Certain Magnesia Carbon Bricks from Mexico: Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 11517-11522 [2010-5369]
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Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices
11517
LIST OF PETITIONS RECEIVED BY EDA FOR CERTIFICATION OF ELIGIBILITY TO APPLY FOR TRADE ADJUSTMENT
2/26/2010 through 3/4/2010
Firm
Date accepted
for filing
Address
API Heat Transfer
Inc. Buffalo.
Harlon’s LA Fish,
LLC d/b/a LA Fish.
Silberline Manufacturing Co., Inc.
Fluorolite Plastics,
Inc.
Fresh Air Manufacturing Compnay d/
b/a FAMCO.
Greene Plastics
Company.
Petoskey Plastics,
Incorporated.
Arthur A. Oliver &
Son, Inc.
Heritage Sign & Display, Inc.
Kasten Clay Products, Inc.
Precision Tool, Die &
Machine Co. Inc.
d/b/a nth works.
2777 Walden Ave
Ave Buffalo, NY
14225.
606 Short Street
Kenner, LA 70062.
130 Lincoln Drive
Tamaqua, PA
18252.
2 Central Street
Framingham, MA
01701.
2/26/2010
649 N Ralstin Street
Meridian, ID
83642.
PO Box 178
Canonchet Hope
Valley, RI 02832.
One Petoskey
Street Petoskey,
MI 49770.
PO Box 88, 2406
English High
Point, NC 27261.
344 Industrial Road
Nesquehoning,
PA 18240.
713 Kasten Drive
Jackson, MO
53755.
6901 Preston Highway Louisville, KY
40219.
3/1/2010
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Any party having a substantial
interest in these proceedings may
request a public hearing on the matter.
A written request for a hearing must be
submitted to the Trade Adjustment
Assistance for Firms Division, Room
7106, Economic Development
Administration, U.S. Department of
Commerce, Washington, DC 20230, no
later than ten (10) calendar days
following publication of this notice.
Please follow the procedures set forth
in Section 315.9 of EDA’s final rule (71
FR 56704) for procedures for requesting
a public hearing. The Catalog of Federal
Domestic Assistance official program
number and title of the program under
which these petitions are submitted is
11.313, Trade Adjustment Assistance.
Dated: March 5, 2010.
Bryan Borlik,
Program Director.
[FR Doc. 2010–5216 Filed 3–10–10; 8:45 am]
BILLING CODE 3510–24–P
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Products
2/26/2010
The Company manufactures shell and tube, aluminum air cooled and plate and
frame heat exchangers for industrial thermal transfer needs for a broad range
of industries.
Processor of frozen fish for human consumption
2/26/2010
Silberline manufactures special effect and performance pigments.
3/1/2010
Fluorolite specializes in replacement fluorescent diffusers. Fluorolite Manufactures acrylic ceiling panels, prismatic sheet, diffuser profiles, fluorescent light
shields, enclosed gasket fixtures, Lexalite, American Louver products, and outdoor polycarbonate lenses.
FAMCO is a light duty manufacturer of sheet metal and plastic products for venting units for residential and some small commercial facilities.
3/2/2010
Plastic beads and imitation gemstones are manufactured by injection molding
using plastic, polystyrene and acrylic.
3/2/2010
The firm manufacturers polyethylene blown film products.
3/3/2010
The firm produces upholstery supplies including cardboard, fiber batting, and
webbing products. Primary materials include paper, and polyester fiber.
3/3/2010
Heritage is a custom manufacturer of point of purchase signs and displays. Our
products include lighted signs, wood displays, acrylic displays and a host of
others.
The firm manufacturers and produces clay bricks.
3/3/2010
3/3/2010
The firm produces steel parts that are put through stamping, welding, & graining
processes. Primary materials include steel.
DEPARTMENT OF COMMERCE
International Trade Administration
[A–201–837]
Certain Magnesia Carbon Bricks from
Mexico: Notice of Preliminary
Determination of Sales at Less Than
Fair Value and Postponement of Final
Determination
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (the Department)
preliminarily determines that certain
magnesia carbon bricks (bricks) from
Mexico are being, or are likely to be,
sold in the United States at less than fair
value (LTFV), as provided in section
733(b) of the Tariff Act of 1930, as
amended (the Act). The estimated
margins of sales at LTFV are listed in
the ‘‘Suspension of Liquidation’’ section
of this notice. Interested parties are
invited to comment on this preliminary
determination. Pursuant to a request
from the respondent, we are postponing
for 60 days the final determination and
extending provisional measures from a
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four-month period to not more than six
months. Accordingly, we will make our
final determination not later than 135
days after publication of the preliminary
determination.
DATES:
Effective Date: March 11, 2010.
FOR FURTHER INFORMATION CONTACT:
David Goldberger or Terre Keaton
Stefanova, AD/CVD Operations, Office
2, Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW, Washington,
DC 20230; telephone (202) 482–4136
and (202) 482–1280, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 18, 2009, the Department
initiated the antidumping duty
investigation of BRICKS from Mexico.
See Certain Magnesia Carbon Bricks
from the People’s Republic of China and
Mexico: Initiation of Antidumping Duty
Investigations, 74 FR 42852 (August 25,
2009) (Initiation Notice). The petitioner
in this investigation is Resco Products
Inc.
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The Department set aside a period of
time for parties to raise issues regarding
product coverage and encouraged all
parties to submit comments within 20
calendar days of publication of the
Initiation Notice. See Initiation Notice,
74 FR at 42853. See also Antidumping
Duties; Countervailing Duties, 62 FR
27296, 27323 (May 19, 1997). For
further details, see the ‘‘Scope
Comments’’ section of this notice,
below. The Department also set aside a
time for parties to comment on product
characteristics for use in the
antidumping duty questionnaire. During
September 2009, we received product
characteristic comments from the
petitioner and RHI–Refmex S.A. de C.V.
(Refmex), a Mexican producer and
exporter of the subject merchandise. For
an explanation of the product–
comparison criteria used in this
investigation, see the ‘‘Product
Comparisons’’ section of this notice,
below.
On September 29, 2009, the
International Trade Commission (ITC)
published its affirmative preliminary
determination that there is a reasonable
indication that imports of bricks from
Mexico are materially injuring the U.S.
industry, and the ITC notified the
Department of its finding. See Certain
Magnesia Carbon Bricks form China and
Mexico, 74 FR 49889 (September 29,
2009); see also ‘‘Investigation No. 701–
TA–468 and 731–TA–1166–67
(Preliminary),’’ USITC Publication 4100
(September 2009).
On September 29, 2009, we selected
Refmex as the sole mandatory
respondent in this investigation. See
Memorandum entitled: ‘‘Antidumping
Duty Investigation of Certain Magnesia
Carbon Bricks from Mexico - Selection
of Respondents for Individual Review,’’
dated September 29, 2009. We
subsequently issued the antidumping
questionnaire to Refmex on September
30, 2009. Refmex submitted responses
to sections A (i.e., the section covering
general information about the
company), B (i.e., the section covering
comparison market sales) and C (i.e., the
section covering U.S. sales) of the
antidumping duty questionnaire on
November 23, 2009. We issued
supplemental section A, B, and C
questionnaires, to which Refmex
responded during January and February
2010.
On December 8, 2009, the petitioner
made a timely request pursuant to
section 733(c)(1)(A) of the Act and 19
CFR 351.205(e) for a 50-day
postponement of the preliminary
determination. Pursuant to section
733(c)(1)(A) of the Act, the Department
postponed the preliminary
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16:35 Mar 10, 2010
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determination of this investigation until
February 24, 2010. See Certain
Magnesia Carbon Bricks from the
People’s Republic of China and Mexico:
Postponement of Preliminary
Determinations of Antidumping Duty
Investigations, 74 FR 66954 (December
17, 2009). As explained in the
memorandum from the Deputy
Assistant Secretary for Import
Administration, the Department has
exercised its discretion to toll deadlines
for the duration of the closure of the
Federal Government from February 5,
through February 12, 2010. Thus, all
deadlines in this segment of the
proceeding have been extended by
seven days. The revised deadline for the
preliminary determination of this
investigation is now March 3, 2010. See
Memorandum to the Record regarding
‘‘Tolling of Administrative Deadlines As
a Result of the Government Closure
During the Recent Snowstorm,’’ dated
February 12, 2010.
On December 11, 2009, the petitioner
alleged that Refmex made comparison–
market sales of bricks at prices below
the cost of production (COP) during the
period of investigation (POI).
On January 6, 2010, we initiated an
investigation to determine whether
Refmex made comparison–market sales
of bricks at prices below the COP during
the POI. See Memorandum entitled ‘‘The
Petitioner’s Allegation of Sales Below
the Cost of Production for RHI RefMex
S.A. de C.V.,’’ dated January 6, 2010. As
a result, we requested that Refmex
respond to section D of the
questionnaire (i.e., the section covering
COP and constructed value (CV)). See
Memorandum entitled: ‘‘Telephone
Conversation with RHI–Refmex Counsel
on Initiation of COP Investigation and
Submission of Response to Section D of
the Department’s Questionnaire,’’ dated
January 7, 2010. We issued a
supplemental section D questionnaire to
Refmex in February 2010, and received
a response later that month.
The petitioner submitted comments
for consideration with respect to the
preliminary determination on February
12, 2010. Refmex responded to those
comments on February 17, 2010.
On February 17, 2010, Refmex
requested that, in the event of an
affirmative preliminary determination
in this investigation, the Department: 1)
postpone its final determination by 60
days, in accordance with 735(a)(2)(A) of
the Act and 19 CFR 351.210(b)(2)(ii);
and 2) extend the application of the
provisional measures prescribed under
19 CFR 351.210(e)(2) from a four-month
period to a six-month period. For
further discussion, see the
‘‘Postponement of Final Determination
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and Extension of Provisional Measures’’
section of this notice, below.
Period of Investigation
The POI is July 1, 2008, to June 30,
2009. This period corresponds to the
four most recent fiscal quarters prior to
the month of the filing of the petition.
See 19 CFR 351.204(b)(1).
Scope of Investigation
The merchandise under investigation
consists of certain chemically–bonded
(resin or pitch), magnesia carbon bricks
with a magnesia component of at least
70 percent magnesia (MgO) by weight,
regardless of the source of raw materials
for the MgO, with carbon levels ranging
from trace amounts to 30 percent by
weight, regardless of enhancements (for
example, magnesia carbon bricks can be
enhanced with coating, grinding, tar
impregnation or coking, high
temperature heat treatments, anti–slip
treatments or metal casing) and
regardless of whether or not
antioxidants are present (for example,
antioxidants can be added to the mix
from trace amounts to 15 percent by
weight as various metals, metal alloys,
and metal carbides). Certain magnesia
carbon bricks that are the subject of this
investigation are currently classifiable
under subheadings 6902.10.10.00,
6902.10.50.00, 6815.91.00.00, and
6815.99 of the Harmonized Tariff
Schedule of the United States (HTSUS).
While HTSUS subheadings are provided
for convenience and customs purposes,
the written description is dispositive.
Scope Comments
In accordance with the preamble to
the Department’s regulations (see
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27323 (May 19,
1997)), in our Initiation Notice we set
aside a period of time for parties to raise
issues regarding product coverage, and
encouraged all parties to submit
comments within 20 calendar days of
publication of the Initiation Notice. On
September 8, 2009, Pilkington North
America Inc. (PNA), a U.S. importer of
BRICKS from the People’s Republic of
China (PRC) and Mexico, filed
comments concerning the scope of this
investigation and the concurrent
antidumping duty and countervailing
duty investigations of certain magnesia
carbon bricks from the PRC. In its
submission, PNA requested that the
Department amend the scope of these
investigations to exclude ceramic–
bonded magnesia bricks with or without
trace amounts of carbon, or clarify that
this product is outside the scope of
these investigations. According to PNA,
the ceramic–bonded magnesia bricks it
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imports are clearly not within the
intended scope of these investigations.
The petitioner did not file comments on
PNA’s submission. On February 24,
2010, the Department issued a
memorandum confirming that ceramic
bonded magnesia bricks are not
included in the scope of the
investigations. See Memorandum
entitled ‘‘Certain Magnesia Carbon
Bricks from the People’s Republic of
China and Mexico: Scope Comments.’’
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Product Comparisons
We have taken into account the
comments that were submitted by the
interested parties concerning product–
comparison criteria. In accordance with
section 771(16) of the Act, all products
produced by the respondent covered by
the description in the ‘‘Scope of
Investigation’’ section, above, and sold
in Mexico during the POI are considered
to be foreign like product for purposes
of determining appropriate product
comparisons to U.S. sales. We have
relied on six criteria to match U.S. sales
of subject merchandise to comparison–
market sales of the foreign like product:
1) magnesium oxide content range, 2)
fused magnesia content range, 3)
antioxidants, 4) carbon content range, 5)
post–molding treatments, and 6)
additives. Where there were no sales of
identical merchandise in the home
market made in the ordinary course of
trade to compare to U.S. sales, we
compared U.S. sales to sales of the next
most similar foreign like product on the
basis of the characteristics listed above,
which were made in the ordinary course
of trade.
Fair Value Comparisons
To determine whether Refmex’ sales
of bricks from Mexico to the United
States were made at LTFV, we
compared the constructed export price
(CEP) to normal value (NV), as
described in the ‘‘Constructed Export
Price’’ and ‘‘Normal Value’’ sections of
this notice. In accordance with section
777A(d)(1) of the Act, we compared POI
weighted–average CEPs to POI
weighted–average NVs.
In addition to selling bricks to
unaffiliated customers, Refmex reported
that it ships some subject merchandise
in the U.S. and Mexican markets under
‘‘Full Line Service Contracts.’’ Under
these contracts, Refmex claims that it or
its affiliates consume bricks as part of
broader service agreements with their
customers. Refmex did not include
bricks shipped in conjunction with
these service contracts in its sales
listings. Refmex claimed that the
quantity of bricks shipped in these
instances constitutes a relatively small
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16:35 Mar 10, 2010
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percentage of the total quantity of bricks
shipped to U.S. and Mexican customers
during the POI. Refmex also claimed
that, in fulfilling these contracts, it does
not generate invoices specifying a
quantity or price for the bricks shipped,
and, thus, does not record sales of bricks
in its accounting system. Rather,
customers pay Refmex or its affiliates
based on other terms specified in the
contracts.
Our analysis of the information
Refmex provided, including examples of
Full Line Service Contracts, supports
Refmex’ representations regarding the
complexity of assigning values to the
bricks shipped in the fulfillment of
these contracts. Based on this analysis
and Refmex’ claim that the shipment of
bricks in fulfillment of these contracts
constitutes a relatively small percentage
of the total bricks shipped to U.S.
customers during the POI, we have
excluded bricks consumed under these
circumstances in both the home and
U.S. markets from our margin analysis.
Constructed Export Price
Pursuant to section 772(b) of the Act,
we calculated CEP for those sales where
the subject merchandise was first sold
in the United States after the date of
importation by or for the account of the
producer or exporter, or by a seller
affiliated with the producer or
exporters, to a purchaser not affiliated
with the producer or exporter. In
addition, we calculated CEP for those
sales where the subject merchandise
was first sold in the United States before
the date of importation by Refmex’
affiliate, Veitsch–Radex America, Inc.,
located in Mokena, Illinois (VRA), to
unaffiliated purchasers. Refmex
classified these latter sales as export
price (EP) sales because it initially
reported that these sales were made
outside the United States by its affiliate
Veitsch–Radex America, Inc., located in
Burlington, Ontario, Canada (VRC).
Subsequently, Refmex clarified that
these sales were made in the United
States by VRA. Accordingly, we have
reclassified them as CEP sales because
the merchandise was sold in the United
States, before importation, by a seller
affiliated with the producer or exporter
to a purchaser not affiliated with the
producer or exporter, consistent with
section 772(b) of the Act. See, e.g.,
Stainless Steel Bar From Brazil:
Preliminary Results of Antidumping
Duty Administrative Review, 74 FR
10022, 10023 (March 9, 2009),
unchanged in Stainless Steel Bar From
Brazil: Final Results of Antidumping
Duty Administrative Review, 74 FR
33995 (July 14, 2009); and Certain Cut–
to-Length Carbon–Quality Steel Plate
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11519
Products From the Republic of Korea:
Preliminary Results of Antidumping
Duty Administrative Review and Intent
To Rescind Administrative Review in
Part, 72 FR 65701, 65703–04 (November
23, 2007), unchanged in Certain Cut–toLength Carbon–Quality Steel Plate
Products From the Republic of Korea:
Final Results of Antidumping Duty
Administrative Review and Rescission
of Administrative Review in Part, 73 FR
15132 (March 21, 2008).
We based CEP on the packed, ex–
warehouse or delivered prices to
unaffiliated purchasers in the United
States. Where appropriate, we adjusted
prices for billing adjustments, discounts
and rebates. We made deductions for
movement expenses, in accordance with
section 772(c)(2)(A) of the Act; these
expenses included, where appropriate,
inland freight from the plant to the U.S.
warehouse, U.S. brokerage and handling
expenses (including customs fees), pre–
sale warehousing expenses, and U.S.
inland freight from the warehouse to the
customer. In accordance with section
772(d)(1) of the Act and 19 CFR
351.402(b), we deducted those selling
expenses incurred by or for the account
of the producer or exporter in selling the
subject merchandise, which are
associated with commercial activities in
the United States, no matter where or
when paid, including direct selling
expenses (i.e., credit expenses, technical
service expenses, and warranty
expenses), and indirect selling expenses
(including inventory carrying costs). We
also deducted from CEP an amount for
profit, in accordance with sections
772(d)(3) and (f) of the Act.
Normal Value
A. Home Market Viability and
Comparison–Market Selection
To determine whether there is a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared
Refmex’ volume of home market sales of
the foreign like product to its volume of
U.S. sales of the subject merchandise.
See section 773(a)(1)(C) of the Act.
Based on this comparison, we
determined that Refmex had a viable
home market during the POI.
Consequently, we based NV on home
market sales.
B. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
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sales in the comparison market at the
same level of trade (LOT) as the EP or
CEP. Pursuant to 19 CFR 351.412(c)(1),
the NV LOT is based on the starting
price of the sales in the comparison
market or, when NV is based on
constructed value, the starting price of
the sales from which we derive selling,
general and administrative expenses,
and profit. For EP sales, the U.S. LOT
is based on the starting price of the sales
in the U.S. market, which is usually
from exporter to importer. For CEP
sales, the U.S. LOT is based on the
starting price of the U.S. sales, as
adjusted under section 772(d) of the
Act, which is from the exporter to the
importer.
To determine whether NV sales are at
a different LOT than EP or CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See 19 CFR
351.412(c)(2). If the comparison–market
sales are at a different LOT, and the
difference affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparisonmarket sales at the LOT of the export
transaction, we make an LOT
adjustment under section 773(a)(7)(A) of
the Act. For CEP sales, if the NV level
is more remote from the factory than the
CEP level and there is no basis for
determining whether the difference in
levels between NV and CEP affects price
comparability, we adjust NV under
section 773(a)(7)(B) of the Act (the CEP–
offset provision). See Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Cut–to-Length
Carbon Steel Plate from South Africa,
62 FR 61731, 61732 - 61733 (November
19, 1997) (Plate from South Africa).
In this investigation, we obtained
information from Refmex regarding the
marketing stages involved in making its
reported home market and U.S. sales,
including a description of the selling
activities performed by the respondent
and its affiliates for each channel of
distribution.
Refmex reported that it made all sales
in the U.S. market to end–users. For
CEP sales, Refmex reported that its
affiliate VRA, supported by another
affiliate, VRC, made sales through five
channels of distribution: 1) direct
shipments from the Mexican plant to
the U.S. customer; 2) ex–U.S.
warehouse; 3) delivered to the U.S.
customer from a U.S. warehouse; 4) on
consignment basis ex–U.S. warehouse;
and 5) on consignment basis delivered
to the U.S. customer from a U.S.
warehouse.
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16:35 Mar 10, 2010
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Because all of Refmex’ U.S. sales were
CEP sales, we examined only the selling
functions performed by Refmex for
these sales, not the selling functions
performed by its affiliates, consistent
with our normal practice. See Plate from
South Africa, 62 FR at 61732. We found
that the only selling functions that
Refmex performed for all CEP sales were
packing, inventory maintenance (i.e., in
Mexico prior to shipment to the U.S.
customer or to U.S. warehouses for
resale by Refmex affiliates to
unaffiliated U.S. customers), and order
input/processing. The selling functions
performed for all CEP sales were
identical. Therefore, we determined that
all CEP sales constituted one LOT.
With respect to home market sales,
Refmex reported that sales were made to
end users through two channels of
distribution: 1) direct to customers; and
2) consignment sales from consignment
inventories. We examined the reported
selling activities and found that Refmex
performed the following selling
functions for both sales channels in the
home market: sales forecasting,
strategic/economic planning,
engineering services, sales promotion,
packing, inventory maintenance, order
input/processing, direct sales personnel,
sales/marketing support, market
research, technical assistance, granting
of rebates, after–sales services, and
freight and delivery arrangements.
Furthermore, we found that Refmex
performed most of these selling
functions at the same relative level of
intensity for all customers in the
comparison market. While we note
some difference in intensity in the
inventory maintenance activity between
direct sales and consignment sales, this
difference alone is not sufficient to
warrant a finding that the two sales
channels constitute different LOTs in
the home market. Therefore, based on
our overall analysis, we found that all
home market sales constituted one LOT.
In comparing the home market LOT to
the CEP LOT, we found that the selling
activities performed by Refmex for its
CEP sales, as described above, were
significantly fewer than the selling
activities that it performed for its home
market sales. Therefore, Refmex
provided many more selling functions
for its home market sales than it
provided for its CEP sales, thus making
the home market LOT more advanced
than the CEP LOT.
Based on the above, we could not
match CEP sales to sales at the same
LOT in the home market, nor could we
determine an LOT adjustment based on
Refmex’ home market sales because
there is only one LOT in the home
market. Therefore, it is not possible to
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Fmt 4703
Sfmt 4703
determine if there is a pattern of
consistent price differences between the
sales on which NV is based and home
market sales at the LOT of the export
transaction. See section 773(a)(7)(A) of
the Act. Furthermore, we have no other
information that provides an
appropriate basis for determining an
LOT adjustment. Consequently, because
the data available do not form an
appropriate basis for making an LOT
adjustment, even though the home
market LOT is at a more advanced stage
of distribution than the CEP LOT, we
made a CEP offset to NV in accordance
with section 773(a)(7)(B) of the Act. The
CEP offset is calculated as the lesser of:
(1) the indirect selling expenses
incurred on the home market sales, or
(2) the indirect selling expenses
deducted from the starting price in
calculating CEP. See id.
C. Cost of Production Analysis
1. Calculation of Cost of Production
In accordance with section 773(b)(3)
of the Act, we calculated COP based on
the sum of the cost of materials and
fabrication for the foreign like product,
plus an amount for general and
administrative expenses (G&A) and
interest expenses (see ‘‘Test of Home
Market Sales Prices’’ section below for
treatment of home market selling
expenses and packing costs). We relied
on the COP data submitted by Refmex
in its January 27, 2010, response to
section D of the questionnaire, except
where noted below.
We excluded packing expenses from
the denominators of the reported G&A
and interest expense ratios. In addition,
we revised the numerator of the interest
expense ratio to exclude the interest
income offset, because Refmex did not
demonstrate that this income was
generated from certain short–term
interest–bearing assets. We applied the
revised ratios to Refmex’ reported total
cost of manufacturing to determine the
revised G&A and financial interest
expenses. See Memorandum entitled
‘‘Cost of Production and Constructed
Value Calculation Adjustment RHI–
Refmex S.A. de C.V.,’’ dated March 3,
2010.
For the preliminary determination, we
have relied upon the POI weighted–
average COP Refmex reported. However,
depending on the extent to which
production costs changed throughout
the cost reporting period, we are
considering whether it is more
appropriate to use the Department’s
alternative cost averaging methodology
for the final determination. Accordingly,
we have requested product–specific
quarterly cost information from Refmex
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for consideration prior to the final
determination.
jlentini on DSKJ8SOYB1PROD with NOTICES
2. Test of Home Market Sales Prices
On a product–specific basis, we
compared the adjusted weighted–
average COP to the home market sales
prices of the foreign like product, as
required under section 773(b) of the Act,
to determine whether the sale prices
were below the COP. The sales prices
were exclusive of any applicable
movement charges, direct and indirect
selling expenses, and packing expenses.
For purposes of this comparison, we
used the COP exclusive of selling and
packing expenses.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of
the Act, where less than 20 percent of
the respondent’s sales of a given
product were at prices less than the
COP, we do not disregard any below–
cost sales of that product because we
determined that the below–cost sales
were not made in ‘‘substantial
quantities.’’ Where 20 percent or more of
the respondent’s sales of a given
product during the POI were at prices
less than COP, we determine that such
sales have been made in ‘‘substantial
quantities.’’ See section 773(b)(2)(C) of
the Act. Further, we determine that the
sales were made within an extended
period of time, in accordance with
section 773(b)(2)(B) of the Act, because
we examine below–cost sales occurring
during the entire POI. In accordance
with section 773(b)(2)(D) of the Act, we
compare prices to the POI average costs
to determine whether the prices permit
recovery of costs within a reasonable
period of time.
In this case, we found that, for certain
specific products, more than 20 percent
of Refmex’ sales were at prices less than
the COP and, in addition, such sales did
not provide for the recovery of costs
within a reasonable period of time. We,
therefore, excluded these sales and used
the remaining sales as the basis for
determining NV, in accordance with
section 773(b)(1) of the Act.
D. Calculation of Normal Value Based
on Comparison–Market Prices
We based NV for Refmex on packed,
ex–factory or delivered prices to
unaffiliated customers in the home
market. We made deductions from the
starting price, where appropriate, for
foreign inland freight and warehousing
expenses under section 773(a)(6)(B)(ii)
of the Act.
Pursuant to section 773(a)(6)(C)(iii) of
the Act and 19 CFR 351.410(b), we
made, where appropriate,
circumstance–of-sale adjustments for
imputed credit expenses and technical
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16:35 Mar 10, 2010
Jkt 220001
service expenses. We also deducted
home market packing costs and added
U.S. packing costs, in accordance with
sections 773(a)(6)(A) and (B) of the Act.
Finally, we made a CEP offset pursuant
to section 773(a)(7)(B) of the Act and 19
CFR 351.412(f). We calculated the CEP
offset as the lesser of the indirect selling
expenses incurred on the home market
sales or the indirect selling expenses
deducted from the starting price in
calculating CEP.
Refmex reported royalty expenses
incurred on home market sales and paid
to an affiliate, Refractory Intellectual
Property (REFIP) GmbH & Co. KG., of
Refmex’ parent company, RHI AG. We
have disallowed this selling expense
claim, as Refmex was unable to
demonstrate that the royalty payments
made to its affiliate were at arm’s length.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A of the Act and 19 CFR 351.415
based on the exchange rates in effect on
the dates of the U.S. sales as certified by
the Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the
Act, we intend to verify the information
relied upon in making our final
determination for Refmex.
11521
individually investigated, excluding any
zero or de minimis margins, and any
margins determined entirely under
section 776 of the Act. Refmex is the
only respondent in this investigation for
which the Department calculated a
company–specific rate. Therefore, for
purposes of determining the all–others
rate and pursuant to section 735(c)(5)(A)
of the Act, we are using the weighted–
average dumping margin calculated for
Refmex, as referenced above. See, e.g.,
Notice of Final Determination of Sales
at Less Than Fair Value: Stainless Steel
Sheet and Strip in Coils From Italy, 64
FR 30750, 30755 (June 8, 1999); and
Notice of Preliminary Determination of
Sales at Less Than Fair Value and
Postponement of Final Determination:
Coated Free Sheet Paper from
Indonesia, 72 FR 30753, 30757 (June 4,
2007), unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Coated Free Sheet Paper
from Indonesia, 72 FR 60636 (October
25, 2007).
Disclosure
The Department will disclose to
parties the calculations performed in
connection with this preliminary
determination within five days of the
date of publication of this notice. See 19
CFR 351.224(b).
Postponement of Final Determination
and Extension of Provisional Measures
Section 735(a)(2) of the Act provides
In accordance with section 733(d)(2)
that a final determination may be
of the Act, we will direct U.S. Customs
and Border Protection (CBP) to suspend postponed until not later than 135 days
after the date of the publication of the
liquidation of all entries of bricks from
preliminary determination if, in the
Mexico that are entered, or withdrawn
from warehouse, for consumption on or event of an affirmative preliminary
determination, a request for such
after the date of publication of this
postponement is made by exporters,
notice in the Federal Register. We will
who account for a significant proportion
also instruct CBP to require a cash
of exports of the subject merchandise, or
deposit or the posting of a bond equal
in the event of a negative preliminary
to the weighted–average dumping
margins, as indicated in the chart below. determination, a request for such
postponement is made by the petitioner.
These suspension–of-liquidation
The Department’s regulations, at 19 CFR
instructions will remain in effect until
351.210(e)(2), require that requests by
further notice.
respondents for postponement of a final
The weighted–average dumping
determination be accompanied by a
margins are as follows:
request for extension of provisional
Weighted–Average measures from a four-month period to
Manufacturer/Exporter
Margin (percent)
not more than six months.
On February 17, 2010, Refmex
RHI–Refmex S.A. de
requested that in the event of an
C.V. ...........................
54.73 affirmative preliminary determination
All Others ......................
54.73
in this investigation, the Department
postpone its final determination by 60
All–Others Rate
days. At the same time, Refmex
Section 735(c)(5)(A) of the Act
requested that the Department extend
provides that the estimated ‘‘All Others’’ the application of the provisional
rate shall be an amount equal to the
measures prescribed under section
weighted average of the estimated
733(d) of the Act and 19 CFR
weighted–average dumping margins
351.210(e)(2), from a four-month period
established for exporters and producers
to a six-month period. In accordance
Suspension of Liquidation
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Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices
with section 735(a)(2) of the Act and 19
CFR 351.210(b)(2), because: (1) our
preliminary determination is
affirmative; (2) the requesting exporter
accounts for a significant proportion of
exports of the subject merchandise; and,
(3) no compelling reasons for denial
exist, we are granting this request and
are postponing the final determination
until no later than 135 days after the
publication of this notice in the Federal
Register. Suspension of liquidation will
be extended accordingly.
jlentini on DSKJ8SOYB1PROD with NOTICES
ITC Notification
In accordance with section 733(f) of
the Act, we have notified the ITC of the
Department’s preliminary affirmative
determination. If the Department’s final
determination is
affirmative, the ITC will determine
before the later of 120 days after the date
of this preliminary determination or 45
days after our final determination
whether imports of bricks from Mexico
are materially injuring, or threatening
material injury to, the U.S. industry (see
section 735(b)(2) of the Act). Because we
are postponing the deadline for our final
determination to 135 days from the date
of the publication of this preliminary
determination, the ITC will make its
final determination no later than 45
days after our final determination.
Public Comment
Interested parties are invited to
comment on the preliminary
determination. Interested parties may
submit case briefs to the Department no
later than seven days after the date of
the issuance of the last verification
report in this proceeding. See 19 CFR
351.309(c)(1)(i). Rebuttal briefs, the
content of which is limited to the issues
raised in the case briefs, must be filed
within five days from the deadline date
for the submission of case briefs. See 19
CFR 351.309(d)(1). A list of authorities
used, a table of contents, and an
executive summary of issues should
accompany any briefs submitted to the
Department. Executive summaries
should be limited to five pages total,
including footnotes. Further, we request
that parties submitting briefs and
rebuttal briefs provide the Department
with a copy of the public version of
such briefs on diskette. In accordance
with section 774 of the Act, the
Department will hold a public hearing,
if timely requested, to afford interested
parties an opportunity to comment on
arguments raised in case or rebuttal
briefs, provided that such a hearing is
requested by an interested party. See
also 19 CFR 351.310(d). If a timely
request for a hearing is made in this
investigation, we intend to hold the
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16:35 Mar 10, 2010
Jkt 220001
hearing two days after the rebuttal brief
deadline date at the U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230, at
a time and in a room to be determined.
Parties should confirm by telephone, the
date, time, and location of the hearing
48 hours before the scheduled date.
Interested parties who wish to request
a hearing, or to participate in a hearing
if one is requested, must submit a
written request to the Assistant
Secretary for Import Administration,
U.S. Department of Commerce, Room
1870, within 30 days of the publication
of this notice. Requests should contain:
(1) the party’s name, address, and
telephone number; (2) the number of
participants; and (3) a list of the issues
to be discussed. At the hearing, oral
presentations will be limited to issues
raised in the briefs.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Act.
Dated: March 3, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–5369 Filed 3–10–10; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF ENERGY
[Case No. RF–013]
Energy Conservation Program for
Consumer Products: Publication of the
Petition for Waiver and Notice of
Granting the Application for Interim
Waiver of Haier From the Department
of Energy Residential Refrigerator and
Refrigerator-Freezer Test Procedures
AGENCY: Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Notice of Petition for Waiver,
Notice of Granting Application for
Interim Waiver, and request for public
comments.
SUMMARY: This notice announces receipt
of and publishes the Haier Group and
Haier America Trading, L.L.C. (Haier)
petition for waiver (hereafter, ‘‘Petition’’)
from specified portions of the U.S.
Department of Energy (DOE) test
procedure for determining the energy
consumption of electric refrigerators
and refrigerator-freezers. The waiver
request pertains to Haier’s product lines
that utilize a control logic that changes
the wattage of the anti-sweat heaters
based upon the ambient relative
humidity conditions to prevent
condensation. The existing test
procedure does not take humidity or
PO 00000
Frm 00018
Fmt 4703
Sfmt 4703
adaptive control technology into
account. Therefore, Haier has suggested
an alternate test procedure that
considers adaptive control technology
when measuring energy consumption.
DOE solicits comments, data, and
information concerning Haier’s Petition
and the suggested alternate test
procedure. DOE also publishes notice of
the grant of an interim waiver to Haier.
DATES: DOE will accept comments, data,
and information with respect to the
Haier Petition until, but no later than,
April 12, 2010.
ADDRESSES: You may submit comments,
identified by case number ‘‘RF–013,’’ by
any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: AS_Waiver_Requests@ee.
doe.gov. Include either the case number
[Case No. RF–013], and/or ‘‘Haier
Petition’’ in the subject line of the
message.
• Mail: Ms. Brenda Edwards, U.S.
Department of Energy, Building
Technologies Program, Mailstop EE–2J,
1000 Independence Avenue, SW.,
Washington, DC 20585–0121.
Telephone: (202) 586–2945. Please
submit one signed original paper copy.
• Hand Delivery/Courier: Ms. Brenda
Edwards, U.S. Department of Energy,
Building Technologies Program, 950
L’Enfant Plaza, SW., Suite 600,
Washington, DC 20024. Please submit
one signed original paper copy.
Docket: For access to the docket to
review the background documents
relevant to this matter, you may visit the
U.S. Department of Energy, 950 L’Enfant
Plaza, SW., (Resource Room of the
Building Technologies Program),
Washington, DC 20024; (202) 586–2945,
between 9 a.m. and 4 p.m., Monday
through Friday, except Federal holidays.
Available documents include the
following items: (1) This notice; (2)
public comments received; (3) the
petition for waiver and application for
interim waiver; and (4) prior DOE
rulemakings regarding similar
refrigerators and refrigerator-freezers.
Please call Ms. Brenda Edwards at the
above telephone number for additional
information regarding visiting the
Resource Room.
FOR FURTHER INFORMATION CONTACT: Dr.
Michael G. Raymond, U.S. Department
of Energy, Building Technologies
Program, Mail Stop EE–2J, 1000
Independence Avenue, SW.,
Washington, DC 20585–0121.
Telephone: (202) 586–9611. E-mail:
Michael.Raymond@ee.doe.gov.
Ms. Elizabeth Kohl, U.S. Department
of Energy, Office of the General Counsel,
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Agencies
[Federal Register Volume 75, Number 47 (Thursday, March 11, 2010)]
[Notices]
[Pages 11517-11522]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5369]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-837]
Certain Magnesia Carbon Bricks from Mexico: Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (the Department)
preliminarily determines that certain magnesia carbon bricks (bricks)
from Mexico are being, or are likely to be, sold in the United States
at less than fair value (LTFV), as provided in section 733(b) of the
Tariff Act of 1930, as amended (the Act). The estimated margins of
sales at LTFV are listed in the ``Suspension of Liquidation'' section
of this notice. Interested parties are invited to comment on this
preliminary determination. Pursuant to a request from the respondent,
we are postponing for 60 days the final determination and extending
provisional measures from a four-month period to not more than six
months. Accordingly, we will make our final determination not later
than 135 days after publication of the preliminary determination.
DATES: Effective Date: March 11, 2010.
FOR FURTHER INFORMATION CONTACT: David Goldberger or Terre Keaton
Stefanova, AD/CVD Operations, Office 2, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230; telephone
(202) 482-4136 and (202) 482-1280, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 18, 2009, the Department initiated the antidumping duty
investigation of BRICKS from Mexico. See Certain Magnesia Carbon Bricks
from the People's Republic of China and Mexico: Initiation of
Antidumping Duty Investigations, 74 FR 42852 (August 25, 2009)
(Initiation Notice). The petitioner in this investigation is Resco
Products Inc.
[[Page 11518]]
The Department set aside a period of time for parties to raise
issues regarding product coverage and encouraged all parties to submit
comments within 20 calendar days of publication of the Initiation
Notice. See Initiation Notice, 74 FR at 42853. See also Antidumping
Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). For
further details, see the ``Scope Comments'' section of this notice,
below. The Department also set aside a time for parties to comment on
product characteristics for use in the antidumping duty questionnaire.
During September 2009, we received product characteristic comments from
the petitioner and RHI-Refmex S.A. de C.V. (Refmex), a Mexican producer
and exporter of the subject merchandise. For an explanation of the
product-comparison criteria used in this investigation, see the
``Product Comparisons'' section of this notice, below.
On September 29, 2009, the International Trade Commission (ITC)
published its affirmative preliminary determination that there is a
reasonable indication that imports of bricks from Mexico are materially
injuring the U.S. industry, and the ITC notified the Department of its
finding. See Certain Magnesia Carbon Bricks form China and Mexico, 74
FR 49889 (September 29, 2009); see also ``Investigation No. 701-TA-468
and 731-TA-1166-67 (Preliminary),'' USITC Publication 4100 (September
2009).
On September 29, 2009, we selected Refmex as the sole mandatory
respondent in this investigation. See Memorandum entitled:
``Antidumping Duty Investigation of Certain Magnesia Carbon Bricks from
Mexico - Selection of Respondents for Individual Review,'' dated
September 29, 2009. We subsequently issued the antidumping
questionnaire to Refmex on September 30, 2009. Refmex submitted
responses to sections A (i.e., the section covering general information
about the company), B (i.e., the section covering comparison market
sales) and C (i.e., the section covering U.S. sales) of the antidumping
duty questionnaire on November 23, 2009. We issued supplemental section
A, B, and C questionnaires, to which Refmex responded during January
and February 2010.
On December 8, 2009, the petitioner made a timely request pursuant
to section 733(c)(1)(A) of the Act and 19 CFR 351.205(e) for a 50-day
postponement of the preliminary determination. Pursuant to section
733(c)(1)(A) of the Act, the Department postponed the preliminary
determination of this investigation until February 24, 2010. See
Certain Magnesia Carbon Bricks from the People's Republic of China and
Mexico: Postponement of Preliminary Determinations of Antidumping Duty
Investigations, 74 FR 66954 (December 17, 2009). As explained in the
memorandum from the Deputy Assistant Secretary for Import
Administration, the Department has exercised its discretion to toll
deadlines for the duration of the closure of the Federal Government
from February 5, through February 12, 2010. Thus, all deadlines in this
segment of the proceeding have been extended by seven days. The revised
deadline for the preliminary determination of this investigation is now
March 3, 2010. See Memorandum to the Record regarding ``Tolling of
Administrative Deadlines As a Result of the Government Closure During
the Recent Snowstorm,'' dated February 12, 2010.
On December 11, 2009, the petitioner alleged that Refmex made
comparison-market sales of bricks at prices below the cost of
production (COP) during the period of investigation (POI).
On January 6, 2010, we initiated an investigation to determine
whether Refmex made comparison-market sales of bricks at prices below
the COP during the POI. See Memorandum entitled ``The Petitioner's
Allegation of Sales Below the Cost of Production for RHI RefMex S.A. de
C.V.,'' dated January 6, 2010. As a result, we requested that Refmex
respond to section D of the questionnaire (i.e., the section covering
COP and constructed value (CV)). See Memorandum entitled: ``Telephone
Conversation with RHI-Refmex Counsel on Initiation of COP Investigation
and Submission of Response to Section D of the Department's
Questionnaire,'' dated January 7, 2010. We issued a supplemental
section D questionnaire to Refmex in February 2010, and received a
response later that month.
The petitioner submitted comments for consideration with respect to
the preliminary determination on February 12, 2010. Refmex responded to
those comments on February 17, 2010.
On February 17, 2010, Refmex requested that, in the event of an
affirmative preliminary determination in this investigation, the
Department: 1) postpone its final determination by 60 days, in
accordance with 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii);
and 2) extend the application of the provisional measures prescribed
under 19 CFR 351.210(e)(2) from a four-month period to a six-month
period. For further discussion, see the ``Postponement of Final
Determination and Extension of Provisional Measures'' section of this
notice, below.
Period of Investigation
The POI is July 1, 2008, to June 30, 2009. This period corresponds
to the four most recent fiscal quarters prior to the month of the
filing of the petition. See 19 CFR 351.204(b)(1).
Scope of Investigation
The merchandise under investigation consists of certain chemically-
bonded (resin or pitch), magnesia carbon bricks with a magnesia
component of at least 70 percent magnesia (MgO) by weight, regardless
of the source of raw materials for the MgO, with carbon levels ranging
from trace amounts to 30 percent by weight, regardless of enhancements
(for example, magnesia carbon bricks can be enhanced with coating,
grinding, tar impregnation or coking, high temperature heat treatments,
anti-slip treatments or metal casing) and regardless of whether or not
antioxidants are present (for example, antioxidants can be added to the
mix from trace amounts to 15 percent by weight as various metals, metal
alloys, and metal carbides). Certain magnesia carbon bricks that are
the subject of this investigation are currently classifiable under
subheadings 6902.10.10.00, 6902.10.50.00, 6815.91.00.00, and 6815.99 of
the Harmonized Tariff Schedule of the United States (HTSUS). While
HTSUS subheadings are provided for convenience and customs purposes,
the written description is dispositive.
Scope Comments
In accordance with the preamble to the Department's regulations
(see Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May
19, 1997)), in our Initiation Notice we set aside a period of time for
parties to raise issues regarding product coverage, and encouraged all
parties to submit comments within 20 calendar days of publication of
the Initiation Notice. On September 8, 2009, Pilkington North America
Inc. (PNA), a U.S. importer of BRICKS from the People's Republic of
China (PRC) and Mexico, filed comments concerning the scope of this
investigation and the concurrent antidumping duty and countervailing
duty investigations of certain magnesia carbon bricks from the PRC. In
its submission, PNA requested that the Department amend the scope of
these investigations to exclude ceramic-bonded magnesia bricks with or
without trace amounts of carbon, or clarify that this product is
outside the scope of these investigations. According to PNA, the
ceramic-bonded magnesia bricks it
[[Page 11519]]
imports are clearly not within the intended scope of these
investigations. The petitioner did not file comments on PNA's
submission. On February 24, 2010, the Department issued a memorandum
confirming that ceramic bonded magnesia bricks are not included in the
scope of the investigations. See Memorandum entitled ``Certain Magnesia
Carbon Bricks from the People's Republic of China and Mexico: Scope
Comments.''
Product Comparisons
We have taken into account the comments that were submitted by the
interested parties concerning product-comparison criteria. In
accordance with section 771(16) of the Act, all products produced by
the respondent covered by the description in the ``Scope of
Investigation'' section, above, and sold in Mexico during the POI are
considered to be foreign like product for purposes of determining
appropriate product comparisons to U.S. sales. We have relied on six
criteria to match U.S. sales of subject merchandise to comparison-
market sales of the foreign like product: 1) magnesium oxide content
range, 2) fused magnesia content range, 3) antioxidants, 4) carbon
content range, 5) post-molding treatments, and 6) additives. Where
there were no sales of identical merchandise in the home market made in
the ordinary course of trade to compare to U.S. sales, we compared U.S.
sales to sales of the next most similar foreign like product on the
basis of the characteristics listed above, which were made in the
ordinary course of trade.
Fair Value Comparisons
To determine whether Refmex' sales of bricks from Mexico to the
United States were made at LTFV, we compared the constructed export
price (CEP) to normal value (NV), as described in the ``Constructed
Export Price'' and ``Normal Value'' sections of this notice. In
accordance with section 777A(d)(1) of the Act, we compared POI
weighted-average CEPs to POI weighted-average NVs.
In addition to selling bricks to unaffiliated customers, Refmex
reported that it ships some subject merchandise in the U.S. and Mexican
markets under ``Full Line Service Contracts.'' Under these contracts,
Refmex claims that it or its affiliates consume bricks as part of
broader service agreements with their customers. Refmex did not include
bricks shipped in conjunction with these service contracts in its sales
listings. Refmex claimed that the quantity of bricks shipped in these
instances constitutes a relatively small percentage of the total
quantity of bricks shipped to U.S. and Mexican customers during the
POI. Refmex also claimed that, in fulfilling these contracts, it does
not generate invoices specifying a quantity or price for the bricks
shipped, and, thus, does not record sales of bricks in its accounting
system. Rather, customers pay Refmex or its affiliates based on other
terms specified in the contracts.
Our analysis of the information Refmex provided, including examples
of Full Line Service Contracts, supports Refmex' representations
regarding the complexity of assigning values to the bricks shipped in
the fulfillment of these contracts. Based on this analysis and Refmex'
claim that the shipment of bricks in fulfillment of these contracts
constitutes a relatively small percentage of the total bricks shipped
to U.S. customers during the POI, we have excluded bricks consumed
under these circumstances in both the home and U.S. markets from our
margin analysis.
Constructed Export Price
Pursuant to section 772(b) of the Act, we calculated CEP for those
sales where the subject merchandise was first sold in the United States
after the date of importation by or for the account of the producer or
exporter, or by a seller affiliated with the producer or exporters, to
a purchaser not affiliated with the producer or exporter. In addition,
we calculated CEP for those sales where the subject merchandise was
first sold in the United States before the date of importation by
Refmex' affiliate, Veitsch-Radex America, Inc., located in Mokena,
Illinois (VRA), to unaffiliated purchasers. Refmex classified these
latter sales as export price (EP) sales because it initially reported
that these sales were made outside the United States by its affiliate
Veitsch-Radex America, Inc., located in Burlington, Ontario, Canada
(VRC). Subsequently, Refmex clarified that these sales were made in the
United States by VRA. Accordingly, we have reclassified them as CEP
sales because the merchandise was sold in the United States, before
importation, by a seller affiliated with the producer or exporter to a
purchaser not affiliated with the producer or exporter, consistent with
section 772(b) of the Act. See, e.g., Stainless Steel Bar From Brazil:
Preliminary Results of Antidumping Duty Administrative Review, 74 FR
10022, 10023 (March 9, 2009), unchanged in Stainless Steel Bar From
Brazil: Final Results of Antidumping Duty Administrative Review, 74 FR
33995 (July 14, 2009); and Certain Cut-to-Length Carbon-Quality Steel
Plate Products From the Republic of Korea: Preliminary Results of
Antidumping Duty Administrative Review and Intent To Rescind
Administrative Review in Part, 72 FR 65701, 65703-04 (November 23,
2007), unchanged in Certain Cut-to-Length Carbon-Quality Steel Plate
Products From the Republic of Korea: Final Results of Antidumping Duty
Administrative Review and Rescission of Administrative Review in Part,
73 FR 15132 (March 21, 2008).
We based CEP on the packed, ex-warehouse or delivered prices to
unaffiliated purchasers in the United States. Where appropriate, we
adjusted prices for billing adjustments, discounts and rebates. We made
deductions for movement expenses, in accordance with section
772(c)(2)(A) of the Act; these expenses included, where appropriate,
inland freight from the plant to the U.S. warehouse, U.S. brokerage and
handling expenses (including customs fees), pre-sale warehousing
expenses, and U.S. inland freight from the warehouse to the customer.
In accordance with section 772(d)(1) of the Act and 19 CFR 351.402(b),
we deducted those selling expenses incurred by or for the account of
the producer or exporter in selling the subject merchandise, which are
associated with commercial activities in the United States, no matter
where or when paid, including direct selling expenses (i.e., credit
expenses, technical service expenses, and warranty expenses), and
indirect selling expenses (including inventory carrying costs). We also
deducted from CEP an amount for profit, in accordance with sections
772(d)(3) and (f) of the Act.
Normal Value
A. Home Market Viability and Comparison-Market Selection
To determine whether there is a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
equal to or greater than five percent of the aggregate volume of U.S.
sales), we compared Refmex' volume of home market sales of the foreign
like product to its volume of U.S. sales of the subject merchandise.
See section 773(a)(1)(C) of the Act. Based on this comparison, we
determined that Refmex had a viable home market during the POI.
Consequently, we based NV on home market sales.
B. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
[[Page 11520]]
sales in the comparison market at the same level of trade (LOT) as the
EP or CEP. Pursuant to 19 CFR 351.412(c)(1), the NV LOT is based on the
starting price of the sales in the comparison market or, when NV is
based on constructed value, the starting price of the sales from which
we derive selling, general and administrative expenses, and profit. For
EP sales, the U.S. LOT is based on the starting price of the sales in
the U.S. market, which is usually from exporter to importer. For CEP
sales, the U.S. LOT is based on the starting price of the U.S. sales,
as adjusted under section 772(d) of the Act, which is from the exporter
to the importer.
To determine whether NV sales are at a different LOT than EP or CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the comparison-
market sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison-
market sales at the LOT of the export transaction, we make an LOT
adjustment under section 773(a)(7)(A) of the Act. For CEP sales, if the
NV level is more remote from the factory than the CEP level and there
is no basis for determining whether the difference in levels between NV
and CEP affects price comparability, we adjust NV under section
773(a)(7)(B) of the Act (the CEP-offset provision). See Notice of Final
Determination of Sales at Less Than Fair Value: Certain Cut-to-Length
Carbon Steel Plate from South Africa, 62 FR 61731, 61732 - 61733
(November 19, 1997) (Plate from South Africa).
In this investigation, we obtained information from Refmex
regarding the marketing stages involved in making its reported home
market and U.S. sales, including a description of the selling
activities performed by the respondent and its affiliates for each
channel of distribution.
Refmex reported that it made all sales in the U.S. market to end-
users. For CEP sales, Refmex reported that its affiliate VRA, supported
by another affiliate, VRC, made sales through five channels of
distribution: 1) direct shipments from the Mexican plant to the U.S.
customer; 2) ex-U.S. warehouse; 3) delivered to the U.S. customer from
a U.S. warehouse; 4) on consignment basis ex-U.S. warehouse; and 5) on
consignment basis delivered to the U.S. customer from a U.S. warehouse.
Because all of Refmex' U.S. sales were CEP sales, we examined only
the selling functions performed by Refmex for these sales, not the
selling functions performed by its affiliates, consistent with our
normal practice. See Plate from South Africa, 62 FR at 61732. We found
that the only selling functions that Refmex performed for all CEP sales
were packing, inventory maintenance (i.e., in Mexico prior to shipment
to the U.S. customer or to U.S. warehouses for resale by Refmex
affiliates to unaffiliated U.S. customers), and order input/processing.
The selling functions performed for all CEP sales were identical.
Therefore, we determined that all CEP sales constituted one LOT.
With respect to home market sales, Refmex reported that sales were
made to end users through two channels of distribution: 1) direct to
customers; and 2) consignment sales from consignment inventories. We
examined the reported selling activities and found that Refmex
performed the following selling functions for both sales channels in
the home market: sales forecasting, strategic/economic planning,
engineering services, sales promotion, packing, inventory maintenance,
order input/processing, direct sales personnel, sales/marketing
support, market research, technical assistance, granting of rebates,
after-sales services, and freight and delivery arrangements.
Furthermore, we found that Refmex performed most of these selling
functions at the same relative level of intensity for all customers in
the comparison market. While we note some difference in intensity in
the inventory maintenance activity between direct sales and consignment
sales, this difference alone is not sufficient to warrant a finding
that the two sales channels constitute different LOTs in the home
market. Therefore, based on our overall analysis, we found that all
home market sales constituted one LOT.
In comparing the home market LOT to the CEP LOT, we found that the
selling activities performed by Refmex for its CEP sales, as described
above, were significantly fewer than the selling activities that it
performed for its home market sales. Therefore, Refmex provided many
more selling functions for its home market sales than it provided for
its CEP sales, thus making the home market LOT more advanced than the
CEP LOT.
Based on the above, we could not match CEP sales to sales at the
same LOT in the home market, nor could we determine an LOT adjustment
based on Refmex' home market sales because there is only one LOT in the
home market. Therefore, it is not possible to determine if there is a
pattern of consistent price differences between the sales on which NV
is based and home market sales at the LOT of the export transaction.
See section 773(a)(7)(A) of the Act. Furthermore, we have no other
information that provides an appropriate basis for determining an LOT
adjustment. Consequently, because the data available do not form an
appropriate basis for making an LOT adjustment, even though the home
market LOT is at a more advanced stage of distribution than the CEP
LOT, we made a CEP offset to NV in accordance with section 773(a)(7)(B)
of the Act. The CEP offset is calculated as the lesser of: (1) the
indirect selling expenses incurred on the home market sales, or (2) the
indirect selling expenses deducted from the starting price in
calculating CEP. See id.
C. Cost of Production Analysis
1. Calculation of Cost of Production
In accordance with section 773(b)(3) of the Act, we calculated COP
based on the sum of the cost of materials and fabrication for the
foreign like product, plus an amount for general and administrative
expenses (G&A) and interest expenses (see ``Test of Home Market Sales
Prices'' section below for treatment of home market selling expenses
and packing costs). We relied on the COP data submitted by Refmex in
its January 27, 2010, response to section D of the questionnaire,
except where noted below.
We excluded packing expenses from the denominators of the reported
G&A and interest expense ratios. In addition, we revised the numerator
of the interest expense ratio to exclude the interest income offset,
because Refmex did not demonstrate that this income was generated from
certain short-term interest-bearing assets. We applied the revised
ratios to Refmex' reported total cost of manufacturing to determine the
revised G&A and financial interest expenses. See Memorandum entitled
``Cost of Production and Constructed Value Calculation Adjustment RHI-
Refmex S.A. de C.V.,'' dated March 3, 2010.
For the preliminary determination, we have relied upon the POI
weighted-average COP Refmex reported. However, depending on the extent
to which production costs changed throughout the cost reporting period,
we are considering whether it is more appropriate to use the
Department's alternative cost averaging methodology for the final
determination. Accordingly, we have requested product-specific
quarterly cost information from Refmex
[[Page 11521]]
for consideration prior to the final determination.
2. Test of Home Market Sales Prices
On a product-specific basis, we compared the adjusted weighted-
average COP to the home market sales prices of the foreign like
product, as required under section 773(b) of the Act, to determine
whether the sale prices were below the COP. The sales prices were
exclusive of any applicable movement charges, direct and indirect
selling expenses, and packing expenses. For purposes of this
comparison, we used the COP exclusive of selling and packing expenses.
3. Results of the COP Test
Pursuant to section 773(b)(2)(C)(i) of the Act, where less than 20
percent of the respondent's sales of a given product were at prices
less than the COP, we do not disregard any below-cost sales of that
product because we determined that the below-cost sales were not made
in ``substantial quantities.'' Where 20 percent or more of the
respondent's sales of a given product during the POI were at prices
less than COP, we determine that such sales have been made in
``substantial quantities.'' See section 773(b)(2)(C) of the Act.
Further, we determine that the sales were made within an extended
period of time, in accordance with section 773(b)(2)(B) of the Act,
because we examine below-cost sales occurring during the entire POI. In
accordance with section 773(b)(2)(D) of the Act, we compare prices to
the POI average costs to determine whether the prices permit recovery
of costs within a reasonable period of time.
In this case, we found that, for certain specific products, more
than 20 percent of Refmex' sales were at prices less than the COP and,
in addition, such sales did not provide for the recovery of costs
within a reasonable period of time. We, therefore, excluded these sales
and used the remaining sales as the basis for determining NV, in
accordance with section 773(b)(1) of the Act.
D. Calculation of Normal Value Based on Comparison-Market Prices
We based NV for Refmex on packed, ex-factory or delivered prices to
unaffiliated customers in the home market. We made deductions from the
starting price, where appropriate, for foreign inland freight and
warehousing expenses under section 773(a)(6)(B)(ii) of the Act.
Pursuant to section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(b), we made, where appropriate, circumstance-of-sale
adjustments for imputed credit expenses and technical service expenses.
We also deducted home market packing costs and added U.S. packing
costs, in accordance with sections 773(a)(6)(A) and (B) of the Act.
Finally, we made a CEP offset pursuant to section 773(a)(7)(B) of the
Act and 19 CFR 351.412(f). We calculated the CEP offset as the lesser
of the indirect selling expenses incurred on the home market sales or
the indirect selling expenses deducted from the starting price in
calculating CEP.
Refmex reported royalty expenses incurred on home market sales and
paid to an affiliate, Refractory Intellectual Property (REFIP) GmbH &
Co. KG., of Refmex' parent company, RHI AG. We have disallowed this
selling expense claim, as Refmex was unable to demonstrate that the
royalty payments made to its affiliate were at arm's length.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A of the Act and 19 CFR 351.415 based on the exchange rates
in effect on the dates of the U.S. sales as certified by the Federal
Reserve Bank.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information relied upon in making our final determination for
Refmex.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we will direct
U.S. Customs and Border Protection (CBP) to suspend liquidation of all
entries of bricks from Mexico that are entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. We will also instruct CBP to require a
cash deposit or the posting of a bond equal to the weighted-average
dumping margins, as indicated in the chart below. These suspension-of-
liquidation instructions will remain in effect until further notice.
The weighted-average dumping margins are as follows:
------------------------------------------------------------------------
Weighted-Average
Manufacturer/Exporter Margin (percent)
------------------------------------------------------------------------
RHI-Refmex S.A. de C.V.............................. 54.73
All Others.......................................... 54.73
------------------------------------------------------------------------
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated ``All
Others'' rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins, and any margins determined entirely under section 776
of the Act. Refmex is the only respondent in this investigation for
which the Department calculated a company-specific rate. Therefore, for
purposes of determining the all-others rate and pursuant to section
735(c)(5)(A) of the Act, we are using the weighted-average dumping
margin calculated for Refmex, as referenced above. See, e.g., Notice of
Final Determination of Sales at Less Than Fair Value: Stainless Steel
Sheet and Strip in Coils From Italy, 64 FR 30750, 30755 (June 8, 1999);
and Notice of Preliminary Determination of Sales at Less Than Fair
Value and Postponement of Final Determination: Coated Free Sheet Paper
from Indonesia, 72 FR 30753, 30757 (June 4, 2007), unchanged in Notice
of Final Determination of Sales at Less Than Fair Value: Coated Free
Sheet Paper from Indonesia, 72 FR 60636 (October 25, 2007).
Disclosure
The Department will disclose to parties the calculations performed
in connection with this preliminary determination within five days of
the date of publication of this notice. See 19 CFR 351.224(b).
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters, who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. The Department's regulations, at 19 CFR 351.210(e)(2),
require that requests by respondents for postponement of a final
determination be accompanied by a request for extension of provisional
measures from a four-month period to not more than six months.
On February 17, 2010, Refmex requested that in the event of an
affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, Refmex requested that the Department extend the application of
the provisional measures prescribed under section 733(d) of the Act and
19 CFR 351.210(e)(2), from a four-month period to a six-month period.
In accordance
[[Page 11522]]
with section 735(a)(2) of the Act and 19 CFR 351.210(b)(2), because:
(1) our preliminary determination is affirmative; (2) the requesting
exporter accounts for a significant proportion of exports of the
subject merchandise; and, (3) no compelling reasons for denial exist,
we are granting this request and are postponing the final determination
until no later than 135 days after the publication of this notice in
the Federal Register. Suspension of liquidation will be extended
accordingly.
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of the Department's preliminary affirmative determination. If the
Department's final determination is
affirmative, the ITC will determine before the later of 120 days
after the date of this preliminary determination or 45 days after our
final determination whether imports of bricks from Mexico are
materially injuring, or threatening material injury to, the U.S.
industry (see section 735(b)(2) of the Act). Because we are postponing
the deadline for our final determination to 135 days from the date of
the publication of this preliminary determination, the ITC will make
its final determination no later than 45 days after our final
determination.
Public Comment
Interested parties are invited to comment on the preliminary
determination. Interested parties may submit case briefs to the
Department no later than seven days after the date of the issuance of
the last verification report in this proceeding. See 19 CFR
351.309(c)(1)(i). Rebuttal briefs, the content of which is limited to
the issues raised in the case briefs, must be filed within five days
from the deadline date for the submission of case briefs. See 19 CFR
351.309(d)(1). A list of authorities used, a table of contents, and an
executive summary of issues should accompany any briefs submitted to
the Department. Executive summaries should be limited to five pages
total, including footnotes. Further, we request that parties submitting
briefs and rebuttal briefs provide the Department with a copy of the
public version of such briefs on diskette. In accordance with section
774 of the Act, the Department will hold a public hearing, if timely
requested, to afford interested parties an opportunity to comment on
arguments raised in case or rebuttal briefs, provided that such a
hearing is requested by an interested party. See also 19 CFR
351.310(d). If a timely request for a hearing is made in this
investigation, we intend to hold the hearing two days after the
rebuttal brief deadline date at the U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230, at a time and
in a room to be determined. Parties should confirm by telephone, the
date, time, and location of the hearing 48 hours before the scheduled
date.
Interested parties who wish to request a hearing, or to participate
in a hearing if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days of the publication of this notice.
Requests should contain: (1) the party's name, address, and telephone
number; (2) the number of participants; and (3) a list of the issues to
be discussed. At the hearing, oral presentations will be limited to
issues raised in the briefs.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: March 3, 2010.
Carole A. Showers,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-5369 Filed 3-10-10; 8:45 am]
BILLING CODE 3510-DS-S