act). The estimated margins of sales at
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DEPARTMENT OF COMMERCE
International Trade Administration
Commodity Matchbooks From India:
Notice of Preliminary Determination of
Sales at Less Than Fair Value and
Postponement of Final Determination
Texas State Office, Federal Building,
Suite 102, 101 South Main, Temple,
Texas 76501, (254) 742–9769, TDD
(254) 742–9712, Olivia Pinon.
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BILLING CODE 1505–01–D
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LTFV are listed in the ‘‘Suspension of
Liquidation’’ section of this notice.
Interested parties are invited to
comment on this preliminary
determination. Pursuant to a request
from the respondent, we are postponing
for 60 days the final determination and
extending provisional measures from a
four-month period to not more than six
months. Accordingly, we will make our
final determination not later than 135
days after publication of the preliminary
determination in the Federal Register.
DATES: Effective Date: June 2, 2009.
FOR FURTHER INFORMATION CONTACT:
Holly Phelps or Elizabeth Eastwood,
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) 482–0656 and (202)
482–3874, respectively.
SUPPLEMENTARY INFORMATION
Background
Since the initiation of this
investigation (see Commodity
Matchbooks from India: Initiation of
Antidumping Duty Investigation, 73 FR
70965 (Nov. 24, 2008) (Initiation
Notice)), the following events have
occurred.
On December 12, 2008, the U.S.
International Trade Commission (ITC)
preliminarily determined that there is a
reasonable indication that imports of
commodity matchbooks from India are
materially injuring the U.S. industry,
and on December 15, 2008, the ITC
notified the Department of its findings.
See Commodity Matchbooks from India;
Determinations, Investigation Nos. 701–
TA–459 and 731–TA–1155
(Preliminary), 73 FR 77840 (Dec. 19,
2008).
In January 2009, we selected Triveni
Safety Matches Pvt. Ltd. (Triveni) as the
sole mandatory respondent in this
investigation and issued Triveni an
antidumping duty questionnaire. See
Memorandum from James Maeder,
Office Director, to Stephen J. Claeys,
Deputy Assistant Secretary, entitled,
‘‘Antidumping Duty Investigation of
Commodity Matchbooks from India:
Selection of Respondents for Individual
Review,’’ dated January 6, 2009.
In February 2009, we received
Triveni’s response to section A of the
questionnaire (i.e., the section covering
general information about the
company). Also in February 2009,
Triveni informed the Department that
all the information submitted in its
response to section A of the
questionnaire may be treated as public
information. In February and March
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2009, we issued supplemental section A
questionnaires to Triveni. In March
2009, we received Triveni’s responses to
these supplemental questionnaires.
Also in March 2009, Triveni
submitted a response to sections B (i.e.,
the section covering comparison market
sales), C (i.e., the section covering U.S.
sales), and D (i.e., the section covering
constructed value (CV)) of the
questionnaire. Because these
submissions were so incomplete as to be
unusable, we afforded Triveni an
opportunity to correct the deficiencies
in its responses. At that time, we
informed Triveni that it was not
currently required to submit a response
to section B of the questionnaire in light
of the fact that Triveni reported that it
had no viable comparison market for
commodity matchbooks.
Also in March 2009, we received
Triveni’s revised response to section C
of the questionnaire, as well as a revised
response to section D. At that time, we
informed Triveni that its revised section
C response was unusable in its
submitted form because it consisted of
a U.S. sales listing, unaccompanied by
a narrative response. Therefore, we
afforded Triveni a final opportunity to
submit a response to section C of the
questionnaire.
Also in March 2009, the petitioner 1
made a timely request pursuant to
section 733(c)(1)(A) of the Act and 19
CFR 351.205(e) for a 50-day
postponement of the preliminary
determination. Therefore, pursuant to
section 733(c)(1)(A) of the Act, the
Department postponed the preliminary
determination of this investigation until
May 27, 2009. See Commodity
Matchbooks from India: Notice of
Extension of Time Limits for
Preliminary Determination of
Antidumping Duty Investigation, 74 FR
12112 (Mar. 23, 2009).
In April 2009, we received Triveni’s
properly-filed response to section C of
the questionnaire, and we issued
supplemental questionnaires covering
sections C and D to Triveni. In April
and May 2009, we received Triveni’s
responses to these supplemental
questionnaires.
On May 19, 2009, the petitioner
requested that in the event of a negative
preliminary determination in this
investigation, the Department postpone
the final determination by 60 days. On
May 26, 2009, Triveni requested that in
the event of an affirmative preliminary
determination in this investigation, the
Department: (1) Postpone its final
determination by 60 days in accordance
1 The petitioner in this investigation is D.D. Bean
and Sons Co.
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with 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii); and 2) extend the
application of the provisional measures
prescribed under 19 CFR 351.210(e)(2)
from a four-month period to a six-month
period. For further discussion, see the
‘‘Postponement of Final Determination
and Extension of Provisional Measures’’
section of this notice, below.
Period of Investigation
The period of investigation (POI) is
October 1, 2007, to September 30, 2008.
This period corresponds to the four
most recent fiscal quarters prior to the
month of the filing of the petition. See
19 CFR 351.204(b)(1).
Scope of Investigation
The scope of this investigation covers
commodity matchbooks, also known as
commodity book matches, paper
matches or booklet matches.2
Commodity matchbooks typically, but
do not necessarily, consist of twenty
match stems which are usually made
from paperboard or similar material
tipped with a match head composed of
any chemical formula. The match stems
may be stitched, stapled or otherwise
fastened into a matchbook cover of any
material, on which a striking strip
composed of any chemical formula has
been applied to assist in the ignition
process.
Commodity matchbooks included in
the scope of this investigation may or
may not contain printing. For example,
they may have no printing other than
the identification of the manufacturer or
importer. Commodity matchbooks may
also be printed with a generic message
such as ‘‘Thank You’’ or a generic image
such as the American Flag, with store
brands (e.g., Kroger, 7-Eleven, Shurfine
or Giant); product brands for national or
regional advertisers such as cigarettes or
alcoholic beverages; or with corporate
brands for national or regional
distributors (e.g., Penley Corp. or
Diamond Brands). They all enter retail
distribution channels. Regardless of the
materials used for the stems of the
matches and regardless of the way the
match stems are fastened to the
matchbook cover, all commodity
matchbooks are included in the scope of
this investigation.
All matchbooks, including
commodity matchbooks, typically
comply with the United States
Consumer Product Safety Commission
2 Such commodity matchbooks are also referred
to as ‘‘for resale’’ because they always enter into
retail channels, meaning businesses that sell a
general variety of tangible merchandise, e.g.,
convenience stores, supermarkets, dollar stores,
drug stores and mass merchandisers.
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(CPSC) Safety Standard for Matchbooks,
codified at 16 CFR 1202.1 et seq.
The scope of this investigation
excludes promotional matchbooks, often
referred to as ‘‘not for resale,’’ or
‘‘specialty advertising’’ matchbooks, as
they do not enter into retail channels
and are sold to businesses that provide
hospitality, dining, drinking or
entertainment services to their
customers, and are given away by these
businesses as promotional items. Such
promotional matchbooks are
distinguished by the physical
characteristic of having the name and/
or logo of a bar, restaurant, resort, hotel,
´
club, cafe/coffee shop, grill, pub, eatery,
lounge, casino, barbecue or individual
establishment printed prominently on
the matchbook cover. Promotional
matchbook cover printing also typically
includes the address and the phone
number of the business or establishment
being promoted.3 Also excluded are all
other matches that are not fastened into
a matchbook cover such as wooden
matches, stick matches, box matches,
kitchen matches, pocket matches, penny
matches, household matches, strikeanywhere matches (aka ‘‘SAW’’
matches), strike-on-box matches (aka
‘‘SOB’’ matches), fireplace matches,
barbeque/grill matches, fire starters, and
wax matches.
The merchandise subject to this
investigation is properly classified
under subheading 3605.00.0060 of the
Harmonized Tariff Schedule of the
United States (HTSUS). Subject
merchandise may also enter under
subheading 3605.00.0030 of the HTSUS.
Although the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
merchandise under investigation is
dispositive.
Scope Comments
In accordance with the preamble to
the Department’s regulations (see
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27323 (May 19,
1997)), in our Initiation Notice we set
aside a period of time for parties to raise
issues regarding product coverage, and
encouraged all parties to submit
comments within 20 calendar days of
publication of the Initiation Notice. We
3 The gross distinctions between commodity
matchbooks and promotional matchbooks may be
summarized as follows: (1) If it has no printing, or
is printed with a generic message such as ‘‘Thank
You’’ or a generic image such as the American Flag,
or printed with national or regional store brands or
corporate brands, it is commodity; (2) if it has
printing, and the printing includes the name of a
´
bar, restaurant, resort, hotel, club, cafe/coffee shop,
grill, pub, eatery, lounge, casino, barbecue, or
individual establishment prominently displayed on
the matchbook cover, it is promotional.
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did not receive any comments from
parties concerning the scope of this
investigation.
Fair Value Comparisons
To determine whether sales of
commodity matchbooks from India to
the United States were made at LTFV,
we compared the export price (EP) or
constructed export price (CEP) to the
normal value (NV), as described in the
‘‘Export Price/Constructed Export Price’’
and ‘‘Normal Value’’ sections of this
notice, below. In accordance with
section 777A(d)(1)(A)(i) of the Act, we
compared POI weighted-average EPs
and CEPs to weighted-average NVs.
For this preliminary determination,
we have determined that Triveni did not
have a viable home or third country
market during the POI. Therefore, as the
basis for NV, we used CV when making
comparisons for Triveni in accordance
with section 773(a)(4) of the Act.
Export Price/Constructed Export Price
For one U.S. sale made by Triveni, we
used EP methodology, in accordance
with section 772(a) of the Act, because
the subject merchandise was sold to the
first unaffiliated purchaser in the United
States prior to importation by the
exporter or producer outside the United
States and CEP methodology was not
otherwise warranted based on the facts
on the record. For the remaining U.S.
sales made by Triveni, we calculated
CEP, in accordance with section 772(b)
of the Act, because the subject
merchandise was sold for the account of
Triveni by its subsidiary in the United
States to unaffiliated purchasers.
Triveni reported that it sold
approximately 900 cartons of Triveni
Brand matchbooks (non-white printed
matchbooks) to a U.S. customer as part
of one of its CEP sales of plain white
commodity matchbooks. Triveni stated
that it is unable to link the 900 cartons
of non-white printed matchbooks to a
specific sale or customer. Therefore, as
facts available, we have accepted
Triveni’s data as reported in the U.S.
sales listing, and we have assigned these
900 cartons the same control number as
plain white matchbooks. However, we
intend to examine Triveni’s recordkeeping practices at verification to
confirm that Triveni is unable to
provide the missing sales and product
characteristic information. In the event
that we find that Triveni is able to link
these printed matchbooks to a specific
U.S. sale, we will revisit this issue in
our final determination.
A. Export Price
We based EP on the packed price to
an unaffiliated purchaser in the United
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16:43 Jun 01, 2009
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States. We made deductions for
movement expenses in accordance with
section 772(c)(2)(A) of the Act; these
included, where appropriate, foreign
inland freight, foreign brokerage and
handling expenses, ocean freight, and
marine insurance.
B. Constructed Export Price
In its May 14, 2009, submission,
Triveni stated that it reported as the
date of shipment the date that its U.S.
freight provider or its U.S. clearing
agent issued an invoice to Triveni’s U.S.
affiliate, Triveni International LLC
(TILLC). According to the documents
contained in this submission, however,
it appears that Triveni reported the date
that the merchandise was shipped from
India as the date of shipment for U.S.
sales. Because we do not have accurate
shipment information on the record, as
facts available, we have used the earlier
of the date that Triveni’s U.S. freight
provider issued an invoice to TILLC, or
the date that Triveni’s U.S. clearing
agent issued an invoice to TILLC as the
date of shipment for purposes of the
preliminary determination. We will
examine TILLC’s shipping documents at
verification to determine which of these
dates is appropriate for use as the date
of shipment for purposes of the final
determination.
In accordance with our practice, we
used the earlier of the shipment date
calculated above, or the U.S. affiliate’s
invoice date, as the date of sale for CEP
sales. See, e.g., Notice of Final
Determination of Sales at Less Than
Fair Value: Structural Steel Beams from
Germany, 67 FR 35497 (May 20, 2002),
and accompanying Issues and Decision
Memorandum at Comment 2.
We based CEP on the packed
delivered prices to unaffiliated
purchasers in the United States. Where
appropriate, we made adjustments for
discounts. We made deductions for
movement expenses, in accordance with
section 772(c)(2)(A) of the Act; these
included, where appropriate, foreign
inland freight, foreign brokerage and
handling expenses, ocean freight,
marine insurance, U.S. brokerage and
handling, U.S. customs duties, U.S.
inland insurance, U.S. inland freight
expenses (i.e., freight from warehouse to
the customer), and U.S. warehousing
expenses. In accordance with section
772(d)(1) of the Act and 19 CFR
351.402(b), we deducted those selling
expenses associated with economic
activities occurring in the United States,
including direct selling expenses (i.e.,
imputed credit expenses and bank
charges), and indirect selling expenses
(including inventory carrying costs and
other indirect selling expenses).
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Because Triveni reported that it had
no U.S. dollar borrowings during the
POI, we recalculated U.S. credit
expenses using the short-term interest
rate published by the Federal Reserve,
in accordance with our practice. See,
e.g., Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination: Certain Cold-Rolled
Carbon Steel Flat Products From
Venezuela, 67 FR 31273 (May 9, 2002),
unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Cold-Rolled Carbon
Steel Flat Products From Venezuela, 67
FR 62119 (Oct. 3, 2002). In addition, we
computed the credit period used in our
credit recalculation using the revised
dates of shipment noted above. Finally,
because Triveni did not report an
amount for U.S. indirect selling
expenses, we computed these expenses
using the total expenses and sales value
shown in TILLC’s 2007 financial
statements, less any direct expenses
reported in Triveni’s responses, as facts
available. For further discussion of these
adjustments, see the memorandum from
Holly Phelps, Analyst, to the File,
entitled, ‘‘Calculations Performed for
Triveni Safety Matches Pvt. Ltd. for the
Preliminary Determination in the 2007–
2008 Antidumping Duty Investigation of
Commodity Matchbooks from India,’’
dated May 27, 2009.
Pursuant to section 772(d)(3) of the
Act, we further reduced the starting
price by an amount for profit to arrive
at CEP. In accordance with section
772(f) of the Act, we calculated the CEP
profit rate using the expenses incurred
by Triveni and its U.S. affiliate on their
sales of the subject merchandise in the
United States and the profit associated
with those sales.
Normal Value
A. Home Market Viability and
Comparison-Market Selection
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared
Triveni’s volume of home market sales
of the foreign like product to its volume
of U.S. sales of the subject merchandise.
See section 773(a)(1)(C) of the Act.
Based on this comparison, we
determined that Triveni’s aggregate
volume of home market sales of the
foreign like product was insufficient to
permit a proper comparison with U.S.
sales of the subject merchandise.
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Moreover, we determined that Triveni’s
volume of sales to each third country
was also insufficient to permit proper
comparisons. Therefore, we used CV as
the basis for calculating NV for Triveni,
in accordance with section 773(a)(4) of
the Act.
B. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
sales in the comparison market at the
same level of trade (LOT) as the EP or
CEP. Pursuant to 19 CFR 351.412(c)(1),
the NV LOT is that of the starting-price
sales in the comparison market or, when
NV is based on CV, that of the sales
from which we derive selling, general,
and administrative (SG&A) expenses
and profit. For EP, the U.S. LOT is also
the level of the starting-price sale,
which is usually from exporter to
importer. For CEP, it is the level of the
constructed sale from the exporter to the
importer.
To determine whether NV sales are at
a different LOT than EP or CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See 19 CFR
351.412(c)(2). If the comparison-market
sales are at a different LOT, and the
difference affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparison
market sales at the LOT of the export
transaction, we make an LOT
adjustment under section 773(a)(7)(A) of
the Act. Finally, for CEP sales, if the NV
level is more remote from the factory
than the CEP level and there is no basis
for determining whether the difference
in levels between NV and CEP affects
price comparability, we adjust NV
under section 773(a)(7)(B) of the Act
(the CEP-offset provision). See Citric
Acid and Certain Citrate Salts from
Canada: Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination, 73 FR 70324 (Nov. 20,
2008), unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Citric Acid and Certain
Citrate Salts from Canada, 74 FR 16843
(Apr. 13, 2009).
In this investigation, we found that
Triveni had no viable home or third
country market. When NV is based on
CV, the NV LOT is that of the sales from
which we derive SG&A expenses and
profit. See Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination: Fresh Atlantic Salmon
from Chile, 63 FR 2664 (Jan. 16, 1998),
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16:43 Jun 01, 2009
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unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Fresh Atlantic Salmon from
Chile, 63 FR 31411 (June 9, 1998). In
accordance with 19 CFR 351.412(d), the
Department will make its LOT
determination under paragraph (d)(1) of
this section on the basis of sales of the
foreign like product by the producer or
exporter. Because it is not possible in
the instant case to make an LOT
determination on the basis of sales of
the foreign like product in the home or
third country market, the Department
may use sales of different or broader
product lines, sales by other companies,
or any other reasonable basis. Because
we based the selling expenses and profit
for Triveni on the weighted-average
selling expenses incurred and profits
earned by another Indian producer of
comparable merchandise who was not
party to this investigation, there is
insufficient information on the record in
this investigation to allow the
Department to make an LOT adjustment
or grant a CEP offset to the CV reported
by Triveni.
C. Calculation of Normal Value Based
on CV
In accordance with section 773(a)(4)
of the Act, for Triveni we based NV on
CV because there was no viable home or
third country market. In accordance
with section 773(e) of the Act, we
calculated CV based on the sum of
Triveni’s cost of materials and
fabrication for the foreign like product,
plus amounts for SG&A expenses, profit,
and U.S. packing costs. We relied on the
data reported by Triveni, except in the
following instances:
i. We revised the numerator of
Triveni’s reported G&A expense ratio to
include fringe benefits taxes and to
exclude selling and transportation
expenses as well as foreign exchange
losses.
ii. We revised the numerator of
Triveni’s financial expense ratio to
include foreign exchange losses. In
addition, we disallowed the reported
offset for interest income.
For further discussion of these
adjustments, see the memorandum from
LaVonne Clark, Accountant, to Neal
Halper, Director, Office of Accounting,
entitled, ‘‘Cost of Production and
Constructed Value Calculation
Adjustments for the Preliminary
Determination—Triveni Safety Matches
Pvt. Ltd.,’’ dated May 27, 2009 (Cost
Calculation Memo).
Because Triveni does not have a
viable comparison market, the
Department cannot determine profit
under section 773(e)(2)(A) of the Act,
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26369
which requires sales by the respondent
in question in the ordinary course of
trade in a comparison market. Likewise,
because Triveni does not have sales of
any product in the same general
category of products as the subject
merchandise, we are unable to apply
alternative (i) of section 773(e)(2)(B) of
the Act. Further, the Department cannot
calculate profit based on alternative (ii)
of this section because Triveni is the
sole respondent in this investigation
and 19 CFR 351.405(b) requires that a
profit ratio under this alternative be
based on home market sales. Therefore,
we calculated Triveni’s CV profit and
selling expenses based on the third
alternative, any other reasonable
method, in accordance with section
773(e)(2)(B)(iii) of the Act. As a result,
as a reasonable method, we calculated
Triveni’s CV profit and selling expenses
using the contemporaneous financial
statements of Seshasayee Paper and
Boards Limited, an Indian producer/
exporter of merchandise in the same
general category as commodity
matchbooks (i.e., paper products). For
further discussion, see the Cost
Calculation Memo
Pursuant to alternative (iii), the
Department has the option of using any
other reasonable method, as long as the
amount allowed for profit is not greater
than the amount realized by exporters or
producers ‘‘in connection with the sale,
for consumption in the foreign country,
of merchandise that is in the same
general category of products as the
subject merchandise,’’ the ‘‘profit cap.’’
We are unable to calculate the profit cap
in this case because, as we noted above,
we do not have information allowing us
to calculate the amount normally
realized by exporters or producers
(other than the respondent) in
connection with the sale, for
consumption in the foreign country, of
the merchandise in the same general
category. Therefore, as facts available
we are applying option (iii), without
quantifying a profit cap. This decision is
consistent with the Department’s
decision in previous cases involving
similar circumstances. See, e.g., Frozen
Concentrated Orange Juice from Brazil;
Final Results and Partial Rescission of
Antidumping Duty Administrative
Review, 66 FR 51008 (Oct. 5, 2001), and
accompanying Issues and Decision
Memorandum at Comment 3; and
Notice of Final Determination of Sales
at Less Than Fair Value: Pure
Magnesium From Israel, 66 FR 49349
(Sept. 27, 2001), and accompanying
Issues and Decision Memorandum at
Comment 8. See Cost Calculation
Memo.
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Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
We made no adjustments to CV for
differences in circumstances of sale in
accordance with sections
773(a)(6)(B)(iii) and 773(a)(8) of the Act
and 19 CFR 351.410 because we had
inadequate information to do so.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A(a) of the Act based on the
exchange rates in effect on the dates of
the U.S. sales as certified by the Federal
Reserve Bank.
Verification
As provided in section 782(i)(1) of the
Act, we intend to verify the information
relied upon in making our final
determination for Triveni.
Suspension of Liquidation
In accordance with section 733(d)(2)
of the Act, we will direct Customs and
Border Protection (CBP) to suspend
liquidation of all entries of commodity
matchbooks from India that are entered,
or withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register. We will also instruct CBP to
require a cash deposit or the posting of
a bond equal to the weighted-average
dumping margins, as indicated in the
chart below, adjusted for export
subsidies found in the preliminary
determination of the companion
countervailing duty investigation. See
Commodity Matchbooks from India:
Preliminary Affirmative Countervailing
Duty Determination and Alignment of
Final Countervailing Duty
Determination with Final Antidumping
Duty Determination, 74 FR 15444 (Apr.
6, 2009), (CVD Preliminary Notice).
Specifically, consistent with our
longstanding practice, where the
product under investigation is also
subject to a concurrent countervailing
duty investigation, we instruct CBP to
require a cash deposit or posting of a
bond equal to the amount by which the
normal value exceeds the EP or CEP, as
indicated below, less the amount of the
countervailing duty determined to
constitute an export subsidy. See, e.g.,
Notice of Final Determination of Sales
at Less Than Fair Value: Carbazole
Violet Pigment 23 From India, 69 FR
67306, 67307 (Nov. 17, 2007).
Accordingly, for cash deposit purposes,
we are subtracting from the applicable
cash deposit rate that portion of the rate
attributable to the export subsidies
found in the affirmative countervailing
duty determination for each respondent
(i.e., 11.23 percent for Triveni, and
11.23 percent for ‘‘All Others’’). After
the adjustment for the cash deposit rates
VerDate Nov<24>2008
16:43 Jun 01, 2009
Jkt 217001
attributed to export subsidies, the
resulting cash deposit rates will be
80.48 percent for Triveni and 80.48
percent for ‘‘All Others.’’ These
instructions suspending liquidation will
remain in effect until further notice.
The weighted-average dumping
margins are as follows:
are postponing the deadline for our final
determination to 135 days from the date
of the publication of this preliminary
determination (see below), the ITC will
make its final determination no later
than 45 days after our final
determination.
Public Comment
Interested parties are invited to
comment on the preliminary
Manufacturer/exporter
determination. Interested parties may
submit case briefs to the Department no
Triveni Safety Matches Pvt. Ltd.
91.71 later than seven days after the date of
All Others ....................................
91.71 the issuance of the last verification
report in this proceeding. See 19 CFR
351.309(c). Rebuttal briefs, the content
‘‘All Others’’ Rate
of which is limited to the issues raised
Section 735(c)(5)(A) of the Act
in the case briefs, must be filed within
provides that the estimated ‘‘All Others’’ five days from the deadline date for the
rate shall be an amount equal to the
submission of case briefs. See 19 CFR
weighted average of the estimated
351.309(d). A list of authorities used, a
weighted-average dumping margins
table of contents, and an executive
established for exporters and producers
summary of issues should accompany
individually investigated, excluding any any briefs submitted to the Department.
zero or de minimis margins, and any
Executive summaries should be limited
margins determined entirely under
to five pages total, including footnotes.
section 776 of the Act. Triveni is the
In accordance with section 774 of the
only respondent in this investigation.
Act, the Department will hold a public
Therefore, for purposes of determining
hearing, if timely requested, to afford
the ‘‘All Others’’ rate and pursuant to
interested parties an opportunity to
section 735(c)(5)(A) of the Act, we are
comment on arguments raised in case or
using the weighted-average dumping
rebuttal briefs, provided that such a
margin calculated for Triveni, as
hearing is requested by an interested
referenced above. See, e.g., Notice of
party. If a timely request for a hearing
Final Determination of Sales at Less
is made in this investigation, we intend
Than Fair Value: Stainless Steel Sheet
to hold the hearing two days after the
and Strip in Coils From Italy, 64 FR
rebuttal brief deadline date at the U.S.
30750, 30755 (June 8, 1999); and Notice Department of Commerce, 14th Street
of Preliminary Determination of Sales at and Constitution Avenue, NW.,
Less Than Fair Value and Postponement Washington, DC 20230, at a time and in
of Final Determination: Coated Free
a room to be determined. See 19 CFR
Sheet Paper from Indonesia, 72 FR
351.310. Parties should confirm by
30753, 30757 (June 4, 2007), unchanged telephone, the date, time, and location
in Notice of Final Determination of
of the hearing 48 hours before the
Sales at Less Than Fair Value: Coated
scheduled date.
Free Sheet Paper from Indonesia, 72 FR
Interested parties who wish to request
60636 (Oct. 25, 2007).
a hearing, or to participate in a hearing
if one is requested, must submit a
Disclosure
written request to the Assistant
We will disclose the calculations
Secretary for Import Administration,
performed in our preliminary analysis
U.S. Department of Commerce, Room
to parties to this proceeding in
1870, within 30 days of the publication
accordance with 19 CFR 351.224(b).
of this notice. Requests should contain:
(1) The party’s name, address, and
ITC Notification
telephone number; (2) the number of
In accordance with section 733(f) of
participants; and (3) a list of the issues
the Act, we have notified the ITC of the
to be discussed. At the hearing, oral
Department’s preliminary affirmative
presentations will be limited to issues
determination. If the Department’s final raised in the briefs.
determination is affirmative, the ITC
Postponement of Final Determination
will determine before the later of 120
and Extension of Provisional Measures
days after the date of this preliminary
determination or 45 days after our final
Section 735(a)(2) of the Act provides
determination whether imports of
that a final determination may be
commodity matchbooks from India are
postponed until not later than 135 days
materially injuring, or threatening
after the date of the publication of the
material injury to, the U.S. industry (see preliminary determination if, in the
section 735(b)(2) of the Act). Because we event of an affirmative preliminary
PO 00000
Weightedaverage
margin
(percent)
Frm 00010
Fmt 4703
Sfmt 4703
E:\FR\FM\02JNN1.SGM
02JNN1
Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices
determination, a request for such
postponement is made by exporters,
who account for a significant proportion
of exports of the subject merchandise, or
in the event of a negative preliminary
determination, a request for such
postponement is made by the petitioner.
The Department’s regulations, at 19 CFR
351.210(e)(2), require that requests by
respondents for postponement of a final
determination be accompanied by a
request for extension of provisional
measures from a four-month period to
not more than six months.
On May 26, 2009, Triveni requested
that in the event of an affirmative
preliminary determination in this
investigation, the Department postpone
its final determination by 60 days. At
the same time, Triveni requested that
the Department extend the application
of the provisional measures prescribed
under section 733(d) of the Act and 19
CFR 351.210(e)(2), from a four-month
period to a six-month period. In
accordance with section 735(a)(2) of the
Act and 19 CFR 351.210(b)(2), because
(1) our preliminary determination is
affirmative, (2) the requesting exporter
accounts for a significant proportion of
exports of the subject merchandise, and
(3) no compelling reasons for denial
exist, we are granting this request and
are postponing the final determination
until no later than 135 days after the
publication of this notice in the Federal
Register. Suspension of liquidation will
be extended accordingly.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Act.
Dated: May 27, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E9–12826 Filed 6–1–09; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–846]
Brake Rotors From the People’s
Republic of China: Final Results and
Partial Rescission of the 2007
Antidumping Duty Administrative
Review
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On March 20, 2009, the
Department of Commerce (the
Department) published the preliminary
results and partial rescission of the 2007
administrative review of the
VerDate Nov<24>2008
16:43 Jun 01, 2009
Jkt 217001
antidumping duty order on brake rotors
from the People’s Republic of China
covering the period April 1, 2007,
through August 13, 2007. No interested
party commented on the preliminary
results or the partial rescission. We have
made no changes to the margin
calculations. Therefore, the final results
do not differ from the preliminary
results. The final weighted-average
dumping margins for the reviewed firms
are listed below in the section entitled
‘‘Final Results of Review.’’
DATES: Effective Date: June 2, 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.
SUPPLEMENTARY INFORMATION:
Background
This administrative review of the
antidumping duty order on brake rotors
from the People’s Republic of China
(PRC) covers one mandatory respondent
(Yantai Winhere Auto-Part
Manufacturing Co., Ltd. (Winhere)) and
the following 11 respondents not
selected for individual review: Laizhou
Auto Brake Equipment Co., Ltd.
(LABEC); Laizhou Hongda Auto
Replacement Parts Co., Ltd. (Laizhou
Hongda); Longkou Jinzheng Machinery
Co., Ltd. (Jinzheng); Longkou TLC
Machinery Co., Ltd. (Longkou TLC);
Qingdao Gren (Group) Co. (Gren);
Qingdao Meita Automotive Industry
Co., Ltd. (Meita); Xianghe Zichen
Casting Company, Ltd. (Xianghe
Zichen); Zibo Botai Manufacturing Co.,
Ltd. (Zibo Botai); Laizhou Luda Sedan
Fittings Company, Ltd. (Luda); Laizhou
Sanli (Sanli); and Zibo Golden Harvest
Machinery Limited Company (ZGOLD).
We are rescinding this review with
respect to China National Automotive
Industry Import & Export Corporation or
National Automotive Industry Import &
Export Corporation (CAIEC) and
Shandong Laizhou CAPCO Industry
(Laizhou CAPCO). See ‘‘Final Partial
Rescission of 2007 Administrative
Review’’ section below.
On March 20, 2009, the Department
published the preliminary results and
partial rescission of this administrative
review. See Brake Rotors From the
People’s Republic of China: Preliminary
Results of the 2007 Administrative
Review and Partial Rescission, 74 FR
11911 (Preliminary Results). We invited
interested parties to comment on the
Preliminary Results. Comments were
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
26371
due April 20, 2009, however, no
interested party submitted comments.
We have conducted this administrative
review in accordance with sections 751
and 777(i)(1) of the Tariff Act of 1930,
as amended (the Act) and sections 19
CFR 351.213 and 19 CFR 351.221 of the
Department’s regulations.
Period of Review
The period of review (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
(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).1 Although the
1 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
E:\FR\FM\02JNN1.SGM
Continued
02JNN1
Agencies
[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26366-26371]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12826]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-848]
Commodity Matchbooks From India: Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: We preliminarily determine that commodity matchbooks from
India are being, or are likely to be, sold in the United States at less
than fair value (LTFV), as provided in section 733(b) of the Tariff Act
of 1930, as amended (the Act). The estimated margins of sales at LTFV
are listed in the ``Suspension of Liquidation'' section of this notice.
Interested parties are invited to comment on this preliminary
determination. Pursuant to a request from the respondent, we are
postponing for 60 days the final determination and extending
provisional measures from a four-month period to not more than six
months. Accordingly, we will make our final determination not later
than 135 days after publication of the preliminary determination in the
Federal Register.
DATES: Effective Date: June 2, 2009.
FOR FURTHER INFORMATION CONTACT: Holly Phelps or Elizabeth Eastwood,
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-
0656 and (202) 482-3874, respectively.
SUPPLEMENTARY INFORMATION
Background
Since the initiation of this investigation (see Commodity
Matchbooks from India: Initiation of Antidumping Duty Investigation, 73
FR 70965 (Nov. 24, 2008) (Initiation Notice)), the following events
have occurred.
On December 12, 2008, the U.S. International Trade Commission (ITC)
preliminarily determined that there is a reasonable indication that
imports of commodity matchbooks from India are materially injuring the
U.S. industry, and on December 15, 2008, the ITC notified the
Department of its findings. See Commodity Matchbooks from India;
Determinations, Investigation Nos. 701-TA-459 and 731-TA-1155
(Preliminary), 73 FR 77840 (Dec. 19, 2008).
In January 2009, we selected Triveni Safety Matches Pvt. Ltd.
(Triveni) as the sole mandatory respondent in this investigation and
issued Triveni an antidumping duty questionnaire. See Memorandum from
James Maeder, Office Director, to Stephen J. Claeys, Deputy Assistant
Secretary, entitled, ``Antidumping Duty Investigation of Commodity
Matchbooks from India: Selection of Respondents for Individual
Review,'' dated January 6, 2009.
In February 2009, we received Triveni's response to section A of
the questionnaire (i.e., the section covering general information about
the company). Also in February 2009, Triveni informed the Department
that all the information submitted in its response to section A of the
questionnaire may be treated as public information. In February and
March
[[Page 26367]]
2009, we issued supplemental section A questionnaires to Triveni. In
March 2009, we received Triveni's responses to these supplemental
questionnaires.
Also in March 2009, Triveni submitted a response to sections B
(i.e., the section covering comparison market sales), C (i.e., the
section covering U.S. sales), and D (i.e., the section covering
constructed value (CV)) of the questionnaire. Because these submissions
were so incomplete as to be unusable, we afforded Triveni an
opportunity to correct the deficiencies in its responses. At that time,
we informed Triveni that it was not currently required to submit a
response to section B of the questionnaire in light of the fact that
Triveni reported that it had no viable comparison market for commodity
matchbooks.
Also in March 2009, we received Triveni's revised response to
section C of the questionnaire, as well as a revised response to
section D. At that time, we informed Triveni that its revised section C
response was unusable in its submitted form because it consisted of a
U.S. sales listing, unaccompanied by a narrative response. Therefore,
we afforded Triveni a final opportunity to submit a response to section
C of the questionnaire.
Also in March 2009, the petitioner \1\ made a timely request
pursuant to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e) for a
50-day postponement of the preliminary determination. Therefore,
pursuant to section 733(c)(1)(A) of the Act, the Department postponed
the preliminary determination of this investigation until May 27, 2009.
See Commodity Matchbooks from India: Notice of Extension of Time Limits
for Preliminary Determination of Antidumping Duty Investigation, 74 FR
12112 (Mar. 23, 2009).
---------------------------------------------------------------------------
\1\ The petitioner in this investigation is D.D. Bean and Sons
Co.
---------------------------------------------------------------------------
In April 2009, we received Triveni's properly-filed response to
section C of the questionnaire, and we issued supplemental
questionnaires covering sections C and D to Triveni. In April and May
2009, we received Triveni's responses to these supplemental
questionnaires.
On May 19, 2009, the petitioner requested that in the event of a
negative preliminary determination in this investigation, the
Department postpone the final determination by 60 days. On May 26,
2009, Triveni requested that in the event of an affirmative preliminary
determination in this investigation, the Department: (1) Postpone its
final determination by 60 days in accordance with 735(a)(2)(A) of the
Act and 19 CFR 351.210(b)(2)(ii); and 2) extend the application of the
provisional measures prescribed under 19 CFR 351.210(e)(2) from a four-
month period to a six-month period. For further discussion, see the
``Postponement of Final Determination and Extension of Provisional
Measures'' section of this notice, below.
Period of Investigation
The period of investigation (POI) is October 1, 2007, to September
30, 2008. This period corresponds to the four most recent fiscal
quarters prior to the month of the filing of the petition. See 19 CFR
351.204(b)(1).
Scope of Investigation
The scope of this investigation covers commodity matchbooks, also
known as commodity book matches, paper matches or booklet matches.\2\
Commodity matchbooks typically, but do not necessarily, consist of
twenty match stems which are usually made from paperboard or similar
material tipped with a match head composed of any chemical formula. The
match stems may be stitched, stapled or otherwise fastened into a
matchbook cover of any material, on which a striking strip composed of
any chemical formula has been applied to assist in the ignition
process.
---------------------------------------------------------------------------
\2\ Such commodity matchbooks are also referred to as ``for
resale'' because they always enter into retail channels, meaning
businesses that sell a general variety of tangible merchandise,
e.g., convenience stores, supermarkets, dollar stores, drug stores
and mass merchandisers.
---------------------------------------------------------------------------
Commodity matchbooks included in the scope of this investigation
may or may not contain printing. For example, they may have no printing
other than the identification of the manufacturer or importer.
Commodity matchbooks may also be printed with a generic message such as
``Thank You'' or a generic image such as the American Flag, with store
brands (e.g., Kroger, 7-Eleven, Shurfine or Giant); product brands for
national or regional advertisers such as cigarettes or alcoholic
beverages; or with corporate brands for national or regional
distributors (e.g., Penley Corp. or Diamond Brands). They all enter
retail distribution channels. Regardless of the materials used for the
stems of the matches and regardless of the way the match stems are
fastened to the matchbook cover, all commodity matchbooks are included
in the scope of this investigation.
All matchbooks, including commodity matchbooks, typically comply
with the United States Consumer Product Safety Commission (CPSC) Safety
Standard for Matchbooks, codified at 16 CFR 1202.1 et seq.
The scope of this investigation excludes promotional matchbooks,
often referred to as ``not for resale,'' or ``specialty advertising''
matchbooks, as they do not enter into retail channels and are sold to
businesses that provide hospitality, dining, drinking or entertainment
services to their customers, and are given away by these businesses as
promotional items. Such promotional matchbooks are distinguished by the
physical characteristic of having the name and/or logo of a bar,
restaurant, resort, hotel, club, caf[eacute]/coffee shop, grill, pub,
eatery, lounge, casino, barbecue or individual establishment printed
prominently on the matchbook cover. Promotional matchbook cover
printing also typically includes the address and the phone number of
the business or establishment being promoted.\3\ Also excluded are all
other matches that are not fastened into a matchbook cover such as
wooden matches, stick matches, box matches, kitchen matches, pocket
matches, penny matches, household matches, strike-anywhere matches (aka
``SAW'' matches), strike-on-box matches (aka ``SOB'' matches),
fireplace matches, barbeque/grill matches, fire starters, and wax
matches.
---------------------------------------------------------------------------
\3\ The gross distinctions between commodity matchbooks and
promotional matchbooks may be summarized as follows: (1) If it has
no printing, or is printed with a generic message such as ``Thank
You'' or a generic image such as the American Flag, or printed with
national or regional store brands or corporate brands, it is
commodity; (2) if it has printing, and the printing includes the
name of a bar, restaurant, resort, hotel, club, caf[eacute]/coffee
shop, grill, pub, eatery, lounge, casino, barbecue, or individual
establishment prominently displayed on the matchbook cover, it is
promotional.
---------------------------------------------------------------------------
The merchandise subject to this investigation is properly
classified under subheading 3605.00.0060 of the Harmonized Tariff
Schedule of the United States (HTSUS). Subject merchandise may also
enter under subheading 3605.00.0030 of the HTSUS. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise under investigation is
dispositive.
Scope Comments
In accordance with the preamble to the Department's regulations
(see Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May
19, 1997)), in our Initiation Notice we set aside a period of time for
parties to raise issues regarding product coverage, and encouraged all
parties to submit comments within 20 calendar days of publication of
the Initiation Notice. We
[[Page 26368]]
did not receive any comments from parties concerning the scope of this
investigation.
Fair Value Comparisons
To determine whether sales of commodity matchbooks from India to
the United States were made at LTFV, we compared the export price (EP)
or constructed export price (CEP) to the normal value (NV), as
described in the ``Export Price/Constructed Export Price'' and ``Normal
Value'' sections of this notice, below. In accordance with section
777A(d)(1)(A)(i) of the Act, we compared POI weighted-average EPs and
CEPs to weighted-average NVs.
For this preliminary determination, we have determined that Triveni
did not have a viable home or third country market during the POI.
Therefore, as the basis for NV, we used CV when making comparisons for
Triveni in accordance with section 773(a)(4) of the Act.
Export Price/Constructed Export Price
For one U.S. sale made by Triveni, we used EP methodology, in
accordance with section 772(a) of the Act, because the subject
merchandise was sold to the first unaffiliated purchaser in the United
States prior to importation by the exporter or producer outside the
United States and CEP methodology was not otherwise warranted based on
the facts on the record. For the remaining U.S. sales made by Triveni,
we calculated CEP, in accordance with section 772(b) of the Act,
because the subject merchandise was sold for the account of Triveni by
its subsidiary in the United States to unaffiliated purchasers.
Triveni reported that it sold approximately 900 cartons of Triveni
Brand matchbooks (non-white printed matchbooks) to a U.S. customer as
part of one of its CEP sales of plain white commodity matchbooks.
Triveni stated that it is unable to link the 900 cartons of non-white
printed matchbooks to a specific sale or customer. Therefore, as facts
available, we have accepted Triveni's data as reported in the U.S.
sales listing, and we have assigned these 900 cartons the same control
number as plain white matchbooks. However, we intend to examine
Triveni's record-keeping practices at verification to confirm that
Triveni is unable to provide the missing sales and product
characteristic information. In the event that we find that Triveni is
able to link these printed matchbooks to a specific U.S. sale, we will
revisit this issue in our final determination.
A. Export Price
We based EP on the packed price to an unaffiliated purchaser in the
United States. We made deductions for movement expenses in accordance
with section 772(c)(2)(A) of the Act; these included, where
appropriate, foreign inland freight, foreign brokerage and handling
expenses, ocean freight, and marine insurance.
B. Constructed Export Price
In its May 14, 2009, submission, Triveni stated that it reported as
the date of shipment the date that its U.S. freight provider or its
U.S. clearing agent issued an invoice to Triveni's U.S. affiliate,
Triveni International LLC (TILLC). According to the documents contained
in this submission, however, it appears that Triveni reported the date
that the merchandise was shipped from India as the date of shipment for
U.S. sales. Because we do not have accurate shipment information on the
record, as facts available, we have used the earlier of the date that
Triveni's U.S. freight provider issued an invoice to TILLC, or the date
that Triveni's U.S. clearing agent issued an invoice to TILLC as the
date of shipment for purposes of the preliminary determination. We will
examine TILLC's shipping documents at verification to determine which
of these dates is appropriate for use as the date of shipment for
purposes of the final determination.
In accordance with our practice, we used the earlier of the
shipment date calculated above, or the U.S. affiliate's invoice date,
as the date of sale for CEP sales. See, e.g., Notice of Final
Determination of Sales at Less Than Fair Value: Structural Steel Beams
from Germany, 67 FR 35497 (May 20, 2002), and accompanying Issues and
Decision Memorandum at Comment 2.
We based CEP on the packed delivered prices to unaffiliated
purchasers in the United States. Where appropriate, we made adjustments
for discounts. We made deductions for movement expenses, in accordance
with section 772(c)(2)(A) of the Act; these included, where
appropriate, foreign inland freight, foreign brokerage and handling
expenses, ocean freight, marine insurance, U.S. brokerage and handling,
U.S. customs duties, U.S. inland insurance, U.S. inland freight
expenses (i.e., freight from warehouse to the customer), and U.S.
warehousing expenses. In accordance with section 772(d)(1) of the Act
and 19 CFR 351.402(b), we deducted those selling expenses associated
with economic activities occurring in the United States, including
direct selling expenses (i.e., imputed credit expenses and bank
charges), and indirect selling expenses (including inventory carrying
costs and other indirect selling expenses).
Because Triveni reported that it had no U.S. dollar borrowings
during the POI, we recalculated U.S. credit expenses using the short-
term interest rate published by the Federal Reserve, in accordance with
our practice. See, e.g., Notice of Preliminary Determination of Sales
at Less Than Fair Value and Postponement of Final Determination:
Certain Cold-Rolled Carbon Steel Flat Products From Venezuela, 67 FR
31273 (May 9, 2002), unchanged in Notice of Final Determination of
Sales at Less Than Fair Value: Certain Cold-Rolled Carbon Steel Flat
Products From Venezuela, 67 FR 62119 (Oct. 3, 2002). In addition, we
computed the credit period used in our credit recalculation using the
revised dates of shipment noted above. Finally, because Triveni did not
report an amount for U.S. indirect selling expenses, we computed these
expenses using the total expenses and sales value shown in TILLC's 2007
financial statements, less any direct expenses reported in Triveni's
responses, as facts available. For further discussion of these
adjustments, see the memorandum from Holly Phelps, Analyst, to the
File, entitled, ``Calculations Performed for Triveni Safety Matches
Pvt. Ltd. for the Preliminary Determination in the 2007-2008
Antidumping Duty Investigation of Commodity Matchbooks from India,''
dated May 27, 2009.
Pursuant to section 772(d)(3) of the Act, we further reduced the
starting price by an amount for profit to arrive at CEP. In accordance
with section 772(f) of the Act, we calculated the CEP profit rate using
the expenses incurred by Triveni and its U.S. affiliate on their sales
of the subject merchandise in the United States and the profit
associated with those sales.
Normal Value
A. Home Market Viability and Comparison-Market Selection
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
equal to or greater than five percent of the aggregate volume of U.S.
sales), we compared Triveni's volume of home market sales of the
foreign like product to its volume of U.S. sales of the subject
merchandise. See section 773(a)(1)(C) of the Act.
Based on this comparison, we determined that Triveni's aggregate
volume of home market sales of the foreign like product was
insufficient to permit a proper comparison with U.S. sales of the
subject merchandise.
[[Page 26369]]
Moreover, we determined that Triveni's volume of sales to each third
country was also insufficient to permit proper comparisons. Therefore,
we used CV as the basis for calculating NV for Triveni, in accordance
with section 773(a)(4) of the Act.
B. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on sales in the comparison market at
the same level of trade (LOT) as the EP or CEP. Pursuant to 19 CFR
351.412(c)(1), the NV LOT is that of the starting-price sales in the
comparison market or, when NV is based on CV, that of the sales from
which we derive selling, general, and administrative (SG&A) expenses
and profit. For EP, the U.S. LOT is also the level of the starting-
price sale, which is usually from exporter to importer. For CEP, it is
the level of the constructed sale from the exporter to the importer.
To determine whether NV sales are at a different LOT than EP or CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the comparison-
market sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison
market sales at the LOT of the export transaction, we make an LOT
adjustment under section 773(a)(7)(A) of the Act. Finally, for CEP
sales, if the NV level is more remote from the factory than the CEP
level and there is no basis for determining whether the difference in
levels between NV and CEP affects price comparability, we adjust NV
under section 773(a)(7)(B) of the Act (the CEP-offset provision). See
Citric Acid and Certain Citrate Salts from Canada: Notice of
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination, 73 FR 70324 (Nov. 20, 2008),
unchanged in Notice of Final Determination of Sales at Less Than Fair
Value: Citric Acid and Certain Citrate Salts from Canada, 74 FR 16843
(Apr. 13, 2009).
In this investigation, we found that Triveni had no viable home or
third country market. When NV is based on CV, the NV LOT is that of the
sales from which we derive SG&A expenses and profit. See Notice of
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination: Fresh Atlantic Salmon from Chile,
63 FR 2664 (Jan. 16, 1998), unchanged in Notice of Final Determination
of Sales at Less Than Fair Value: Fresh Atlantic Salmon from Chile, 63
FR 31411 (June 9, 1998). In accordance with 19 CFR 351.412(d), the
Department will make its LOT determination under paragraph (d)(1) of
this section on the basis of sales of the foreign like product by the
producer or exporter. Because it is not possible in the instant case to
make an LOT determination on the basis of sales of the foreign like
product in the home or third country market, the Department may use
sales of different or broader product lines, sales by other companies,
or any other reasonable basis. Because we based the selling expenses
and profit for Triveni on the weighted-average selling expenses
incurred and profits earned by another Indian producer of comparable
merchandise who was not party to this investigation, there is
insufficient information on the record in this investigation to allow
the Department to make an LOT adjustment or grant a CEP offset to the
CV reported by Triveni.
C. Calculation of Normal Value Based on CV
In accordance with section 773(a)(4) of the Act, for Triveni we
based NV on CV because there was no viable home or third country
market. In accordance with section 773(e) of the Act, we calculated CV
based on the sum of Triveni's cost of materials and fabrication for the
foreign like product, plus amounts for SG&A expenses, profit, and U.S.
packing costs. We relied on the data reported by Triveni, except in the
following instances:
i. We revised the numerator of Triveni's reported G&A expense ratio
to include fringe benefits taxes and to exclude selling and
transportation expenses as well as foreign exchange losses.
ii. We revised the numerator of Triveni's financial expense ratio
to include foreign exchange losses. In addition, we disallowed the
reported offset for interest income.
For further discussion of these adjustments, see the memorandum from
LaVonne Clark, Accountant, to Neal Halper, Director, Office of
Accounting, entitled, ``Cost of Production and Constructed Value
Calculation Adjustments for the Preliminary Determination--Triveni
Safety Matches Pvt. Ltd.,'' dated May 27, 2009 (Cost Calculation Memo).
Because Triveni does not have a viable comparison market, the
Department cannot determine profit under section 773(e)(2)(A) of the
Act, which requires sales by the respondent in question in the ordinary
course of trade in a comparison market. Likewise, because Triveni does
not have sales of any product in the same general category of products
as the subject merchandise, we are unable to apply alternative (i) of
section 773(e)(2)(B) of the Act. Further, the Department cannot
calculate profit based on alternative (ii) of this section because
Triveni is the sole respondent in this investigation and 19 CFR
351.405(b) requires that a profit ratio under this alternative be based
on home market sales. Therefore, we calculated Triveni's CV profit and
selling expenses based on the third alternative, any other reasonable
method, in accordance with section 773(e)(2)(B)(iii) of the Act. As a
result, as a reasonable method, we calculated Triveni's CV profit and
selling expenses using the contemporaneous financial statements of
Seshasayee Paper and Boards Limited, an Indian producer/exporter of
merchandise in the same general category as commodity matchbooks (i.e.,
paper products). For further discussion, see the Cost
Calculation Memo
Pursuant to alternative (iii), the Department has the option of
using any other reasonable method, as long as the amount allowed for
profit is not greater than the amount realized by exporters or
producers ``in connection with the sale, for consumption in the foreign
country, of merchandise that is in the same general category of
products as the subject merchandise,'' the ``profit cap.'' We are
unable to calculate the profit cap in this case because, as we noted
above, we do not have information allowing us to calculate the amount
normally realized by exporters or producers (other than the respondent)
in connection with the sale, for consumption in the foreign country, of
the merchandise in the same general category. Therefore, as facts
available we are applying option (iii), without quantifying a profit
cap. This decision is consistent with the Department's decision in
previous cases involving similar circumstances. See, e.g., Frozen
Concentrated Orange Juice from Brazil; Final Results and Partial
Rescission of Antidumping Duty Administrative Review, 66 FR 51008 (Oct.
5, 2001), and accompanying Issues and Decision Memorandum at Comment 3;
and Notice of Final Determination of Sales at Less Than Fair Value:
Pure Magnesium From Israel, 66 FR 49349 (Sept. 27, 2001), and
accompanying Issues and Decision Memorandum at Comment 8. See Cost
Calculation Memo.
[[Page 26370]]
We made no adjustments to CV for differences in circumstances of
sale in accordance with sections 773(a)(6)(B)(iii) and 773(a)(8) of the
Act and 19 CFR 351.410 because we had inadequate information to do so.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act based on the exchange rates in effect on the
dates of the U.S. sales as certified by the Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information relied upon in making our final determination for
Triveni.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we will direct
Customs and Border Protection (CBP) to suspend liquidation of all
entries of commodity matchbooks from India that are entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. We will also
instruct CBP to require a cash deposit or the posting of a bond equal
to the weighted-average dumping margins, as indicated in the chart
below, adjusted for export subsidies found in the preliminary
determination of the companion countervailing duty investigation. See
Commodity Matchbooks from India: Preliminary Affirmative Countervailing
Duty Determination and Alignment of Final Countervailing Duty
Determination with Final Antidumping Duty Determination, 74 FR 15444
(Apr. 6, 2009), (CVD Preliminary Notice).
Specifically, consistent with our longstanding practice, where the
product under investigation is also subject to a concurrent
countervailing duty investigation, we instruct CBP to require a cash
deposit or posting of a bond equal to the amount by which the normal
value exceeds the EP or CEP, as indicated below, less the amount of the
countervailing duty determined to constitute an export subsidy. See,
e.g., Notice of Final Determination of Sales at Less Than Fair Value:
Carbazole Violet Pigment 23 From India, 69 FR 67306, 67307 (Nov. 17,
2007). Accordingly, for cash deposit purposes, we are subtracting from
the applicable cash deposit rate that portion of the rate attributable
to the export subsidies found in the affirmative countervailing duty
determination for each respondent (i.e., 11.23 percent for Triveni, and
11.23 percent for ``All Others''). After the adjustment for the cash
deposit rates attributed to export subsidies, the resulting cash
deposit rates will be 80.48 percent for Triveni and 80.48 percent for
``All Others.'' These instructions suspending liquidation will remain
in effect until further notice.
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
average
Manufacturer/exporter margin
(percent)
------------------------------------------------------------------------
Triveni Safety Matches Pvt. Ltd............................. 91.71
All Others.................................................. 91.71
------------------------------------------------------------------------
``All Others'' Rate
Section 735(c)(5)(A) of the Act provides that the estimated ``All
Others'' rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins, and any margins determined entirely under section 776
of the Act. Triveni is the only respondent in this investigation.
Therefore, for purposes of determining the ``All Others'' rate and
pursuant to section 735(c)(5)(A) of the Act, we are using the weighted-
average dumping margin calculated for Triveni, as referenced above.
See, e.g., Notice of Final Determination of Sales at Less Than Fair
Value: Stainless Steel Sheet and Strip in Coils From Italy, 64 FR
30750, 30755 (June 8, 1999); and Notice of Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final Determination:
Coated Free Sheet Paper from Indonesia, 72 FR 30753, 30757 (June 4,
2007), unchanged in Notice of Final Determination of Sales at Less Than
Fair Value: Coated Free Sheet Paper from Indonesia, 72 FR 60636 (Oct.
25, 2007).
Disclosure
We will disclose the calculations performed in our preliminary
analysis to parties to this proceeding in accordance with 19 CFR
351.224(b).
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of the Department's preliminary affirmative determination. If the
Department's final determination is affirmative, the ITC will determine
before the later of 120 days after the date of this preliminary
determination or 45 days after our final determination whether imports
of commodity matchbooks from India are materially injuring, or
threatening material injury to, the U.S. industry (see section
735(b)(2) of the Act). Because we are postponing the deadline for our
final determination to 135 days from the date of the publication of
this preliminary determination (see below), the ITC will make its final
determination no later than 45 days after our final determination.
Public Comment
Interested parties are invited to comment on the preliminary
determination. Interested parties may submit case briefs to the
Department no later than seven days after the date of the issuance of
the last verification report in this proceeding. See 19 CFR 351.309(c).
Rebuttal briefs, the content of which is limited to the issues raised
in the case briefs, must be filed within five days from the deadline
date for the submission of case briefs. See 19 CFR 351.309(d). A list
of authorities used, a table of contents, and an executive summary of
issues should accompany any briefs submitted to the Department.
Executive summaries should be limited to five pages total, including
footnotes. In accordance with section 774 of the Act, the Department
will hold a public hearing, if timely requested, to afford interested
parties an opportunity to comment on arguments raised in case or
rebuttal briefs, provided that such a hearing is requested by an
interested party. If a timely request for a hearing is made in this
investigation, we intend to hold the hearing two days after the
rebuttal brief deadline date at the U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230, at a time
and in a room to be determined. See 19 CFR 351.310. Parties should
confirm by telephone, the date, time, and location of the hearing 48
hours before the scheduled date.
Interested parties who wish to request a hearing, or to participate
in a hearing if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days of the 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 the issues to
be discussed. At the hearing, oral presentations will be limited to
issues raised in the briefs.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary
[[Page 26371]]
determination, a request for such postponement is made by exporters,
who account for a significant proportion of exports of the subject
merchandise, or in the event of a negative preliminary determination, a
request for such postponement is made by the petitioner. The
Department's regulations, at 19 CFR 351.210(e)(2), require that
requests by respondents for postponement of a final determination be
accompanied by a request for extension of provisional measures from a
four-month period to not more than six months.
On May 26, 2009, Triveni requested that in the event of an
affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, Triveni requested that the Department extend the application of
the provisional measures prescribed under section 733(d) of the Act and
19 CFR 351.210(e)(2), from a four-month period to a six-month period.
In accordance with section 735(a)(2) of the Act and 19 CFR
351.210(b)(2), because (1) our preliminary determination is
affirmative, (2) the requesting exporter accounts for a significant
proportion of exports of the subject merchandise, and (3) no compelling
reasons for denial exist, we are granting this request and are
postponing the final determination until no later than 135 days after
the publication of this notice in the Federal Register. Suspension of
liquidation will be extended accordingly.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: May 27, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-12826 Filed 6-1-09; 8:45 am]
BILLING CODE 3510-DS-P