Light-Walled Rectangular Pipe and Tube From the People's Republic of China: Preliminary Results of the 2008-2009 Antidumping Duty Administrative Review, 27308-27312 [2010-11603]
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after the publication date of the final
results of this review. In accordance
with 19 CFR 351.212(b)(1), we will
calculate exporter/importer (or
customer) -specific assessment rates for
the merchandise subject to this review.
Where the respondent has reported
reliable entered values, we calculated
importer (or customer) -specific ad
valorem rates by aggregating the
dumping margins calculated for all U.S.
sales to each importer (or customer) and
dividing this amount by the total
entered value of the sales to each
importer (or customer). See 19 CFR
351.212(b)(1). Where an importer (or
customer) -specific ad valorem rate is
greater than de minimis, we will apply
the assessment rate to the entered value
of the importers’/customers’ entries
during the POR. See 19 CFR
351.212(b)(1).
Where we do not have entered values
for all U.S. sales, we calculated a perunit assessment rate by aggregating the
antidumping duties due for all U.S.
sales to each importer (or customer) and
dividing this amount by the total
quantity sold to that importer (or
customer). See 19 CFR 351.212(b)(1). To
determine whether the duty assessment
rates are de minimis, in accordance with
the requirement set forth in 19 CFR
351.106(c)(2), we calculated importer
(or customer) -specific ad valorem ratios
based on the estimated entered value.
Where an importer (or customer)
-specific ad valorem rate is zero or de
minimis, we will instruct CBP to
liquidate appropriate entries without
regard to antidumping duties. See 19
CFR 351.106(c)(2).
Cash Deposit Requirements
Further, the following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for all shipments
of the subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the publication
date, as provided for by section
751(a)(2)(C) of the Act: (1) For Jiheng,
the cash deposit rate will be the
company-specific rate established in the
final results of review (except, if the rate
is zero or de minimis, a zero cash
deposit will be required); (2) for
previously investigated or reviewed PRC
and non-PRC exporters not listed above
that have separate rates, the cash
deposit rate will continue to be the
exporter-specific rate published for the
most recent period; (3) for all PRC
exporters of subject merchandise that
have not been found to be entitled to a
separate rate, the cash deposit rate will
be the PRC-wide rate of 285.63 percent;
and (4) for all non-PRC exporters of
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subject merchandise which have not
received their own rate, the cash deposit
rate will be the rate applicable to the
PRC exporter(s) that supplied that nonPRC exporter. These deposit
requirements, when imposed, shall
remain in effect until further notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
These preliminary results are issued
and published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: May 10, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–11605 Filed 5–13–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–914]
Light-Walled Rectangular Pipe and
Tube From the People’s Republic of
China: Preliminary Results of the
2008–2009 Antidumping Duty
Administrative Review
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a timely
request from one importer, FitMAX Inc.
(‘‘FitMAX’’), the Department of
Commerce (the ‘‘Department’’) is
conducting the 2008–2009
administrative review of the
antidumping duty order on light-walled
rectangular pipe and tube (‘‘LWR’’) from
the People’s Republic of China (‘‘PRC’’).
We have preliminarily determined that
sales have been made below normal
value (‘‘NV’’) by the exporter
participating in the instant
administrative review. If these
preliminary results are adopted in our
final results of review, we will instruct
U.S. Customs and Border Protection
(‘‘CBP’’) to assess antidumping duties on
entries of subject merchandise during
the period of review (‘‘POR’’) for which
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the importer-specific assessment rate is
above de minimis.
Interested parties are invited to
comment on these preliminary results.
We will issue the final results no later
than 120 days from the date of
publication of this notice.
DATES: Effective Date: May 14, 2010.
FOR FURTHER INFORMATION CONTACT:
Melissa Blackledge 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) 482–3518 and (202)
482–5193, respectively.
Background
On June 24, 2008, the Department
published its final determination of
sales at less-than-fair-value in the
antidumping duty investigation of LWR
from the PRC. See 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). On August 5, 2008, the
Department published its antidumping
duty order on LWR from the PRC. See
Light-Walled Rectangular Pipe and Tube
from Mexico, the People’s Republic of
China, and the Republic of Korea:
Antidumping Duty Orders; Light-Walled
Rectangular Pipe and Tube from the
Republic of Korea: Notice of Amended
Final Determination of Sales at Less
Than Fair Value, 73 FR 45403 (August
5, 2008). On August 3, 2009, the
Department published a notice of
opportunity to request an administrative
review of the above-referenced order.
See Antidumping or Countervailing
Duty Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review, 74 FR 38397
(August 3, 2009). Based on a timely
request from FitMAX for an
administrative review, the Department
initiated an administrative review of the
antidumping duty order on LWR from
the PRC with respect to the Sun Group
Inc. (the ‘‘Sun Group’’), a producer/
exporter of subject merchandise
imported by FitMAX. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Request for
Revocation in Part, 74 FR 48224
(September 22, 2009) (‘‘Initiation
Notice’’).
On September 25, 2009, the
Department issued an antidumping duty
questionnaire to the Sun Group. The
Sun Group submitted responses to the
Department’s questionnaire from
October through December 2009. We
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issued supplemental questionnaires to,
and received responses from, the Sun
Group from November 2009 through
April 2010. Petitioners 1 submitted
comments to the Department regarding
the questionnaire and supplemental
questionnaire responses of the Sun
Group in November 2009.
On January 13, 2010, the Department
provided parties with an opportunity to
submit publicly available information
on surrogate countries and values for
consideration in these preliminary
results. On January 26, 2010, Petitioners
submitted comments on surrogate
country selection, and on March 22,
2010, and April 5, 2010, Petitioners
submitted comments on surrogate
values. The Sun Group submitted
comments on surrogate values on March
19, 2010, and April 12, 2010.
Period of Review
The POR is January 20, 2008, through
July 31, 2009.
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Scope of Order
The merchandise that is the subject of
the order is certain welded carbonquality light-walled steel pipe and tube,
of rectangular (including square) cross
section, having a wall thickness of less
than 4 mm.
The term carbon-quality steel
includes both carbon steel and alloy
steel which contains only small
amounts of alloying elements.
Specifically, the term carbon-quality
includes products in which none of the
elements listed below exceeds the
quantity by weight respectively
indicated: 1.80 percent of manganese, or
2.25 percent of silicon, or 1.00 percent
of copper, or 0.50 percent of aluminum,
or 1.25 percent of chromium, or 0.30
percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30
percent of tungsten, or 0.10 percent of
molybdenum, or 0.10 percent of
niobium, or 0.15 percent vanadium, or
0.15 percent of zirconium. The
description of carbon-quality is
intended to identify carbon-quality
products within the scope. The welded
carbon-quality rectangular pipe and
tube subject to the order is currently
classified under the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’) subheadings 7306.61.50.00
and 7306.61.70.60. While HTSUS
subheadings are provided for
convenience and Customs purposes, our
written description of the scope of the
order is dispositive.
1 Petitioners are Atlas Tube, Bull Moose Tube
Company and Searing Industries, Inc.
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Non-Market-Economy (‘‘NME’’)
Treatment
The Department considers the PRC to
be an NME country. In accordance with
section 771(18)(C)(i) of the Tariff Act of
1930, as amended (the ‘‘Act’’), any
determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See also Preliminary Determination of
Sales at Less Than Fair Value and
Postponement of Final Determination:
Coated Free Sheet Paper from the
People’s Republic of China, 72 FR
30758, 30760 (June 4, 2007), unchanged
in Final Determination of Sales at Less
Than Fair Value: Coated Free Sheet
Paper from the People’s Republic of
China, 72 FR 60632 (October 25, 2007).
The Department has not revoked the
PRC’s status as an NME country. None
of the parties to this proceeding has
contested such treatment. Therefore, in
these preliminary results of review, we
have treated the PRC as an NME country
and applied our current NME
methodology in accordance with section
773(c) of the Act.
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. See
Initiation Notice, 74 FR at 48224. The
process requires exporters and
producers to submit a separate-rate
status application. See Policy Bulletin
05.1: Separate-Rates Practice and
Application of Combination Rates in
Antidumping Investigations involving
Non-Market Economy Countries, (April
5, 2005) (‘‘Policy Bulletin 05.1’’)
available at https://ia.ita.doc.gov.2
However, the standard for eligibility for
a separate rate (which is whether a firm
can demonstrate an absence of both de
jure and de facto governmental control
2 Policy Bulletin 05.1 states: ‘‘[w]hile 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 cashdeposit 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.’’ See
Policy Bulletin 05.1 at 6 (emphasis in original).
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over its export activities) has not
changed.
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 to investigation in an NME
country this single rate unless an
exporter can demonstrate that it is
sufficiently independent so as to be
entitled to a separate rate. 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 set out in the
Notice of Final Determination of Sales
at Less Than Fair Value: Sparklers from
the People’s Republic of China, 56 FR
20588 (May 6, 1991) (‘‘Sparklers’’), as
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’’).
A. Separate Rate Applicant
1. Wholly Chinese-Owned
The Sun Group stated that it is a
wholly Chinese-owned company.
Therefore, the Department must analyze
whether this respondent can
demonstrate the absence of both de jure
and de facto governmental control over
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, 56 FR at 20589.
The evidence provided by the Sun
Group supports a preliminary finding of
de jure absence of governmental control
based on the following: (1) There is an
absence of restrictive stipulations
associated with the exporter’s business
and export licenses; (2) there are
applicable legislative enactments
decentralizing control of the company;
and (3) there are formal measures by the
government decentralizing control of
the company. See the Sun Group’s
Section A Response, dated October 27,
2009 (‘‘SAR’’), at 2–8.
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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, 59 FR 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 determine that the evidence on
the record supports a preliminary
finding of de facto absence of
governmental control with respect to the
Sun Group based on record statements
and supporting documentation showing
that the company: (1) Sets its own
export prices independent of the
government and without the approval of
a government authority; (2) has the
authority to negotiate and sign contracts
and other agreements; (3) has autonomy
from the government regarding the
selection of management; and (4) retains
the proceeds from its sales and makes
independent decisions regarding
disposition of profits or financing of
losses. See SAR at 8–10.
The evidence placed on the record of
this administrative review by the Sun
Group demonstrates an absence of de
jure and de facto government control
with respect to the exporters’ exports of
the merchandise under review, in
accordance with the criteria identified
in Sparklers and Silicon Carbide.
Therefore, we have preliminarily
granted the Sun Group separate rate
status.
Selection of a Surrogate Country
In antidumping proceedings involving
NME countries, the Department,
pursuant to section 773(c)(1) of the Act,
will generally base NV on the value of
the NME producer’s factors of
production (‘‘FOP’’). In accordance with
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section 773(c)(4) of the Act, in valuing
the FOPs, the Department shall utilize,
to the extent possible, the prices or costs
of FOPs 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 merchandise comparable
to the subject merchandise.
In the instant review, the Department
has determined that India, the
Philippines, Indonesia, Thailand,
Ukraine, and Peru are countries that are
at a level of economic development
comparable to that of the PRC. See
Letter to All Interested Parties, from
Howard Smith, Re: 2008–2009
Administrative Review of Light-Walled
Rectangular Pipe and Tube from the
People’s Republic of China (PRC), dated
January 13, 2010. 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 FOPs. See
Petitioners’ January 26, 2010, surrogate
country comments; see also the Sun
Group’s March 19, 2010, and
Petitioners’ March 22, 2010, and April
5, 2010, surrogate value comments.
Thus, to calculate NV, we are using
Indian prices, when available and
appropriate, to value the FOPs of the
Sun Group, the mandatory respondent.
We have obtained and relied upon
publicly available information wherever
possible. See ‘‘Memorandum To The
File, from Melissa Blackledge, Re:
Administrative Review of Light-Walled
Rectangular Pipe and Tube from the
People’s Republic of China: Surrogate
Values,’’ dated May 10, 2010 (‘‘Surrogate
Values Memo’’).
Fair Value Comparisons
To determine whether the Sun
Group’s sales of subject merchandise to
the United States were made at prices
below NV, we compared the constructed
export price (‘‘CEP’’) of the sales to NV,
as described in the ‘‘United States Price’’
and ‘‘Normal Value’’ sections of this
notice.
United States Price
In accordance with section 772(b) of
the Act, we based the U.S. price for the
Sun Group’s sale on CEP because this
sale was made by its U.S. affiliate,
which purchased subject merchandise,
produced and sold by the Sun Group
through one affiliate, FitMAX. In
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accordance with section 772(c)(2)(A) of
the Act, we calculated CEP by
deducting, where applicable, the
following expenses from the gross unit
price charged to the first unaffiliated
customer in the United States: Foreign
inland freight, foreign brokerage and
handling, international freight, U.S.
brokerage and handling, and U.S. inland
freight. 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: Indirect selling
expenses, credit, and inventory carrying
costs. Because the Sun Group and
FitMAX did not incur short-term U.S.
dollar borrowings during the POR, we
based their interest rate on the Federal
Funds Interest Rate for the calculation
of their U.S. credit expenses and
inventory carrying costs incurred in the
United States. As explained in Policy
Bulletin 98.2, Imputed Credit Expenses
and Interest Rates, February 23, 1998,
available at https://ia.ita.doc.gov, if a
respondent had no short-term debt in
U.S. dollars during the POR, it is the
Department’s practice to ‘‘use the
Federal Reserve’s weighted-average data
for commercial and industrial loans
maturing between one month and one
year from the time the loan is made’’ in
order to calculate the U.S. short-term
interest percentage rate. See, e.g., Notice
of Final Results of Antidumping Duty
Administrative Review: Steel Concrete
Reinforcing Bars from Latvia, 71 FR
7016 (February 10, 2006), and
accompanying Issues and Decision
Memorandum at Comment 4. In
addition, pursuant to section 772(d)(3)
of the Act, we made an adjustment to
the starting price for CEP profit. We
based movement expenses on either
surrogate values where the service was
purchased from a PRC provider, and
actual expenses where service was
purchased from a market-economy
provider in a market-economy currency.
For details regarding our CEP
calculations, and for a complete
discussion of the calculation of the U.S.
price for the Sun Group, see
‘‘Memorandum To The File, From
Melissa Blackledge, Light-Walled
Rectangular Pipe and Tube from the
People’s Republic of China—
Preliminary Analysis Memorandum for
the Sun Group Co., Ltd.,’’ dated May 10,
2010, at 5 (‘‘Analysis Memo’’).
Normal Value
Section 773(c)(1) of the Act provides
that the Department shall determine NV
using FOP methodology if the
merchandise is exported from an NME
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country and the available 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. When
determining NV in an NME context, the
Department uses an FOP methodology
because the presence of government
controls on various aspects of NMEs
renders price comparisons and the
calculation of production costs invalid
under its normal methodologies. See
Tapered Roller Bearings and Parts
Thereof, Finished or Unfinished, From
the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review and Notice
of Intent to Rescind in Part, 70 FR
39744, 39754 (July 11, 2005), unchanged
in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from
the People’s Republic of China: Final
Results of 2003–2004 Administrative
Review and Partial Rescission of
Review, 71 FR 2517, 2521 (January 17,
2006). Thus, we calculated NV by
adding together the value of the FOPs,
general expenses, profit, and packing
costs.3 Specifically, we valued material,
labor, energy, and packing by
multiplying the amount of the factor
consumed in producing subject
merchandise by the average unit
surrogate 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 U.S. Court of
Appeals for the Federal Circuit’s
decision in Sigma Corp. v. United
States, 117 F.3d 1401, 1407–08 (Fed.
Cir. 1997). We increased the calculated
costs of the FOPs for surrogate general
expenses and profit. See Analysis Memo
at 4.
Selected Surrogate Values
In accordance with section 773(c) of
the Act, we calculated NV based on FOP
data reported by the respondent for the
POR. To calculate NV, we multiplied
the reported per-unit factorconsumption rates by publicly available
surrogate values (except as discussed
below).
In selecting the surrogate values, we
considered the quality, specificity, and
3 We based the values of the FOPs on surrogate
values (see ‘‘Selected Surrogate Values’’ section
below).
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contemporaneity of the data. As
appropriate, we adjusted input prices by
including freight costs to make them
delivered prices. We added to each
Indian import surrogate value, a
surrogate freight cost calculated from
the shorter of the reported distance from
the domestic supplier to the factory or
the distance from the nearest seaport to
the factory, where appropriate. See
Sigma Corp.
For these preliminary results, in
accordance with the Department’s
practice, we used data from the Indian
Import Statistics in order to calculate
surrogate values for most of the
respondent’s material inputs. In
selecting the best available information
for valuing FOPs in accordance with
section 773(c)(1) of the Act, the
Department’s practice is to select, to the
extent practicable, surrogate values
which are non-export average values,
most contemporaneous with the POR,
product-specific, and tax-exclusive. See,
e.g., Pure Magnesium from the People’s
Republic of China: Preliminary Results
of 2007–2008 Antidumping Duty
Administrative Review, 74 FR 27090
(June 8, 2009), unchanged in Pure
Magnesium from the People’s Republic
of China: Final Results of Antidumping
Duty Administrative Review, 74 FR
66089 (December 14, 2009). The record
shows that the Indian import statistics
represent import data that are
contemporaneous with the POR,
product-specific, and tax-exclusive.
In calculating surrogate values from
import statistics, in accordance with the
Department’s practice, we disregarded
statistics for imports from NME
countries and countries deemed to
maintain broadly available, nonindustry-specific subsidies which may
benefit all exporters to all export
markets (i.e., Indonesia, South Korea,
and Thailand). See Certain Frozen Fish
Fillets from the Socialist Republic of
Vietnam: Preliminary Results and
Preliminary Partial Rescission of
Antidumping Duty Administrative
Review, 70 FR 54007, 54011 (September
13, 2005), unchanged in Certain Frozen
Fish Fillets From the Socialist Republic
of Vietnam: Final Results of the First
Administrative Review, 71 FR 14170
(March 21, 2006); and China Nat’l
Machinery Import & Export Corp. v.
United States, 293 F. Supp. 2d 1334,
1336 (Ct. Int’l. Trade 2003), aff’d 104
Fed. Appx. 183 (Fed. Cir. 2004).
Additionally, we excluded from our
calculations imports that were labeled
as originating from an unspecified
country because we could not determine
whether they were from an NME
country.
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We used the following surrogate
values in our preliminary results of
review (see Surrogate Values Memo for
details). We valued raw and packing
materials using February 2008 through
July 2009 weighted-average Indian
import values derived from the World
Trade Atlas online (‘‘WTA’’). See https://
www.gtis.com/wta.htm. The Indian
import statistics that we obtained from
the WTA were published by the
Directorate General of Commercial
Intelligence and Statistics of the
Ministry of Commerce and Industry,
Government of India, and are
contemporaneous with the POR. See
Surrogate Values Memo at 1.
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 country-wide, 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 Values
Memo at 3.
We valued water using the industrial
water rates from the Maharashtra
Province of India (‘‘MPI’’) for April, May,
and June 2009. See https://
www.midcindia.org/MIDCWebSite/
WaterSupply. We averaged 378
industrial water rates within the MPI;
189 for the ‘‘inside industrial areas’’
usage category; and 189 for the ‘‘outside
industrial areas’’ usage category to
obtain a single water rate. These
averages exclude industrial areas where
either no data were reported or a ‘‘0’’ was
reported. See Surrogate Values Memo at
4.
We valued truck freight using a perunit average rate calculated from data
on the following Web site: https://
www.infobanc.com/logistics/
logtruck.htm. The logistics section of
this website contains inland freight
truck rates between many large Indian
cities. See Surrogate Values Memo at 5.
We valued brokerage and handling
using a price list of export procedures
necessary to export a standardized cargo
of goods in India. The price list is
compiled based on a survey case study
of the procedural requirements for
trading a standard shipment of goods by
ocean transport in India that is
published in Doing Business 2010:
India, published by the World Bank. See
Surrogate Values Memo at 5.
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Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices
We valued international freight
expenses using freight quotes from
Maersk Sealand, a market-economy
shipper. Specifically, we calculated a
simple average of quotes for shipments
from the PRC to the United States
occurring during the POR. See Surrogate
Values Memo at 5.
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 the Sun Group. See
Surrogate Values Memo at 3.
Lastly, we valued selling, general and
administrative expenses, factory
overhead costs, and profit using the
contemporaneous 2007–2008 financial
statements of Zenith Birla (India)
Limited, an Indian producer of
merchandise that is identical to subject
merchandise. See Surrogate Values
Memo at 6.
In accordance with 19 CFR
351.301(c)(3)(ii), interested parties may
submit publicly available information
with which to value FOPs in the final
results of review within 20 days after
the date of publication of the
preliminary results of review.
Currency Conversion
emcdonald on DSK2BSOYB1PROD with NOTICES
We made currency conversions into
U.S. dollars, in accordance with section
773A(a) of the Act, based on the
exchange rates in effect on the dates of
the U.S. sales, as certified by the Federal
Reserve Bank. These exchange rates can
be accessed at the Web site of Import
Administration at https://ia.ita.doc.gov/
exchange/.
Margin
(percent)
PRC-wide rate
PRC-Wide Rate ....................
264.64
We will disclose the calculations used
in our analysis to parties to these
proceedings within five days of the date
of publication of this notice in
accordance with 19 CFR 351.224(b).
Case briefs from interested parties
may be submitted not later than 30 days
of the date of publication of this notice,
pursuant to 19 CFR 351.309(c). Rebuttal
briefs, limited to issues raised in the
case briefs, will be due five days later,
pursuant to 19 CFR 351.309(d). Parties
who submit case or rebuttal briefs in
this proceeding are requested to submit
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.
Any interested party may request a
hearing within 30 days of publication of
this notice. Interested parties who wish
to request a hearing or to participate if
one is requested, must submit a written
request to the Assistant Secretary for
Import Administration within 30 days
of the date of publication of this notice.
See 19 CFR 351.310(c). Requests should
contain: (1) The party’s name, address,
and telephone number; (2) the number
of participants; and (3) a list of issues to
be discussed. Issues raised in the
hearing will be limited to those raised
in the briefs.
The Department will issue the final
results of these reviews, including the
results of its analysis of issues raised in
any such written briefs or at the hearing,
if held, not later than 120 days after the
date of publication of this notice.
Assessment Rates
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. The Department
will issue appropriate assessment
instructions for the company subject to
this review directly to CBP 15 days after
Preliminary Results of Review
publication of the final results of these
reviews. For assessment purposes for
We preliminarily determine that the
the Sun Group, the Department
following margins exist for the
following respondents during the period calculated an importer-specific
January 20, 2008, through July 31, 2009: assessment rate for LWR from the PRC
on a per-unit basis. Specifically, the
Department divided the total dumping
LIGHT-WALLED RECTANGULAR PIPE
margins (calculated as the difference
AND TUBE FROM THE PRC
between normal value and export price)
for the importer by the total quantity of
Weightedsubject merchandise sold to that
average
Company
margin
importer during the POR to calculate a
(percent)
per-unit assessment amount. The
Department will direct CBP to assess an
The Sun Group Inc ...............
219.50
importer-specific assessment rate based
VerDate Mar<15>2010
18:07 May 13, 2010
Jkt 220001
PO 00000
Frm 00028
Fmt 4703
Sfmt 9990
on the resulting per-unit (i.e., perkilogram) rate by the weight in
kilograms of the entry of the subject
merchandise during the POR. However,
the final results of this review shall be
the basis for the assessment of
antidumping duties on entries of
merchandise covered by the final results
of this review and for future deposits of
estimated duties, where applicable.
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of this
review for all shipments of the subject
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the publication date: (1) For the
exporter listed above, the cash deposit
rate will be that established in the final
results of this review (except, if the rate
is zero or de minimis, no cash deposit
will be required); (2) for previously
investigated or reviewed PRC and nonPRC exporters not listed above that have
separate rates, the cash deposit rate will
continue to be the exporter-specific rate
published for the most recently
completed review; (3) for all non-PRC
exporters of subject merchandise which
have not received their own rate, the
cash deposit rate will be the rate
applicable to the PRC exporters that
supplied that non-PRC exporter. These
deposit requirements, when imposed,
shall remain in effect until further
notice.
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This administrative review and notice
are in accordance with sections
751(a)(1) and 777(i) of the Act.
Dated: May 10, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–11603 Filed 5–13–10; 8:45 am]
BILLING CODE 3510–DS–P
E:\FR\FM\14MYN1.SGM
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Agencies
[Federal Register Volume 75, Number 93 (Friday, May 14, 2010)]
[Notices]
[Pages 27308-27312]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-11603]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-914]
Light-Walled Rectangular Pipe and Tube From the People's Republic
of China: Preliminary Results of the 2008-2009 Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a timely request from one importer, FitMAX Inc.
(``FitMAX''), the Department of Commerce (the ``Department'') is
conducting the 2008-2009 administrative review of the antidumping duty
order on light-walled rectangular pipe and tube (``LWR'') from the
People's Republic of China (``PRC''). We have preliminarily determined
that sales have been made below normal value (``NV'') by the exporter
participating in the instant administrative review. If these
preliminary results are adopted in our final results of review, we will
instruct U.S. Customs and Border Protection (``CBP'') to assess
antidumping duties on entries of subject merchandise during the period
of review (``POR'') for which the importer-specific assessment rate is
above de minimis.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
DATES: Effective Date: May 14, 2010.
FOR FURTHER INFORMATION CONTACT: Melissa Blackledge 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-
3518 and (202) 482-5193, respectively.
Background
On June 24, 2008, the Department published its final determination
of sales at less-than-fair-value in the antidumping duty investigation
of LWR from the PRC. See 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). On August 5, 2008, the Department
published its antidumping duty order on LWR from the PRC. See Light-
Walled Rectangular Pipe and Tube from Mexico, the People's Republic of
China, and the Republic of Korea: Antidumping Duty Orders; Light-Walled
Rectangular Pipe and Tube from the Republic of Korea: Notice of Amended
Final Determination of Sales at Less Than Fair Value, 73 FR 45403
(August 5, 2008). On August 3, 2009, the Department published a notice
of opportunity to request an administrative review of the above-
referenced order. See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 74 FR 38397 (August 3, 2009). Based on a timely
request from FitMAX for an administrative review, the Department
initiated an administrative review of the antidumping duty order on LWR
from the PRC with respect to the Sun Group Inc. (the ``Sun Group''), a
producer/exporter of subject merchandise imported by FitMAX. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Request for Revocation in Part, 74 FR 48224 (September 22,
2009) (``Initiation Notice'').
On September 25, 2009, the Department issued an antidumping duty
questionnaire to the Sun Group. The Sun Group submitted responses to
the Department's questionnaire from October through December 2009. We
[[Page 27309]]
issued supplemental questionnaires to, and received responses from, the
Sun Group from November 2009 through April 2010. Petitioners \1\
submitted comments to the Department regarding the questionnaire and
supplemental questionnaire responses of the Sun Group in November 2009.
---------------------------------------------------------------------------
\1\ Petitioners are Atlas Tube, Bull Moose Tube Company and
Searing Industries, Inc.
---------------------------------------------------------------------------
On January 13, 2010, the Department provided parties with an
opportunity to submit publicly available information on surrogate
countries and values for consideration in these preliminary results. On
January 26, 2010, Petitioners submitted comments on surrogate country
selection, and on March 22, 2010, and April 5, 2010, Petitioners
submitted comments on surrogate values. The Sun Group submitted
comments on surrogate values on March 19, 2010, and April 12, 2010.
Period of Review
The POR is January 20, 2008, through July 31, 2009.
Scope of Order
The merchandise that is the subject of the order is certain welded
carbon-quality light-walled steel pipe and tube, of rectangular
(including square) cross section, having a wall thickness of less than
4 mm.
The term carbon-quality steel includes both carbon steel and alloy
steel which contains only small amounts of alloying elements.
Specifically, the term carbon-quality includes products in which none
of the elements listed below exceeds the quantity by weight
respectively indicated: 1.80 percent of manganese, or 2.25 percent of
silicon, or 1.00 percent of copper, or 0.50 percent of aluminum, or
1.25 percent of chromium, or 0.30 percent of cobalt, or 0.40 percent of
lead, or 1.25 percent of nickel, or 0.30 percent of tungsten, or 0.10
percent of molybdenum, or 0.10 percent of niobium, or 0.15 percent
vanadium, or 0.15 percent of zirconium. The description of carbon-
quality is intended to identify carbon-quality products within the
scope. The welded carbon-quality rectangular pipe and tube subject to
the order is currently classified under the Harmonized Tariff Schedule
of the United States (``HTSUS'') subheadings 7306.61.50.00 and
7306.61.70.60. While HTSUS subheadings are provided for convenience and
Customs purposes, our written description of the scope of the order is
dispositive.
Non-Market-Economy (``NME'') Treatment
The Department considers the PRC to be an NME country. In
accordance with section 771(18)(C)(i) of the Tariff Act of 1930, as
amended (the ``Act''), any determination that a country is an NME
country shall remain in effect until revoked by the administering
authority. See also Preliminary Determination of Sales at Less Than
Fair Value and Postponement of Final Determination: Coated Free Sheet
Paper from the People's Republic of China, 72 FR 30758, 30760 (June 4,
2007), unchanged in Final Determination of Sales at Less Than Fair
Value: Coated Free Sheet Paper from the People's Republic of China, 72
FR 60632 (October 25, 2007). The Department has not revoked the PRC's
status as an NME country. None of the parties to this proceeding has
contested such treatment. Therefore, in these preliminary results of
review, we have treated the PRC as an NME country and applied our
current NME methodology in accordance with section 773(c) of the Act.
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. See Initiation Notice, 74
FR at 48224. The process requires exporters and producers to submit a
separate-rate status application. See Policy Bulletin 05.1: Separate-
Rates Practice and Application of Combination Rates in Antidumping
Investigations involving Non-Market Economy Countries, (April 5, 2005)
(``Policy Bulletin 05.1'') available at https://ia.ita.doc.gov.\2\
However, the standard for eligibility for a separate rate (which is
whether a firm can demonstrate an absence of both de jure and de facto
governmental control over its export activities) has not changed.
---------------------------------------------------------------------------
\2\ Policy Bulletin 05.1 states: ``[w]hile 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.'' See Policy Bulletin 05.1 at 6 (emphasis in
original).
---------------------------------------------------------------------------
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 to investigation in an NME country
this single rate unless an exporter can demonstrate that it is
sufficiently independent so as to be entitled to a separate rate.
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 set out in the Notice of Final Determination of Sales at Less
Than Fair Value: Sparklers from the People's Republic of China, 56 FR
20588 (May 6, 1991) (``Sparklers''), as 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'').
A. Separate Rate Applicant
1. Wholly Chinese-Owned
The Sun Group stated that it is a wholly Chinese-owned company.
Therefore, the Department must analyze whether this respondent can
demonstrate the absence of both de jure and de facto governmental
control over 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, 56 FR at 20589.
The evidence provided by the Sun Group supports a preliminary
finding of de jure absence of governmental control based on the
following: (1) There is an absence of restrictive stipulations
associated with the exporter's business and export licenses; (2) there
are applicable legislative enactments decentralizing control of the
company; and (3) there are formal measures by the government
decentralizing control of the company. See the Sun Group's Section A
Response, dated October 27, 2009 (``SAR''), at 2-8.
[[Page 27310]]
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, 59 FR 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 determine that the evidence on the record supports a preliminary
finding of de facto absence of governmental control with respect to the
Sun Group based on record statements and supporting documentation
showing that the company: (1) Sets its own export prices independent of
the government and without the approval of a government authority; (2)
has the authority to negotiate and sign contracts and other agreements;
(3) has autonomy from the government regarding the selection of
management; and (4) retains the proceeds from its sales and makes
independent decisions regarding disposition of profits or financing of
losses. See SAR at 8-10.
The evidence placed on the record of this administrative review by
the Sun Group demonstrates an absence of de jure and de facto
government control with respect to the exporters' exports of the
merchandise under review, in accordance with the criteria identified in
Sparklers and Silicon Carbide. Therefore, we have preliminarily granted
the Sun Group separate rate status.
Selection of a Surrogate Country
In antidumping proceedings involving NME countries, the Department,
pursuant to section 773(c)(1) of the Act, will generally base NV on the
value of the NME producer's factors of production (``FOP''). In
accordance with section 773(c)(4) of the Act, in valuing the FOPs, the
Department shall utilize, to the extent possible, the prices or costs
of FOPs 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 merchandise comparable to the subject
merchandise.
In the instant review, the Department has determined that India,
the Philippines, Indonesia, Thailand, Ukraine, and Peru are countries
that are at a level of economic development comparable to that of the
PRC. See Letter to All Interested Parties, from Howard Smith, Re: 2008-
2009 Administrative Review of Light-Walled Rectangular Pipe and Tube
from the People's Republic of China (PRC), dated January 13, 2010.
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 FOPs. See Petitioners' January 26, 2010, surrogate country
comments; see also the Sun Group's March 19, 2010, and Petitioners'
March 22, 2010, and April 5, 2010, surrogate value comments. Thus, to
calculate NV, we are using Indian prices, when available and
appropriate, to value the FOPs of the Sun Group, the mandatory
respondent. We have obtained and relied upon publicly available
information wherever possible. See ``Memorandum To The File, from
Melissa Blackledge, Re: Administrative Review of Light-Walled
Rectangular Pipe and Tube from the People's Republic of China:
Surrogate Values,'' dated May 10, 2010 (``Surrogate Values Memo'').
Fair Value Comparisons
To determine whether the Sun Group's sales of subject merchandise
to the United States were made at prices below NV, we compared the
constructed export price (``CEP'') of the sales to NV, as described in
the ``United States Price'' and ``Normal Value'' sections of this
notice.
United States Price
In accordance with section 772(b) of the Act, we based the U.S.
price for the Sun Group's sale on CEP because this sale was made by its
U.S. affiliate, which purchased subject merchandise, produced and sold
by the Sun Group through one affiliate, FitMAX. In accordance with
section 772(c)(2)(A) of the Act, we calculated CEP by deducting, where
applicable, the following expenses from the gross unit price charged to
the first unaffiliated customer in the United States: Foreign inland
freight, foreign brokerage and handling, international freight, U.S.
brokerage and handling, and U.S. inland freight. 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: Indirect selling expenses, credit, and inventory carrying
costs. Because the Sun Group and FitMAX did not incur short-term U.S.
dollar borrowings during the POR, we based their interest rate on the
Federal Funds Interest Rate for the calculation of their U.S. credit
expenses and inventory carrying costs incurred in the United States. As
explained in Policy Bulletin 98.2, Imputed Credit Expenses and Interest
Rates, February 23, 1998, available at https://ia.ita.doc.gov, if a
respondent had no short-term debt in U.S. dollars during the POR, it is
the Department's practice to ``use the Federal Reserve's weighted-
average data for commercial and industrial loans maturing between one
month and one year from the time the loan is made'' in order to
calculate the U.S. short-term interest percentage rate. See, e.g.,
Notice of Final Results of Antidumping Duty Administrative Review:
Steel Concrete Reinforcing Bars from Latvia, 71 FR 7016 (February 10,
2006), and accompanying Issues and Decision Memorandum at Comment 4. In
addition, pursuant to section 772(d)(3) of the Act, we made an
adjustment to the starting price for CEP profit. We based movement
expenses on either surrogate values where the service was purchased
from a PRC provider, and actual expenses where service was purchased
from a market-economy provider in a market-economy currency. For
details regarding our CEP calculations, and for a complete discussion
of the calculation of the U.S. price for the Sun Group, see
``Memorandum To The File, From Melissa Blackledge, Light-Walled
Rectangular Pipe and Tube from the People's Republic of China--
Preliminary Analysis Memorandum for the Sun Group Co., Ltd.,'' dated
May 10, 2010, at 5 (``Analysis Memo'').
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine NV using FOP methodology if the merchandise is exported from
an NME
[[Page 27311]]
country and the available 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. When determining NV in an NME
context, the Department uses an FOP methodology because the presence of
government controls on various aspects of NMEs renders price
comparisons and the calculation of production costs invalid under its
normal methodologies. See Tapered Roller Bearings and Parts Thereof,
Finished or Unfinished, From the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review and
Notice of Intent to Rescind in Part, 70 FR 39744, 39754 (July 11,
2005), unchanged in Tapered Roller Bearings and Parts Thereof, Finished
and Unfinished, from the People's Republic of China: Final Results of
2003-2004 Administrative Review and Partial Rescission of Review, 71 FR
2517, 2521 (January 17, 2006). Thus, we calculated NV by adding
together the value of the FOPs, general expenses, profit, and packing
costs.\3\ Specifically, we valued material, labor, energy, and packing
by multiplying the amount of the factor consumed in producing subject
merchandise by the average unit surrogate 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 U.S. Court of Appeals for the
Federal Circuit's decision in Sigma Corp. v. United States, 117 F.3d
1401, 1407-08 (Fed. Cir. 1997). We increased the calculated costs of
the FOPs for surrogate general expenses and profit. See Analysis Memo
at 4.
---------------------------------------------------------------------------
\3\ We based the values of the FOPs on surrogate values (see
``Selected Surrogate Values'' section below).
---------------------------------------------------------------------------
Selected Surrogate Values
In accordance with section 773(c) of the Act, we calculated NV
based on FOP data reported by the respondent for the POR. To calculate
NV, we multiplied the reported per-unit factor-consumption rates by
publicly available surrogate values (except as discussed below).
In selecting the surrogate values, we considered the quality,
specificity, and contemporaneity of the data. As appropriate, we
adjusted input prices by including freight costs to make them delivered
prices. We added to each Indian import surrogate value, a surrogate
freight cost calculated from the shorter of the reported distance from
the domestic supplier to the factory or the distance from the nearest
seaport to the factory, where appropriate. See Sigma Corp.
For these preliminary results, in accordance with the Department's
practice, we used data from the Indian Import Statistics in order to
calculate surrogate values for most of the respondent's material
inputs. In selecting the best available information for valuing FOPs in
accordance with section 773(c)(1) of the Act, the Department's practice
is to select, to the extent practicable, surrogate values which are
non-export average values, most contemporaneous with the POR, product-
specific, and tax-exclusive. See, e.g., Pure Magnesium from the
People's Republic of China: Preliminary Results of 2007-2008
Antidumping Duty Administrative Review, 74 FR 27090 (June 8, 2009),
unchanged in Pure Magnesium from the People's Republic of China: Final
Results of Antidumping Duty Administrative Review, 74 FR 66089
(December 14, 2009). The record shows that the Indian import statistics
represent import data that are contemporaneous with the POR, product-
specific, and tax-exclusive.
In calculating surrogate values from import statistics, in
accordance with the Department's practice, we disregarded statistics
for imports from NME countries and countries deemed to maintain broadly
available, non-industry-specific subsidies which may benefit all
exporters to all export markets (i.e., Indonesia, South Korea, and
Thailand). See Certain Frozen Fish Fillets from the Socialist Republic
of Vietnam: Preliminary Results and Preliminary Partial Rescission of
Antidumping Duty Administrative Review, 70 FR 54007, 54011 (September
13, 2005), unchanged in Certain Frozen Fish Fillets From the Socialist
Republic of Vietnam: Final Results of the First Administrative Review,
71 FR 14170 (March 21, 2006); and China Nat'l Machinery Import & Export
Corp. v. United States, 293 F. Supp. 2d 1334, 1336 (Ct. Int'l. Trade
2003), aff'd 104 Fed. Appx. 183 (Fed. Cir. 2004). Additionally, we
excluded from our calculations imports that were labeled as originating
from an unspecified country because we could not determine whether they
were from an NME country.
We used the following surrogate values in our preliminary results
of review (see Surrogate Values Memo for details). We valued raw and
packing materials using February 2008 through July 2009 weighted-
average Indian import values derived from the World Trade Atlas online
(``WTA''). See https://www.gtis.com/wta.htm. The Indian import
statistics that we obtained from the WTA were published by the
Directorate General of Commercial Intelligence and Statistics of the
Ministry of Commerce and Industry, Government of India, and are
contemporaneous with the POR. See Surrogate Values Memo at 1.
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 country-wide, 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 Values Memo at 3.
We valued water using the industrial water rates from the
Maharashtra Province of India (``MPI'') for April, May, and June 2009.
See https://www.midcindia.org/MIDCWebSite/WaterSupply. We averaged 378
industrial water rates within the MPI; 189 for the ``inside industrial
areas'' usage category; and 189 for the ``outside industrial areas''
usage category to obtain a single water rate. These averages exclude
industrial areas where either no data were reported or a ``0'' was
reported. See Surrogate Values Memo at 4.
We valued truck freight using a per-unit average rate calculated
from data on the following Web site: https://www.infobanc.com/logistics/logtruck.htm. The logistics section of this website contains inland
freight truck rates between many large Indian cities. See Surrogate
Values Memo at 5.
We valued brokerage and handling using a price list of export
procedures necessary to export a standardized cargo of goods in India.
The price list is compiled based on a survey case study of the
procedural requirements for trading a standard shipment of goods by
ocean transport in India that is published in Doing Business 2010:
India, published by the World Bank. See Surrogate Values Memo at 5.
[[Page 27312]]
We valued international freight expenses using freight quotes from
Maersk Sealand, a market-economy shipper. Specifically, we calculated a
simple average of quotes for shipments from the PRC to the United
States occurring during the POR. See Surrogate Values Memo at 5.
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 the Sun
Group. See Surrogate Values Memo at 3.
Lastly, we valued selling, general and administrative expenses,
factory overhead costs, and profit using the contemporaneous 2007-2008
financial statements of Zenith Birla (India) Limited, an Indian
producer of merchandise that is identical to subject merchandise. See
Surrogate Values Memo at 6.
In accordance with 19 CFR 351.301(c)(3)(ii), interested parties may
submit publicly available information with which to value FOPs in the
final results of review within 20 days after the date of publication of
the preliminary results of review.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales, as certified by the Federal Reserve Bank.
These exchange rates can be accessed at the Web site of Import
Administration at https://ia.ita.doc.gov/exchange/.
Preliminary Results of Review
We preliminarily determine that the following margins exist for the
following respondents during the period January 20, 2008, through July
31, 2009:
Light-Walled Rectangular Pipe and Tube From the PRC
------------------------------------------------------------------------
Weighted-
average
Company margin
(percent)
------------------------------------------------------------------------
The Sun Group Inc....................................... 219.50
------------------------------------------------------------------------
Margin
PRC-wide rate (percent)
------------------------------------------------------------------------
PRC-Wide Rate........................................... 264.64
------------------------------------------------------------------------
We will disclose the calculations used in our analysis to parties
to these proceedings within five days of the date of publication of
this notice in accordance with 19 CFR 351.224(b).
Case briefs from interested parties may be submitted not later than
30 days of the date of publication of this notice, pursuant to 19 CFR
351.309(c). Rebuttal briefs, limited to issues raised in the case
briefs, will be due five days later, pursuant to 19 CFR 351.309(d).
Parties who submit case or rebuttal briefs in this proceeding are
requested to submit 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.
Any interested party may request a hearing within 30 days of
publication of this notice. Interested parties who wish to request a
hearing or to participate if one is requested, must submit a written
request to the Assistant Secretary for Import Administration within 30
days of the date of publication of this notice. See 19 CFR 351.310(c).
Requests should contain: (1) The party's name, address, and telephone
number; (2) the number of participants; and (3) a list of issues to be
discussed. Issues raised in the hearing will be limited to those raised
in the briefs.
The Department will issue the final results of these reviews,
including the results of its analysis of issues raised in any such
written briefs or at the hearing, if held, not later than 120 days
after the date of publication of this notice.
Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. The Department will issue
appropriate assessment instructions for the company subject to this
review directly to CBP 15 days after publication of the final results
of these reviews. For assessment purposes for the Sun Group, the
Department calculated an importer-specific assessment rate for LWR from
the PRC on a per-unit basis. Specifically, the Department divided the
total dumping margins (calculated as the difference between normal
value and export price) for the importer by the total quantity of
subject merchandise sold to that importer during the POR to calculate a
per-unit assessment amount. The Department will direct CBP to assess an
importer-specific assessment rate based on the resulting per-unit
(i.e., per-kilogram) rate by the weight in kilograms of the entry of
the subject merchandise during the POR. However, the final results of
this review shall be the basis for the assessment of antidumping duties
on entries of merchandise covered by the final results of this review
and for future deposits of estimated duties, where applicable.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this review for all shipments of
the subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the publication date: (1) For the exporter
listed above, the cash deposit rate will be that established in the
final results of this review (except, if the rate is zero or de
minimis, no cash deposit will be required); (2) for previously
investigated or reviewed PRC and non-PRC exporters not listed above
that have separate rates, the cash deposit rate will continue to be the
exporter-specific rate published for the most recently completed
review; (3) for all non-PRC exporters of subject merchandise which have
not received their own rate, the cash deposit rate will be the rate
applicable to the PRC exporters that supplied that non-PRC exporter.
These deposit requirements, when imposed, shall remain in effect until
further notice.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
This administrative review and notice are in accordance with
sections 751(a)(1) and 777(i) of the Act.
Dated: May 10, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-11603 Filed 5-13-10; 8:45 am]
BILLING CODE 3510-DS-P