Folding Metal Tables and Chairs From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, 40788-40795 [2010-17172]

Download as PDF 40788 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices for its sales, we will calculate importer– specific (or customer–specific) per unit duty assessment rates. We will instruct CBP to assess antidumping duties on all appropriate entries covered by this review if any assessment rate calculated in the final results of this review is above de minimis. The following cash deposit requirements will be effective for all shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this administrative review, as provided for by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for Kolon will be the rate established in the final results of review (except, if the rate is zero or de minimis, i.e., less than 0.5 percent, no cash deposit will be required for Kolon); (2) if the exporter is not a firm covered in this review or the LTFV investigation, but the manufacturer is, the cash deposit rate will be the rate established for the most recent period for the manufacturer of the merchandise; and (3) if neither the exporter nor the manufacturer is a firm covered in this or any previous review, the cash deposit rate will be the all– others rate of 21.50 percent from the LTFV investigation. See Polyethylene Terephthalate Film, Sheet, and Strip From the Republic of Korea; Notice of Final Court Decision and Amended Final Determination of Antidumping Duty Investigation, 62 FR 50557 (September 26, 1997). emcdonald on DSK2BSOYB1PROD with NOTICES Notification to Importers This notice also serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f) 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 of administrative review are issued and this notice is published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. [FR Doc. 2010–17170 Filed 7–13–10; 8:45 am] BILLING CODE 3510–DS–S VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 SUPPLEMENTARY INFORMATION: AGENCY: Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (‘‘the Department’’) is conducting an administrative review of the antidumping duty order on folding metal tables and chairs (‘‘FMTCs’’) from the People’s Republic of China (‘‘PRC’’) covering the period June 1, 2008, through May 31, 2009, and a deferred administrative review for Feili Group (Fujian) Co., Ltd. and Feili Furniture Development Limited Quanzhou City (collectively, ‘‘Feili’’) 1 covering the period June 1, 2007, through May 31, 2008. The 2008–2009 administrative review covers Feili and New-Tec Integration (Xiamen) Co., Ltd. (‘‘NewTec’’) and the 2007–2008 deferred administrative review covers Feili. We have preliminarily determined that Feili and New-Tec did not make sales in the United States at prices below normal value (‘‘NV’’) during the periods of review (‘‘POR’’) pertinent to each company. If these preliminary results are adopted in our final results of these reviews, we will instruct U.S. Customs and Border Protection (‘‘CBP’’) to liquidate entries of merchandise exported by Feili and New-Tec during the PORs without regard to antidumping duties. We invite interested parties to comment on these preliminary results. We intend to issue the final results no later than 120 days from the date of publication of this notice, pursuant to section 751(a)(3)(A) of the Tariff Act of 1930, as amended (‘‘the Act’’). DATES: Effective Date: July 14, 2010. FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Charles Riggle, AD/CVD Operations, Office 8, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482–6412 and (202) 482–0650, respectively. Background On June 27, 2002, the Department published the antidumping duty order on FMTCs from the PRC. See Antidumping Duty Order: Folding Metal Tables and Chairs From the People’s Republic of China, 67 FR 43277 (June 27, 2002). On July 30, 2008, the Department granted Feili’s request for deferral of the June 1, 2007, through May 31, 2008 review, to which no parties objected.2 On June 1, 2009, the Department published a notice of opportunity to request an administrative review of this order for the June 1, 2008, through, May 31, 2009 POR. See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 74 FR 26202 (June 1, 2009). In accordance with 19 CFR 351.213(b), interested parties made the following requests for review: (1) On June 23, 2009, New-Tec, a producer and exporter of subject merchandise to the United States, requested that the Department conduct an administrative review of its sales; (2) on June 25, 2009, Cosco Home & Office Products (‘‘Cosco’’), a U.S. importer of subject merchandise, requested that the Department conduct administrative reviews of Feili and New-Tec for the 2008–2009 POR . On July 29, 2009, the Department initiated the 2007–2008 and 2008–2009 reviews for Feili, and the 2008–2009 review for New-Tec.3 The Department issued an antidumping duty questionnaire to Feili and New-Tec on August 7, 2009. On September 1, 2009 and September 10, 2009, New-Tec and Feili, respectively, submitted a section A questionnaire response (‘‘AQR’’), and on September 15, 2009 and September 25, 2009, New-Tec and Feili, respectively, submitted section C and D questionnaire responses (‘‘CQR’’ and ‘‘DQR,’’ respectively). On January 5, 2010, the Department requested the Office of Policy to provide a list of surrogate countries for this review. See Memorandum to Carole Showers, Director, Office of Policy, ‘‘2007–2008 Administrative Review of the Antidumping Duty Order on Folding Metal Tables and Chairs from the People’s Republic of China: Request for Surrogate Country Selection’’ (January 5, 2010) and Memorandum to Carole 1 The Department initiated both reviews for Feili using the following names: Feili Furniture Development Ltd. Quanzhou City, Feili Furniture Development Co., Ltd., Feili Group (Fujian) Co., Ltd., and Feili (Fujian) Co., Ltd. However, Feili has informed the Department that its name includes only Feili Group (Fujian) Co., Ltd. and Feili Furniture Development Limited Quanzhou City. Cash Deposit Requirements Dated: July 7, 2010. Ronald K. Lorentzen, Deputy Assistant Secretary for Import Administration. DEPARTMENT OF COMMERCE 2 See Initiation of Antidumping and Countervailing Duty Administrative Reviews, Request for Revocation in Part, and Deferral of Administrative Review, 73 FR 44220 (July 30, 2008). 3 See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Deferral of Administrative Review, 74 FR 37690 (July 29, 2009). International Trade Administration [A–570–868] Folding Metal Tables and Chairs From the People’s Republic of China: Preliminary Results of Antidumping Duty Administrative Review PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices emcdonald on DSK2BSOYB1PROD with NOTICES Showers, Executive Director, Office of Policy, ‘‘2008–2009 Administrative Review of the Antidumping Duty Order on Folding Metal Tables and Chairs from the People’s Republic of China: Request for Surrogate Country Selection’’ (January 5, 2010). On January 25, 2010, the Office of Policy issued its list of surrogate countries. See Memoranda from Kelly Parkhill, Acting Director, Office of Policy, ‘‘Request for a List of Surrogate Countries for an Administrative Review of Folding Metal Tables and Chairs (‘‘FMTC’’) from the People’s Republic of China (PRC)’’ (January 25, 2010) (‘‘Surrogate Country Memoranda’’). On February 4, 2010, the Department requested interested parties to submit surrogate value information and to provide surrogate country selection comments. On February 2, 2010 and March 5, 2010 respectively, New-Tec and Meco Corporation (‘‘Meco’’), a domestic producer of the like product, Meco provided comments on publicly available information to value the factors of production (‘‘FOP’’). On February 24, 2010 and April 8, 2010, Feili submitted supplemental questionnaire responses. On February 16, 2010 and April 20, 2010, New-Tec submitted supplemental questionnaire responses. On March 10, 2010, the Department published a notice in the Federal Register partially extending the time limit for the preliminary results of both reviews until no later than May 8, 2010.4 On April 22, 2010, the Department published a notice in the Federal Register fully extending the time limit further for the preliminary results of both reviews until July 7, 2010.5 From April 27, 2010, through April 30, 2010, the Department conducted sales and FOP verification of New-Tec.6 In accordance with 19 CFR 351.301(c)(3)(ii), for the final results in an antidumping administrative review, interested parties may submit publicly available information to value FOPs within 20 days after the date of 4 See Folding Metal Tables and Chairs from the People’s Republic of China: Notice of Extension of Time Limit for the Preliminary Results of the Antidumping Duty Administrative Reviews, 75 FR 11120 (May 10, 2010). 5 See Folding Metal Tables and Chairs from the People’s Republic of China: Extension of Time Limit for the Preliminary Results of the Antidumping Duty Administrative Review, 75 FR 20983 (April 22, 2010). 6 See Memorandum to the File from Charles Riggle, Program Manager and Giselle Cubillos, Case Analyst re: ‘‘Verification of the Sales and Factors Response of New-Tec Integration (Xiamen) Co., Ltd. in the Antidumping Review of Folding Metal Tables and Chairs from the Peoples Republic of China,’’ dated July 7, 2010. VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 publication of these preliminary results of review. Periods of Review The PORs are June 1, 2007, through May 31, 2008, covering Feili and June 1, 2008, through May 31, 2009, covering both Feili and New-Tec. Scope of Order The products covered by this order consist of assembled and unassembled folding tables and folding chairs made primarily or exclusively from steel or other metal, as described below: (1) Assembled and unassembled folding tables made primarily or exclusively from steel or other metal (folding metal tables). Folding metal tables include square, round, rectangular, and any other shapes with legs affixed with rivets, welds, or any other type of fastener, and which are made most commonly, but not exclusively, with a hardboard top covered with vinyl or fabric. Folding metal tables have legs that mechanically fold independently of one another, and not as a set. The subject merchandise is commonly, but not exclusively, packed singly, in multiple packs of the same item, or in five piece sets consisting of four chairs and one table. Specifically excluded from the scope of the order regarding folding metal tables are the following: Lawn furniture; Trays commonly referred to as ‘‘TV trays;’’ Side tables; Child-sized tables; Portable counter sets consisting of rectangular tables 36’’ high and matching stools; and, Banquet tables. A banquet table is a rectangular table with a plastic or laminated wood table top approximately 28″ to 36″ wide by 48″ to 96″ long and with a set of folding legs at each end of the table. One set of legs is composed of two individual legs that are affixed together by one or more cross-braces using welds or fastening hardware. In contrast, folding metal tables have legs that mechanically fold independently of one another, and not as a set. (2) Assembled and unassembled folding chairs made primarily or exclusively from steel or other metal (folding metal chairs). Folding metal chairs include chairs with one or more cross-braces, regardless of shape or size, affixed to the front and/or rear legs with rivets, welds or any other type of fastener. Folding metal chairs include: those that are made solely of steel or other metal; those that have a back pad, a seat pad, or both a back pad and a seat pad; and those that have seats or backs made of plastic or other materials. The subject merchandise is commonly, but not exclusively, packed singly, in multiple packs of the same item, or in PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 40789 five piece sets consisting of four chairs and one table. Specifically excluded from the scope of the order regarding folding metal chairs are the following: Folding metal chairs with a wooden back or seat, or both; Lawn furniture; Stools; Chairs with arms; and Childsized chairs. The subject merchandise is currently classifiable under subheadings 9401.71.0010, 9401.71.0030, 9401.79.0045, 9401.79.0050, 9403.20.015, 9403.20.0030, 9403.70.8010, 9403.70.8020, and 9403.70.8030 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). Although the HTSUS subheadings are provided for convenience and customs purposes, the Department’s written description of the merchandise is dispositive. Based on a request by RPA International Pty., Ltd. and RPS, LLC (collectively, ‘‘RPA’’), the Department ruled on January 13, 2003, that RPA’s poly-fold metal folding chairs are within the scope of the order because they are identical in all material respects to the merchandise described in the petition, the initial investigation, and the determinations of the Secretary. On May 5, 2003, in response to a request by Staples, the Office Superstore Inc. (‘‘Staples’’), the Department issued a scope ruling that the chair component of Staples’ ‘‘Complete Office-To-Go,’’ a folding chair with a tubular steel frame and a seat and back of plastic, with measurements of: height: 32.5 inches; width: 18.5 inches; and depth: 21.5 inches, is covered by the scope of the order because it is identical in all material respects to the scope description in the order, but that the table component, with measurements of: width (table top): 43 inches; depth (table top): 27.375 inches; and height: 34.875 inches, has legs that fold as a unit and meets the requirements for an exemption from the scope of the order. On September 7, 2004, the Department found that table styles 4600 and 4606 produced by Lifetime Plastic Products Ltd. are within the scope of the order because these products have all of the components that constitute a folding metal table as described in the scope. On July 13, 2005, the Department issued a scope ruling determining that ‘‘butterfly’’ chairs are not within the scope of the antidumping duty order because they do not meet the physical description of merchandise covered by the scope of the order as they do not have cross braces affixed to the front and/or rear legs, and the seat and back is one piece of cloth that is not affixed to the frame with screws, rivets, welds, or any other type of fastener. E:\FR\FM\14JYN1.SGM 14JYN1 emcdonald on DSK2BSOYB1PROD with NOTICES 40790 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices On July 13, 2005, the Department issued a scope ruling determining that folding metal chairs imported by Korhani of America Inc. are within the scope of the antidumping duty order because the imported chair has a wooden seat, which is padded with foam and covered with fabric or polyvinyl chloride, attached to the tubular steel seat frame with screws, and has cross braces affixed to its legs. On May 1, 2006, the Department issued a scope ruling determining that ‘‘moon chairs’’ are not included within the scope of the antidumping duty order because moon chairs have different physical characteristics, different uses, and are advertised differently than chairs covered by the scope of the order. On October 4, 2007, the Department issued a scope ruling determining that International E-Z Up Inc.’s (‘‘E-Z Up’’) Instant Work Bench is not included within the scope of the antidumping duty order because its legs and weight do not match the description of the folding metal tables in the scope of the order. On April 18, 2008, the Department issued a scope ruling determining that the VIKA Twofold 2-in-1 Workbench/ Scaffold (‘‘Twofold Workbench/ Scaffold’’) imported by Ignite USA, LLC from the PRC is not included within the scope of the antidumping duty order because its rotating leg mechanism differs from the folding metal tables subject to the order, and its weight is twice as much as the expected maximum weight for folding metal tables within the scope of the order. On May 6, 2009, the Department issued a final determination of circumvention, determining that imports from the PRC of folding metal tables with legs connected by cross– bars, so that the legs fold in sets, and otherwise meeting the description of in– scope merchandise, are circumventing the order and are properly considered to be within the class or kind of merchandise subject to the order on FMTCs from the PRC. On May 22, 2009, the Department issued a scope ruling determining that folding metal chairs that have legs that are not connected with cross-bars are within the scope of the antidumping duty order on folding metal tables and chairs from the PRC. On October 27, 2009, the Department issued a scope ruling determining that Lifetime Products Inc.’s (‘‘Lifetime’’) fold-in-half adjustable height tables do not meet the description of merchandise within the scope of the antidumping duty order on folding metal tables and chairs from the PRC because Lifetime’s tables essentially share the physical VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 characteristics of banquet tables, which are expressly excluded from the scope of the order and, therefore, are outside the scope of the order. Non-Market Economy Country Status No party contested the Department’s treatment of the PRC as a non-market economy (‘‘NME’’) country, and the Department has treated the PRC as an NME country in all past antidumping duty investigations and administrative reviews.7 No interested party in this case has argued that we should do otherwise. Designation as an NME country remains in effect until it is revoked by the Department. See section 771(18)(C)(i) of the Act. As such, we continue to treat the PRC as a NME in this proceeding. Surrogate Country Section 773(c)(1) of the Act directs the Department to base NV on the NME producer’s FOPs, valued in a surrogate market economy country or countries considered to be appropriate by the Department. In accordance with section 773(c)(4) of the Act, in valuing the FOPs, the Department shall use, to the extent possible, the prices or costs of the FOPs in one or more market economy countries that are: (1) At a level of economic development comparable to that of the NME country; and (2) significant producers of comparable merchandise. The sources of the surrogate factor values are discussed under the ‘‘Normal Value’’ section below. See Memorandum to The File, ‘‘Preliminary Results of the 2007–2008 Administrative Review of Folding Metal Tables and Chairs from the People’s Republic of China: Surrogate Value Memorandum,’’ dated concurrently with this notice (‘‘Surrogate Value Memorandum 07–08’’), and Memorandum to The File, ‘‘Preliminary Results of the 2008–2009 Administrative Review of Folding Metal Tables and Chairs from the People’s Republic of China: Surrogate Value Memorandum’’ (‘‘Surrogate Value Memorandum 08–09’’), dated concurrently with this notice. The Department determined that Colombia, India, Indonesia, Peru, the Philippines and Thailand are countries comparable to the PRC in terms of economic development. See Surrogate Country Memoranda. Once we have 7 See, e.g., Chlorinated Isocyanurates from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 73 FR 52645 (September 10, 2008); see also Folding Metal Tables and Chairs from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 74 FR 3560 (January 21, 2009). PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 identified the countries that are economically comparable to the PRC, we select an appropriate surrogate country by determining whether an economically comparable country is a significant producer of comparable merchandise and whether the data for valuing FOPs are both available and reliable. The Department has determined that India is the appropriate surrogate country for use in these reviews. The Department based its decision on the following facts: (1) India is at a level of economic development comparable to that of the PRC; (2) India is a significant producer of comparable merchandise; and (3) India provides the best opportunity to use quality, publicly available data to value the FOPs. On the record of these reviews, we have usable surrogate financial data from India, and no party has submitted surrogate financial data from any other potential surrogate country. Additionally, the data submitted by Meco and New-Tec for our consideration as potential surrogate values are sourced from India. Therefore, because India best represents the experience of producers of comparable merchandise operating in a market country, we have selected India as the surrogate country and, accordingly, have calculated NV using Indian prices to value the respondents’ FOPs, when available and appropriate. See Surrogate Value Memoranda 07–08 and 08–09. We have obtained and relied upon publicly available information wherever possible. Separate Rates 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.8 It is the Department’s policy to assign all exporters of merchandise subject to review 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. Id. Exporters can demonstrate this independence through the absence of both de jure and de facto government control over export activities. The Department analyzes each entity exporting the subject merchandise under a test arising from the Notice of Final Determination of Sales at Less Than Fair Value: Sparklers 8 See, e.g., Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses From the People’s Republic of China: Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 75 FR at 24899 (May 6, 2010). E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices from the People’s Republic of China, 56 FR 20588, at Comment 1 (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, 22587 (May 2, 1994) (‘‘Silicon Carbide’’). However, if the Department determines that a company is wholly foreign-owned or located in a market economy, then a separate-rate analysis is not necessary to determine whether it is independent from government control.9 1. Wholly Foreign-Owned Feili reported that it is wholly owned by market-economy entities. Therefore, consistent with the Department’s practice, a separate-rates analysis is not necessary to determine whether Feili’s export activities are independent from government control, and we have preliminarily granted a separate rate to Feili. 2. Joint Ventures Between Chinese and Foreign Companies or Wholly ChineseOwned Companies New-Tec stated that it is a joint venture between Chinese and foreign companies. Therefore, the Department must analyze whether New-Tec can demonstrate the absence of both de jure and de facto government control over export activities. emcdonald on DSK2BSOYB1PROD with NOTICES 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. New-Tec has placed documents on the record to demonstrate the absence of de jure control including its list of shareholders, business license, and the Company Law of the PRC (‘‘Company Law’’). Other than limiting New-Tec to activities referenced in the business license, we found no restrictive stipulations associated with the license. In addition, in previous cases the Department has analyzed the Company Law and found that it establishes an absence of de jure control, lacking 9 See, e.g., Final Results of Antidumping Duty Administrative Review: Petroleum Wax Candles From the People’s Republic of China, 72 FR 52355, 52356 (September 13, 2007). VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 record evidence to the contrary.10 We have no information in this segment of the proceeding that would cause us to reconsider this determination. Therefore, based on the foregoing, we have preliminarily found an absence of de jure control for New-Tec. B. Absence of De Facto Control Typically the Department considers four factors in evaluating whether each respondent is subject to de facto government control of its export functions: (1) Whether the export prices are set by or are subject to the approval of a government 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. 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 government control that would preclude the Department from assigning separate rates.11 With regard to de facto control, NewTec reported that: (1) It independently set prices for sales to the United States through negotiations with customers and these prices are not subject to review by any government organization; (2) it did not coordinate with other exporters or producers to set the price or to determine to which market the companies will sell subject merchandise; (3) the PRC Chamber of Commerce did not coordinate the export activities of New-Tec; (4) its general manager has the authority to contractually bind it to sell subject merchandise; (5) its board of directors appoints its general manager; (6) there is no restriction on its use of export revenues; (7) its shareholders ultimately determine the disposition of respective profits, and New-Tec has not had a loss in the last two years; and (8) none of New-Tec’s board members or managers is a government official. Furthermore, our analysis of New-Tec’s questionnaire responses reveals no information indicating government control of its 10 See, e.g., Certain Non-Frozen Apple Juice Concentrate from the People’s Republic of China: Final Results, Partial Rescission and Termination of a Partial Deferral of the 2002–2003 Administrative Review, 69 FR 65148, 65150 (November 10, 2004). 11 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). PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 40791 export activities. Therefore, based on the information on the record, we preliminarily determine that there is an absence of de facto government control with respect to New-Tec’s export functions and that New-Tec has met the criteria for the application of a separate rate. The evidence placed on the record of this review by New-Tec demonstrates an absence of de jure and de facto government control with respect to its exports of subject merchandise, in accordance with the criteria identified in Sparklers, 56 FR at 20589; and Silicon Carbide, 59 FR at 22587. Accordingly, we have preliminarily granted a separate rate to New-Tec. Date of Sale 19 CFR 351.401(i) states that: In identifying the date of sale of the subject merchandise or foreign-like product, the Secretary normally will use the date of invoice, as recorded in the exporter or producer’s records kept in the ordinary course of business. However, the Secretary may use a date other than the date of invoice if the Secretary is satisfied that a different date better reflects the date on which the exporter or producer establishes the material terms of sale. See also Allied Tube and Conduit Corp. v. United States, 132 F. Supp. 2d 1087, 1090–1092 (CIT 2001) (upholding the Department’s rebuttable presumption that invoice date is the appropriate date of sale). After examining the questionnaire responses and the sales documentation placed on the record by Feili and New-Tec, we preliminarily determine that invoice date is the most appropriate date of sale for Feili and New-Tec. Nothing on the record rebuts the presumption that invoice date should be the date of sale. Normal Value Comparisons To determine whether sales of FMTCs to the United States by Feili and NewTec were made at less than NV, we compared export price (‘‘EP’’) to NV, as described in the ‘‘Export Price,’’ and ‘‘Normal Value’’ sections of this notice, pursuant to section 771(35) of the Act. Export Price Because Feili and New-Tec sold subject merchandise to unaffiliated purchasers in the United States prior to importation into the United States or to unaffiliated resellers outside the United States with knowledge that the merchandise was destined for the United States, and use of a constructed export price methodology is not otherwise indicated, we have used EP for both Feili and New-Tec in E:\FR\FM\14JYN1.SGM 14JYN1 40792 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices accordance with section 772(a) of the Act. We calculated EP based on the freeon-board or delivered price to unaffiliated purchasers for Feili and New-Tec. From this price, we deducted amounts for foreign inland freight, international movement expenses, air freight, and brokerage and handling, as applicable, pursuant to section 772(c)(2)(A) of the Act.12 The Department 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. The Department adjusted the average brokerage and handling rate for deflation. See Surrogate Value Memoranda 07–08 and 08–09, New-Tec Preliminary Analysis Memorandum, Feili Deferred Preliminary Analysis Memorandum and Feili 2008–2009 Preliminary Analysis Memorandum. emcdonald on DSK2BSOYB1PROD with NOTICES Zero-Priced Transactions In the final results of previous administrative reviews of FMTCs, we included New-Tec’s and Feili’s zeropriced transactions in the margin calculation because the record demonstrated that respondents provided the same merchandise in significant quantities, indicating that these ‘‘samples’’ did not primarily serve for evaluation or testing of the merchandise.13 Additionally, 12 See Memorandum to The File, ‘‘Analysis for the Preliminary Results of the 2008–2009 Administrative Review of Folding Metal Tables and Chairs from the People’s Republic of China: NewTec Integration (Xiamen) Co. Ltd. (‘‘New-Tec’’)’’ (July 7, 2010) (‘‘New-Tec Preliminary Analysis Memorandum’’), Memorandum to The File), ‘‘Analysis for the Preliminary Results of the 2007– 2008 Administrative Review of Folding Metal Tables and Chairs from the People’s Republic of China: Feili’’ (July 7, 2010) (‘‘Feili 2007–2008 Preliminary Analysis Memorandum’’), and Memorandum to The File, ‘‘Analysis for the Preliminary Results of the 2008–2009 Administrative Review of Folding Metal Tables and Chairs from the People’s Republic of China: Feili’’ (July 7, 2010) (‘‘Feili 2008–2009 Preliminary Analysis Memorandum’’). 13 See Folding Metal Tables and Chairs from the People’s Republic of China; Final Results of Antidumping Duty Administrative Review, 71 FR 2905 (January 18, 2006), and accompanying Issues and Decision Memorandum at Comment 4; Folding Metal Tables and Chairs from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 71 FR 71509 (December 11, 2006), and accompanying Issues and Decision Memorandum at Comment 4; and Folding Metal Tables and Chairs from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 72 FR 71355 (December 17, 2007), and accompanying Issues and Decision Memorandum at Comments 10 and 11. VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 respondents provided ‘‘samples’’ to the same customers to whom it was selling the same products in commercial quantities.14 As a result, we concluded that these transactions were not what we consider to be samples because respondents were providing these products to strengthen their customer relationships and to promote future sales. The U.S. Court of Appeals for the Federal Circuit (‘‘Federal Circuit’’) has not required the Department to exclude zero-priced or de minimis sales from its analysis but, rather, has defined a sale, as used in section 772 of the Act, as requiring ‘‘both a transfer of ownership to an unrelated party and consideration.’’ 15 The Court of International Trade (‘‘CIT’’) in NSK Ltd. v. United States stated that it saw ‘‘little reason in supplying and re-supplying and yet re-supplying the same product to the same customer in order to solicit sales if the supplies are made in reasonably short periods of time,’’ and that ‘‘it would be even less logical to supply a sample to a client that has made a recent bulk purchase of the very item being sampled by the client.’’ 16 Furthermore, the Courts have consistently ruled that the burden rests with a respondent to demonstrate that it received no consideration in return for its provision of purported samples.17 Moreover, even where the Department does not ask a respondent for specific information to demonstrate that a transaction is a sample, the respondent has the burden of presenting the information in the first place to demonstrate that its transactions qualify for exclusion as a sample.18 An analysis of Feili’s and New-Tec’s section C computer sales listings reveals that they provided zero-priced merchandise to customers to whom they already are selling the same products in commercial quantities, indicating that Feili and New-Tec were not providing this zero-priced merchandise for a customer’s evaluation and testing, with the hope of future sales. Consequently, based on the facts cited above, the 14 Id. 15 See NSK Ltd. v. United States, 115 F.3d 965, 975 (Fed. Cir. 1997). 16 See NSK Ltd. v. United States, 217 F. Supp. 2d 1291, 1311–1312 (CIT 2002). 17 See, e.g., Zenith Electronics Corp. v. United States, 988 F.2d 1573, 1583 (Fed. Cir. 1993) (explaining that the burden of evidentiary production belongs ‘‘to the party in possession of the necessary information’’). See also Tianjin Machinery Import & Export Corp. v. United States, 806 F. Supp. 1008, 1015 (CIT 1992) (‘‘The burden of creating an adequate record lies with respondents and not with {the Department}.’’) (citation omitted). 18 See NTN Bearing Corp. of America. v. United States, 997 F.2d 1453, 1458 (Fed. Cir. 1993). PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 guidance of past court decisions, and our previous decisions, for the preliminary results of this review, we have not excluded these zero-priced transactions from the margin calculations for Feili and New-Tec. Billing Adjustments We have not adjusted Feili’s U.S. sales price with its reported billing adjustments for brokerage and handling charges incurred in China and reimbursed by its U.S. customers in U.S. dollars. After careful examination of this issue, we have preliminarily determined that these charges are not included within the Department’s surrogate value for brokerage and handling and, therefore, do not warrant an offset to the brokerage and handling expense. See Feili Deferred Preliminary Analysis Memorandum and Feili 2008–2009 Preliminary Analysis Memorandum. Normal Value Section 773(c)(1) of the Act provides that, in the case of an NME, the Department shall determine NV using an FOP methodology if the merchandise is exported from an NME and the information does not permit the calculation of NV using home-market prices, third-country prices, or constructed value under section 773(a) of the Act. The Department bases NV on FOPs because the presence of government controls on various aspects of NME economies renders price comparisons and the calculation of production costs invalid under our normal methodologies. Therefore, in these preliminary results, we have calculated NV based on FOPs in accordance with sections 773(c)(3) and (4) of the Act and 19 CFR 351.408(c). The FOPs include: (1) Hours of labor required; (2) quantities of raw materials employed; (3) amounts of energy and other utilities consumed; and (4) representative capital costs. In accordance with 19 CFR 351.408(c)(1), the Department normally uses publicly available information to value the FOPs. However, when a producer sources a meaningful amount of an input from a market-economy country and pays for it in marketeconomy currency, the Department may value the factor using the actual price paid for the input.19 Further, the Department disregards prices it has reason to suspect may be subsidized.20 19 See 19 CFR 351.408(c)(1); see also Lasko Metal Products v. United States, 43 F.3d 1442, 1445–1446 (Fed. Cir. 1994) (affirming the Department’s use of market-based prices to value certain FOPs). 20 See, e.g., China National Machinery Import & Export Corp. v. United States, 293 F. Supp. 2d 1334, 1339 (CIT 2003) (aff’d, 104 Fed. Appx. 183 (Fed. E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices In accordance with the OTCA 1988 legislative history, the Department continues to apply its long-standing practice of disregarding surrogate values if it has a reason to believe or suspect the source data may be subsidized.21 In this regard, the Department has previously found that it is appropriate to disregard such prices from India, Indonesia, South Korea and Thailand because we have determined that these countries maintain broadly available, non-industry specific export subsidies.22 Based on the existence of these subsidy programs that were generally available to all exporters and producers in these countries at the time of the POR, the Department finds that it is reasonable to infer that all exporters from India, Indonesia, South Korea and Thailand may have benefitted from these subsidies. Factor Valuations emcdonald on DSK2BSOYB1PROD with NOTICES In accordance with section 773(c) of the Act, we calculated NV based on the FOPs reported by Feili and New-Tec for the PORs. To calculate NV, we multiplied the reported per-unit factor quantities by publicly available Indian surrogate values (except as noted below). In selecting the surrogate values, we considered the quality, specificity, public availability, and contemporaneity of the data. As appropriate, we adjusted input prices by including freight costs to render them delivered prices. Specifically, we added to Indian import surrogate values a Cir. 2004)) (‘‘China National Machinery’’), and see Frontseating Service Valves from the People’s Republic of China; Preliminary Determination of Sales at Less Than Fair Value, Preliminary Negative Determination of Critical Circumstances, and Postponement of Final Determination, 73 FR 62952 (October 22, 2008) (unchanged in Frontseating Service Valves from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances, 74 FR 10886 (March 13, 2009) (‘‘Frontseating Service Valves’’). 21 Omnibus Trade and Competitiveness Act of 1988, Conf. Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd Sess. (1988) (‘‘OTCA 1988’’) at 590. 22 See, e.g., Expedited Sunset Review of the Countervailing Duty Order on Carbazole Violet Pigment 23 from India, 75 FR 13257 (March 19, 2010) and accompanying Issues and Decision Memorandum at pages 4–5; Expedited Sunset Review of the Countervailing Duty Order on Certain Cut-to-Length Carbon Quality Steel Plate from Indonesia, 70 FR 45692 (August 8, 2005) and accompanying Issues and Decision Memorandum at page 4; See Corrosion-Resistant Carbon Steel Flat Products from the Republic of Korea: Final Results of Countervailing Duty Administrative Review, 74 FR 2512 (January 15, 2009) and accompanying Issues and Decision Memorandum at pages 17, 19– 20; See Certain Hot-Rolled Carbon Steel Flat Products from Thailand: Final Results of Countervailing Duty Determination, 66 FR 50410 (October 3, 2001), and accompanying Issues and Decision Memorandum at page 23. VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 surrogate freight cost using the shorter of the reported distance from the domestic supplier to the factory or the distance from the nearest seaport to the factory where appropriate (i.e., where the sales terms for the market-economy inputs were not delivered to the factory). This adjustment is in accordance with the decision of the Federal Circuit in Sigma Corp. v. United States, 117 F. 3d 1401, 1408 (Fed. Cir. 1997). For a detailed description of all surrogate values used for Feili and NewTec, see the Surrogate Value Memoranda 07–08 and 08–09. In past cases, it has been the Department’s practice to value various FOPs using import statistics of the primary selected surrogate country from World Trade Atlas (‘‘WTA’’), as published by Global Trade Information Services (‘‘GTIS’’).23 However, in October 2009, the Department learned that Indian import data obtained from the WTA, as published by GTIS, began identifying the original reporting currency for India as the U.S. Dollar. The Department then contacted GTIS about the change in the original reporting currency for India from the Indian Rupee to the U.S. Dollar. Officials at GTIS explained that while GTIS obtains data on imports into India directly from the Ministry of Commerce, Government of India, as denominated and published in Indian Rupees, the WTA software is limited with regard to the number of significant digits it can manage. Therefore, GTIS made a decision to change the original reporting currency for Indian data from the Indian Rupee to the U.S. Dollar in order to reduce the loss of significant digits when obtaining data through the WTA software. GTIS explained that it converts the Indian Rupee to the U.S. Dollar using the monthly Federal Reserve exchange rate applicable to the relevant month of the data being downloaded and converted.24 However, the data reported in the Global Trade Atlas (‘‘GTA’’) software, published by GTIS, reports import statistics, such as from India, in the original reporting currency and thus this data corresponds to the original currency value reported by each country. Additionally, the data reported in the GTA software is reported to the 23 See Certain Preserved Mushrooms from the People’s Republic of China: Preliminary Results of Antidumping Duty New Shipper Review, 74 FR 50946, 50950 (October 2, 2009). 24 See Certain Oil Country Tubular Goods from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value, Affirmative Final Determination of Critical Circumstances, and Final Determination of Targeted Dumping, 75 FR 20335 (April 19, 2010), and accompanying Issues and Decision Memorandum at Comment 4. PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 40793 nearest digit and thus there is not a loss of data by rounding, as there is with the data reported by the WTA software. Consequently, the Department will now obtain import statistics from GTA for valuing various FOPs because the GTA import statistics are in the original reporting currency of the country from which the data are obtained and have the same level of accuracy as the original data released. We further adjusted material input values to account for freight costs incurred between the supplier and respondent. We used the freight rates published by https://www.infobanc.com, ‘‘The Great Indian Bazaar, Gateway to Overseas Markets.’’ The logistics section of the Web site contains inland freight truck rates between many large Indian cities. The truck freight rates are for the period August 2008 through July 2009. Since these dates are not contemporaneous with the 2007–2008 POR, we deflated the rates using Indian WPI. See Surrogate Value Memoranda 07–08 and 08–09. Feili and New-Tec made raw materials purchases from marketeconomy suppliers. Therefore, in accordance with our practice outlined in Antidumping Methodologies: Market Economy Inputs,25 where at least 33 percent of an input is sourced from market-economy suppliers and purchased in a market-economy currency, the Department will use actual weighted-average purchase prices to value these inputs.26 Where the quantity of the input purchased from market-economy suppliers during the period is below 33 percent of its total volume of purchases of the input during the period, the Department will weightaverage the weighted average marketeconomy purchase price with an appropriate surrogate value. See Antidumping Methodologies: Market Economy Inputs. For a complete description of the factor values we used, see Surrogate Value Memoranda 07–08 and 08–09 and Feili and New-Tec Preliminary Analysis Memoranda. To value liquid petroleum gas, we used per-kilogram values obtained from Bharat Petroleum, published June 4, 2009. We made adjustments to account for inflation and freight costs incurred between the supplier and New-Tec. See 25 See Antidumping Methodologies: Market Economy Inputs, Expected Non-Market Economy Wages, Duty Drawback; and Request for Comments, 71 FR 61716, 61717–19 (October 19, 2006) (‘‘Antidumping Methodologies: Market Economy Inputs’’). 26 For a detailed description of all actual values used for market-economy inputs, see New-Tec Preliminary Analysis Memorandum dated concurrently with this notice. E:\FR\FM\14JYN1.SGM 14JYN1 emcdonald on DSK2BSOYB1PROD with NOTICES 40794 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices Surrogate Value Memoranda 07–08 and 08–09. To value diesel, we used perkilogram values obtained from Bharat Petroleum, published December 2, 2008. We made adjustments to account for deflation for Feili’s 2007–2008 administrative review, whereas the source is contemporaneous with the 2008–2009 POR. See Surrogate Value Memoranda 07–08 and 08–09. To value electricity, we used 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 taxexclusive electricity rates charged to industries in India. We did not inflate this value because utility rates represent current rates, as indicated by the effective dates listed for each of the rates provided. See Surrogate Value Memoranda 07–08 and 08–09. To value water, we used the revised Maharashtra Industrial Development Corporation (‘‘MIDC’’) water rates available at https://www.midcindia.com/ water-supply, which we deflated using Indian WPI. See Surrogate Value Memoranda 07–08 and 08–09. For direct, indirect, and packing labor, pursuant to a recent decision by the Court of Appeals for the Federal Circuit, we have calculated an hourly wage rate to use in valuing each respondent’s reported labor input by averaging earnings and/or wages in countries that are economically comparable to the PRC and that are significant producers of comparable merchandise.27 Because this wage rate does not separate the labor rates into different skill levels or types of labor, the Department has applied the same wage rate to all skill levels and types of labor reported by the respondents. See Surrogate Value Memoranda 07–08 and 08–09. For factory overhead, selling, general, and administrative expenses (‘‘SG&A’’), and profit values, both New-Tec and Meco submitted identical financial statements to those that were submitted and considered by the Department for use as surrogate financial statements in the preceding administrative review, none of which is contemporaneous with the current POR.28 The Department examined these financial statements in 27 See Dorbest Ltd. v. United States, 2009–1257 at 20 (CAFC 2010) (‘‘Dorbest’’). 28 See New-Tec’s January 21, 2009, Surrogate Value Comments at Exhibit 1, and Meco’s January 21, 2009, Surrogate Value Comments at Exhibit 7. VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 the 2007–2008 review of New-Tec, and found that Maximaa Systems Limited (‘‘Maximaa’’) produced a greater proportion of comparable merchandise than the other companies (Infiniti Modules PVT Ltd., Godrej & Boyce Manufacturing Company Limited, and Tube Investments of India, Ltd.) and, therefore, best met the Department’s criteria for surrogate financial ratios.29 Because parties have submitted for the instant review the same surrogate financial statements as those from the 2007–2008 review of New-Tec, and the record indicates that Maximaa produced a greater proportion of comparable merchandise than other surrogate companies whose financial statements were placed on the record, we find that Maximaa continues to be the best available information with which to determine factory overhead as a percentage of the total raw materials, labor and energy (‘‘ML&E’’) costs; SG&A as a percentage of ML&E plus overhead (i.e., cost of manufacture); and the profit rate as a percentage of the cost of manufacture plus SG&A. See Surrogate Value Memoranda 07–08 and 08–09 for a full discussion of the calculation of these ratios. For packing materials, we used the per-kilogram values obtained from the GTA and made adjustments to account for freight costs incurred between the PRC supplier and New-Tec’s and Feili’s plants. See Surrogate Value Memoranda 07–08 and 08–09. Currency Conversion We made currency conversions into U.S. dollars, where appropriate, 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. Preliminary Results of Review We preliminarily determine that the following weighted-average dumping margins exist: Manufacturer/exporter New-Tec (6/1/2008–5/31/2009) Feili (6/1/2008–5/31/2009) ........ Feili (6/1/2007–5/31/2008 ) ...... Margin (percent) * 0.00 * 0.00 * 0.04 * De minimis. Disclosure We will disclose the calculations used in our analysis to parties to this proceeding within five days of the Folding Metal Tables and Chairs from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review, 74 FR 68568 (December 28, 2009), and accompanying Issues and Decision Memorandum at Comment 1. PO 00000 29 See Frm 00025 Fmt 4703 Sfmt 4703 publication date of this notice. See 19 CFR 351.224(b). Interested parties are invited to comment on the preliminary results and may submit case briefs and/ or written comments within 30 days of the date of publication of this notice. See 19 CFR 351.309(c). Interested parties may file rebuttal briefs and rebuttals to written comments, limited to issues raised in such briefs or comments, no later than five days after the date on which the case briefs are due. See 19 CFR 351.309(d). The Department requests that parties submitting written comments provide an executive summary and a table of authorities as well as an additional copy of those comments electronically. Any interested party may request a hearing within 30 days of publication of this notice. See 19 CFR 351.310(c). If a request for a hearing is made, parties will be notified of the time and date for the hearing to be held at the U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230. See 19 CFR 351.310(d). The Department will issue the final results of this administrative review, which will include the results of its analysis of issues raised in any such comments, within 120 days of publication of these preliminary results, pursuant to section 751(a)(3)(A) of the Act. Deadline for Submission of Publicly Available Surrogate Value Information In accordance with 19 CFR 351.301(c)(3)(ii), the deadline for submission of publicly available information to value FOPs under 19 CFR 351.408(c) is 20 days after the date of publication of the preliminary results. In accordance with 19 CFR 351.301(c)(1), if an interested party submits factual information less than ten days before, on, or after (if the Department has extended the deadline), the applicable deadline for submission of such factual information, an interested party has ten days to submit factual information to rebut, clarify, or correct the factual information no later than ten days after such factual information is served on the interested party. However, the Department generally will not accept in the rebuttal submission additional or alternative surrogate value information not previously on the record, if the deadline for submission of surrogate value information has passed.30 Furthermore, 30 See, e.g., Glycine from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review and Final Rescission, in Part, 72 FR 58809 (October 17, 2007), and accompanying Issues and Decision Memorandum at Comment 2. E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 75, No. 134 / Wednesday, July 14, 2010 / Notices the Department generally will not accept business proprietary information in either the surrogate value submissions or the rebuttals thereto, as the regulation regarding the submission of surrogate values allows only for the submission of publicly available information. See 19 CFR 351.301(c)(3). emcdonald on DSK2BSOYB1PROD with NOTICES Assessment Rates Upon issuance of the final results, the Department will determine, and CBP shall assess, antidumping duties on all appropriate entries covered by these reviews. The Department intends to issue assessment instructions to CBP 15 days after the publication date of the final results of these reviews. In accordance with 19 CFR 351.212(b)(1), we calculated exporter/importer (or customer)-specific assessment rates for the merchandise subject to these reviews. Where the respondent reports reliable entered values, we calculate 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 calculate a per-unit assessment rate by aggregating the antidumping duties due for all U.S. sales to each importer (or customer) and dividing this amount by the total quantity sold to that importer (or customer). 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 The following cash deposit requirements will be effective upon publication of the final results of these administrative reviews 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 New-Tec VerDate Mar<15>2010 16:07 Jul 13, 2010 Jkt 220001 and Feili, the cash deposit rate will be the company-specific rate established in the final results of the 2008–2009 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 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 70.71 percent; and (4) for all non-PRC exporters of subject merchandise that have not received their own rate, the cash deposit rate will be the rate applicable to the PRC exporters 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) 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 determination is issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: July 7, 2010. Ronald K. Lorentzen, Deputy Assistant Secretary for Import Administration. [FR Doc. 2010–17172 Filed 7–13–10; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [Docket 44–2010] Review of Sourcing Change, Foreign– Trade Subzone 61H, Baxter Healthcare of Puerto Rico (Inhalation Anesthetics Manufacturing), Guayama, Puerto Rico Pursuant to the regulations of the Foreign–Trade Zones (FTZ) Board (the Board), a review has been initiated (under 15 CFR Sec. 400.28(a)(3)(iii)(A)) of changes in sourcing related to inhalation anesthetics at Foreign–Trade Subzone 61H, at the facility of Baxter Healthcare of Puerto Rico (Baxter). Subzone 61H was approved by the FTZ Board on February 25, 1997 (Board PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 40795 Order 875, 62 FR 10521, 3/7/1997) at the Baxter Healthcare of Puerto Rico (Baxter) (formerly Ohmeda Caribe Inc./ Ohmeda Pharmaceutical Manufacturing Inc.) facility in Guayama, Puerto Rico, for the manufacturing and distribution of pharmaceutical products, primarily inhalation anesthetics for hospital and critical care therapy. The subzone was initially approved for a period of five years. On August 25, 2003 (Board Order 1293, 68 FR 53346, 9/10/2003), the subzone was extended indefinitely and the scope of approved authority was expanded. On products shipped to the U.S. market, the company is able to choose the duty rate during customs entry procedures that applies to the finished products (duty–free) for the otherwise dutiable foreign components (duty rates range from duty–free to 20%). Baxter has now notified the Board of additional sourcing of two chemical inputs. The new foreign–sourced chemical ingredients are sevomethylether (HTSUS 2909.19.1800 5.5%) and N,N–diisopropylethylamine (HTSUS 2921.19.6090 - 6.5%). The use of zone procedures for the additional inputs could exempt Baxter from customs duty payments on the foreign components used in export production. The company estimates that some 40 percent of the plant’s shipments are exported. On the domestic sales, Baxter would be able to choose the duty rate during customs entry procedures that applies to the finished inhalation anesthetics (duty–free) for the foreign inputs noted above. The finished products remain unchanged and were included in the scope of manufacturing authority approved by the Board. In accordance with the Board’s regulations, Diane Finver of the FTZ Staff is designated examiner to investigate the sourcing change, including its potential to cause ‘‘significant adverse effects’’ (15 CFR 400.28(a)(3)(iii)(A)), and report to the Board. Public comment is invited from interested parties. Submissions (original and 3 copies) shall be addressed to the Board’s Executive Secretary at the address below. The closing period for their receipt is August 13, 2010. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period to August 30, 2010. A copy of the application will be available for public inspection at the Office of the Executive Secretary, Foreign–Trade Zones Board, Room 2111, U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, DC 20230–0002, and in the E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

[Federal Register Volume 75, Number 134 (Wednesday, July 14, 2010)]
[Notices]
[Pages 40788-40795]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17172]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-868]


Folding Metal Tables and Chairs From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``the Department'') is conducting 
an administrative review of the antidumping duty order on folding metal 
tables and chairs (``FMTCs'') from the People's Republic of China 
(``PRC'') covering the period June 1, 2008, through May 31, 2009, and a 
deferred administrative review for Feili Group (Fujian) Co., Ltd. and 
Feili Furniture Development Limited Quanzhou City (collectively, 
``Feili'') \1\ covering the period June 1, 2007, through May 31, 2008. 
The 2008-2009 administrative review covers Feili and New-Tec 
Integration (Xiamen) Co., Ltd. (``New-Tec'') and the 2007-2008 deferred 
administrative review covers Feili. We have preliminarily determined 
that Feili and New-Tec did not make sales in the United States at 
prices below normal value (``NV'') during the periods of review 
(``POR'') pertinent to each company. If these preliminary results are 
adopted in our final results of these reviews, we will instruct U.S. 
Customs and Border Protection (``CBP'') to liquidate entries of 
merchandise exported by Feili and New-Tec during the PORs without 
regard to antidumping duties.
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    \1\ The Department initiated both reviews for Feili using the 
following names: Feili Furniture Development Ltd. Quanzhou City, 
Feili Furniture Development Co., Ltd., Feili Group (Fujian) Co., 
Ltd., and Feili (Fujian) Co., Ltd. However, Feili has informed the 
Department that its name includes only Feili Group (Fujian) Co., 
Ltd. and Feili Furniture Development Limited Quanzhou City.
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    We invite interested parties to comment on these preliminary 
results. We intend to issue the final results no later than 120 days 
from the date of publication of this notice, pursuant to section 
751(a)(3)(A) of the Tariff Act of 1930, as amended (``the Act'').

DATES: Effective Date: July 14, 2010.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian or Charles Riggle, 
AD/CVD Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
6412 and (202) 482-0650, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On June 27, 2002, the Department published the antidumping duty 
order on FMTCs from the PRC. See Antidumping Duty Order: Folding Metal 
Tables and Chairs From the People's Republic of China, 67 FR 43277 
(June 27, 2002). On July 30, 2008, the Department granted Feili's 
request for deferral of the June 1, 2007, through May 31, 2008 review, 
to which no parties objected.\2\ On June 1, 2009, the Department 
published a notice of opportunity to request an administrative review 
of this order for the June 1, 2008, through, May 31, 2009 POR. See 
Antidumping or Countervailing Duty Order, Finding, or Suspended 
Investigation; Opportunity to Request Administrative Review, 74 FR 
26202 (June 1, 2009). In accordance with 19 CFR 351.213(b), interested 
parties made the following requests for review: (1) On June 23, 2009, 
New-Tec, a producer and exporter of subject merchandise to the United 
States, requested that the Department conduct an administrative review 
of its sales; (2) on June 25, 2009, Cosco Home & Office Products 
(``Cosco''), a U.S. importer of subject merchandise, requested that the 
Department conduct administrative reviews of Feili and New-Tec for the 
2008-2009 POR . On July 29, 2009, the Department initiated the 2007-
2008 and 2008-2009 reviews for Feili, and the 2008-2009 review for New-
Tec.\3\ The Department issued an antidumping duty questionnaire to 
Feili and New-Tec on August 7, 2009. On September 1, 2009 and September 
10, 2009, New-Tec and Feili, respectively, submitted a section A 
questionnaire response (``AQR''), and on September 15, 2009 and 
September 25, 2009, New-Tec and Feili, respectively, submitted section 
C and D questionnaire responses (``CQR'' and ``DQR,'' respectively). On 
January 5, 2010, the Department requested the Office of Policy to 
provide a list of surrogate countries for this review. See Memorandum 
to Carole Showers, Director, Office of Policy, ``2007-2008 
Administrative Review of the Antidumping Duty Order on Folding Metal 
Tables and Chairs from the People's Republic of China: Request for 
Surrogate Country Selection'' (January 5, 2010) and Memorandum to 
Carole

[[Page 40789]]

Showers, Executive Director, Office of Policy, ``2008-2009 
Administrative Review of the Antidumping Duty Order on Folding Metal 
Tables and Chairs from the People's Republic of China: Request for 
Surrogate Country Selection'' (January 5, 2010). On January 25, 2010, 
the Office of Policy issued its list of surrogate countries. See 
Memoranda from Kelly Parkhill, Acting Director, Office of Policy, 
``Request for a List of Surrogate Countries for an Administrative 
Review of Folding Metal Tables and Chairs (``FMTC'') from the People's 
Republic of China (PRC)'' (January 25, 2010) (``Surrogate Country 
Memoranda'').
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    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, Request for Revocation in Part, and Deferral 
of Administrative Review, 73 FR 44220 (July 30, 2008).
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews and Deferral of Administrative Review, 74 FR 
37690 (July 29, 2009).
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    On February 4, 2010, the Department requested interested parties to 
submit surrogate value information and to provide surrogate country 
selection comments. On February 2, 2010 and March 5, 2010 respectively, 
New-Tec and Meco Corporation (``Meco''), a domestic producer of the 
like product, Meco provided comments on publicly available information 
to value the factors of production (``FOP''). On February 24, 2010 and 
April 8, 2010, Feili submitted supplemental questionnaire responses. On 
February 16, 2010 and April 20, 2010, New-Tec submitted supplemental 
questionnaire responses.
    On March 10, 2010, the Department published a notice in the Federal 
Register partially extending the time limit for the preliminary results 
of both reviews until no later than May 8, 2010.\4\ On April 22, 2010, 
the Department published a notice in the Federal Register fully 
extending the time limit further for the preliminary results of both 
reviews until July 7, 2010.\5\ From April 27, 2010, through April 30, 
2010, the Department conducted sales and FOP verification of New-
Tec.\6\ In accordance with 19 CFR 351.301(c)(3)(ii), for the final 
results in an antidumping administrative review, interested parties may 
submit publicly available information to value FOPs within 20 days 
after the date of publication of these preliminary results of review.
---------------------------------------------------------------------------

    \4\ See Folding Metal Tables and Chairs from the People's 
Republic of China: Notice of Extension of Time Limit for the 
Preliminary Results of the Antidumping Duty Administrative Reviews, 
75 FR 11120 (May 10, 2010).
    \5\ See Folding Metal Tables and Chairs from the People's 
Republic of China: Extension of Time Limit for the Preliminary 
Results of the Antidumping Duty Administrative Review, 75 FR 20983 
(April 22, 2010).
    \6\ See Memorandum to the File from Charles Riggle, Program 
Manager and Giselle Cubillos, Case Analyst re: ``Verification of the 
Sales and Factors Response of New-Tec Integration (Xiamen) Co., Ltd. 
in the Antidumping Review of Folding Metal Tables and Chairs from 
the Peoples Republic of China,'' dated July 7, 2010.
---------------------------------------------------------------------------

Periods of Review

    The PORs are June 1, 2007, through May 31, 2008, covering Feili and 
June 1, 2008, through May 31, 2009, covering both Feili and New-Tec.

Scope of Order

    The products covered by this order consist of assembled and 
unassembled folding tables and folding chairs made primarily or 
exclusively from steel or other metal, as described below:
    (1) Assembled and unassembled folding tables made primarily or 
exclusively from steel or other metal (folding metal tables). Folding 
metal tables include square, round, rectangular, and any other shapes 
with legs affixed with rivets, welds, or any other type of fastener, 
and which are made most commonly, but not exclusively, with a hardboard 
top covered with vinyl or fabric. Folding metal tables have legs that 
mechanically fold independently of one another, and not as a set. The 
subject merchandise is commonly, but not exclusively, packed singly, in 
multiple packs of the same item, or in five piece sets consisting of 
four chairs and one table. Specifically excluded from the scope of the 
order regarding folding metal tables are the following: Lawn furniture; 
Trays commonly referred to as ``TV trays;'' Side tables; Child-sized 
tables; Portable counter sets consisting of rectangular tables 36'' 
high and matching stools; and, Banquet tables. A banquet table is a 
rectangular table with a plastic or laminated wood table top 
approximately 28'' to 36'' wide by 48'' to 96'' long and with a set of 
folding legs at each end of the table. One set of legs is composed of 
two individual legs that are affixed together by one or more cross-
braces using welds or fastening hardware. In contrast, folding metal 
tables have legs that mechanically fold independently of one another, 
and not as a set.
    (2) Assembled and unassembled folding chairs made primarily or 
exclusively from steel or other metal (folding metal chairs). Folding 
metal chairs include chairs with one or more cross-braces, regardless 
of shape or size, affixed to the front and/or rear legs with rivets, 
welds or any other type of fastener. Folding metal chairs include: 
those that are made solely of steel or other metal; those that have a 
back pad, a seat pad, or both a back pad and a seat pad; and those that 
have seats or backs made of plastic or other materials. The subject 
merchandise is commonly, but not exclusively, packed singly, in 
multiple packs of the same item, or in five piece sets consisting of 
four chairs and one table. Specifically excluded from the scope of the 
order regarding folding metal chairs are the following: Folding metal 
chairs with a wooden back or seat, or both; Lawn furniture; Stools; 
Chairs with arms; and Child-sized chairs.
    The subject merchandise is currently classifiable under subheadings 
9401.71.0010, 9401.71.0030, 9401.79.0045, 9401.79.0050, 9403.20.015, 
9403.20.0030, 9403.70.8010, 9403.70.8020, and 9403.70.8030 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the Department's written description of the merchandise is 
dispositive.
    Based on a request by RPA International Pty., Ltd. and RPS, LLC 
(collectively, ``RPA''), the Department ruled on January 13, 2003, that 
RPA's poly-fold metal folding chairs are within the scope of the order 
because they are identical in all material respects to the merchandise 
described in the petition, the initial investigation, and the 
determinations of the Secretary.
    On May 5, 2003, in response to a request by Staples, the Office 
Superstore Inc. (``Staples''), the Department issued a scope ruling 
that the chair component of Staples' ``Complete Office-To-Go,'' a 
folding chair with a tubular steel frame and a seat and back of 
plastic, with measurements of: height: 32.5 inches; width: 18.5 inches; 
and depth: 21.5 inches, is covered by the scope of the order because it 
is identical in all material respects to the scope description in the 
order, but that the table component, with measurements of: width (table 
top): 43 inches; depth (table top): 27.375 inches; and height: 34.875 
inches, has legs that fold as a unit and meets the requirements for an 
exemption from the scope of the order.
    On September 7, 2004, the Department found that table styles 4600 
and 4606 produced by Lifetime Plastic Products Ltd. are within the 
scope of the order because these products have all of the components 
that constitute a folding metal table as described in the scope.
    On July 13, 2005, the Department issued a scope ruling determining 
that ``butterfly'' chairs are not within the scope of the antidumping 
duty order because they do not meet the physical description of 
merchandise covered by the scope of the order as they do not have cross 
braces affixed to the front and/or rear legs, and the seat and back is 
one piece of cloth that is not affixed to the frame with screws, 
rivets, welds, or any other type of fastener.

[[Page 40790]]

    On July 13, 2005, the Department issued a scope ruling determining 
that folding metal chairs imported by Korhani of America Inc. are 
within the scope of the antidumping duty order because the imported 
chair has a wooden seat, which is padded with foam and covered with 
fabric or polyvinyl chloride, attached to the tubular steel seat frame 
with screws, and has cross braces affixed to its legs.
    On May 1, 2006, the Department issued a scope ruling determining 
that ``moon chairs'' are not included within the scope of the 
antidumping duty order because moon chairs have different physical 
characteristics, different uses, and are advertised differently than 
chairs covered by the scope of the order.
    On October 4, 2007, the Department issued a scope ruling 
determining that International E-Z Up Inc.'s (``E-Z Up'') Instant Work 
Bench is not included within the scope of the antidumping duty order 
because its legs and weight do not match the description of the folding 
metal tables in the scope of the order.
    On April 18, 2008, the Department issued a scope ruling determining 
that the VIKA Twofold 2-in-1 Workbench/Scaffold (``Twofold Workbench/
Scaffold'') imported by Ignite USA, LLC from the PRC is not included 
within the scope of the antidumping duty order because its rotating leg 
mechanism differs from the folding metal tables subject to the order, 
and its weight is twice as much as the expected maximum weight for 
folding metal tables within the scope of the order.
    On May 6, 2009, the Department issued a final determination of 
circumvention, determining that imports from the PRC of folding metal 
tables with legs connected by cross-bars, so that the legs fold in 
sets, and otherwise meeting the description of in-scope merchandise, 
are circumventing the order and are properly considered to be within 
the class or kind of merchandise subject to the order on FMTCs from the 
PRC.
    On May 22, 2009, the Department issued a scope ruling determining 
that folding metal chairs that have legs that are not connected with 
cross-bars are within the scope of the antidumping duty order on 
folding metal tables and chairs from the PRC.
    On October 27, 2009, the Department issued a scope ruling 
determining that Lifetime Products Inc.'s (``Lifetime'') fold-in-half 
adjustable height tables do not meet the description of merchandise 
within the scope of the antidumping duty order on folding metal tables 
and chairs from the PRC because Lifetime's tables essentially share the 
physical characteristics of banquet tables, which are expressly 
excluded from the scope of the order and, therefore, are outside the 
scope of the order.

Non-Market Economy Country Status

    No party contested the Department's treatment of the PRC as a non-
market economy (``NME'') country, and the Department has treated the 
PRC as an NME country in all past antidumping duty investigations and 
administrative reviews.\7\ No interested party in this case has argued 
that we should do otherwise. Designation as an NME country remains in 
effect until it is revoked by the Department. See section 771(18)(C)(i) 
of the Act. As such, we continue to treat the PRC as a NME in this 
proceeding.
---------------------------------------------------------------------------

    \7\ See, e.g., Chlorinated Isocyanurates from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review, 73 FR 52645 (September 10, 2008); see also Folding Metal 
Tables and Chairs from the People's Republic of China: Final Results 
of Antidumping Duty Administrative Review, 74 FR 3560 (January 21, 
2009).
---------------------------------------------------------------------------

Surrogate Country

    Section 773(c)(1) of the Act directs the Department to base NV on 
the NME producer's FOPs, valued in a surrogate market economy country 
or countries considered to be appropriate by the Department. In 
accordance with section 773(c)(4) of the Act, in valuing the FOPs, the 
Department shall use, to the extent possible, the prices or costs of 
the FOPs in one or more market economy countries that are: (1) At a 
level of economic development comparable to that of the NME country; 
and (2) significant producers of comparable merchandise. The sources of 
the surrogate factor values are discussed under the ``Normal Value'' 
section below. See Memorandum to The File, ``Preliminary Results of the 
2007-2008 Administrative Review of Folding Metal Tables and Chairs from 
the People's Republic of China: Surrogate Value Memorandum,'' dated 
concurrently with this notice (``Surrogate Value Memorandum 07-08''), 
and Memorandum to The File, ``Preliminary Results of the 2008-2009 
Administrative Review of Folding Metal Tables and Chairs from the 
People's Republic of China: Surrogate Value Memorandum'' (``Surrogate 
Value Memorandum 08-09''), dated concurrently with this notice.
    The Department determined that Colombia, India, Indonesia, Peru, 
the Philippines and Thailand are countries comparable to the PRC in 
terms of economic development. See Surrogate Country Memoranda. Once we 
have identified the countries that are economically comparable to the 
PRC, we select an appropriate surrogate country by determining whether 
an economically comparable country is a significant producer of 
comparable merchandise and whether the data for valuing FOPs are both 
available and reliable.
    The Department has determined that India is the appropriate 
surrogate country for use in these reviews. The Department based its 
decision on the following facts: (1) India is at a level of economic 
development comparable to that of the PRC; (2) India is a significant 
producer of comparable merchandise; and (3) India provides the best 
opportunity to use quality, publicly available data to value the FOPs. 
On the record of these reviews, we have usable surrogate financial data 
from India, and no party has submitted surrogate financial data from 
any other potential surrogate country. Additionally, the data submitted 
by Meco and New-Tec for our consideration as potential surrogate values 
are sourced from India.
    Therefore, because India best represents the experience of 
producers of comparable merchandise operating in a market country, we 
have selected India as the surrogate country and, accordingly, have 
calculated NV using Indian prices to value the respondents' FOPs, when 
available and appropriate. See Surrogate Value Memoranda 07-08 and 08-
09. We have obtained and relied upon publicly available information 
wherever possible.

Separate Rates

    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.\8\ It is the Department's policy to assign all 
exporters of merchandise subject to review 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. Id. Exporters can 
demonstrate this independence through the absence of both de jure and 
de facto government control over export activities. The Department 
analyzes each entity exporting the subject merchandise under a test 
arising from the Notice of Final Determination of Sales at Less Than 
Fair Value: Sparklers

[[Page 40791]]

from the People's Republic of China, 56 FR 20588, at Comment 1 (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, 22587 (May 2, 1994) 
(``Silicon Carbide''). However, if the Department determines that a 
company is wholly foreign-owned or located in a market economy, then a 
separate-rate analysis is not necessary to determine whether it is 
independent from government control.\9\
---------------------------------------------------------------------------

    \8\ See, e.g., Certain Coated Paper Suitable for High-Quality 
Print Graphics Using Sheet-Fed Presses From the People's Republic of 
China: Notice of Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 75 FR at 24899 
(May 6, 2010).
    \9\ See, e.g., Final Results of Antidumping Duty Administrative 
Review: Petroleum Wax Candles From the People's Republic of China, 
72 FR 52355, 52356 (September 13, 2007).
---------------------------------------------------------------------------

1. Wholly Foreign-Owned

    Feili reported that it is wholly owned by market-economy entities. 
Therefore, consistent with the Department's practice, a separate-rates 
analysis is not necessary to determine whether Feili's export 
activities are independent from government control, and we have 
preliminarily granted a separate rate to Feili.

2. Joint Ventures Between Chinese and Foreign Companies or Wholly 
Chinese-Owned Companies

    New-Tec stated that it is a joint venture between Chinese and 
foreign companies. Therefore, the Department must analyze whether New-
Tec can demonstrate the absence of both de jure and de facto government 
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.
    New-Tec has placed documents on the record to demonstrate the 
absence of de jure control including its list of shareholders, business 
license, and the Company Law of the PRC (``Company Law''). Other than 
limiting New-Tec to activities referenced in the business license, we 
found no restrictive stipulations associated with the license. In 
addition, in previous cases the Department has analyzed the Company Law 
and found that it establishes an absence of de jure control, lacking 
record evidence to the contrary.\10\ We have no information in this 
segment of the proceeding that would cause us to reconsider this 
determination. Therefore, based on the foregoing, we have preliminarily 
found an absence of de jure control for New-Tec.
---------------------------------------------------------------------------

    \10\ See, e.g., Certain Non-Frozen Apple Juice Concentrate from 
the People's Republic of China: Final Results, Partial Rescission 
and Termination of a Partial Deferral of the 2002-2003 
Administrative Review, 69 FR 65148, 65150 (November 10, 2004).
---------------------------------------------------------------------------

B. Absence of De Facto Control
    Typically the Department considers four factors in evaluating 
whether each respondent is subject to de facto government control of 
its export functions: (1) Whether the export prices are set by or are 
subject to the approval of a government 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. 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 government control that would preclude the 
Department from assigning separate rates.\11\
---------------------------------------------------------------------------

    \11\ 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).
---------------------------------------------------------------------------

    With regard to de facto control, New-Tec reported that: (1) It 
independently set prices for sales to the United States through 
negotiations with customers and these prices are not subject to review 
by any government organization; (2) it did not coordinate with other 
exporters or producers to set the price or to determine to which market 
the companies will sell subject merchandise; (3) the PRC Chamber of 
Commerce did not coordinate the export activities of New-Tec; (4) its 
general manager has the authority to contractually bind it to sell 
subject merchandise; (5) its board of directors appoints its general 
manager; (6) there is no restriction on its use of export revenues; (7) 
its shareholders ultimately determine the disposition of respective 
profits, and New-Tec has not had a loss in the last two years; and (8) 
none of New-Tec's board members or managers is a government official. 
Furthermore, our analysis of New-Tec's questionnaire responses reveals 
no information indicating government control of its export activities. 
Therefore, based on the information on the record, we preliminarily 
determine that there is an absence of de facto government control with 
respect to New-Tec's export functions and that New-Tec has met the 
criteria for the application of a separate rate.
    The evidence placed on the record of this review by New-Tec 
demonstrates an absence of de jure and de facto government control with 
respect to its exports of subject merchandise, in accordance with the 
criteria identified in Sparklers, 56 FR at 20589; and Silicon Carbide, 
59 FR at 22587. Accordingly, we have preliminarily granted a separate 
rate to New-Tec.

Date of Sale

    19 CFR 351.401(i) states that:

    In identifying the date of sale of the subject merchandise or 
foreign-like product, the Secretary normally will use the date of 
invoice, as recorded in the exporter or producer's records kept in 
the ordinary course of business. However, the Secretary may use a 
date other than the date of invoice if the Secretary is satisfied 
that a different date better reflects the date on which the exporter 
or producer establishes the material terms of sale.

See also Allied Tube and Conduit Corp. v. United States, 132 F. Supp. 
2d 1087, 1090-1092 (CIT 2001) (upholding the Department's rebuttable 
presumption that invoice date is the appropriate date of sale). After 
examining the questionnaire responses and the sales documentation 
placed on the record by Feili and New-Tec, we preliminarily determine 
that invoice date is the most appropriate date of sale for Feili and 
New-Tec. Nothing on the record rebuts the presumption that invoice date 
should be the date of sale.

Normal Value Comparisons

    To determine whether sales of FMTCs to the United States by Feili 
and New-Tec were made at less than NV, we compared export price 
(``EP'') to NV, as described in the ``Export Price,'' and ``Normal 
Value'' sections of this notice, pursuant to section 771(35) of the 
Act.

Export Price

    Because Feili and New-Tec sold subject merchandise to unaffiliated 
purchasers in the United States prior to importation into the United 
States or to unaffiliated resellers outside the United States with 
knowledge that the merchandise was destined for the United States, and 
use of a constructed export price methodology is not otherwise 
indicated, we have used EP for both Feili and New-Tec in

[[Page 40792]]

accordance with section 772(a) of the Act.
    We calculated EP based on the free-on-board or delivered price to 
unaffiliated purchasers for Feili and New-Tec. From this price, we 
deducted amounts for foreign inland freight, international movement 
expenses, air freight, and brokerage and handling, as applicable, 
pursuant to section 772(c)(2)(A) of the Act.\12\
---------------------------------------------------------------------------

    \12\ See Memorandum to The File, ``Analysis for the Preliminary 
Results of the 2008-2009 Administrative Review of Folding Metal 
Tables and Chairs from the People's Republic of China: New-Tec 
Integration (Xiamen) Co. Ltd. (``New-Tec'')'' (July 7, 2010) (``New-
Tec Preliminary Analysis Memorandum''), Memorandum to The File), 
``Analysis for the Preliminary Results of the 2007-2008 
Administrative Review of Folding Metal Tables and Chairs from the 
People's Republic of China: Feili'' (July 7, 2010) (``Feili 2007-
2008 Preliminary Analysis Memorandum''), and Memorandum to The File, 
``Analysis for the Preliminary Results of the 2008-2009 
Administrative Review of Folding Metal Tables and Chairs from the 
People's Republic of China: Feili'' (July 7, 2010) (``Feili 2008-
2009 Preliminary Analysis Memorandum'').
---------------------------------------------------------------------------

    The Department 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. The Department adjusted the average 
brokerage and handling rate for deflation. See Surrogate Value 
Memoranda 07-08 and 08-09, New-Tec Preliminary Analysis Memorandum, 
Feili Deferred Preliminary Analysis Memorandum and Feili 2008-2009 
Preliminary Analysis Memorandum.

Zero-Priced Transactions

    In the final results of previous administrative reviews of FMTCs, 
we included New-Tec's and Feili's zero-priced transactions in the 
margin calculation because the record demonstrated that respondents 
provided the same merchandise in significant quantities, indicating 
that these ``samples'' did not primarily serve for evaluation or 
testing of the merchandise.\13\ Additionally, respondents provided 
``samples'' to the same customers to whom it was selling the same 
products in commercial quantities.\14\ As a result, we concluded that 
these transactions were not what we consider to be samples because 
respondents were providing these products to strengthen their customer 
relationships and to promote future sales.
---------------------------------------------------------------------------

    \13\ See Folding Metal Tables and Chairs from the People's 
Republic of China; Final Results of Antidumping Duty Administrative 
Review, 71 FR 2905 (January 18, 2006), and accompanying Issues and 
Decision Memorandum at Comment 4; Folding Metal Tables and Chairs 
from the People's Republic of China: Final Results of Antidumping 
Duty Administrative Review, 71 FR 71509 (December 11, 2006), and 
accompanying Issues and Decision Memorandum at Comment 4; and 
Folding Metal Tables and Chairs from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review, 72 FR 71355 
(December 17, 2007), and accompanying Issues and Decision Memorandum 
at Comments 10 and 11.
    \14\ Id.
---------------------------------------------------------------------------

    The U.S. Court of Appeals for the Federal Circuit (``Federal 
Circuit'') has not required the Department to exclude zero-priced or de 
minimis sales from its analysis but, rather, has defined a sale, as 
used in section 772 of the Act, as requiring ``both a transfer of 
ownership to an unrelated party and consideration.'' \15\ The Court of 
International Trade (``CIT'') in NSK Ltd. v. United States stated that 
it saw ``little reason in supplying and re-supplying and yet re-
supplying the same product to the same customer in order to solicit 
sales if the supplies are made in reasonably short periods of time,'' 
and that ``it would be even less logical to supply a sample to a client 
that has made a recent bulk purchase of the very item being sampled by 
the client.'' \16\ Furthermore, the Courts have consistently ruled that 
the burden rests with a respondent to demonstrate that it received no 
consideration in return for its provision of purported samples.\17\ 
Moreover, even where the Department does not ask a respondent for 
specific information to demonstrate that a transaction is a sample, the 
respondent has the burden of presenting the information in the first 
place to demonstrate that its transactions qualify for exclusion as a 
sample.\18\
---------------------------------------------------------------------------

    \15\ See NSK Ltd. v. United States, 115 F.3d 965, 975 (Fed. Cir. 
1997).
    \16\ See NSK Ltd. v. United States, 217 F. Supp. 2d 1291, 1311-
1312 (CIT 2002).
    \17\ See, e.g., Zenith Electronics Corp. v. United States, 988 
F.2d 1573, 1583 (Fed. Cir. 1993) (explaining that the burden of 
evidentiary production belongs ``to the party in possession of the 
necessary information''). See also Tianjin Machinery Import & Export 
Corp. v. United States, 806 F. Supp. 1008, 1015 (CIT 1992) (``The 
burden of creating an adequate record lies with respondents and not 
with {the Department{time} .'') (citation omitted).
    \18\ See NTN Bearing Corp. of America. v. United States, 997 
F.2d 1453, 1458 (Fed. Cir. 1993).
---------------------------------------------------------------------------

    An analysis of Feili's and New-Tec's section C computer sales 
listings reveals that they provided zero-priced merchandise to 
customers to whom they already are selling the same products in 
commercial quantities, indicating that Feili and New-Tec were not 
providing this zero-priced merchandise for a customer's evaluation and 
testing, with the hope of future sales. Consequently, based on the 
facts cited above, the guidance of past court decisions, and our 
previous decisions, for the preliminary results of this review, we have 
not excluded these zero-priced transactions from the margin 
calculations for Feili and New-Tec.

Billing Adjustments

    We have not adjusted Feili's U.S. sales price with its reported 
billing adjustments for brokerage and handling charges incurred in 
China and reimbursed by its U.S. customers in U.S. dollars. After 
careful examination of this issue, we have preliminarily determined 
that these charges are not included within the Department's surrogate 
value for brokerage and handling and, therefore, do not warrant an 
offset to the brokerage and handling expense. See Feili Deferred 
Preliminary Analysis Memorandum and Feili 2008-2009 Preliminary 
Analysis Memorandum.

Normal Value

    Section 773(c)(1) of the Act provides that, in the case of an NME, 
the Department shall determine NV using an FOP methodology if the 
merchandise is exported from an NME and the information does not permit 
the calculation of NV using home-market prices, third-country prices, 
or constructed value under section 773(a) of the Act.
    The Department bases NV on FOPs because the presence of government 
controls on various aspects of NME economies renders price comparisons 
and the calculation of production costs invalid under our normal 
methodologies. Therefore, in these preliminary results, we have 
calculated NV based on FOPs in accordance with sections 773(c)(3) and 
(4) of the Act and 19 CFR 351.408(c). The FOPs include: (1) Hours of 
labor required; (2) quantities of raw materials employed; (3) amounts 
of energy and other utilities consumed; and (4) representative capital 
costs. In accordance with 19 CFR 351.408(c)(1), the Department normally 
uses publicly available information to value the FOPs. However, when a 
producer sources a meaningful amount of an input from a market-economy 
country and pays for it in market-economy currency, the Department may 
value the factor using the actual price paid for the input.\19\ 
Further, the Department disregards prices it has reason to suspect may 
be subsidized.\20\
---------------------------------------------------------------------------

    \19\ See 19 CFR 351.408(c)(1); see also Lasko Metal Products v. 
United States, 43 F.3d 1442, 1445-1446 (Fed. Cir. 1994) (affirming 
the Department's use of market-based prices to value certain FOPs).
    \20\ See, e.g., China National Machinery Import & Export Corp. 
v. United States, 293 F. Supp. 2d 1334, 1339 (CIT 2003) (aff'd, 104 
Fed. Appx. 183 (Fed. Cir. 2004)) (``China National Machinery''), and 
see Frontseating Service Valves from the People's Republic of China; 
Preliminary Determination of Sales at Less Than Fair Value, 
Preliminary Negative Determination of Critical Circumstances, and 
Postponement of Final Determination, 73 FR 62952 (October 22, 2008) 
(unchanged in Frontseating Service Valves from the People's Republic 
of China: Final Determination of Sales at Less Than Fair Value and 
Final Negative Determination of Critical Circumstances, 74 FR 10886 
(March 13, 2009) (``Frontseating Service Valves'').

---------------------------------------------------------------------------

[[Page 40793]]

    In accordance with the OTCA 1988 legislative history, the 
Department continues to apply its long-standing practice of 
disregarding surrogate values if it has a reason to believe or suspect 
the source data may be subsidized.\21\ In this regard, the Department 
has previously found that it is appropriate to disregard such prices 
from India, Indonesia, South Korea and Thailand because we have 
determined that these countries maintain broadly available, non-
industry specific export subsidies.\22\ Based on the existence of these 
subsidy programs that were generally available to all exporters and 
producers in these countries at the time of the POR, the Department 
finds that it is reasonable to infer that all exporters from India, 
Indonesia, South Korea and Thailand may have benefitted from these 
subsidies.
---------------------------------------------------------------------------

    \21\ Omnibus Trade and Competitiveness Act of 1988, Conf. Report 
to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd Sess. 
(1988) (``OTCA 1988'') at 590.
    \22\ See, e.g., Expedited Sunset Review of the Countervailing 
Duty Order on Carbazole Violet Pigment 23 from India, 75 FR 13257 
(March 19, 2010) and accompanying Issues and Decision Memorandum at 
pages 4-5; Expedited Sunset Review of the Countervailing Duty Order 
on Certain Cut-to-Length Carbon Quality Steel Plate from Indonesia, 
70 FR 45692 (August 8, 2005) and accompanying Issues and Decision 
Memorandum at page 4; See Corrosion-Resistant Carbon Steel Flat 
Products from the Republic of Korea: Final Results of Countervailing 
Duty Administrative Review, 74 FR 2512 (January 15, 2009) and 
accompanying Issues and Decision Memorandum at pages 17, 19-20; See 
Certain Hot-Rolled Carbon Steel Flat Products from Thailand: Final 
Results of Countervailing Duty Determination, 66 FR 50410 (October 
3, 2001), and accompanying Issues and Decision Memorandum at page 
23.
---------------------------------------------------------------------------

Factor Valuations

    In accordance with section 773(c) of the Act, we calculated NV 
based on the FOPs reported by Feili and New-Tec for the PORs. To 
calculate NV, we multiplied the reported per-unit factor quantities by 
publicly available Indian surrogate values (except as noted below). In 
selecting the surrogate values, we considered the quality, specificity, 
public availability, and contemporaneity of the data. As appropriate, 
we adjusted input prices by including freight costs to render them 
delivered prices. Specifically, we added to Indian import surrogate 
values a surrogate freight cost using the shorter of the reported 
distance from the domestic supplier to the factory or the distance from 
the nearest seaport to the factory where appropriate (i.e., where the 
sales terms for the market-economy inputs were not delivered to the 
factory). This adjustment is in accordance with the decision of the 
Federal Circuit in Sigma Corp. v. United States, 117 F. 3d 1401, 1408 
(Fed. Cir. 1997). For a detailed description of all surrogate values 
used for Feili and New-Tec, see the Surrogate Value Memoranda 07-08 and 
08-09.
    In past cases, it has been the Department's practice to value 
various FOPs using import statistics of the primary selected surrogate 
country from World Trade Atlas (``WTA''), as published by Global Trade 
Information Services (``GTIS'').\23\ However, in October 2009, the 
Department learned that Indian import data obtained from the WTA, as 
published by GTIS, began identifying the original reporting currency 
for India as the U.S. Dollar. The Department then contacted GTIS about 
the change in the original reporting currency for India from the Indian 
Rupee to the U.S. Dollar. Officials at GTIS explained that while GTIS 
obtains data on imports into India directly from the Ministry of 
Commerce, Government of India, as denominated and published in Indian 
Rupees, the WTA software is limited with regard to the number of 
significant digits it can manage. Therefore, GTIS made a decision to 
change the original reporting currency for Indian data from the Indian 
Rupee to the U.S. Dollar in order to reduce the loss of significant 
digits when obtaining data through the WTA software. GTIS explained 
that it converts the Indian Rupee to the U.S. Dollar using the monthly 
Federal Reserve exchange rate applicable to the relevant month of the 
data being downloaded and converted.\24\
---------------------------------------------------------------------------

    \23\ See Certain Preserved Mushrooms from the People's Republic 
of China: Preliminary Results of Antidumping Duty New Shipper 
Review, 74 FR 50946, 50950 (October 2, 2009).
    \24\ See Certain Oil Country Tubular Goods from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, Affirmative Final Determination of Critical Circumstances, 
and Final Determination of Targeted Dumping, 75 FR 20335 (April 19, 
2010), and accompanying Issues and Decision Memorandum at Comment 4.
---------------------------------------------------------------------------

    However, the data reported in the Global Trade Atlas (``GTA'') 
software, published by GTIS, reports import statistics, such as from 
India, in the original reporting currency and thus this data 
corresponds to the original currency value reported by each country. 
Additionally, the data reported in the GTA software is reported to the 
nearest digit and thus there is not a loss of data by rounding, as 
there is with the data reported by the WTA software. Consequently, the 
Department will now obtain import statistics from GTA for valuing 
various FOPs because the GTA import statistics are in the original 
reporting currency of the country from which the data are obtained and 
have the same level of accuracy as the original data released.
    We further adjusted material input values to account for freight 
costs incurred between the supplier and respondent. We used the freight 
rates published by https://www.infobanc.com, ``The Great Indian Bazaar, 
Gateway to Overseas Markets.'' The logistics section of the Web site 
contains inland freight truck rates between many large Indian cities. 
The truck freight rates are for the period August 2008 through July 
2009. Since these dates are not contemporaneous with the 2007-2008 POR, 
we deflated the rates using Indian WPI. See Surrogate Value Memoranda 
07-08 and 08-09.
    Feili and New-Tec made raw materials purchases from market-economy 
suppliers. Therefore, in accordance with our practice outlined in 
Antidumping Methodologies: Market Economy Inputs,\25\ where at least 33 
percent of an input is sourced from market-economy suppliers and 
purchased in a market-economy currency, the Department will use actual 
weighted-average purchase prices to value these inputs.\26\ Where the 
quantity of the input purchased from market-economy suppliers during 
the period is below 33 percent of its total volume of purchases of the 
input during the period, the Department will weight-average the 
weighted average market-economy purchase price with an appropriate 
surrogate value. See Antidumping Methodologies: Market Economy Inputs. 
For a complete description of the factor values we used, see Surrogate 
Value Memoranda 07-08 and 08-09 and Feili and New-Tec Preliminary 
Analysis Memoranda.
---------------------------------------------------------------------------

    \25\ See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717-19 (October 19, 2006) (``Antidumping 
Methodologies: Market Economy Inputs'').
    \26\ For a detailed description of all actual values used for 
market-economy inputs, see New-Tec Preliminary Analysis Memorandum 
dated concurrently with this notice.
---------------------------------------------------------------------------

    To value liquid petroleum gas, we used per-kilogram values obtained 
from Bharat Petroleum, published June 4, 2009. We made adjustments to 
account for inflation and freight costs incurred between the supplier 
and New-Tec. See

[[Page 40794]]

Surrogate Value Memoranda 07-08 and 08-09. To value diesel, we used 
per-kilogram values obtained from Bharat Petroleum, published December 
2, 2008. We made adjustments to account for deflation for Feili's 2007-
2008 administrative review, whereas the source is contemporaneous with 
the 2008-2009 POR. See Surrogate Value Memoranda 07-08 and 08-09.
    To value electricity, we used 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. We did not inflate this value because 
utility rates represent current rates, as indicated by the effective 
dates listed for each of the rates provided. See Surrogate Value 
Memoranda 07-08 and 08-09.
    To value water, we used the revised Maharashtra Industrial 
Development Corporation (``MIDC'') water rates available at https://www.midcindia.com/water-supply, which we deflated using Indian WPI. See 
Surrogate Value Memoranda 07-08 and 08-09.
    For direct, indirect, and packing labor, pursuant to a recent 
decision by the Court of Appeals for the Federal Circuit, we have 
calculated an hourly wage rate to use in valuing each respondent's 
reported labor input by averaging earnings and/or wages in countries 
that are economically comparable to the PRC and that are significant 
producers of comparable merchandise.\27\ Because this wage rate does 
not separate the labor rates into different skill levels or types of 
labor, the Department has applied the same wage rate to all skill 
levels and types of labor reported by the respondents. See Surrogate 
Value Memoranda 07-08 and 08-09.
---------------------------------------------------------------------------

    \27\ See Dorbest Ltd. v. United States, 2009-1257 at 20 (CAFC 
2010) (``Dorbest'').
---------------------------------------------------------------------------

    For factory overhead, selling, general, and administrative expenses 
(``SG&A''), and profit values, both New-Tec and Meco submitted 
identical financial statements to those that were submitted and 
considered by the Department for use as surrogate financial statements 
in the preceding administrative review, none of which is 
contemporaneous with the current POR.\28\ The Department examined these 
financial statements in the 2007-2008 review of New-Tec, and found that 
Maximaa Systems Limited (``Maximaa'') produced a greater proportion of 
comparable merchandise than the other companies (Infiniti Modules PVT 
Ltd., Godrej & Boyce Manufacturing Company Limited, and Tube 
Investments of India, Ltd.) and, therefore, best met the Department's 
criteria for surrogate financial ratios.\29\ Because parties have 
submitted for the instant review the same surrogate financial 
statements as those from the 2007-2008 review of New-Tec, and the 
record indicates that Maximaa produced a greater proportion of 
comparable merchandise than other surrogate companies whose financial 
statements were placed on the record, we find that Maximaa continues to 
be the best available information with which to determine factory 
overhead as a percentage of the total raw materials, labor and energy 
(``ML&E'') costs; SG&A as a percentage of ML&E plus overhead (i.e., 
cost of manufacture); and the profit rate as a percentage of the cost 
of manufacture plus SG&A. See Surrogate Value Memoranda 07-08 and 08-09 
for a full discussion of the calculation of these ratios.
---------------------------------------------------------------------------

    \28\ See New-Tec's January 21, 2009, Surrogate Value Comments at 
Exhibit 1, and Meco's January 21, 2009, Surrogate Value Comments at 
Exhibit 7.
    \29\ See Folding Metal Tables and Chairs from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review, 74 FR 68568 (December 28, 2009), and accompanying Issues and 
Decision Memorandum at Comment 1.
---------------------------------------------------------------------------

    For packing materials, we used the per-kilogram values obtained 
from the GTA and made adjustments to account for freight costs incurred 
between the PRC supplier and New-Tec's and Feili's plants. See 
Surrogate Value Memoranda 07-08 and 08-09.

Currency Conversion

    We made currency conversions into U.S. dollars, where appropriate, 
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.

Preliminary Results of Review

    We preliminarily determine that the following weighted-average 
dumping margins exist:

------------------------------------------------------------------------
                                                                Margin
                   Manufacturer/exporter                      (percent)
------------------------------------------------------------------------
New-Tec (6/1/2008-5/31/2009)...............................       * 0.00
Feili (6/1/2008-5/31/2009).................................       * 0.00
Feili (6/1/2007-5/31/2008 )................................       * 0.04
------------------------------------------------------------------------
* De minimis.

Disclosure

    We will disclose the calculations used in our analysis to parties 
to this proceeding within five days of the publication date of this 
notice. See 19 CFR 351.224(b). Interested parties are invited to 
comment on the preliminary results and may submit case briefs and/or 
written comments within 30 days of the date of publication of this 
notice. See 19 CFR 351.309(c). Interested parties may file rebuttal 
briefs and rebuttals to written comments, limited to issues raised in 
such briefs or comments, no later than five days after the date on 
which the case briefs are due. See 19 CFR 351.309(d). The Department 
requests that parties submitting written comments provide an executive 
summary and a table of authorities as well as an additional copy of 
those comments electronically.
    Any interested party may request a hearing within 30 days of 
publication of this notice. See 19 CFR 351.310(c). If a request for a 
hearing is made, parties will be notified of the time and date for the 
hearing to be held at the U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230. See 19 CFR 351.310(d). 
The Department will issue the final results of this administrative 
review, which will include the results of its analysis of issues raised 
in any such comments, within 120 days of publication of these 
preliminary results, pursuant to section 751(a)(3)(A) of the Act.

Deadline for Submission of Publicly Available Surrogate Value 
Information

    In accordance with 19 CFR 351.301(c)(3)(ii), the deadline for 
submission of publicly available information to value FOPs under 19 CFR 
351.408(c) is 20 days after the date of publication of the preliminary 
results. In accordance with 19 CFR 351.301(c)(1), if an interested 
party submits factual information less than ten days before, on, or 
after (if the Department has extended the deadline), the applicable 
deadline for submission of such factual information, an interested 
party has ten days to submit factual information to rebut, clarify, or 
correct the factual information no later than ten days after such 
factual information is served on the interested party. However, the 
Department generally will not accept in the rebuttal submission 
additional or alternative surrogate value information not previously on 
the record, if the deadline for submission of surrogate value 
information has passed.\30\ Furthermore,

[[Page 40795]]

the Department generally will not accept business proprietary 
information in either the surrogate value submissions or the rebuttals 
thereto, as the regulation regarding the submission of surrogate values 
allows only for the submission of publicly available information. See 
19 CFR 351.301(c)(3).
---------------------------------------------------------------------------

    \30\ See, e.g., Glycine from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review and Final 
Rescission, in Part, 72 FR 58809 (October 17, 2007), and 
accompanying Issues and Decision Memorandum at Comment 2.
---------------------------------------------------------------------------

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by these reviews. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of these reviews. In accordance with 19 CFR 351.212(b)(1), we 
calculated exporter/importer (or customer)-specific assessment rates 
for the merchandise subject to these reviews.
    Where the respondent reports reliable entered values, we calculate 
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 calculate a 
per-unit assessment rate by aggregating the antidumping duties due for 
all U.S. sales to each importer (or customer) and dividing this amount 
by the total quantity sold to that importer (or customer).
    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

    The following cash deposit requirements will be effective upon 
publication of the final results of these administrative reviews 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 New-Tec and 
Feili, the cash deposit rate will be the company-specific rate 
established in the final results of the 2008-2009 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 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 70.71 percent; and (4) for all non-PRC 
exporters of subject merchandise that 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 also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) 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 determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: July 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-17172 Filed 7-13-10; 8:45 am]
BILLING CODE 3510-DS-P
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