Certain Woven Electric Blankets From the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 5567-5575 [2010-2309]
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DEPARTMENT OF COMMERCE
Paperwork Reduction Act
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: February 3, 2010.
SUMMARY: The Department of Commerce
(the Department) preliminarily
determines that certain woven electric
blankets (woven electric blankets) from
the People’s Republic of China (PRC) are
being, or are likely to be, sold in the
United States at less than fair value
(LTFV), as provided in section 733 of
the Tariff Act of 1930, as amended (the
Act). The estimated dumping margins
are shown in the ‘‘Preliminary
Determination’’ section of this notice.
FOR FURTHER INFORMATION CONTACT:
Drew Jackson or Howard Smith, AD/
CVD Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–4406 or 482–5193,
respectively.
SUPPLEMENTARY INFORMATION:
This notification involves collection
of information requirements subject to
the Paperwork Reduction Act. The use
of Standard Forms 424, 424A, 424B, and
SF–LLL and CD–346 has been approved
by the Office of Management and
Budget (OMB) respectively under
control numbers 0348–0043, 0348–0044,
0348–0040, and 0348–0046 and 0605–
0001. Notwithstanding any other
provision of law, no person is required
for failure to comply with, a collection
of information subject to the
requirements of the PRA unless that
collection of information displays a
currently valid OMB Control Number.
Executive Order 12866
It has been determined that this notice
is not significant for purposes of
Executive Order 12866.
Executive Order 13132 (Federalism)
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does not contain policies with
Federalism implications as that term is
defined in Executive Order 13132.
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required and none has been prepared.
Dated: January 28, 2010.
Mark E. Brown,
Chief Financial Officer/Chief Administrative
Officer, Oceanic and Atmospheric Research,
National Oceanic and Atmospheric
Administration.
[FR Doc. 2010–2314 Filed 2–2–10; 8:45 am]
BILLING CODE 3510–KD–P
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International Trade Administration
[A–570–951]
Certain Woven Electric Blankets From
the People’s Republic of China:
Preliminary Determination of Sales at
Less Than Fair Value and
Postponement of Final Determination
Background
On June 30, 2009, the Department
received an antidumping duty petition
concerning imports of woven electric
blankets from the PRC filed in proper
form by Jarden Consumer Solutions
(Petitioner). See Petition for the
Imposition of Antidumping Duties:
Certain Woven Electric Blankets from
the People’s Republic of China, dated
June 30, 2009 (Petition). The
Department initiated an antidumping
duty investigation of woven electric
blankets from the PRC on July 20, 2009.
See Certain Woven Electric Blankets
From the People’s Republic of China:
Initiation of Antidumping Duty
Investigation, 74 FR 37001 (July 27,
2009) (Initiation Notice).
On July 20, 2009, the Department
requested quantity and value (Q&V)
information from the 30 companies that
are identified in the petition as potential
producers or exporters of woven electric
blankets from the PRC. See ‘‘Respondent
Selection in the Antidumping Duty
Investigation of Woven Electric Blankets
From the People’s Republic of China,’’
dated September 3, 2009 (Respondent
Selection Memorandum). The
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Department received timely responses
to its Q&V questionnaire from the
following companies: Hung Kuo
Electronic (Shenzhen) Company
Limited (Hung Kuo); Ningbo Zhonglei
Maofangzhi Ranzheng Co., Ltd. (Ningbo
Zhonglei); Zhejiang Hewei Knitting
Technology Co., Ltd.; Ningbo Jifa
Electrical Appliances Co., Ltd. (Jifa);
Ningbo Jinchun Electric Appliances Co.,
Ltd. (Jinchun); 1 Ningbo V.K. Industry &
Trading Co., Ltd. (Ningbo V.K.); and
Chengdu Rainbow Appliance (Group)
Sharers Co., Ltd. The Department
confirmed that 19 of the 30 companies
received the Q&V questionnaire, while
the international courier service
shipment tracking results showed that
DHL had arranged for delivery of the
Department’s Q&V questionnaire to an
additional 10 companies. See
‘‘Respondent Selection Memorandum.’’
Additionally, one of the Department’s
Q&V questionnaires was returned to the
Department due to an incorrect address
provided by Petitioner. Only the abovenamed companies responded to the
Department’s Q&V questionnaire.
On August 13, 2009, the International
Trade Commission (ITC) preliminarily
determined that there is a reasonable
indication that an industry in the
United States is materially injured or
threatened with material injury by
reason of imports of woven electric
blankets from the PRC. See Woven
Electric Blankets From China,
Investigation No. 731–TA–1163
(Preliminary), 74 FR 42323 (August 21,
2009). Also, in August 2009, Petitioner
submitted comments to the Department
regarding the physical characteristics of
subject merchandise that it argued
should be used in comparing sales
prices with normal value (NV).
On September 3, 2009, the
Department selected Hung Kuo as the
mandatory respondent and issued an
antidumping questionnaire to the
company. See ‘‘Respondent Selection
Memorandum.’’ Hung Kuo submitted
timely responses to the Department’s
questionnaire on September 3, 2009,
October 16, 2009, and October 27, 2009.
On September 25, 2009, the Department
received properly filed separate-rate
applications from Jifa, Jinchun, and
Ningbo V.K.
The Department issued supplemental
questionnaires to, and received
responses from Hung Kuo, Jifa, Jinchun,
and Ningbo V.K. from October through
January 2010. Petitioner submitted
1 Jifa and Jinchun submitted a combined Q&V
response. These companies stated that they should
be collapsed for purposes of this investigation. See
Jifa and Jichun’s August 11, 2009, Q&V response.
For further discussion of this issue, see the section
entitled, ‘‘Separate Rates,’’ below.
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comments to the Department regarding
Hung Kuo’s questionnaire and
supplemental questionnaire responses
from June 2009, through January 2010.
On October 30, 2009, the Department
released a memorandum to interested
parties which listed potential surrogate
countries and invited interested parties
to comment on surrogate country and
surrogate value selection. During
November and December 2009, and
January 2010, Petitioner and Hung Kuo
submitted comments on the appropriate
surrogate country and surrogate values.
The submitted surrogate value data
submitted by Petitioner and Hung Kuo
are for India.
On November 5, 2009, Petitioner
requested postponement of the
preliminary determination. On
November 16, 2009, the Department
extended this preliminary
determination by fifty days. See Certain
Woven Electric Blankets From the
People’s Republic of China:
Postponement of Preliminary
Determination of Antidumping Duty
Investigation, 74 FR 60236 (November
20, 2009). On January 14, 2010, Hung
Kuo requested that the Department
extend the final determination in this
case. See the ‘‘Postponement of Final
Determination’’ section of this notice
below.
A shell of woven fabric that is not
packaged together, or in a kit, with
either wire, controller(s), or both, is not
covered by this investigation even
though the shell of woven fabric may be
dedicated solely for use as a material in
the production of woven electric
blankets.
The finished, semi-finished and
unassembled woven electric blankets
and throws subject to this investigation
are currently classifiable under
subheading 6301.10.0000 of the
Harmonized Tariff Schedule of the
United States (HTSUS). Although the
HTSUS subheading is provided for
convenience and customs purposes,
only the written description of the scope
is dispositive.
Scope of the Investigation
Scope Comments
In accordance with the preamble to
the Department’s regulations, we set
aside a period of time in our Initiation
Notice for parties to raise issues
regarding product coverage, and
encouraged all parties to submit
comments within 20 calendar days of
the signature date of that notice. See
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323
(May 19, 1997), see also Initiation
Notice. Before the Department initiated
the instant investigation, interested
parties submitted comments regarding
the proposed scope of the investigation;
however, the Department made no
changes to the proposed scope of the
investigation. See Initiation Notice.
After initiation, the Department
received no additional comments
concerning the scope of the woven
electric blankets antidumping duty
investigation, and, therefore, the
Department has not modified the scope.
The scope of this investigation covers
finished, semi-finished, and
unassembled woven electric blankets,
including woven electric blankets
commonly referred to as throws, of all
sizes and fabric types, whether made of
man-made fiber, natural fiber or a blend
of both. Semi-finished woven electric
blankets and throws consist of shells of
woven fabric containing wire.
Unassembled woven electric blankets
and throws consist of a shell of woven
fabric and one or more of the following
components when packaged together or
in a kit: (1) Wire; (2) controller(s). The
shell of woven fabric consists of two
sheets of fabric joined together forming
a ‘‘shell.’’ The shell of woven fabric is
manufactured to accommodate either
the electric blanket’s wiring or a
subassembly containing the electric
blanket’s wiring (e.g., wiring mounted
on a substrate).
Non-Market Economy Treatment
The Department considers the PRC to
be a non-market economy (NME)
country. In accordance with section
771(18)(C)(i) of the Act, any
determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See, e.g., Tapered Roller Bearings and
Parts Thereof (TRBs), Finished and
Unfinished, From the People’s Republic
of China: Preliminary Results of 2001–
2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500
(February 14, 2003), unchanged in
TRBs, Finished and Unfinished, From
the People’s Republic of China: Final
Results of 2001–2002 Administrative
Review and Partial Rescission of
Review, 68 FR 70488 (December 18,
2003). The Department has not revoked
the PRC’s status as an NME country.
Therefore, in this preliminary
Period of Investigation
The period of investigation (POI) is
October 1, 2008, through March 31,
2009. This period corresponds to the
two most recently completed fiscal
quarters prior to the month in which the
petition was filed (i.e., June 2009). See
19 CFR 351.204(b)(1).
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determination, we have treated the PRC
as an NME country and applied our
current NME methodology.
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Surrogate Country and Value
Comments
On October 30, 2009, the Department
released a Policy Memorandum to
interested parties identifying potential
surrogate countries and provided parties
with an opportunity to submit
comments regarding the selection of a
surrogate country in the instant
investigation. See Memorandum to
Howard Smith, Program Manager, AD/
CVD Operations Office 4, from Kelly
Parkhill, Acting Director for Policy,
Office of Policy, ‘‘Request for A List of
Surrogate Countries for an Antidumping
Duty Investigation of Certain Woven
Electric Blankets (WEB) from the
People’s Republic of China (PRC),’’
dated October 28, 2009 (Office of Policy
Surrogate Country List Memorandum).
The countries identified in that
memorandum as being at a level of
economic development comparable to
the PRC for the specified POI are India,
Indonesia, the Philippines, Colombia,
Thailand, and Peru. On November 20,
2009, the Department received
comments on surrogate country
selection and surrogate value
information from Petitioner and Hung
Kuo. On December 4, 2009, Petitioner
and Hung Kuo submitted rebuttal
comments. Both Petitioner and Hung
Kuo assert that the Department should
select India as the appropriate surrogate
country. No other interested parties
commented on the selection of a
surrogate country. For a detailed
discussion of the selection of the
surrogate country, see the ‘‘Surrogate
Country’’ section below.
Surrogate Country
When the Department is investigating
imports from an NME, section 773(c)(1)
of the Act directs it to base NV, in most
circumstances, 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 FOP, the Department shall utilize, to
the extent possible, the prices or costs
of FOP in one or more market-economy
countries that are at a level of economic
development comparable to that of the
NME country and are significant
producers of comparable merchandise.
The sources of the surrogate values we
have used in this investigation are
discussed under the ‘‘Normal Value’’
section below.
The Department determined that
India, the Philippines, Indonesia,
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Colombia, Thailand and Peru are
countries comparable to the PRC in
terms of economic development. See
‘‘Office of Policy Surrogate Country List
Memorandum.’’ Once the countries that
are economically comparable to the PRC
have been identified, we select an
appropriate surrogate country by
determining whether an economically
comparable country is a significant
producer of comparable merchandise
and whether the data for valuing FOP is
both available and reliable. See id. In
their November 20, 2009, submissions,
Hung Kuo and Petitioner stated that the
Department should select India as a
surrogate country because it satisfies the
statutory requirements for the selection
of a surrogate country since it is at a
level of economic development that is
comparable to the PRC, and is a
significant producer of merchandise
comparable to the merchandise under
investigation. Hung Kuo and Petitioner
also put information on the record
demonstrating that the Department can
value the major FOP for subject
merchandise using reliable, publicly
available data from Indian sources. See
Hung Kuo’s and Petitioner’s November
20, 2009, surrogate country and
surrogate value comments. No other
party provided comments on the record
concerning the surrogate country.
Based on evidence placed on the
record, we have determined that it is
appropriate to use India as a surrogate
country pursuant to section 773(c)(4) of
the Act based on the following: (1) It is
at a level of economic development
comparable to the PRC pursuant to
section 773(c)(4) of the Act; (2) it is a
significant producer of comparable
merchandise; and (3) we have reliable
data from India that we can use to value
the FOP. See Hung Kuo’s and
Petitioner’s November 20, 2009,
surrogate country and surrogate value
comments; see also Hung Kuo’s and
Petitioner’s December 4, 2009, surrogate
country and surrogate value rebuttal
comments. Thus, to calculate NV, we
are using Indian prices, when available
and appropriate, to value the FOPs of
Hung Kuo, the mandatory respondent.
We have obtained and relied upon
publicly available information wherever
possible. See Surrogate Value
Memorandum, dated January 26, 2010
(Surrogate Value Memorandum).
In accordance with 19 CFR
351.301(c)(3)(i), for the final
determination in an antidumping duty
investigation, interested parties may
submit publicly available information to
value the FOP within 40 days after the
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date of publication of the preliminary
determination.2
Separate Rates
In the Initiation Notice, the
Department notified parties of the
application process by which exporters
and producers may obtain separate-rate
status in NME investigations. The
process requires exporters and
producers to submit a separate-rate
status application.3
In proceedings involving NME
countries, the Department has a
rebuttable presumption that all
companies within the country are
subject to government control and thus
should be assessed a single antidumping
duty rate. It is the Department’s policy
to assign all exporters of merchandise
subject in an NME country this single
rate unless an exporter can demonstrate
that it is sufficiently independent so as
to be entitled to a separate rate.
Exporters can demonstrate this
independence through the absence of
both de jure and de facto governmental
control over export activities. The
Department analyzes each entity
exporting the subject merchandise
under a test arising from the Notice of
Final Determination of Sales at Less
2 In accordance with 19 CFR 351.301(c)(1), for the
final determination of this investigation, interested
parties may submit factual information to rebut,
clarify, or correct factual information submitted by
an interested party less than ten days before, on, or
after, the applicable deadline for submission of
such factual information. However, the Department
notes that 19 CFR 351.301(c)(1) permits new
information only insofar as it rebuts, clarifies, or
corrects information recently placed on the record.
The Department generally will not accept the
submission of additional, previously absent-fromthe-record alternative surrogate value information
pursuant to 19 CFR 351.301(c)(1). See Glycine from
the People’s Republic of China: Final Results of
Antidumping Duty Administrative Review and
Final Rescission, in Part, 72 FR 58809 (October 17,
2007), and accompanying Issues and Decision
Memorandum at Comment 2.
3 See Policy Bulletin 05.1: Separate-Rates Practice
and Application of Combination Rates in
Antidumping Investigations involving Non-Market
Economy Countries (April 5, 2005), available at
https://ia.ita.doc.gov, which states: ‘‘While
continuing the practice of assigning separate rates
only to exporters, all separate rates that the
Department will now assign in its NME
investigations will be specific to those producers
that supplied the exporter during the period of
investigation. Note, however, that one rate is
calculated for the exporter and all of the producers
which supplied subject merchandise to it during
the period of investigation. This practice applied
both to mandatory respondents receiving an
individually calculated separate rate as well as the
pool of non-investigated firms receiving the
weighted-average of the individually calculated
rates. This practice is referred to as the application
of ‘‘combination rates’’ because such rates apply to
specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an
exporter will apply only to merchandise both
exported by the firm in question and produced by
a firm that supplied the exporter during the period
of investigation.’’
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Than Fair Value: Sparklers From the
People’s Republic of China, 56 FR 20588
(May 6, 1991) (Sparklers), as further
developed in Notice of Final
Determination of Sales at Less Than
Fair Value: Silicon Carbide From the
People’s Republic of China, 59 FR 22585
(May 2, 1994) (Silicon Carbide).
However, if the Department determines
that a company is wholly foreign-owned
or located in a market economy, then a
separate-rate analysis is not necessary to
determine whether it is independent
from government control.
A. Separate Rate Applicants 4
1. Wholly Foreign-Owned
Hung Kuo, the mandatory respondent,
reported that it is wholly owned by
individuals or companies located in a
market economy in its separate rate
application. See Hung Kuo’s September
29, 2009, Section A questionnaire
response at 6. Therefore, because the
record indicates that it is wholly
foreign-owned, and we have no
evidence otherwise indicating that it is
under the control of the PRC
government, in accordance with
Department practice, we determined
that further separate rates analysis is not
necessary to determine whether this
company is independent from
government control. See, e.g., Notice of
Final Determination of Sales at Less
Than Fair Value: Creatine Monohydrate
From the People’s Republic of China, 64
FR 71104–05 (December 20, 1999)
(where the respondent was wholly
foreign-owned and, thus, qualified for a
separate rate). Accordingly, we have
preliminarily granted a separate rate to
Hung Kuo Electronics (Shenzhen)
Company Limited.
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2. Wholly Chinese-Owned
One separate rate applicant, Ningbo
V.K., stated that it is a wholly Chineseowned company. See Ningbo V.K.’s
September 25, 2009 Separate Rate
Application (Ningbo V.K.’s SRA) at 7–
10. Therefore, the Department must
analyze whether this respondent can
demonstrate the absence of both de jure
and de facto governmental control over
export activities.
3. Joint Ventures Between Chinese and
Foreign Companies
Two companies, Jifa and Jinchun,
submitted a combined separate rate
application. In the separate rate
application, Jifa reported that it is a joint
venture company invested by one
Chinese legal person and one Hong
4 All separate rate applicants receiving a separate
rate are hereby referred to collectively as the ‘‘SR
Recipients.’’
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Kong individual; Jinchun reported that
it is wholly-owned by a Hong Kong
individual. See Jifa and Jinchun’s
September 25, 2009, separate rate
application (Jifa/Jinchun’s SRA) at 8.
Jifa and Jinchun also reported that they
are affiliated through common
ownership and that they share the same
board members and general managers.
See Jifa and Jinchun’s November 19,
2009, supplemental questionnaire
response, at 1–2. Thus, the record
supports a preliminary finding that Jifa
and Jichun meet the definition of
affiliated parties pursuant to sections
771(33)(G) of the Act. Further, pursuant
to 19 CFR 351.401(f)(1), we
preliminarily find that it is appropriate
to treat Jifa and Jinchun as a single
entity because: (1) They have
production facilities for similar or
identical products that would not
require substantial retooling of either
facility in order to restructure
manufacturing priorities; and (2) there is
a significant potential for the
manipulation of price or production. In
accordance with 19 CFR 351.401(f)(2)
we preliminarily find that a significant
potential for the manipulation of price
or production exists because Jifa and
Jinchun share a high level of common
ownership, share a general manager and
a board member, and share production
facilities and employees.
Because the Jifa/Jinchun collapsed
entity is a joint venture between a PRC
and a foreign (i.e., Hong Kong)
company, the Department has also
analyzed whether the Jifa/Jinchun
collapsed entity has demonstrated the
absence of de jure and de facto
governmental control over its respective
export activities.
a. Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual company may be
granted a separate rate: (1) An absence
of restrictive stipulations associated
with an individual exporter’s business
and export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) other formal
measures by the government
decentralizing control of companies. See
Sparklers, at 20589.
Ningbo V.K. and the collapsed Jifa/
Jinchun entity provided evidence
demonstrating the following: (1) An
absence of restrictive stipulations
associated with each exporter’s business
and export licenses; (2) there are
applicable legislative enactments
decentralizing control of each company;
and (3) and there are formal measures
by the government decentralizing
control of each company. See Ningbo
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V.K.’s SRA at 7–10. See also Jifa/
Jinchun’s SRA at 7–10. Accordingly,
based on this record evidence, we
preliminarily find that Ningbo V.K. and
the collapsed Jifa/Jinchun entity have
demonstrated an absence of de jure
governmental control.
b. Absence of De Facto Control
Typically the Department considers
four factors in evaluating whether each
respondent is subject to de facto
governmental control of its export
functions: (1) Whether the export prices
are set by or are subject to the approval
of a governmental agency; (2) whether
the respondent has authority to
negotiate and sign contracts and other
agreements; (3) whether the respondent
has autonomy from the government in
making decisions regarding the
selection of management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding
disposition of profits or financing of
losses. See Silicon Carbide at 22586–87;
see also Notice of Final Determination
of Sales at Less Than Fair Value:
Furfuryl Alcohol From the People’s
Republic of China, 60 FR 22544, 22545
(May 8, 1995). The Department has
determined that an analysis of de facto
control is critical in determining
whether respondents are, in fact, subject
to a degree of governmental control
which would preclude the Department
from assigning separate rates.
We have determined that the evidence
on the record supports a preliminary
finding of de facto absence of
governmental control with respect to
Ningbo V.K., and the collapsed Jifa/
Jinchun entity, based on record
statements and supporting
documentation showing that the
companies: (1) Set their own export
prices independent of the government
and without the approval of a
government authority; (2) retain the
proceeds from their sales and make
independent decisions regarding
disposition of profits or financing of
losses; (3) have the authority to
negotiate and sign contracts and other
agreements; and (4) have autonomy
from the government regarding the
selection of management. See Ningbo
V.K.’s SRA at 10–17; Jifa/Jinchun’s SRA
at 11–18; see also Ningbo V.K’s
November 10, 2009, supplemental
questionnaire response.
The evidence placed on the record of
this investigation by Hung Kuo, Ningbo
V.K., and the collapsed Jifa/Jinchun
entity, demonstrate an absence of
ownership by NME residents or entities,
and an absence of de jure and de facto
government control with respect to the
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exporters’ exports of the merchandise
under investigation, in accordance with
the criteria identified in Sparklers and
Silicon Carbide. Therefore, we have
preliminarily granted Hung Kuo, Ningbo
V.K., and the collapsed Jifa/Jinchun
entity, separate rate status. Consistent
with Department practice, we calculated
a company-specific dumping margin for
Hung Kuo and assigned this margin to
Ningbo V.K., and the collapsed Jifa/
Jinchun entity. See, e.g., Preliminary
Determination of Sales at Less Than
Fair Value, Postponement of Final
Determination, and Affirmative
Preliminary Determination of Critical
Circumstances, in Part: Light-Walled
Rectangular Pipe and Tube From the
People’s Republic of China, 73 FR 5500
(January 30, 2008), unchanged in Final
Determination of Sales at Less Than
Fair Value and Affirmative
Determination of Critical
Circumstances, in Part: Light-Walled
Rectangular Pipe and Tube From the
People’s Republic of China, 73 FR 35652
(June 24, 2008) (LWR from the PRC).
The PRC-Wide Entity
The Department has data indicating
that there were more exporters of woven
electric blankets from the PRC than
those responding to our request for Q&V
information during the POI. See
‘‘Respondent Selection Memorandum.’’
We issued our request for Q&V
information to 30 potential Chinese
exporters of the merchandise under
investigation, in addition to posting the
Q&V questionnaire on the Department’s
website. While information on the
record of this investigation indicates
that there are other producers/exporters
of woven electric blankets in the PRC,
we received only seven timely filed
Q&V responses. See id. Although all
exporters were given an opportunity to
provide Q&V information, not all
exporters provided a response to the
Department’s Q&V letter. Therefore, the
Department has preliminarily
determined that there were exporters/
producers of the merchandise under
investigation during the POI from the
PRC that did not respond to the
Department’s request for information.
We have treated these PRC producers/
exporters as part of the PRC-wide entity
because they did not qualify for a
separate rate. See, e.g., Preliminary
Determination of Sales at Less Than
Fair Value, Postponement of Final
Determination, and Preliminary Partial
Determination of Critical
Circumstances: Diamond Sawblades
and Parts Thereof From the People’s
Republic of China, 70 FR 77121, 77128
(December 29, 2005), unchanged in
Final Determination of Sales at Less
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Than Fair Value and Final Partial
Affirmative Determination of Critical
Circumstances: Diamond Sawblades
and Parts Thereof From the People’s
Republic of China, 71 FR 29303 (May
22, 2006).
Section 776(a)(2) of the Act provides
that the Department shall, subject to
subsection 782(d) of the Act, use facts
otherwise available in reaching the
applicable determination if an
interested party: (A) Withholds
information that has been requested by
the Department; (B) fails to provide such
information in a timely manner or in the
form or manner requested, subject to
subsections 782(c)(1) and (e) of the Act;
(C) significantly impedes a proceeding
under the antidumping statute; or (D)
provides such information but the
information cannot be verified.
As noted above, the PRC-wide entity
withheld information requested by the
Department. As a result, pursuant to
section 776(a)(2)(A) of the Act, we find
it appropriate to base the PRC-wide
dumping margin on facts otherwise
available. See Notice of Preliminary
Determination of Sales at Less Than
Fair Value, Affirmative Preliminary
Determination of Critical Circumstances
and Postponement of Final
Determination: Certain Frozen Fish
Fillets From the Socialist Republic of
Vietnam, 68 FR 4986 (January 31, 2003),
unchanged in Notice of Final
Antidumping Duty Determination of
Sales at Less Than Fair Value and
Affirmative Critical Circumstances:
Certain Frozen Fish Fillets From the
Socialist Republic of Vietnam, 68 FR
37116 (June 23, 2003).
Section 776(b) of the Act provides
that, in selecting from among the facts
otherwise available, the Department
may employ an adverse inference if an
interested party fails to cooperate by not
acting to the best of its ability to comply
with requests for information. See
Statement of Administrative Action,
accompanying the Uruguay Round
Agreements Act, H.R. Rep. No. 103–316,
Vol. I at 843 (1994) (SAA), reprinted in
1994 U.S.C.C.A.N. 4040 at 870. See also,
Notice of Final Determination of Sales
at Less Than Fair Value: Certain ColdRolled Flat-Rolled Carbon-Quality Steel
Products From the Russian Federation,
65 FR 5510, 5518 (February 4, 2000).
Because the PRC-wide entity did not
respond to the Department’s requests for
information, the Department has
concluded that the PRC-wide entity has
failed to cooperate to the best of its
ability. Therefore, the Department
preliminarily finds that, in selecting
from among the facts available, an
adverse inference is appropriate.
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5571
Section 776(b) of the Act authorizes
the Department to rely upon, as adverse
facts available (AFA): (1) Information
derived from the petition; (2) the final
determination from the LTFV
investigation; (3) a previous
administrative review; or (4) any other
information placed on the record. In
selecting a rate for AFA, the Department
selects one that is sufficiently adverse
‘‘as to effectuate the purpose of the facts
available rule to induce respondents to
provide the Department with complete
and accurate information in a timely
manner.’’ See Notice of Final
Determination of Sales at Less Than
Fair Value: Static Random Access
Memory Semiconductors From Taiwan,
63 FR 8909 (February 23, 1998). It is the
Department’s practice to select, as AFA,
the higher of: (a) The highest margin
alleged in the petition or (b) the highest
calculated rate for any respondent in the
investigation, to the extent that it can be
corroborated (assuming the rate is based
on secondary information). See Final
Determination of Sales at Less Than
Fair Value: Certain Cold-Rolled FlatRolled Carbon Quality Steel Products
From the People’s Republic of China, 65
FR 34660 (May 31, 2000), and
accompanying Issues and Decisions
Memorandum at Facts Available. In the
instant investigation, as AFA, we have
preliminarily assigned to the PRC-wide
entity, the highest corroborated margin
alleged in the Petition, which is 174.85
percent. The dumping margin for the
PRC-wide entity applies to all entries of
the merchandise under investigation
except for entries of subject
merchandise produced and exported by
Hung Kuo, Ningbo V.K., and Jifa/
Jinchun.
Companies Not Receiving a Separate
Rate
In the Initiation Notice, the
Department requested that all
companies wishing to qualify for
separate rate status in this investigation
submit a separate rate status
application. See Initiation Notice. Two
exporters, Zhejiang Hewei Knitting
Technology Co., Ltd. and Ningbo
Zhonglei Maofangzhi Ranzheng Co.,
submitted timely responses to the
Department’s Q&V questionnaire but
did not provide separate rate
applications, and, therefore, have not
demonstrated their eligibility for
separate rate status in this investigation.
As a result, the Department is treating
these Chinese exporters as part of the
PRC-wide entity.
Corroboration of Information
Section 776(c) of the Act provides
that, when the Department relies on
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secondary information rather than on
information obtained in the course of an
investigation as facts available, it must,
to the extent practicable, corroborate
that information from independent
sources reasonably at its disposal.
Secondary information is described as
‘‘information derived from the petition
that gave rise to the investigation or
review, the final determination
concerning merchandise subject to this
investigation, or any previous review
under section 751 concerning the
merchandise subject to this
investigation.’’ 5 To ‘‘corroborate’’ means
simply that the Department will satisfy
itself that the secondary information to
be used has probative value.
Independent sources used to corroborate
may include, for example, published
price lists, official import statistics and
customs data, and information obtained
from interested parties during the
particular investigation. To corroborate
secondary information, the Department
will, to the extent practicable, examine
the reliability and relevance of the
information used.6
The AFA rate that the Department
used for the PRC-wide entity is from the
Petition. Based on our examination of
information on the record, including
United States price and NV, we find that
there is a sufficient basis to find that the
Petition margin selected as the AFA
rate, 174.85 percent, has probative
value. In this case, we have selected a
margin that is not so much greater than
the highest CONNUM-specific margin
calculated for Hung Kuo in this
proceeding that it can be considered not
to have probative value. See ‘‘Hung Kuo
Analysis Memorandum.’’ Petitioners’
methodology for calculating the United
States price and NV in the Petition is
discussed in the Initiation Notice.
Accordingly, we conclude that, using
Hung Kuo’s highest CONNUM-specific
margin as a limited reference point, the
highest Petition margin that can be
corroborated within the meaning of the
statute is 174.85 percent, which is
5 See Final Determination of Sales at Less Than
Fair Value: Sodium Hexametaphosphate From the
People’s Republic of China, 73 FR 6479, 6481
(February 4, 2008), quoting SAA at 870.
6 See Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, From Japan, and Tapered
Roller Bearings, Four Inches or Less in Outside
Diameter, and Components Thereof, From Japan;
Preliminary Results of Antidumping Duty
Administrative Reviews and Partial Termination of
Administrative Reviews, 61 FR 57391, 57392
(November 6, 1996), unchanged in Tapered Roller
Bearings and Parts Thereof, Finished and
Unfinished, From Japan, and Tapered Roller
Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, From Japan; Final
Results of Antidumping Duty Administrative
Reviews and Termination in Part, 62 FR 11825
(March 13, 1997).
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sufficiently adverse so as to induce
cooperation such that an uncooperative
party does not benefit from its failure to
cooperate.7
Fair Value Comparisons
In accordance with section 777(A) of
the Act, to determine whether Hung
Kuo, the mandatory respondent, sold
woven electric blankets to the United
States at LTFV, we compared the
weighted-average constructed export
price (CEP) of the woven electric
blankets to the NV of the woven electric
blankets, as described in the ‘‘U.S.
Price,’’ and ‘‘Normal Value’’ sections of
this notice.
U.S. Price
Constructed Export Price
Although Hung Kuo reported that it
made both export price (EP) and CEP
sales to the United States during the
POI, the Department has preliminarily
determined that all of Hung Kuo’s
reported sales were, in fact, CEP sales.
See Hung Kuo’s October 16 2009,
Section C Questionnaire Response at 8–
9. According to section 772(a) of the
Act, if the foreign producer or exporter
makes a sale to the first unaffiliated U.S.
customer prior to importation of subject
merchandise into the United States,
then the sale shall be classified as an EP
sale. However, pursuant to section
772(b) of the Act, if the subject
merchandise is first sold (or agreed to be
sold) in the United States before or after
the date of importation by or for the
account of the producer or exporter of
such merchandise or by a seller
affiliated with the producer or exporter,
to a purchaser not affiliated with the
producer or exporter, then the sale shall
be classified as a CEP sale. Additionally,
CEP sales can be made by either the
foreign producer/exporter or the foreign
producer/exporter’s U.S. affiliate, while
EP sales ‘‘can only be made by the
producer or exporter of the
merchandise,’’ (sales ‘‘made by a U.S.
affiliate can only be CEP’’). See AK Steel
v. United States, 226 F.3d 1361 (Fed.
Cir. 2000). Accordingly, the primary
focus of the analysis the Department
undertakes to determine whether a sale
is properly classified as EP or CEP is: (1)
Whether the sale or transaction takes
place inside or outside the United
States; and (2) whether the sale or
transaction is made by an exporter’s
United States affiliate. See id at 1370.
The record indicates that the first
sales or transactions to an unaffiliated
7 See Wire Decking from the People’s Republic of
China: Notice of Preliminary Determination of Sales
at Less Than Fair Value and Postponement of Final
Determination 75 FR 1597, 1603 (January 12, 2010).
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customer occurred in the United States.
See Hung Kuo’s December 4, 2009,
supplemental questionnaire response at
Exhibit 4. Additionally, the record also
indicates that such sales or transactions
to unaffiliated customers were made by
Hung Kuo’s U.S. affiliate, Biddeford
Blankets. See id. For a discussion of the
proprietary details of Hung Kuo’s
reported EP transactions, see ‘‘Hung Kuo
Analysis Memorandum,’’ dated January
26, 2010. Accordingly, although Hung
Kuo reported certain sales as EP
transactions, rather than CEP
transactions, because we determined,
based on the record evidence, that all
first sales to unaffiliated customers
occurred in the United States and were
between Biddeford Blankets and the
unaffiliated U.S. customers, pursuant to
section 772(b) of the Act, we classified
all reported EP sales as CEP sales for the
purposes of this preliminary
determination.
In accordance with section
772(c)(2)(A) of the Act, we calculated
CEP by deducting, where applicable, the
following expenses from the starting
price (gross unit price) charged to the
first unaffiliated customer in the United
States: sales discounts, foreign inland
freight from plant to the port of
exportation, foreign brokerage and
handling, ocean freight, marine
insurance, U.S. inland freight from port
to the warehouse, U.S. customs duty,
other U.S. transportation costs, and U.S.
brokerage and handling. Further, in
accordance with section 772(d)(1) of the
Act and 19 CFR 351.402(b), where
appropriate, we deducted from the
starting price the following selling
expenses associated with economic
activities occurring in the United States:
credit expenses, inventory carrying
costs, warranty expenses, other direct
selling expenses, and indirect selling
expenses. We calculated Hung Kuo’s
credit expenses and inventory carrying
costs based on a short-term interest rate
for commercial and industrial loans by
commercial banks published by the
Federal Reserve. We reduced movement
expenses, where appropriate, by the
amount of freight revenue paid by the
customer to Hung Kuo’s U.S. affiliate,
Biddeford Blankets. In accordance with
our practice in the recently completed
administrative review of polyethylene
retail carrier bags from the PRC, we
capped the amount of freight revenue
deducted at no greater than the amount
of movement expenses in the U.S.
market. See Polyethylene Retail Carrier
Bags from the People’s Republic of
China: Final Results of Antidumping
Duty Administrative Review, 74 FR 6857
(February 11, 2009). In addition,
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pursuant to sections 772(d)(3) and 772(f)
of the Act, we made an adjustment to
the starting price for CEP profit.
We note that Petitioner argued that
the Department should deduct, as a
direct selling expense, the value of
Hung Kuo’s reported accommodation
returns and defective returns, which
Hung Kuo reported as quantity
adjustments. See Petitioner’s December
10, 2009, submission to the Department.
Based on record evidence and in
accordance with the Department’s
treatment of warranty expenses, we
have preliminarily determined that it is
appropriate to deduct, as a direct selling
expense, the full value of refunds issued
to customers for Hung Kuo’s reported
defective returns. See Hung Kuo’s
January 20, 2010, supplemental
questionnaire response. With respect to
Hung Kuo’s reported accommodation
returns, however, there is no record
evidence that Hung Kuo or its U.S.
affiliate incurs any direct selling
expense attributable to these returns,
other than repacking expenses
associated with re-entering the
merchandise into inventory for resale.
Therefore, the Department has only
deducted repacking expenses from the
starting price to account for these
returns. See id. at 2–6. For a detailed
description of all adjustments, see
‘‘Hung Kuo Analysis Memo,’’ dated
January 26, 2010.
Normal Value
Section 773(c)(1) of the Act provides
that the Department shall determine NV
using an FOP methodology if the
merchandise is exported from a NME
country and the information does not
permit the calculation of NV using
home-market prices, third-country
prices, or constructed value under
section 773(a) of the Act. Thus, in
accordance with section 773(c) of the
Act, because available information did
not permit the NV to be determined
under section 773(a) of the Act, we
constructed NV from the FOPs
employed by Hung Kuo to manufacture
subject merchandise during the POI.
Specifically, we calculated NV by
adding together the value of the FOPs,
general expenses, profit, and packing
costs. We relied upon the FOPs reported
by Hung Kuo with the exception of the
per-unit consumption of woven textile
reported for king size blankets. Our
review of the record indicates that the
per-unit consumption of woven textile
for king size blankets has been
misreported (i.e., the per-unit
consumption rate of king size was less
than that of blankets of a smaller size).
Thus, pursuant to section 776(a) of the
Act, as facts otherwise available, we
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replaced the per-unit consumption of
woven textile reported by Hung Kuo for
king size blankets with an average perunit consumption that is based on the
per-unit consumption of woven textile
reported by Hung Kuo for queen, twin,
and full size blankets adjusted to
account for differences between the
dimensions of these products and the
dimensions of the king size blanket. See
‘‘Hung Kuo Analysis Memorandum’’; see
also Hung Kuo’s January 13, 2010
submission to the Department at Exhibit
2. We valued the FOPs using prices and
financial statements from the surrogate
country, India. If market economy
suppliers, who were paid in a market
economy currency, supplied over 33
percent of the total volume of a material
input purchased from all sources during
the POI, pursuant to Department
practice, we based the input value on
the actual price charged by the supplier.
See Antidumping Methodologies:
Market Economy Inputs, Expected NonMarket Economy Wages, Duty
Drawback; and Request for Comments,
71 FR 61716 (October 19, 2006); see also
‘‘Hung Kuo Analysis Memorandum.’’ In
selecting surrogate values, we followed,
to the extent practicable, the
Department’s practice of choosing
values which are non-export average
values, contemporaneous with, or
closest in time to, the POI, productspecific, and tax-exclusive. See, e.g.,
Notice of Preliminary Determination of
Sales at Less Than Fair Value, Negative
Preliminary Determination of Critical
Circumstances and Postponement of
Final Determination: Certain Frozen
and Canned Warmwater Shrimp From
the Socialist Republic of Vietnam, 69 FR
42672, 42682 (July 16, 2004), unchanged
in Final Determination of Sales at Less
Than Fair Value: Certain Frozen and
Canned Warmwater Shrimp from the
Socialist Republic of Vietnam, 69 FR
71005 (December 8, 2004). We also
considered the quality of the source of
surrogate information in selecting
surrogate values. See, e.g., Tapered
Roller Bearings and Parts Thereof,
Finished or Unfinished, from the
People’s Republic of China: Preliminary
Results of the 2007–2008 Administrative
Review of the Antidumping Duty Order,
74 FR 32539 (July 8, 2009), unchanged
in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From
the People’s Republic of China: Final
Results of the 2007–2008 Administrative
Review of the Antidumping Duty Order,
75 FR 844 (January 6, 2010).
We valued material inputs and
packing by multiplying the amount of
the factor consumed in producing
subject merchandise by the average unit
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5573
value of the factor. In addition, we
added freight costs to the surrogate costs
that we calculated for material inputs.
We calculated freight costs by
multiplying surrogate freight rates by
the shorter of the reported distance from
the domestic supplier to the factory that
produced the subject merchandise or
the distance from the nearest seaport to
the factory that produced the subject
merchandise, as appropriate. This
adjustment is in accordance with the
Court of Appeals for the Federal
Circuit’s decision in Sigma Corp. v.
United States, 117 F. 3d 1401, 1407–
1408 (Fed. Cir. 1997). See ‘‘Hung Kuo
Analysis Memorandum.’’ Where we
could only obtain surrogate values that
were not contemporaneous with the
POI, we inflated (or deflated) the
surrogate values using the Indian
Wholesale Price Index (WPI) as
published in the International Financial
Statistics of the International Monetary
Fund.
Further, in calculating surrogate
values from Indian imports, we
disregarded imports from Indonesia,
South Korea, and Thailand because in
other proceedings the Department found
that these countries maintain broadly
available, non-industry-specific export
subsidies. See Notice of Amended Final
Determination of Sales at Less Than
Fair Value: Certain Automotive
Replacement Glass Windshields From
the People’s Republic of China, 67 FR
11670 (March 15, 2002); see also Notice
of Final Determination of Sales at Less
Than Fair Value and Negative Final
Determination of Critical
Circumstances: Certain Color Television
Receivers From the People’s Republic of
China, 69 FR 20594 (April 16, 2004).8
Therefore, it is reasonable to infer based
on information available that all exports
to all markets from these countries may
be subsidized, and we have not used
prices from these countries in
calculating the Indian import-based
surrogate values.
Consistent with Department practice,
we valued raw materials and packing
8 In addition, we note that legislative history
explains that the Department is not required to
conduct a formal investigation to ensure that such
prices are not subsidized. See Omnibus Trade and
Competitiveness Act of 1988, Conference Report to
accompany H.R. Rep. 100–576 at 590 (1988)
reprinted in U.S.C.C.A.N. 1547, 1623–24. As such,
it is the Department’s practice to base its decision
on information that is available to it at the time it
makes its determination. See e.g. Polyethylene
Terephthalate Film, Sheet, and Strip from the
People’s Republic of China: Preliminary
Determination of Sales at Less than Fair Value, 73
FR 24552 (May 5, 2008), unchanged in Polyethylene
Terephthalate Film, Sheet, and Strip from the
People’s Republic of China: Final Determination of
Sales at Less than Fair Value, 73 FR 55039
(September 24, 2008).
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materials using Indian import statistics
that are contemporaneous with the POI,
except as noted below.
We valued electricity using price data
for small, medium, and large industries,
as published by the Central Electricity
Authority of the Government of India in
its publication entitled ‘‘Electricity
Tariff & Duty and Average Rates of
Electricity Supply in India’’, dated
March 2008. These electricity rates
represent actual countrywide, publicly
available information on tax-exclusive
electricity rates charged to industries in
India. As the rates listed in this source
became effective on a variety of different
dates, we are not adjusting the average
value for inflation. See ‘‘Surrogate Value
Memorandum.’’
We valued fuel oil/diesel using the
prices for petrol from Indian Oil Corp.
Ltd. from June 2007, after inflating the
value using the WPI for the POI. See
‘‘Surrogate Value Memorandum.’’
For direct labor, indirect labor, and
packing labor, consistent with 19 CFR
351.408(c)(3), we valued labor using the
PRC regression-based wage rate as
reported on Import Administration’s
home page, Import Library, Expected
Wages of Selected NME Countries,
revised in December 2009, available at
https://ia.ita.doc.gov/wages/.
Since this regression-based wage rate
does not separate the labor rates into
different skill levels or types of labor,
we have applied the same wage rate to
all skill levels and types of labor
reported by Hung Kuo. See ‘‘Surrogate
Value Memorandum.’’
We valued truck freight expenses
using a per-unit average rate calculated
from data on the infobanc 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. The value is contemporaneous
with the POI. See ‘‘Surrogate Value
Memorandum.’’
We valued brokerage and handling
using a simple average of the brokerage
and handling costs reported in public
submissions filed in three antidumping
duty cases. Specifically, we averaged
the public brokerage and handling
expenses reported by Navneet
Publications (India) Ltd. in the 2007–
2008 administrative review of certain
lined paper products from India, Essar
Steel Limited in the 2006–2007
antidumping duty administrative review
of hot-rolled carbon steel flat products
from India, and Himalaya International
Ltd. in the 2005–2006 administrative
review of certain preserved mushrooms
from India. Since the resulting value is
not contemporaneous with the POI, we
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Jkt 220001
inflated the rate using the WPI. See
‘‘Surrogate Value Memorandum.’’
We valued international freight and
marine insurance using purchase prices.
See ‘‘Surrogate Value Memorandum.’’
We valued factory overhead, selling,
general, and administrative (SG&A)
expenses, and profit, using the 2007–
2008 audited financial statements
provided by Hung Kuo for Bawa
Woollen and Spinning Mills, Ltd. and
Prakash Woollen Mills, Ltd., producers
of non-electric blankets. See ‘‘Surrogate
Value Memorandum.’’ Petitioner
submitted the financial statement of
Videocon Industries Ltd. (Videocon), a
producer of consumer electronics and
home appliances that is also involved in
the production of crude oil and natural
gas. See Petitioner’s November 20, 2009,
surrogate value submission at Exhibit 9.
Videocon’s statement indicates that, in
addition to the production of crude oil
and natural gas, it produces, inter alia,
color televisions, video products,
washing machines, refrigerators, and air
conditioners. We have not included
Videocon’s financial data in our
financial expense calculation because
we have preliminarily determined that
the products produced by Bawa
Woollen and Spinning Mills, Ltd., and
Prakash Woollen Mills, Ltd., are more
comparable products to the subject
merchandise produced by Hung Kuo
than the production and fossil fuel
extraction activities of Videocon. Thus,
in accordance with section 773(c)(1) of
the Act, the financial statements of
Bawa Woollen and Spinning Mills, Ltd.
and Prakash Woollen Mills, Ltd.
represent the best information available
to the Department for this preliminary
determination.
In accordance with 19 CFR
351.301(c)(3)(i), interested parties may
submit publicly available information
with which to value FOP in the final
determination within 40 days after the
date of publication of the preliminary
determination.
Verification
As provided in section 782(i)(1) of the
Act, we intend to verify the information
upon which we will rely in making our
final determination.
Combination Rates
In the Initiation Notice, the
Department stated that it would
calculate combination rates for certain
respondents that are eligible for a
separate rate in this investigation. See
Initiation Notice. This change in
practice is described in Policy Bulletin
05.1: Separate Rates Practice and
Application of Combination Rates in
Antidumping Investigations Involving
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
Non-Market Economy Countries,
available at https://ia.ita.doc.gov/.
Preliminary Determination
The weighted-average dumping
margins are as follows:
Exporter & producer
Weightedaverage
margin
percent
Hung Kuo Electronic
(Shenzhen) Company Limited Produced by: Hung Kuo
Electronic (Shenzhen) Company Limited ..........................
Ningbo V.K. Industry & Trading
Co., Ltd. Produced by:
Ningbo V.K. Industry & Trading Co., Ltd ...........................
Ningbo Jifa Electrical Appliances Co., Ltd. or Ningbo
Jinchun Electric Appliances
Co., Ltd. Produced by:
Ningbo Jifa Electrical Appliances Co., Ltd. or Ningbo
Jinchun Electric Appliances
Co., Ltd .................................
PRC-Wide Rate ........................
90.32
90.32
90.32
174.85
Disclosure
We will disclose the calculations
performed within five days of the date
of publication of this notice to parties in
this proceeding in accordance with 19
CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d) of
the Act, we will instruct CBP to suspend
liquidation of all entries of woven
electric blankets from the PRC as
described in the ‘‘Scope of Investigation’’
section, entered, or withdrawn from
warehouse, for consumption on or after
the date of publication of this notice in
the Federal Register. We will instruct
CBP to require a cash deposit or the
posting of a bond equal to the weightedaverage amount by which the NV
exceeds U.S. price, as indicated above.
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we have notified the ITC of our
preliminary affirmative determination of
sales at LTFV. Section 735(b)(2) of the
Act requires the ITC to make its final
determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
woven electric blankets, or sales (or the
likelihood of sales) for importation, of
the subject merchandise under
investigation within 45 days of our final
determination.
E:\FR\FM\03FEN1.SGM
03FEN1
Federal Register / Vol. 75, No. 22 / Wednesday, February 3, 2010 / Notices
Public Comment
Case briefs or other written comments
may be submitted to the Assistant
Secretary for Import Administration no
later than seven days after the date the
final verification report is issued in this
proceeding and rebuttal briefs, limited
to issues raised in case briefs, no later
than five days after the deadline for
submitting case briefs. See 19 CFR
351.309(c)(1)(i) and (d)(1). A list of
authorities used and an executive
summary of issues should accompany
any briefs submitted to the Department.
This summary should be limited to five
pages total, including footnotes.
In accordance with section 774 of the
Act, we will hold a public hearing, if
requested, to afford interested parties an
opportunity to comment on arguments
raised in case or rebuttal briefs. If a
request for a hearing is made, we intend
to hold the hearing three days after the
deadline of submission of rebuttal briefs
at the U.S. Department of Commerce,
14th Street and Constitution Ave, NW.,
Washington, DC 20230, at a time and in
a room to be determined. Parties should
confirm by telephone the date, time, and
location of the hearing two days before
the scheduled date.
Interested parties that wish to request
a hearing, or to participate if one is
requested, must submit a written
request to the Assistant Secretary for
Import Administration, U.S. Department
of Commerce, Room 1870, within 30
days after the date of publication of this
notice. See 19 CFR 351.310(c). Requests
should contain the party’s name,
address, and telephone number, the
number of participants, and a list of the
issues to be discussed. At the hearing,
each party may make an affirmative
presentation only on issues raised in
that party’s case brief and may make
rebuttal presentations only on
arguments included in that party’s
rebuttal brief.
jlentini on DSKJ8SOYB1PROD with NOTICES
Postponement of Final Determination
and Extension of Provisional Measures
Pursuant to section 735(a)(2) of the
Act, on January 14, 2010, Hung Kuo
requested that in the event of an
affirmative preliminary determination
in this investigation, the Department
postpone its final determination by 60
days. Additionally, on January 15, 2010,
Hung Kuo requested that the
Department extend the application of
the provisional measures prescribed
under 19 CFR 351.210(e)(2) from a 4month period to a 6-month period. In
accordance with section 733(d) of the
Act and 19 CFR 351.210(b), we are
granting the request and are postponing
the final determination until no later
VerDate Nov<24>2008
16:34 Feb 02, 2010
Jkt 220001
than 135 days after the publication of
this notice in the Federal Register
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.
Suspension of liquidation will be
extended accordingly.
This determination is issued and
published in accordance with sections
733(f) and 777(i)(1) of the Act.
Dated: January 26, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–2309 Filed 2–2–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XU14
Taking and Importing Marine
Mammals; Navy Training Activities
Conducted in the Gulf of Alaska
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; receipt of application
for letter of authorization; request for
comments and information.
AGENCY:
SUMMARY: NMFS has received a request
from the U.S. Navy (Navy) for
authorization to take marine mammals
incidental to military readiness training
activities to be conducted in the Gulf of
Alaska (GOA) Temporary Maritime
Activities Area (TMAA) for the period
beginning December 2010 and ending
December 2015. Pursuant to the
implementing regulations of the Marine
Mammal Protection Act (MMPA), NMFS
is announcing our receipt of the Navy’s
request for the development and
implementation of regulations
governing the incidental taking of
marine mammals and inviting
information, suggestions, and comments
on the Navy’s application and request.
DATES: Comments and information must
be received no later than March 5, 2010.
ADDRESSES: Comments on the
application should be addressed to
Michael Payne, Chief, Permits,
Conservation and Education Division,
Office of Protected Resources, National
Marine Fisheries Service, 1315 EastWest Highway, Silver Spring, MD
20910–3225. The mailbox address for
providing email comments is PR1.0648–
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
5575
XU14@noaa.gov. NMFS is not
responsible for e-mail comments sent to
addresses other than the one provided
here. Comments sent via e-mail,
including all attachments, must not
exceed a 10–megabyte file size.
FOR FURTHER INFORMATION CONTACT: Jolie
Harrison, Office of Protected Resources,
NMFS, (301) 713–2289, ext. 166.
SUPPLEMENTARY INFORMATION:
Availability
A copy of the Navy’s application may
be obtained by writing to the address
specified above (See ADDRESSES),
telephoning the contact listed above (see
FOR FURTHER INFORMATION CONTACT), or
visiting the internet at: https://
www.nmfs.noaa.gov/pr/permits/
incidental.htm. The Navy’s Draft
Environmental Impact Statement (DEIS)
for the GOA TMAA was made available
to the public on December 11, 2009, and
may be viewed at https://
www.gulfofalaskanavyeis.com/. During
the initial 45–day public comment
period, the Navy hosted five public
hearings.
Background
In the case of military readiness
activities, sections 101(a)(5)(A) and (D)
of the MMPA (16 U.S.C. 1361 et seq.)
direct the Secretary of Commerce
(Secretary) to allow, upon request, the
incidental, but not intentional taking of
marine mammals by U.S. citizens who
engage in a specified activity (other than
commercial fishing) if certain findings
are made and regulations are issued or,
if the taking is limited to harassment,
notice of a proposed authorization is
provided to the public for review.
Authorization for incidental takings
may be granted if NMFS finds that the
taking will have no more than a
negligible impact on the species or
stock(s), will not have an unmitigable
adverse impact on the availability of the
species or stock(s) for subsistence uses,
and that the permissible methods of
taking and requirements pertaining to
the mitigation, monitoring and reporting
of such taking are set forth.
NMFS has defined ‘‘negligible impact’’
in 50 CFR 216.103 as:
an impact resulting from the specified
activity that cannot be reasonably expected
to, and is not reasonably likely to, adversely
affect the species or stock through effects on
annual rates of recruitment or survival.
With respect to military readiness
activities, the MMPA defines
‘‘harassment’’ as:
(i) any act that injures or has the significant
potential to injure a marine mammal or
marine mammal stock in the wild [Level A
Harassment]; or (ii) any act that disturbs or
is likely to disturb a marine mammal or
E:\FR\FM\03FEN1.SGM
03FEN1
Agencies
[Federal Register Volume 75, Number 22 (Wednesday, February 3, 2010)]
[Notices]
[Pages 5567-5575]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2309]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-951]
Certain Woven Electric Blankets From the People's Republic of
China: Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: February 3, 2010.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that certain woven electric blankets (woven electric
blankets) from the People's Republic of China (PRC) are being, or are
likely to be, sold in the United States at less than fair value (LTFV),
as provided in section 733 of the Tariff Act of 1930, as amended (the
Act). The estimated dumping margins are shown in the ``Preliminary
Determination'' section of this notice.
FOR FURTHER INFORMATION CONTACT: Drew Jackson or Howard Smith, AD/CVD
Operations, Office 4, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4406 or 482-5193, respectively.
SUPPLEMENTARY INFORMATION:
Background
On June 30, 2009, the Department received an antidumping duty
petition concerning imports of woven electric blankets from the PRC
filed in proper form by Jarden Consumer Solutions (Petitioner). See
Petition for the Imposition of Antidumping Duties: Certain Woven
Electric Blankets from the People's Republic of China, dated June 30,
2009 (Petition). The Department initiated an antidumping duty
investigation of woven electric blankets from the PRC on July 20, 2009.
See Certain Woven Electric Blankets From the People's Republic of
China: Initiation of Antidumping Duty Investigation, 74 FR 37001 (July
27, 2009) (Initiation Notice).
On July 20, 2009, the Department requested quantity and value (Q&V)
information from the 30 companies that are identified in the petition
as potential producers or exporters of woven electric blankets from the
PRC. See ``Respondent Selection in the Antidumping Duty Investigation
of Woven Electric Blankets From the People's Republic of China,'' dated
September 3, 2009 (Respondent Selection Memorandum). The
[[Page 5568]]
Department received timely responses to its Q&V questionnaire from the
following companies: Hung Kuo Electronic (Shenzhen) Company Limited
(Hung Kuo); Ningbo Zhonglei Maofangzhi Ranzheng Co., Ltd. (Ningbo
Zhonglei); Zhejiang Hewei Knitting Technology Co., Ltd.; Ningbo Jifa
Electrical Appliances Co., Ltd. (Jifa); Ningbo Jinchun Electric
Appliances Co., Ltd. (Jinchun); \1\ Ningbo V.K. Industry & Trading Co.,
Ltd. (Ningbo V.K.); and Chengdu Rainbow Appliance (Group) Sharers Co.,
Ltd. The Department confirmed that 19 of the 30 companies received the
Q&V questionnaire, while the international courier service shipment
tracking results showed that DHL had arranged for delivery of the
Department's Q&V questionnaire to an additional 10 companies. See
``Respondent Selection Memorandum.'' Additionally, one of the
Department's Q&V questionnaires was returned to the Department due to
an incorrect address provided by Petitioner. Only the above-named
companies responded to the Department's Q&V questionnaire.
---------------------------------------------------------------------------
\1\ Jifa and Jinchun submitted a combined Q&V response. These
companies stated that they should be collapsed for purposes of this
investigation. See Jifa and Jichun's August 11, 2009, Q&V response.
For further discussion of this issue, see the section entitled,
``Separate Rates,'' below.
---------------------------------------------------------------------------
On August 13, 2009, the International Trade Commission (ITC)
preliminarily determined that there is a reasonable indication that an
industry in the United States is materially injured or threatened with
material injury by reason of imports of woven electric blankets from
the PRC. See Woven Electric Blankets From China, Investigation No. 731-
TA-1163 (Preliminary), 74 FR 42323 (August 21, 2009). Also, in August
2009, Petitioner submitted comments to the Department regarding the
physical characteristics of subject merchandise that it argued should
be used in comparing sales prices with normal value (NV).
On September 3, 2009, the Department selected Hung Kuo as the
mandatory respondent and issued an antidumping questionnaire to the
company. See ``Respondent Selection Memorandum.'' Hung Kuo submitted
timely responses to the Department's questionnaire on September 3,
2009, October 16, 2009, and October 27, 2009. On September 25, 2009,
the Department received properly filed separate-rate applications from
Jifa, Jinchun, and Ningbo V.K.
The Department issued supplemental questionnaires to, and received
responses from Hung Kuo, Jifa, Jinchun, and Ningbo V.K. from October
through January 2010. Petitioner submitted comments to the Department
regarding Hung Kuo's questionnaire and supplemental questionnaire
responses from June 2009, through January 2010.
On October 30, 2009, the Department released a memorandum to
interested parties which listed potential surrogate countries and
invited interested parties to comment on surrogate country and
surrogate value selection. During November and December 2009, and
January 2010, Petitioner and Hung Kuo submitted comments on the
appropriate surrogate country and surrogate values. The submitted
surrogate value data submitted by Petitioner and Hung Kuo are for
India.
On November 5, 2009, Petitioner requested postponement of the
preliminary determination. On November 16, 2009, the Department
extended this preliminary determination by fifty days. See Certain
Woven Electric Blankets From the People's Republic of China:
Postponement of Preliminary Determination of Antidumping Duty
Investigation, 74 FR 60236 (November 20, 2009). On January 14, 2010,
Hung Kuo requested that the Department extend the final determination
in this case. See the ``Postponement of Final Determination'' section
of this notice below.
Period of Investigation
The period of investigation (POI) is October 1, 2008, through March
31, 2009. This period corresponds to the two most recently completed
fiscal quarters prior to the month in which the petition was filed
(i.e., June 2009). See 19 CFR 351.204(b)(1).
Scope of the Investigation
The scope of this investigation covers finished, semi-finished, and
unassembled woven electric blankets, including woven electric blankets
commonly referred to as throws, of all sizes and fabric types, whether
made of man-made fiber, natural fiber or a blend of both. Semi-finished
woven electric blankets and throws consist of shells of woven fabric
containing wire. Unassembled woven electric blankets and throws consist
of a shell of woven fabric and one or more of the following components
when packaged together or in a kit: (1) Wire; (2) controller(s). The
shell of woven fabric consists of two sheets of fabric joined together
forming a ``shell.'' The shell of woven fabric is manufactured to
accommodate either the electric blanket's wiring or a subassembly
containing the electric blanket's wiring (e.g., wiring mounted on a
substrate).
A shell of woven fabric that is not packaged together, or in a kit,
with either wire, controller(s), or both, is not covered by this
investigation even though the shell of woven fabric may be dedicated
solely for use as a material in the production of woven electric
blankets.
The finished, semi-finished and unassembled woven electric blankets
and throws subject to this investigation are currently classifiable
under subheading 6301.10.0000 of the Harmonized Tariff Schedule of the
United States (HTSUS). Although the HTSUS subheading is provided for
convenience and customs purposes, only the written description of the
scope is dispositive.
Scope Comments
In accordance with the preamble to the Department's regulations, we
set aside a period of time in our Initiation Notice for parties to
raise issues regarding product coverage, and encouraged all parties to
submit comments within 20 calendar days of the signature date of that
notice. See Antidumping Duties; Countervailing Duties; Final Rule, 62
FR 27296, 27323 (May 19, 1997), see also Initiation Notice. Before the
Department initiated the instant investigation, interested parties
submitted comments regarding the proposed scope of the investigation;
however, the Department made no changes to the proposed scope of the
investigation. See Initiation Notice. After initiation, the Department
received no additional comments concerning the scope of the woven
electric blankets antidumping duty investigation, and, therefore, the
Department has not modified the scope.
Non-Market Economy Treatment
The Department considers the PRC to be a non-market economy (NME)
country. In accordance with section 771(18)(C)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See, e.g., Tapered Roller
Bearings and Parts Thereof (TRBs), Finished and Unfinished, From the
People's Republic of China: Preliminary Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 7500
(February 14, 2003), unchanged in TRBs, Finished and Unfinished, From
the People's Republic of China: Final Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 70488
(December 18, 2003). The Department has not revoked the PRC's status as
an NME country. Therefore, in this preliminary
[[Page 5569]]
determination, we have treated the PRC as an NME country and applied
our current NME methodology.
Surrogate Country and Value Comments
On October 30, 2009, the Department released a Policy Memorandum to
interested parties identifying potential surrogate countries and
provided parties with an opportunity to submit comments regarding the
selection of a surrogate country in the instant investigation. See
Memorandum to Howard Smith, Program Manager, AD/CVD Operations Office
4, from Kelly Parkhill, Acting Director for Policy, Office of Policy,
``Request for A List of Surrogate Countries for an Antidumping Duty
Investigation of Certain Woven Electric Blankets (WEB) from the
People's Republic of China (PRC),'' dated October 28, 2009 (Office of
Policy Surrogate Country List Memorandum). The countries identified in
that memorandum as being at a level of economic development comparable
to the PRC for the specified POI are India, Indonesia, the Philippines,
Colombia, Thailand, and Peru. On November 20, 2009, the Department
received comments on surrogate country selection and surrogate value
information from Petitioner and Hung Kuo. On December 4, 2009,
Petitioner and Hung Kuo submitted rebuttal comments. Both Petitioner
and Hung Kuo assert that the Department should select India as the
appropriate surrogate country. No other interested parties commented on
the selection of a surrogate country. For a detailed discussion of the
selection of the surrogate country, see the ``Surrogate Country''
section below.
Surrogate Country
When the Department is investigating imports from an NME, section
773(c)(1) of the Act directs it to base NV, in most circumstances, 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 FOP, the Department shall utilize, to the extent possible, the
prices or costs of FOP in one or more market-economy countries that are
at a level of economic development comparable to that of the NME
country and are significant producers of comparable merchandise. The
sources of the surrogate values we have used in this investigation are
discussed under the ``Normal Value'' section below.
The Department determined that India, the Philippines, Indonesia,
Colombia, Thailand and Peru are countries comparable to the PRC in
terms of economic development. See ``Office of Policy Surrogate Country
List Memorandum.'' Once the countries that are economically comparable
to the PRC have been identified, we select an appropriate surrogate
country by determining whether an economically comparable country is a
significant producer of comparable merchandise and whether the data for
valuing FOP is both available and reliable. See id. In their November
20, 2009, submissions, Hung Kuo and Petitioner stated that the
Department should select India as a surrogate country because it
satisfies the statutory requirements for the selection of a surrogate
country since it is at a level of economic development that is
comparable to the PRC, and is a significant producer of merchandise
comparable to the merchandise under investigation. Hung Kuo and
Petitioner also put information on the record demonstrating that the
Department can value the major FOP for subject merchandise using
reliable, publicly available data from Indian sources. See Hung Kuo's
and Petitioner's November 20, 2009, surrogate country and surrogate
value comments. No other party provided comments on the record
concerning the surrogate country.
Based on evidence placed on the record, we have determined that it
is appropriate to use India as a surrogate country pursuant to section
773(c)(4) of the Act based on the following: (1) It is at a level of
economic development comparable to the PRC pursuant to section
773(c)(4) of the Act; (2) it is a significant producer of comparable
merchandise; and (3) we have reliable data from India that we can use
to value the FOP. See Hung Kuo's and Petitioner's November 20, 2009,
surrogate country and surrogate value comments; see also Hung Kuo's and
Petitioner's December 4, 2009, surrogate country and surrogate value
rebuttal comments. Thus, to calculate NV, we are using Indian prices,
when available and appropriate, to value the FOPs of Hung Kuo, the
mandatory respondent. We have obtained and relied upon publicly
available information wherever possible. See Surrogate Value
Memorandum, dated January 26, 2010 (Surrogate Value Memorandum).
In accordance with 19 CFR 351.301(c)(3)(i), for the final
determination in an antidumping duty investigation, interested parties
may submit publicly available information to value the FOP within 40
days after the date of publication of the preliminary determination.\2\
---------------------------------------------------------------------------
\2\ In accordance with 19 CFR 351.301(c)(1), for the final
determination of this investigation, interested parties may submit
factual information to rebut, clarify, or correct factual
information submitted by an interested party less than ten days
before, on, or after, the applicable deadline for submission of such
factual information. However, the Department notes that 19 CFR
351.301(c)(1) permits new information only insofar as it rebuts,
clarifies, or corrects information recently placed on the record.
The Department generally will not accept the submission of
additional, previously absent-from-the-record alternative surrogate
value information pursuant to 19 CFR 351.301(c)(1). See Glycine from
the People's Republic of China: Final Results of Antidumping Duty
Administrative Review and Final Rescission, in Part, 72 FR 58809
(October 17, 2007), and accompanying Issues and Decision Memorandum
at Comment 2.
---------------------------------------------------------------------------
Separate Rates
In the Initiation Notice, the Department notified parties of the
application process by which exporters and producers may obtain
separate-rate status in NME investigations. The process requires
exporters and producers to submit a separate-rate status
application.\3\
---------------------------------------------------------------------------
\3\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigations
involving Non-Market Economy Countries (April 5, 2005), available at
https://ia.ita.doc.gov, which states: ``While continuing the practice
of assigning separate rates only to exporters, all separate rates
that the Department will now assign in its NME investigations will
be specific to those producers that supplied the exporter during the
period of investigation. Note, however, that one rate is calculated
for the exporter and all of the producers which supplied subject
merchandise to it during the period of investigation. This practice
applied both to mandatory respondents receiving an individually
calculated separate rate as well as the pool of non-investigated
firms receiving the weighted-average of the individually calculated
rates. This practice is referred to as the application of
``combination rates'' because such rates apply to specific
combinations of exporters and one or more producers. The cash-
deposit rate assigned to an exporter will apply only to merchandise
both exported by the firm in question and produced by a firm that
supplied the exporter during the period of investigation.''
---------------------------------------------------------------------------
In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and thus should be assessed a single
antidumping duty rate. It is the Department's policy to assign all
exporters of merchandise subject in an NME country this single rate
unless an exporter can demonstrate that it is sufficiently independent
so as to be entitled to a separate rate. Exporters can demonstrate this
independence through the absence of both de jure and de facto
governmental control over export activities. The Department analyzes
each entity exporting the subject merchandise under a test arising from
the Notice of Final Determination of Sales at Less
[[Page 5570]]
Than Fair Value: Sparklers From the People's Republic of China, 56 FR
20588 (May 6, 1991) (Sparklers), as further developed in Notice of
Final Determination of Sales at Less Than Fair Value: Silicon Carbide
From the People's Republic of China, 59 FR 22585 (May 2, 1994) (Silicon
Carbide). However, if the Department determines that a company is
wholly foreign-owned or located in a market economy, then a separate-
rate analysis is not necessary to determine whether it is independent
from government control.
A. Separate Rate Applicants \4\
---------------------------------------------------------------------------
\4\ All separate rate applicants receiving a separate rate are
hereby referred to collectively as the ``SR Recipients.''
---------------------------------------------------------------------------
1. Wholly Foreign-Owned
Hung Kuo, the mandatory respondent, reported that it is wholly
owned by individuals or companies located in a market economy in its
separate rate application. See Hung Kuo's September 29, 2009, Section A
questionnaire response at 6. Therefore, because the record indicates
that it is wholly foreign-owned, and we have no evidence otherwise
indicating that it is under the control of the PRC government, in
accordance with Department practice, we determined that further
separate rates analysis is not necessary to determine whether this
company is independent from government control. See, e.g., Notice of
Final Determination of Sales at Less Than Fair Value: Creatine
Monohydrate From the People's Republic of China, 64 FR 71104-05
(December 20, 1999) (where the respondent was wholly foreign-owned and,
thus, qualified for a separate rate). Accordingly, we have
preliminarily granted a separate rate to Hung Kuo Electronics
(Shenzhen) Company Limited.
2. Wholly Chinese-Owned
One separate rate applicant, Ningbo V.K., stated that it is a
wholly Chinese-owned company. See Ningbo V.K.'s September 25, 2009
Separate Rate Application (Ningbo V.K.'s SRA) at 7-10. Therefore, the
Department must analyze whether this respondent can demonstrate the
absence of both de jure and de facto governmental control over export
activities.
3. Joint Ventures Between Chinese and Foreign Companies
Two companies, Jifa and Jinchun, submitted a combined separate rate
application. In the separate rate application, Jifa reported that it is
a joint venture company invested by one Chinese legal person and one
Hong Kong individual; Jinchun reported that it is wholly-owned by a
Hong Kong individual. See Jifa and Jinchun's September 25, 2009,
separate rate application (Jifa/Jinchun's SRA) at 8. Jifa and Jinchun
also reported that they are affiliated through common ownership and
that they share the same board members and general managers. See Jifa
and Jinchun's November 19, 2009, supplemental questionnaire response,
at 1-2. Thus, the record supports a preliminary finding that Jifa and
Jichun meet the definition of affiliated parties pursuant to sections
771(33)(G) of the Act. Further, pursuant to 19 CFR 351.401(f)(1), we
preliminarily find that it is appropriate to treat Jifa and Jinchun as
a single entity because: (1) They have production facilities for
similar or identical products that would not require substantial
retooling of either facility in order to restructure manufacturing
priorities; and (2) there is a significant potential for the
manipulation of price or production. In accordance with 19 CFR
351.401(f)(2) we preliminarily find that a significant potential for
the manipulation of price or production exists because Jifa and Jinchun
share a high level of common ownership, share a general manager and a
board member, and share production facilities and employees.
Because the Jifa/Jinchun collapsed entity is a joint venture
between a PRC and a foreign (i.e., Hong Kong) company, the Department
has also analyzed whether the Jifa/Jinchun collapsed entity has
demonstrated the absence of de jure and de facto governmental control
over its respective export activities.
a. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) An absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, at 20589.
Ningbo V.K. and the collapsed Jifa/Jinchun entity provided evidence
demonstrating the following: (1) An absence of restrictive stipulations
associated with each exporter's business and export licenses; (2) there
are applicable legislative enactments decentralizing control of each
company; and (3) and there are formal measures by the government
decentralizing control of each company. See Ningbo V.K.'s SRA at 7-10.
See also Jifa/Jinchun's SRA at 7-10. Accordingly, based on this record
evidence, we preliminarily find that Ningbo V.K. and the collapsed
Jifa/Jinchun entity have demonstrated an absence of de jure
governmental control.
b. Absence of De Facto Control
Typically the Department considers four factors in evaluating
whether each respondent is subject to de facto governmental control of
its export functions: (1) Whether the export prices are set by or are
subject to the approval of a governmental agency; (2) whether the
respondent has authority to negotiate and sign contracts and other
agreements; (3) whether the respondent has autonomy from the government
in making decisions regarding the selection of management; and (4)
whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding disposition of profits or
financing of losses. See Silicon Carbide at 22586-87; see also Notice
of Final Determination of Sales at Less Than Fair Value: Furfuryl
Alcohol From the People's Republic of China, 60 FR 22544, 22545 (May 8,
1995). The Department has determined that an analysis of de facto
control is critical in determining whether respondents are, in fact,
subject to a degree of governmental control which would preclude the
Department from assigning separate rates.
We have determined that the evidence on the record supports a
preliminary finding of de facto absence of governmental control with
respect to Ningbo V.K., and the collapsed Jifa/Jinchun entity, based on
record statements and supporting documentation showing that the
companies: (1) Set their own export prices independent of the
government and without the approval of a government authority; (2)
retain the proceeds from their sales and make independent decisions
regarding disposition of profits or financing of losses; (3) have the
authority to negotiate and sign contracts and other agreements; and (4)
have autonomy from the government regarding the selection of
management. See Ningbo V.K.'s SRA at 10-17; Jifa/Jinchun's SRA at 11-
18; see also Ningbo V.K's November 10, 2009, supplemental questionnaire
response.
The evidence placed on the record of this investigation by Hung
Kuo, Ningbo V.K., and the collapsed Jifa/Jinchun entity, demonstrate an
absence of ownership by NME residents or entities, and an absence of de
jure and de facto government control with respect to the
[[Page 5571]]
exporters' exports of the merchandise under investigation, in
accordance with the criteria identified in Sparklers and Silicon
Carbide. Therefore, we have preliminarily granted Hung Kuo, Ningbo
V.K., and the collapsed Jifa/Jinchun entity, separate rate status.
Consistent with Department practice, we calculated a company-specific
dumping margin for Hung Kuo and assigned this margin to Ningbo V.K.,
and the collapsed Jifa/Jinchun entity. See, e.g., Preliminary
Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Affirmative Preliminary Determination of Critical
Circumstances, in Part: Light-Walled Rectangular Pipe and Tube From the
People's Republic of China, 73 FR 5500 (January 30, 2008), unchanged in
Final Determination of Sales at Less Than Fair Value and Affirmative
Determination of Critical Circumstances, in Part: Light-Walled
Rectangular Pipe and Tube From the People's Republic of China, 73 FR
35652 (June 24, 2008) (LWR from the PRC).
The PRC-Wide Entity
The Department has data indicating that there were more exporters
of woven electric blankets from the PRC than those responding to our
request for Q&V information during the POI. See ``Respondent Selection
Memorandum.'' We issued our request for Q&V information to 30 potential
Chinese exporters of the merchandise under investigation, in addition
to posting the Q&V questionnaire on the Department's website. While
information on the record of this investigation indicates that there
are other producers/exporters of woven electric blankets in the PRC, we
received only seven timely filed Q&V responses. See id. Although all
exporters were given an opportunity to provide Q&V information, not all
exporters provided a response to the Department's Q&V letter.
Therefore, the Department has preliminarily determined that there were
exporters/producers of the merchandise under investigation during the
POI from the PRC that did not respond to the Department's request for
information. We have treated these PRC producers/exporters as part of
the PRC-wide entity because they did not qualify for a separate rate.
See, e.g., Preliminary Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Preliminary Partial
Determination of Critical Circumstances: Diamond Sawblades and Parts
Thereof From the People's Republic of China, 70 FR 77121, 77128
(December 29, 2005), unchanged in Final Determination of Sales at Less
Than Fair Value and Final Partial Affirmative Determination of Critical
Circumstances: Diamond Sawblades and Parts Thereof From the People's
Republic of China, 71 FR 29303 (May 22, 2006).
Section 776(a)(2) of the Act provides that the Department shall,
subject to subsection 782(d) of the Act, use facts otherwise available
in reaching the applicable determination if an interested party: (A)
Withholds information that has been requested by the Department; (B)
fails to provide such information in a timely manner or in the form or
manner requested, subject to subsections 782(c)(1) and (e) of the Act;
(C) significantly impedes a proceeding under the antidumping statute;
or (D) provides such information but the information cannot be
verified.
As noted above, the PRC-wide entity withheld information requested
by the Department. As a result, pursuant to section 776(a)(2)(A) of the
Act, we find it appropriate to base the PRC-wide dumping margin on
facts otherwise available. See Notice of Preliminary Determination of
Sales at Less Than Fair Value, Affirmative Preliminary Determination of
Critical Circumstances and Postponement of Final Determination: Certain
Frozen Fish Fillets From the Socialist Republic of Vietnam, 68 FR 4986
(January 31, 2003), unchanged in Notice of Final Antidumping Duty
Determination of Sales at Less Than Fair Value and Affirmative Critical
Circumstances: Certain Frozen Fish Fillets From the Socialist Republic
of Vietnam, 68 FR 37116 (June 23, 2003).
Section 776(b) of the Act provides that, in selecting from among
the facts otherwise available, the Department may employ an adverse
inference if an interested party fails to cooperate by not acting to
the best of its ability to comply with requests for information. See
Statement of Administrative Action, accompanying the Uruguay Round
Agreements Act, H.R. Rep. No. 103-316, Vol. I at 843 (1994) (SAA),
reprinted in 1994 U.S.C.C.A.N. 4040 at 870. See also, Notice of Final
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled
Flat-Rolled Carbon-Quality Steel Products From the Russian Federation,
65 FR 5510, 5518 (February 4, 2000). Because the PRC-wide entity did
not respond to the Department's requests for information, the
Department has concluded that the PRC-wide entity has failed to
cooperate to the best of its ability. Therefore, the Department
preliminarily finds that, in selecting from among the facts available,
an adverse inference is appropriate.
Section 776(b) of the Act authorizes the Department to rely upon,
as adverse facts available (AFA): (1) Information derived from the
petition; (2) the final determination from the LTFV investigation; (3)
a previous administrative review; or (4) any other information placed
on the record. In selecting a rate for AFA, the Department selects one
that is sufficiently adverse ``as to effectuate the purpose of the
facts available rule to induce respondents to provide the Department
with complete and accurate information in a timely manner.'' See Notice
of Final Determination of Sales at Less Than Fair Value: Static Random
Access Memory Semiconductors From Taiwan, 63 FR 8909 (February 23,
1998). It is the Department's practice to select, as AFA, the higher
of: (a) The highest margin alleged in the petition or (b) the highest
calculated rate for any respondent in the investigation, to the extent
that it can be corroborated (assuming the rate is based on secondary
information). See Final Determination of Sales at Less Than Fair Value:
Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products From the
People's Republic of China, 65 FR 34660 (May 31, 2000), and
accompanying Issues and Decisions Memorandum at Facts Available. In the
instant investigation, as AFA, we have preliminarily assigned to the
PRC-wide entity, the highest corroborated margin alleged in the
Petition, which is 174.85 percent. The dumping margin for the PRC-wide
entity applies to all entries of the merchandise under investigation
except for entries of subject merchandise produced and exported by Hung
Kuo, Ningbo V.K., and Jifa/Jinchun.
Companies Not Receiving a Separate Rate
In the Initiation Notice, the Department requested that all
companies wishing to qualify for separate rate status in this
investigation submit a separate rate status application. See Initiation
Notice. Two exporters, Zhejiang Hewei Knitting Technology Co., Ltd. and
Ningbo Zhonglei Maofangzhi Ranzheng Co., submitted timely responses to
the Department's Q&V questionnaire but did not provide separate rate
applications, and, therefore, have not demonstrated their eligibility
for separate rate status in this investigation. As a result, the
Department is treating these Chinese exporters as part of the PRC-wide
entity.
Corroboration of Information
Section 776(c) of the Act provides that, when the Department relies
on
[[Page 5572]]
secondary information rather than on information obtained in the course
of an investigation as facts available, it must, to the extent
practicable, corroborate that information from independent sources
reasonably at its disposal. Secondary information is described as
``information derived from the petition that gave rise to the
investigation or review, the final determination concerning merchandise
subject to this investigation, or any previous review under section 751
concerning the merchandise subject to this investigation.'' \5\ To
``corroborate'' means simply that the Department will satisfy itself
that the secondary information to be used has probative value.
Independent sources used to corroborate may include, for example,
published price lists, official import statistics and customs data, and
information obtained from interested parties during the particular
investigation. To corroborate secondary information, the Department
will, to the extent practicable, examine the reliability and relevance
of the information used.\6\
---------------------------------------------------------------------------
\5\ See Final Determination of Sales at Less Than Fair Value:
Sodium Hexametaphosphate From the People's Republic of China, 73 FR
6479, 6481 (February 4, 2008), quoting SAA at 870.
\6\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or
Less in Outside Diameter, and Components Thereof, From Japan;
Preliminary Results of Antidumping Duty Administrative Reviews and
Partial Termination of Administrative Reviews, 61 FR 57391, 57392
(November 6, 1996), unchanged in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From Japan, and Tapered Roller
Bearings, Four Inches or Less in Outside Diameter, and Components
Thereof, From Japan; Final Results of Antidumping Duty
Administrative Reviews and Termination in Part, 62 FR 11825 (March
13, 1997).
---------------------------------------------------------------------------
The AFA rate that the Department used for the PRC-wide entity is
from the Petition. Based on our examination of information on the
record, including United States price and NV, we find that there is a
sufficient basis to find that the Petition margin selected as the AFA
rate, 174.85 percent, has probative value. In this case, we have
selected a margin that is not so much greater than the highest CONNUM-
specific margin calculated for Hung Kuo in this proceeding that it can
be considered not to have probative value. See ``Hung Kuo Analysis
Memorandum.'' Petitioners' methodology for calculating the United
States price and NV in the Petition is discussed in the Initiation
Notice. Accordingly, we conclude that, using Hung Kuo's highest CONNUM-
specific margin as a limited reference point, the highest Petition
margin that can be corroborated within the meaning of the statute is
174.85 percent, which is sufficiently adverse so as to induce
cooperation such that an uncooperative party does not benefit from its
failure to cooperate.\7\
---------------------------------------------------------------------------
\7\ See Wire Decking from the People's Republic of China: Notice
of Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination 75 FR 1597, 1603 (January 12,
2010).
---------------------------------------------------------------------------
Fair Value Comparisons
In accordance with section 777(A) of the Act, to determine whether
Hung Kuo, the mandatory respondent, sold woven electric blankets to the
United States at LTFV, we compared the weighted-average constructed
export price (CEP) of the woven electric blankets to the NV of the
woven electric blankets, as described in the ``U.S. Price,'' and
``Normal Value'' sections of this notice.
U.S. Price
Constructed Export Price
Although Hung Kuo reported that it made both export price (EP) and
CEP sales to the United States during the POI, the Department has
preliminarily determined that all of Hung Kuo's reported sales were, in
fact, CEP sales. See Hung Kuo's October 16 2009, Section C
Questionnaire Response at 8-9. According to section 772(a) of the Act,
if the foreign producer or exporter makes a sale to the first
unaffiliated U.S. customer prior to importation of subject merchandise
into the United States, then the sale shall be classified as an EP
sale. However, pursuant to section 772(b) of the Act, if the subject
merchandise is first sold (or agreed to be sold) in the United States
before or after the date of importation by or for the account of the
producer or exporter of such merchandise or by a seller affiliated with
the producer or exporter, to a purchaser not affiliated with the
producer or exporter, then the sale shall be classified as a CEP sale.
Additionally, CEP sales can be made by either the foreign producer/
exporter or the foreign producer/exporter's U.S. affiliate, while EP
sales ``can only be made by the producer or exporter of the
merchandise,'' (sales ``made by a U.S. affiliate can only be CEP'').
See AK Steel v. United States, 226 F.3d 1361 (Fed. Cir. 2000).
Accordingly, the primary focus of the analysis the Department
undertakes to determine whether a sale is properly classified as EP or
CEP is: (1) Whether the sale or transaction takes place inside or
outside the United States; and (2) whether the sale or transaction is
made by an exporter's United States affiliate. See id at 1370.
The record indicates that the first sales or transactions to an
unaffiliated customer occurred in the United States. See Hung Kuo's
December 4, 2009, supplemental questionnaire response at Exhibit 4.
Additionally, the record also indicates that such sales or transactions
to unaffiliated customers were made by Hung Kuo's U.S. affiliate,
Biddeford Blankets. See id. For a discussion of the proprietary details
of Hung Kuo's reported EP transactions, see ``Hung Kuo Analysis
Memorandum,'' dated January 26, 2010. Accordingly, although Hung Kuo
reported certain sales as EP transactions, rather than CEP
transactions, because we determined, based on the record evidence, that
all first sales to unaffiliated customers occurred in the United States
and were between Biddeford Blankets and the unaffiliated U.S.
customers, pursuant to section 772(b) of the Act, we classified all
reported EP sales as CEP sales for the purposes of this preliminary
determination.
In accordance with section 772(c)(2)(A) of the Act, we calculated
CEP by deducting, where applicable, the following expenses from the
starting price (gross unit price) charged to the first unaffiliated
customer in the United States: sales discounts, foreign inland freight
from plant to the port of exportation, foreign brokerage and handling,
ocean freight, marine insurance, U.S. inland freight from port to the
warehouse, U.S. customs duty, other U.S. transportation costs, and U.S.
brokerage and handling. Further, in accordance with section 772(d)(1)
of the Act and 19 CFR 351.402(b), where appropriate, we deducted from
the starting price the following selling expenses associated with
economic activities occurring in the United States: credit expenses,
inventory carrying costs, warranty expenses, other direct selling
expenses, and indirect selling expenses. We calculated Hung Kuo's
credit expenses and inventory carrying costs based on a short-term
interest rate for commercial and industrial loans by commercial banks
published by the Federal Reserve. We reduced movement expenses, where
appropriate, by the amount of freight revenue paid by the customer to
Hung Kuo's U.S. affiliate, Biddeford Blankets. In accordance with our
practice in the recently completed administrative review of
polyethylene retail carrier bags from the PRC, we capped the amount of
freight revenue deducted at no greater than the amount of movement
expenses in the U.S. market. See Polyethylene Retail Carrier Bags from
the People's Republic of China: Final Results of Antidumping Duty
Administrative Review, 74 FR 6857 (February 11, 2009). In addition,
[[Page 5573]]
pursuant to sections 772(d)(3) and 772(f) of the Act, we made an
adjustment to the starting price for CEP profit.
We note that Petitioner argued that the Department should deduct,
as a direct selling expense, the value of Hung Kuo's reported
accommodation returns and defective returns, which Hung Kuo reported as
quantity adjustments. See Petitioner's December 10, 2009, submission to
the Department. Based on record evidence and in accordance with the
Department's treatment of warranty expenses, we have preliminarily
determined that it is appropriate to deduct, as a direct selling
expense, the full value of refunds issued to customers for Hung Kuo's
reported defective returns. See Hung Kuo's January 20, 2010,
supplemental questionnaire response. With respect to Hung Kuo's
reported accommodation returns, however, there is no record evidence
that Hung Kuo or its U.S. affiliate incurs any direct selling expense
attributable to these returns, other than repacking expenses associated
with re-entering the merchandise into inventory for resale. Therefore,
the Department has only deducted repacking expenses from the starting
price to account for these returns. See id. at 2-6. For a detailed
description of all adjustments, see ``Hung Kuo Analysis Memo,'' dated
January 26, 2010.
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine NV using an FOP methodology if the merchandise is exported
from a NME country and the information does not permit the calculation
of NV using home-market prices, third-country prices, or constructed
value under section 773(a) of the Act. Thus, in accordance with section
773(c) of the Act, because available information did not permit the NV
to be determined under section 773(a) of the Act, we constructed NV
from the FOPs employed by Hung Kuo to manufacture subject merchandise
during the POI. Specifically, we calculated NV by adding together the
value of the FOPs, general expenses, profit, and packing costs. We
relied upon the FOPs reported by Hung Kuo with the exception of the
per-unit consumption of woven textile reported for king size blankets.
Our review of the record indicates that the per-unit consumption of
woven textile for king size blankets has been misreported (i.e., the
per-unit consumption rate of king size was less than that of blankets
of a smaller size). Thus, pursuant to section 776(a) of the Act, as
facts otherwise available, we replaced the per-unit consumption of
woven textile reported by Hung Kuo for king size blankets with an
average per-unit consumption that is based on the per-unit consumption
of woven textile reported by Hung Kuo for queen, twin, and full size
blankets adjusted to account for differences between the dimensions of
these products and the dimensions of the king size blanket. See ``Hung
Kuo Analysis Memorandum''; see also Hung Kuo's January 13, 2010
submission to the Department at Exhibit 2. We valued the FOPs using
prices and financial statements from the surrogate country, India. If
market economy suppliers, who were paid in a market economy currency,
supplied over 33 percent of the total volume of a material input
purchased from all sources during the POI, pursuant to Department
practice, we based the input value on the actual price charged by the
supplier. See Antidumping Methodologies: Market Economy Inputs,
Expected Non-Market Economy Wages, Duty Drawback; and Request for
Comments, 71 FR 61716 (October 19, 2006); see also ``Hung Kuo Analysis
Memorandum.'' In selecting surrogate values, we followed, to the extent
practicable, the Department's practice of choosing values which are
non-export average values, contemporaneous with, or closest in time to,
the POI, product-specific, and tax-exclusive. See, e.g., Notice of
Preliminary Determination of Sales at Less Than Fair Value, Negative
Preliminary Determination of Critical Circumstances and Postponement of
Final Determination: Certain Frozen and Canned Warmwater Shrimp From
the Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004),
unchanged in Final Determination of Sales at Less Than Fair Value:
Certain Frozen and Canned Warmwater Shrimp from the Socialist Republic
of Vietnam, 69 FR 71005 (December 8, 2004). We also considered the
quality of the source of surrogate information in selecting surrogate
values. See, e.g., Tapered Roller Bearings and Parts Thereof, Finished
or Unfinished, from the People's Republic of China: Preliminary Results
of the 2007-2008 Administrative Review of the Antidumping Duty Order,
74 FR 32539 (July 8, 2009), unchanged in Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished, From the People's Republic of
China: Final Results of the 2007-2008 Administrative Review of the
Antidumping Duty Order, 75 FR 844 (January 6, 2010).
We valued material inputs and packing by multiplying the amount of
the factor consumed in producing subject merchandise by the average
unit value of the factor. In addition, we added freight costs to the
surrogate costs that we calculated for material inputs. We calculated
freight costs by multiplying surrogate freight rates by the shorter of
the reported distance from the domestic supplier to the factory that
produced the subject merchandise or the distance from the nearest
seaport to the factory that produced the subject merchandise, as
appropriate. This adjustment is in accordance with the Court of Appeals
for the Federal Circuit's decision in Sigma Corp. v. United States, 117
F. 3d 1401, 1407-1408 (Fed. Cir. 1997). See ``Hung Kuo Analysis
Memorandum.'' Where we could only obtain surrogate values that were not
contemporaneous with the POI, we inflated (or deflated) the surrogate
values using the Indian Wholesale Price Index (WPI) as published in the
International Financial Statistics of the International Monetary Fund.
Further, in calculating surrogate values from Indian imports, we
disregarded imports from Indonesia, South Korea, and Thailand because
in other proceedings the Department found that these countries maintain
broadly available, non-industry-specific export subsidies. See Notice
of Amended Final Determination of Sales at Less Than Fair Value:
Certain Automotive Replacement Glass Windshields From the People's
Republic of China, 67 FR 11670 (March 15, 2002); see also Notice of
Final Determination of Sales at Less Than Fair Value and Negative Final
Determination of Critical Circumstances: Certain Color Television
Receivers From the People's Republic of China, 69 FR 20594 (April 16,
2004).\8\ Therefore, it is reasonable to infer based on information
available that all exports to all markets from these countries may be
subsidized, and we have not used prices from these countries in
calculating the Indian import-based surrogate values.
---------------------------------------------------------------------------
\8\ In addition, we note that legislative history explains that
the Department is not required to conduct a formal investigation to
ensure that such prices are not subsidized. See Omnibus Trade and
Competitiveness Act of 1988, Conference Report to accompany H.R.
Rep. 100-576 at 590 (1988) reprinted in U.S.C.C.A.N. 1547, 1623-24.
As such, it is the Department's practice to base its decision on
information that is available to it at the time it makes its
determination. See e.g. Polyethylene Terephthalate Film, Sheet, and
Strip from the People's Republic of China: Preliminary Determination
of Sales at Less than Fair Value, 73 FR 24552 (May 5, 2008),
unchanged in Polyethylene Terephthalate Film, Sheet, and Strip from
the People's Republic of China: Final Determination of Sales at Less
than Fair Value, 73 FR 55039 (September 24, 2008).
---------------------------------------------------------------------------
Consistent with Department practice, we valued raw materials and
packing
[[Page 5574]]
materials using Indian import statistics that are contemporaneous with
the POI, except as noted below.
We valued electricity using price data for small, medium, and large
industries, as published by the Central Electricity Authority of the
Government of India in its publication entitled ``Electricity Tariff &
Duty and Average Rates of Electricity Supply in India'', dated March
2008. These electricity rates represent actual countrywide, publicly
available information on tax-exclusive electricity rates charged to
industries in India. As the rates listed in this source became
effective on a variety of different dates, we are not adjusting the
average value for inflation. See ``Surrogate Value Memorandum.''
We valued fuel oil/diesel using the prices for petrol from Indian
Oil Corp. Ltd. from June 2007, after inflating the value using the WPI
for the POI. See ``Surrogate Value Memorandum.''
For direct labor, indirect labor, and packing labor, consistent
with 19 CFR 351.408(c)(3), we valued labor using the PRC regression-
based wage rate as reported on Import Administration's home page,
Import Library, Expected Wages of Selected NME Countries, revised in
December 2009, available at https://ia.ita.doc.gov/wages/.
Since this regression-based wage rate does not separate the labor rates
into different skill levels or types of labor, we have applied the same
wage rate to all skill levels and types of labor reported by Hung Kuo.
See ``Surrogate Value Memorandum.''
We valued truck freight expenses using a per-unit average rate
calculated from data on the infobanc 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. The value
is contemporaneous with the POI. See ``Surrogate Value Memorandum.''
We valued brokerage and handling using a simple average of the
brokerage and handling costs reported in public submissions filed in
three antidumping duty cases. Specifically, we averaged the public
brokerage and handling expenses reported by Navneet Publications
(India) Ltd. in the 2007-2008 administrative review of certain lined
paper products from India, Essar Steel Limited in the 2006-2007
antidumping duty administrative review of hot-rolled carbon steel flat
products from India, and Himalaya International Ltd. in the 2005-2006
administrative review of certain preserved mushrooms from India. Since
the resulting value is not contemporaneous with the POI, we inflated
the rate using the WPI. See ``Surrogate Value Memorandum.''
We valued international freight and marine insurance using purchase
prices. See ``Surrogate Value Memorandum.''
We valued factory overhead, selling, general, and administrative
(SG&A) expenses, and profit, using the 2007-2008 audited financial
statements provided by Hung Kuo for Bawa Woollen and Spinning Mills,
Ltd. and Prakash Woollen Mills, Ltd., producers of non-electric
blankets. See ``Surrogate Value Memorandum.'' Petitioner submitted the
financial statement of Videocon Industries Ltd. (Videocon), a producer
of consumer electronics and home appliances that is also involved in
the production of crude oil and natural gas. See Petitioner's November
20, 2009, surrogate value submission at Exhibit 9. Videocon's statement
indicates that, in addition to the production of crude oil and natural
gas, it produces, inter alia, color televisions, video products,
washing machines, refrigerators, and air conditioners. We have not
included Videocon's financial data in our financial expense calculation
because we have preliminarily determined that the products produced by
Bawa Woollen and Spinning Mills, Ltd., and Prakash Woollen Mills, Ltd.,
are more comparable products to the subject merchandise produced by
Hung Kuo than the production and fossil fuel extraction activities of
Videocon. Thus, in accordance with section 773(c)(1) of the Act, the
financial statements of Bawa Woollen and Spinning Mills, Ltd. and
Prakash Woollen Mills, Ltd. represent the best information available to
the Department for this preliminary determination.
In accordance with 19 CFR 351.301(c)(3)(i), interested parties may
submit publicly available information with which to value FOP in the
final determination within 40 days after the date of publication of the
preliminary determination.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information upon which we will rely in making our final
determination.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for certain respondents that are eligible
for a separate rate in this investigation. See Initiation Notice. This
change in practice is described in Policy Bulletin 05.1: Separate Rates
Practice and Application of Combination Rates in Antidumping
Investigations Involving Non-Market Economy Countries, available at
https://ia.ita.doc.gov/.
Preliminary Determination
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-
average
Exporter & producer margin
percent
------------------------------------------------------------------------
Hung Kuo Electronic (Shenzhen) Company Limited Produced by: 90.32
Hung Kuo Electronic (Shenzhen) Company Limited............
Ningbo V.K. Industry & Trading Co., Ltd. Produced by: 90.32
Ningbo V.K. Industry & Trading Co., Ltd...................
Ningbo Jifa Electrical Appliances Co., Ltd. or Ningbo 90.32
Jinchun Electric Appliances Co., Ltd. Produced by: Ningbo
Jifa Electrical Appliances Co., Ltd. or Ningbo Jinchun
Electric Appliances Co., Ltd..............................
PRC-Wide Rate.............................................. 174.85
------------------------------------------------------------------------
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d) of the Act, we will instruct CBP
to suspend liquidation of all entries of woven electric blankets from
the PRC as described in the ``Scope of Investigation'' section,
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of this notice in the Federal Register. We will
instruct CBP to require a cash deposit or the posting of a bond equal
to the weighted-average amount by which the NV exceeds U.S. price, as
indicated above.
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our preliminary affirmative determination of sales at LTFV.
Section 735(b)(2) of the Act requires the ITC to make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of woven electric blankets, or sales (or the likelihood of
sales) for importation, of the subject merchandise under investigation
within 45 days of our final determination.
[[Page 5575]]
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Import Administration no later than seven days
after the date the final verification report is issued in this
proceeding and rebuttal briefs, limited to issues raised in case
briefs, no later than five days after the deadline for submitting case
briefs. See 19 CFR 351.309(c)(1)(i) and (d)(1). A list of authorities
used and an executive summary of issues should accompany any briefs
submitted to the Department. This summary should be limited to five
pages total, including footnotes.
In accordance with section 774 of the Act, we will hold a public
hearing, if requested, to afford interested parties an opportunity to
comment on arguments raised in case or rebuttal briefs. If a request
for a hearing is made, we intend to hold the hearing three days after
the deadline of submission of rebuttal briefs at the U.S. Department of
Commerce, 14th Street and Constitution Ave, NW., Washington, DC 20230,
at a time and in a room to be determined. Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
Interested parties that wish to request a hearing, or to
participate if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days after the date of publication of
this notice. See 19 CFR 351.310(c). Requests should contain the party's
name, address, and telephone number, the number of participants, and a
list of the issues to be discussed. At the hearing, each party may make
an affirmative presentation only on issues raised in that party's case
brief and may make rebuttal presentations only on arguments included in
that party's rebuttal brief.
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to section 735(a)(2) of the Act, on January 14, 2010, Hung
Kuo requested that in the event of an affirmative preliminary
determination in this investigation, the Department postpone its final
determination by 60 days. Additionally, on January 15, 2010, Hung Kuo
requested that the Department extend the application of the provisional
measures prescribed under 19 CFR 351.210(e)(2) from a 4-month period to
a 6-month period. In accordance with section 733(d) of the Act and 19
CFR 351.210(b), we are granting the request and are postponing the
final determination until no later than 135 days after the publication
of this notice in the Federal Register because: (1) Our preliminary
determination is affirmative, (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise, and (3)
no compelling reasons for denial exist. Suspension of liquidation will
be extended accordingly.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act.
Dated: January 26, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-2309 Filed 2-2-10; 8:45 am]
BILLING CODE 3510-DS-P