Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, 55754-55759 [2010-22893]
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55754
Federal Register / Vol. 75, No. 177 / Tuesday, September 14, 2010 / Notices
These preliminary results of review
are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act and 19 CFR 351.221(b)(4).
Dated: September 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–22901 Filed 9–13–10; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–888]
Floor–Standing, Metal–Top Ironing
Tables and Certain Parts Thereof from
the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from
interested parties, the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping duty order on floor–
standing, metal–top ironing tables and
certain parts thereof from the People’s
Republic of China (PRC). The period of
review (POR) is August 1, 2008 through
July 31, 2009. We have preliminarily
determined that respondents Foshan
Shunde Yongjian Housewares &
Hardware Co., Ltd. (Foshan Shunde)
and Since Hardware (Guangzhou) Co.,
Ltd. (Since Hardware) have made sales
to the United States of the subject
merchandise at prices below normal
value. We invite interested parties to
comment on these preliminary results.
Parties filing comments are requested to
submit with each argument (1) a
statement of the issue and (2) a brief
summary of the argument(s).
EFFECTIVE DATE: September 14, 2010.
FOR FURTHER INFORMATION CONTACT:
Michael J. Heaney or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–4475 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
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AGENCY:
Background
On August 6, 2004, the Department
published in the Federal Register the
antidumping duty order regarding floor–
standing, metal–top ironing tables and
certain parts thereof (ironing tables)
from the PRC. See Notice of Amended
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Final Determination of Sales at Less
Than Fair Value and Antidumping Duty
Order: Floor–Standing, Metal–Top
Ironing Tables and Certain Parts
Thereof From the People’s Republic of
China, 69 FR 47868 (August 6, 2004)
(Amended Final and Order).
On August 3, 2009, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on, inter alia,
ironing tables from the People’s
Republic of China. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 74
FR 38397 (August 3, 2009). On August
31, 2009, Home Products International
(the Petitioner in this proceeding)
requested, in accordance with 19 CFR
351.213(b)(1), an administrative review
of this order for Foshan Shunde and
Since Hardware.
On September 22, 2009, the
Department initiated an administrative
review of Foshan Shunde and Since
Hardware. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocation in Part, 74 FR 48224
(September 22, 2009). On February 16,
2010, the Department issued a
memorandum that tolled the deadlines
for all Import Administration cases by
seven calendar days due to the recent
Federal Government closure. See
Memorandum for the Record from
Ronald Lorentzen, DAS for Import
Administration, regarding Tolling of
Administrative Deadlines as a Result of
the Government Closure During the
Recent Snowstorm, dated February 12,
2010.
On April 28, 2010, in accordance with
section 751(a)(3)(A) of the Tariff Act of
1930, as amended (the Act), and 19 CFR
351.213(h)(2), the Department extended
the deadline for the preliminary results
of review until September 7, 2010. See
Floor–Standing, Metal–Top Ironing
Tables and Certain Parts Thereof from
the People’s Republic of China:
Extension of the Time Limit for the
Preliminary Results of the
Administrative Review, 75 FR 22372
(April 28, 2010).
The Department issued its original
antidumping questionnaire to both
Foshan Shunde and Since Hardware on
September 29, 2009. Foshan Shunde
timely filed its response to Section A of
the questionnaire on November 13,
2009; Foshan Shunde’s Sections C and
D responses followed on November 20,
2009. Since Hardware timely filed its
response to Section A of the
questionnaire on October 29, 2009;
Since Hardware’s Sections C and D
responses followed on November 19,
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2009 and December 1, 2009
respectively. Petitioner filed comments
on Foshan Shunde’s sections A, C and
D responses on November 15, 2009.
Petitioner filed comments on Since
Hardware’s sections A, C, and D
responses on December 7, 2009.
The Department subsequently issued
supplementary questionnaires to Foshan
Shunde and Since Hardware on
February 24, 2010 and May 5, 2010.
Foshan Shunde timely responded to
each of these supplemental requests for
information on March 8, 2010, March
25, 2010, April 9, 2010, and May 18,
2010. Since Hardware timely responded
to each of the Department’s
supplemental requests for information
on March 25, 2010, April 9, 2010, and
June 3, 2010. On, April 9, 2010,
Petitioner filed additional comments on
the original and supplemental sections
A, C, and D responses submitted by
Since Hardware. On April 15, 2010,
Petitioner filed additional comments on
the original and supplemental sections
A, C, and D responses submitted by
Foshan Shunde. On August 25, 2010,
Petitioner filed comments concerning
the Department’s verification of Since
Hardware. On August 26, 2010,
Petitioner filed comments concerning
the Department’s verification of Foshan
Shunde.
Verification
As provided in section 782(i)(3) of the
Act, we verified the information
submitted by Foshan Shunde and Since
Hardware upon which we have relied in
these preliminary results of review. We
conducted our verification of Foshan
Shunde from June 14 through June 18,
2010 and our verification of Since
Hardware from June 21 through June 25,
2010. The Department’s verification
reports are on the record of this review
in the Central Records Unit, Room 1117
of the main Department building. We
used standard verification procedures,
including examination of relevant
accounting and production records, as
well as source documentation provided
by the respondents. See ‘‘Verification of
the Sales and Factors Response of
Foshan Shunde (Guangzhou) Co., Ltd.
in the Antidumping Review of Floor
Standing, Metal–Top Ironing Tables and
Certain Parts Thereof from the People’s
Republic of China (PRC)’’ (Foshan
Shunde Verification Report) dated
August 17, 2010 . See also ‘‘Verification
of the Sales and Factors Response of
Since Hardware (Guangzhou) Co. Ltd. in
the Antidumping Review of Floor
Standing, Metal–Top Ironing Tables and
Certain Parts Thereof from the People’s
Republic of China (PRC)’’ dated August
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16, 2010 (Since Hardware 2008–2009
Verification Report ).
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Surrogate Country and Surrogate Value
Data
On July 13, 2010, the Department sent
interested parties a letter inviting
comments on surrogate country
selection and surrogate value data. See
the Department’s Letter to All Interested
Parties; Administrative Review of
Floor–Standing, Metal–Top, Ironing
Tables and Parts Thereof from the
People’s Republic of China (‘‘PRC’’):
Surrogate Country List, dated July 13,
2010 (Surrogate Country List). On
August 17, 2010, the Department
received information to value factors of
production (FOP) from Foshan Shunde,
Since Hardware and the Petitioner. With
the exception of the surrogate value data
to value labor, all of the surrogate values
placed on the record were obtained from
sources in India.
Scope of the Order
For purposes of this order, the
product covered consists of floor–
standing, metal–top ironing tables,
assembled or unassembled, complete or
incomplete, and certain parts thereof.
The subject tables are designed and
used principally for the hand ironing or
pressing of garments or other articles of
fabric. The subject tables have full–
height leg assemblies that support the
ironing surface at an appropriate (often
adjustable) height above the floor. The
subject tables are produced in a variety
of leg finishes, such as painted, plated,
or matte, and they are available with
various features, including iron rests,
linen racks, and others. The subject
ironing tables may be sold with or
without a pad and/or cover. All types
and configurations of floor–standing,
metal–top ironing tables are covered by
this review.
Furthermore, this order specifically
covers imports of ironing tables,
assembled or unassembled, complete or
incomplete, and certain parts thereof.
For purposes of this order, the term
‘‘unassembled’’ ironing table means a
product requiring the attachment of the
leg assembly to the top or the
attachment of an included feature such
as an iron rest or linen rack. The term
‘‘complete’’ ironing table means product
sold as a ready–to-use ensemble
consisting of the metal–top table and a
pad and cover, with or without
additional features, e.g., iron rest or
linen rack. The term ‘‘incomplete’’
ironing table means product shipped or
sold as a ‘‘bare board’’ i.e., a metal–top
table only, without the pad and cover
with or without additional features, e.g.,
iron rest or linen rack. The major parts
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or components of ironing tables that are
intended to be covered by this order
under the term ‘‘certain parts thereof’’
consist of the metal top component
(with or without assembled supports
and slides) and/or the leg components,
whether or not attached together as a leg
assembly. The order covers separately
shipped metal top components and leg
components, without regard to whether
the respective quantities would yield an
exact quantity of assembled ironing
tables.
Ironing tables without legs (such as
models that mount on walls or over
doors) are not floor–standing and are
specifically excluded. Additionally,
tabletop or countertop models with
short legs that do not exceed 12 inches
in length (and which may or may not
collapse or retract) are specifically
excluded.
The subject ironing tables are
currently classifiable under Harmonized
Tariff Schedule of the United States
(HTSUS) subheading 9403.20.0011. The
subject metal top and leg components
are classified under HTSUS subheading
9403.90.8040. Although the HTSUS
subheadings are provided for
convenience and for Customs and
Border Protection (CBP) purposes, the
Department’s written description of the
scope remains dispositive.
Non–Market-Economy Status
In every case conducted by the
Department involving the PRC, the PRC
has been treated as a non–market
economy (NME). In accordance with
section 771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by the administering
authority. See, e.g., Brake Rotors from
the People’s Republic of China: Final
Results and Partial Rescission of the
2004/2005 Administrative Review and
Notice of Rescission of 2004/2005 New
Shipper Review, 71 FR 66304
(November 14, 2006). None of the
parties to this administrative review has
contested such treatment. Accordingly,
we calculated normal value (NV) in
accordance with section 773(c) of the
Act, which applies to NME countries.
Surrogate Country
When the Department investigates
imports from an NME country and
available information does not permit
the Department to determine NV
pursuant to section 773(a) of the Act,
then, pursuant to section 773(c)(4) of the
Act, the Department bases NV on an
NME producer’s FOPs to the extent
possible, in one or more market–
economy countries that (1) are at a level
of economic development comparable to
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that of the NME country, and (2) are
significant producers of comparable
merchandise. The Department
determined India, the Philippines,
Indonesia, Thailand, Ukraine and Peru
are countries comparable to the PRC in
economic development. (See
Memorandum to Richard Weible from
Carole Showers Request for a List of
Surrogate Countries for an
Administrative Review of the
Antidumping Order on Floor Standing
Metal–Top Ironing Tables and Certain
Parts (‘‘Ironing Tables’’) from the
People’s Republic of China dated July 8,
2010 (Surrogate Country List)).
Based on publicly available
information placed on the record by
interested parties (e.g., production data),
the Department determines India to be
a reliable source for surrogate values
because India is at a comparable level of
economic development pursuant to
section 773(c)(4) of the Act, is a
significant producer of the subject
merchandise, and has publicly available
and reliable data. Accordingly, the
Department has selected India as the
surrogate country for purposes of
valuing the FOPs because it meets the
Department’s criteria for surrogate
country selection.
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 assigned a single
antidumping duty rate. It is the
Department’s policy to assign all
exporters of subject merchandise 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. See Policy
Bulletin 05.1: Separate Rates Practice
and Application of Combination Rates
in Antidumping Investigations
involving Non–Market Economy
Countries, available at https://ia.ita.gov/
policy/bull05–1.pdf. Exporters can
demonstrate this independence through
the absence of both de jure and de facto
governmental control over export
activities. The Department analyzes
each entity exporting the subject
merchandise under a test arising from
the Final Determination of Sales at Less
Than Fair Value: Sparklers from the
People’s Republic of China, 56 FR 20588
at Comment 1 (May 6, 1991) (Sparklers).
This concept was further developed in
Notice of Final Determination of Sales
at Less Than Fair Value: Silicon Carbide
from the People’s Republic of China, 59
FR 22585 (May 2, 1994). (Silicon
Carbide). However, if the Department
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determines that a company is wholly
foreign–owned or located in a market
economy, then a separate rate analysis
is unnecessary to determine whether it
is independent from government
control.
Accordingly, we have considered
whether Foshan Shunde and Since
Hardware are independent from
government control, and therefore
eligible for separate rates. The
Department’s separate–rate test to
determine whether the exporters are
independent from government control
does not consider, in general,
macroeconomic/border–type controls,
e.g., export licenses, quotas, and
minimum export prices, particularly if
these controls are imposed to prevent
dumping. See Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Preserved
Mushrooms from the People’s Republic
of China, 63 FR 72255, 72256
(December 31, 1998). The test focuses,
rather, on controls over the investment,
pricing, and output decision–making
process at the individual firm level. See,
e.g., Notice of Final Determination of
Sales at Less than Fair Value: Certain
Cut–to-Length Carbon Steel Plate from
Ukraine, 62 FR 61754, 61758 (November
19, 1997); see also Tapered Roller
Bearings and Parts Thereof, Finished
and Unfinished, From the People’s
Republic of China; Final Results of
Antidumping Duty Administrative
Review, 62 FR 61276, 61279 (November
17, 1997).
Foshan Shunde and Since Hardware
both provided complete separate–rate
information in their responses to our
original and supplemental
questionnaires. Accordingly, we
performed a separate–rates analysis to
determine whether Foshan Shunde and
Since Hardware are independent from
government control.
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 20588 at Comment 1.
The evidence provided by Foshan
Shunde and Since Hardware supports a
preliminary finding of de jure absence
of control based on the following: (1) an
absence of restrictive stipulations
associated with their business and
export licenses; (2) applicable legislative
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enactments decentralizing control of
companies; and (3) formal measures
(e.g., the Foreign Trade Law)
decentralizing control of companies.
See, e.g., Foshan Shunde November 13,
2009 Section A questionnaire response
at pages at A–4–A–5; see also Since
Hardware October 29, 2009
questionnaire response at pages A–3–A–
5.
Absence of De Facto Control
Typically, the Department considers
four factors in evaluating whether a
respondent is subject to de facto
government control of its export
functions: (1) whether the export prices
are set by, or subject to, the approval of
a government authority; (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 its management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding
disposition of profits or financing of
losses. See Silicon Carbide 59 FR 22857;
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 (May
8, 1995) The Department has
determined that an analysis of de facto
control is critical in determining
whether respondents are, in fact, subject
to a degree of governmental control,
which would preclude the Department
from assigning separate rates. .
The evidence provided by Foshan
Shunde and Since Hardware support a
preliminary finding of de facto absence
of government control based on the
following: (1) the absence of evidence
that the export prices are set by or are
subject to the approval of a government
agency; (2) the respondents have
authority to negotiate and sign contracts
and other agreements; (3) the
respondents have autonomy from
government in making decisions
regarding the selection of management;
and (4) the respondents retain the
proceeds of their export sales and make
independent decisions regarding
disposition of profits or financing of
losses. See Foshan Shunde November
13, 2010 Section A questionnaire
response at A–7 through- A–9; see also
Since Hardware October 29, 2010
Section A questionnaire response at A–
5 through A–8.
In accordance with the criteria
identified in Sparklers and Silicon
Carbide, the evidence placed on the
record of this review by Foshan Shunde
and Since Hardware demonstrates an
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absence of and de facto government
control with respect to Foshan Shunde’s
and Since Hardware’s exports of the
subject merchandise. Accordingly, we
have determined that Foshan Shunde
and Since Hardware have demonstrated
eligibility for separate rates.
Fair Value Comparisons
To determine whether the
respondents’ sales of the subject
merchandise to the United States were
made at prices below normal value
(NV), we compared its United States
prices to normal values, as described in
the ‘‘U.S. Price’’ and ‘‘Normal Value’’
sections of this notice. See section
773(a) of the Act.
U.S. Price
Export Price
We based U.S. price for Foshan
Shunde and Since Hardware on export
price (EP) in accordance with section
772(a) of the Act, because the first sale
to an unaffiliated purchaser was made
prior to importation, and constructed
export price (CEP) was not otherwise
warranted by the facts on the record. We
calculated EP based on the packed price
from the exporter to the first unaffiliated
customer in the United States. We
deducted foreign inland freight, and
foreign brokerage and handling
expenses from the starting price (gross
unit price), in accordance with section
772(c) of the Act. Where appropriate, we
made an addition to U.S. price for
billing adjustments.
Both Since Hardware and Forever
Holdings incurred foreign inland freight
and foreign brokerage and handling
expenses from PRC service providers.
We therefore valued these services using
Indian surrogate values (see ‘‘Factors of
Production’’ section below for further
discussion).
Normal Value
Factors of Production (FOPs)
Section 773(c)(1) of the Act provides
that the Department shall determine NV
using an FOP methodology if the
merchandise is exported from an NME
country and the Department finds that
the available information does not
permit the calculation of NV using
home–market prices, third–country
prices, or constructed value under
section 773(a) of the Act. When
determining NV in an NME context, the
Department will base NV on FOPs
because the presence of government
control on various aspects of these
economies renders price comparisons
and the calculation of production costs
invalid under our normal
methodologies. The Department’s
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questionnaires required Foshan Shunde
and Since Hardware to provide
information regarding the weighted–
average FOP.
In accordance with 19 CFR
351.408(c)(1), the Department will
normally use publically available
information to find an appropriate SV to
value FOPs, but when a producer
sources an input from a market
economy and pays for it in market–
economy currency, the Department may
value the factor using the actual price
paid for the input. See 19 CFR
351.408(c)(1); see also Shakeproof
Assembly Components, Div. of Ill. Tool
Works, Inc. v. United States, 268 F. 3rd
1376, 1382–1383 (Fed. Cir. 2001)
(affirming the Department’s use of
market–based prices to value FOPs).
During the POR, Foshan Shunde
reported that it purchased a certain
production material from a market
economy supplier. See Foshan Shunde
November 20, 2009 Section D response
at exhibit D–2. Because Foshan Shunde
purchased more than 33 percent of its
total volume of this particular input
from a market economy supplier, we
used the market economy price paid for
that material to value this input. See
Foshan Shunde November 20, 2009
questionnaire response at exhibit D–2.)
During the POR, Since Hardware made
no purchases from market economy
suppliers. See Since Hardware
December 1, 2009 at Appendix D–6.
We calculated NV based on FOPs in
accordance with section 773(c)(3) and
(4) of the Act and 19 CFR 351.408(c).
The FOPs include but are not limited to:
(1) hours of labor required; (2) quantities
of raw material employed; (3) amounts
of energy and other utilities consumed;
and (4) representative capital costs. The
Department used FOPs reported by
Foshan Shunde and Since Hardware for
materials, energy, labor, by–products,
and packing. To calculate NV, we
multiplied the reported unit factor
quantities by publicly available values
in the surrogate country, India.
Foshan Shunde and Since Hardware
both reported by–product sales.
Consistent with the Department’s
determination in the investigation of
Diamond Sawblades from the PRC, we
will deduct the surrogate value of by–
products sold from normal value
because the surrogate financial
statements on the record of this
administrative review contain no
references to the treatment of by–
products and because Since Hardware
and Foshan Shunde provided evidence
to demonstrate sales of their by–
products. See Final Determination of
Sales at Less Than Fair Value and Final
Partial Affirmative Determination of
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Critical Circumstances: Diamond
Sawblades and Parts Thereof from the
People’s Republic of China, 71 FR 29303
(May 22, 2006) (Diamond Sawblades
from the PRC), and accompanying
Issues and Decision Memorandum at
Comment 9, unchanged in Notice of
Amended Final Determination of Sales
at Less Than Fair Value: Diamond
Sawblades and Parts Thereof from the
People’s Republic of China, 71 FR 35864
(June 22, 2006). This is consistent with
accounting principles based on a
reasonable assumption that if a
company sells a by–product, the by–
product necessarily incurs expenses for
overhead, SG&A, and profit. Id.
In selecting the surrogate Indian
values, we considered the quality,
specificity, and contemporaneity of the
data, in accordance with our practice.
See, e.g., Electrolytic Manganese
Dioxide from the People’s Republic of
China: Final Determination of Sales at
Less Than Fair Value and
accompanying Issues and Decision
Memorandum at Comment 2. The
Department adjusted input prices by
including freight costs to make them
delivered prices, as appropriate.
Specifically, the Department added to
Indian import SVs 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 of
production. This adjustment is in
accordance with the decision of the U.S.
Court of Appeals for the Federal Circuit
(Federal Circuit) in Sigma Corp. v.
United States, 117 F. 3rd 1401, 1407–08
(Fed. Cir. 1997). A detailed description
of all SVs used to value Foshan
Shunde’s and Since Hardware’s FOPs
may be found in the September 7, 2010
Memorandum to the File through Robert
James, Program Manager Office 7 from
Michael J. Heaney International Trade
Analyst: Antidumping Duty
Administrative Review of Floor–
Standing, Metal Top Ironing Tables and
Certain Parts Thereof from the People’s
Republic of China, dated September 7,
2010 (Factors Valuation Memorandum.)
The Department calculated SVs for
the majority of reported FOPs purchased
from NME sources using the
contemporaneous, weighted average
unit import value derived from the
Ministry of Commerce of India (Indian
Import Statistics) for the POR. The
Department used Indian import data
from the Global Trade Atlas (GTA)
published by Global Trade Information
Services, Inc. (GTIS) which is sourced
from the Directorate General of
Commercial Intelligence & Statistics,
Indian Ministry of Commerce, to
determine the surrogate values for most
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raw materials, by–products and packing
material inputs. The Department has
disregarded statistics from NMEs,
countries with generally available
export subsidies, and undetermined
countries, in calculating average value.
In accordance with the Omnibus Trade
and Competiveness Act of 1988, Conf.
Report to Accompany HR. 3, HR Rep.
No., 100th Cong,. 2nd Session (1988),
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. 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. 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 Decisions
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
Decisions Memorandum at page 4;
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. For a detailed
description of all surrogate values used
for Foshan Shunde and Since Hardware,
see the Factors Valuation Memorandum.
In past cases, it has been the
Department’s practice to value various
FOPs using import statistics of the
primary selected surrogate country from
the World Trade Atlas (WTA), as
published by GTIS. See, e.g., 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). 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
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manage. Therefore, GTIS made a
decision to change the official 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. 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
GTA software report import statistics,
such as data from India, in the original
reporting currency and thus these data
correspond to the original currency
value reported by each country.
Additionally, the data reported in GTA
software are 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 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.
The Department valued electricity
using the updated electricity price data
for small, medium, and large industries,
as published by the Central Electricity
Authority, an administrative body of the
Government of India, in its publication
titled Electricity Tariff & Duty and
Average Rates of Electricity Supply in
India, dated March 2008. These
electricity rates represent actual,
country–wide, publically–available
information on tax–exclusive electricity
rates charged to small, medium, and
large 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 Factors Valuation
Memorandum at page 7.
The Department valued water using
data from the Maharashtra Industrial
Development Corporation (MDIC) as it
includes a wide range of industrial
water tariffs. To value water, we used
the average rate for industrial use from
MDIC water rates at https://
www.midcindia.org. See Factors
Valuation Memorandum at page 8.
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We valued diesel fuel using the rates
provided by the OECD’s International
Energy Agency’s publication: Key World
Energy Statistics. The prices are based
on July 2007 prices in India for diesel.
See Factor Valuation Memorandum at
page 7.
For direct, indirect, and packing
labor, pursuant to a recent decision by
the Federal Circuit, we have calculated
an hourly wage rate to use in valuing
Foshan Shunde’s and Since Hardware’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. See Dorbest
Ltd. v. United States, 2009–1257 at 20
(Fed. Cir. 2010). Because this wage rate
does not separate 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 either Foshan Shunde
or Since Hardware. See Factors
Valuation Memorandum at page 7.
Since Hardware claimed that it
utilized hot rolled steel as a production
input of the subject merchandise.
However, Since Hardware’s supporting
documentation provided to Department
officials at verification did not
demonstrate Since Hardware purchased
hot–rolled steel in sizes of less than 1.1
millimeters. See Since Hardware 2008–
2009 Verification Report at pages 21–23.
We, therefore, assigned the surrogate
value of cold–rolled steel to value this
production input.
The Department valued truck freight
expenses using a per–unit average rate
calculated from data on the Infobanc
Web site: https://www.infobanccom/
logistics/logtruck.htm. The logistics
section of this Web site contains inland
freight truck rates between many large
Indian cities. Since this value is not
contemporaneous with the POR, the
Department deflated the rate using the
Wholesale Price Index of India. See
Factors Valuation Memorandum at page
9.
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, by the World
Bank.
To value factory overhead, selling,
general and administrative (SG&A)
expenses, and profit the Department
used the audited 2005–2006 financial
statements of Infiniti Modules Pvt. Ltd.
(Infiniti Modules).
PO 00000
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Sfmt 4703
We are preliminarily granting a by–
product offset to both Foshan Shunde
and Since Hardware for scrap steel
sales. See Factors Valuation
Memorandum at pages 3–4.
Currency Conversion
Where necessary, the Department
made currency conversions into U.S.
dollars, in accordance with section
773(A) of the Act, based on the
exchange rates in effect on the date of
the U.S. sale, as certified by the Federal
Reserve Board.
Preliminary Results of Review
We preliminarily determine that the
following antidumping duty margins
exist:
Exporter
Foshan Shunde
Yongjian Housewares
& Hardware Co., Ltd.
Since Hardware ............
Margin (percent)
8.49
56.49
Assessment Rates
Pursuant to 19 CFR 351.212(b), the
Department will determine, and CBP
shall assess, antidumping duties on all
appropriate entries. The Department
will issue appropriate assessment
instructions directly to CBP 15 days
after the date of publication of the final
results of this review. For assessment
purposes, where possible, we calculated
importer–specific ad valorem
assessment rates for ironing tables from
the PRC based on the ratio of the total
amount of the dumping duties
calculated for the examined sales to the
total entered value of those same sales.
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 final results of this review
shall be the basis for the assessment of
antidumping duties on entries of
merchandise covered by the final results
of these reviews and for future deposits
of estimated duties, where applicable.
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for all shipments
of the subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the publication
date, as provided for by section
751(a)(2)(C) of the Act: (1) for the
exporters listed above, the cash deposit
rate will be established in the final
results of this review (except, if the rate
is zero or de minimis, i.e., less than 0.5
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percent, no cash deposit will be
required for that company); (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 which
have not been found to be entitled to a
separate rate, the cash deposit rate will
be the PRC–wide rate of 157.68 percent
(see Amended Final and Order); and (4)
for all non–PRC exporters of subject
merchandise which have not received
their own rate, the cash deposit rate will
be the rate applicable to the PRC
exporters that supplied that non–PRC
exporter. These deposit requirements,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
Public Comment
The Department will disclose
calculations performed in connection
with the preliminary results of this
review within five days of the date of
publication of this notice in accordance
with 19 CFR 351.224(b). Any interested
party may request a hearing within 30
days of publication of this notice in
accordance with 19 CFR 351.310(c).
Any hearing will be held 37 days after
the publication of this notice, or the first
workday thereafter unless the
Department alters the date pursuant to
19 CFR 351.310(d). Individuals who
wish to request a hearing must submit
a written request within 30 days of the
publication of this notice in the Federal
Register to the Assistant Secretary for
Import Administration, U.S. Department
of Commerce, Room 1870, 14th Street
and Constitution Avenue, NW,
Washington, DC 20230. Requests for a
public hearing should contain: (1) the
party’s name, address, and telephone
number; (2) the number of participants;
and (3) to the extent practicable, an
identification of the arguments to be
raised at the hearing.
Unless otherwise notified by the
Department, interested parties may
submit case briefs within 30 days of the
date of publication of this notice in
accordance with 19 CFR
351.309(c)(1)(ii). As part of the case
brief, parties are encouraged to provide
a summary of the arguments and a table
of authorities cited in accordance with
19 CFR 351.309(c)(2). Rebuttal briefs,
which must be limited to issues raised
in the case briefs, must be filed within
five days after the case brief is filed in
accordance with 19 CFR 351.309(d). If a
hearing is held, an interested party may
make an affirmative presentation only
on arguments included in that party’s
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case brief and may make a rebuttal
presentation only on arguments
included in that party’s rebuttal brief in
accordance with 19 CFR 351.310(c).
Parties should confirm by telephone the
time, date, and place of the hearing
within 48 hours before the scheduled
time. The Department will issue the
final results of this review, which will
include the results of its analysis of
issues raised in the briefs, not later than
120 days after the date of publication of
this notice in accordance with section
751(a)(3)(A) of the Act and 19 CFR
351.213(h)(1).
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 these review
periods. 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.
Dated: September 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2010–22893 Filed 9–13–10; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–888]
Floor-Standing, Metal-Top Ironing
Tables and Certain Parts Thereof From
the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from
interested parties, the Department of
Commerce (the Department) is
conducting an administrative review of
the antidumping duty order on floorstanding, metal-top ironing tables and
certain parts thereof from the People’s
Republic of China (PRC). The period of
review (POR) is August 1, 2007 through
July 31, 2008. We have preliminarily
determined that respondent Since
Hardware (Guangzhou) Co., Ltd. (Since
AGENCY:
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
55759
Hardware) has made sales to the United
States of the subject merchandise at
prices below normal value. We invite
interested parties to comment on these
preliminary results. Parties filing
comments are requested to submit with
each argument (1) a statement of the
issue and (2) a brief summary of the
argument(s).
DATES: Effective Date: September 14,
2010.
FOR FURTHER INFORMATION CONTACT:
Michael J. Heaney or Robert James, AD/
CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–4475 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 6, 2004, the Department
published in the Federal Register the
antidumping duty order regarding floorstanding, metal-top ironing tables and
certain parts thereof (ironing tables)
from the PRC. See Notice of Amended
Final Determination of Sales at Less
Than Fair Value and Antidumping Duty
Order: Floor-Standing, Metal-Top
Ironing Tables and Certain Parts
Thereof From the People’s Republic of
China, 69 FR 47868 (August 6, 2004)
(Amended Final and Order).
On August 1, 2008, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on, inter alia,
ironing tables from the People’s
Republic of China. See Antidumping or
Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
to Request Administrative Review, 73
FR 44966 (August 1, 2008). On August
29, 2008, Home Products International
(the Petitioner in this proceeding)
requested, in accordance with 19 CFR
351.213(b)(1), an administrative review
of this order for Since Hardware. Since
Hardware’s request for an
administrative review of its sales
pursuant to 19 CFR 351.213(b)(2)
followed on September 2, 2008. (The
deadline for filing a request for review,
August 31, 2008, fell on a weekend;
Since Hardware’s request was timely
filed on the first business day
thereafter.) In its request for review,
Since Hardware also requested that the
Department defer initiation of the
administrative review for one year,
pursuant to 19 CFR 351.213(c).
On October 29, 2008, the Department
published its notice of deferral of the
administrative review for one year with
respect to Since Hardware, pursuant to
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[Federal Register Volume 75, Number 177 (Tuesday, September 14, 2010)]
[Notices]
[Pages 55754-55759]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22893]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-888]
Floor-Standing, Metal-Top Ironing Tables and Certain Parts
Thereof from the People's Republic of China: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to requests from interested parties, the
Department of Commerce (the Department) is conducting an administrative
review of the antidumping duty order on floor-standing, metal-top
ironing tables and certain parts thereof from the People's Republic of
China (PRC). The period of review (POR) is August 1, 2008 through July
31, 2009. We have preliminarily determined that respondents Foshan
Shunde Yongjian Housewares & Hardware Co., Ltd. (Foshan Shunde) and
Since Hardware (Guangzhou) Co., Ltd. (Since Hardware) have made sales
to the United States of the subject merchandise at prices below normal
value. We invite interested parties to comment on these preliminary
results. Parties filing comments are requested to submit with each
argument (1) a statement of the issue and (2) a brief summary of the
argument(s).
EFFECTIVE DATE: September 14, 2010.
FOR FURTHER INFORMATION CONTACT: Michael J. Heaney or Robert James, AD/
CVD Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4475 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
On August 6, 2004, the Department published in the Federal Register
the antidumping duty order regarding floor-standing, metal-top ironing
tables and certain parts thereof (ironing tables) from the PRC. See
Notice of Amended Final Determination of Sales at Less Than Fair Value
and Antidumping Duty Order: Floor-Standing, Metal-Top Ironing Tables
and Certain Parts Thereof From the People's Republic of China, 69 FR
47868 (August 6, 2004) (Amended Final and Order).
On August 3, 2009, the Department published a notice of opportunity
to request an administrative review of the antidumping duty order on,
inter alia, ironing tables from the People's Republic of China. See
Antidumping or Countervailing Duty Order, Finding, or Suspended
Investigation; Opportunity to Request Administrative Review, 74 FR
38397 (August 3, 2009). On August 31, 2009, Home Products International
(the Petitioner in this proceeding) requested, in accordance with 19
CFR 351.213(b)(1), an administrative review of this order for Foshan
Shunde and Since Hardware.
On September 22, 2009, the Department initiated an administrative
review of Foshan Shunde and Since Hardware. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Requests
for Revocation in Part, 74 FR 48224 (September 22, 2009). On February
16, 2010, the Department issued a memorandum that tolled the deadlines
for all Import Administration cases by seven calendar days due to the
recent Federal Government closure. See Memorandum for the Record from
Ronald Lorentzen, DAS for Import Administration, regarding Tolling of
Administrative Deadlines as a Result of the Government Closure During
the Recent Snowstorm, dated February 12, 2010.
On April 28, 2010, in accordance with section 751(a)(3)(A) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.213(h)(2), the
Department extended the deadline for the preliminary results of review
until September 7, 2010. See Floor-Standing, Metal-Top Ironing Tables
and Certain Parts Thereof from the People's Republic of China:
Extension of the Time Limit for the Preliminary Results of the
Administrative Review, 75 FR 22372 (April 28, 2010).
The Department issued its original antidumping questionnaire to
both Foshan Shunde and Since Hardware on September 29, 2009. Foshan
Shunde timely filed its response to Section A of the questionnaire on
November 13, 2009; Foshan Shunde's Sections C and D responses followed
on November 20, 2009. Since Hardware timely filed its response to
Section A of the questionnaire on October 29, 2009; Since Hardware's
Sections C and D responses followed on November 19, 2009 and December
1, 2009 respectively. Petitioner filed comments on Foshan Shunde's
sections A, C and D responses on November 15, 2009. Petitioner filed
comments on Since Hardware's sections A, C, and D responses on December
7, 2009.
The Department subsequently issued supplementary questionnaires to
Foshan Shunde and Since Hardware on February 24, 2010 and May 5, 2010.
Foshan Shunde timely responded to each of these supplemental requests
for information on March 8, 2010, March 25, 2010, April 9, 2010, and
May 18, 2010. Since Hardware timely responded to each of the
Department's supplemental requests for information on March 25, 2010,
April 9, 2010, and June 3, 2010. On, April 9, 2010, Petitioner filed
additional comments on the original and supplemental sections A, C, and
D responses submitted by Since Hardware. On April 15, 2010, Petitioner
filed additional comments on the original and supplemental sections A,
C, and D responses submitted by Foshan Shunde. On August 25, 2010,
Petitioner filed comments concerning the Department's verification of
Since Hardware. On August 26, 2010, Petitioner filed comments
concerning the Department's verification of Foshan Shunde.
Verification
As provided in section 782(i)(3) of the Act, we verified the
information submitted by Foshan Shunde and Since Hardware upon which we
have relied in these preliminary results of review. We conducted our
verification of Foshan Shunde from June 14 through June 18, 2010 and
our verification of Since Hardware from June 21 through June 25, 2010.
The Department's verification reports are on the record of this review
in the Central Records Unit, Room 1117 of the main Department building.
We used standard verification procedures, including examination of
relevant accounting and production records, as well as source
documentation provided by the respondents. See ``Verification of the
Sales and Factors Response of Foshan Shunde (Guangzhou) Co., Ltd. in
the Antidumping Review of Floor Standing, Metal-Top Ironing Tables and
Certain Parts Thereof from the People's Republic of China (PRC)''
(Foshan Shunde Verification Report) dated August 17, 2010 . See also
``Verification of the Sales and Factors Response of Since Hardware
(Guangzhou) Co. Ltd. in the Antidumping Review of Floor Standing,
Metal-Top Ironing Tables and Certain Parts Thereof from the People's
Republic of China (PRC)'' dated August
[[Page 55755]]
16, 2010 (Since Hardware 2008-2009 Verification Report ).
Surrogate Country and Surrogate Value Data
On July 13, 2010, the Department sent interested parties a letter
inviting comments on surrogate country selection and surrogate value
data. See the Department's Letter to All Interested Parties;
Administrative Review of Floor-Standing, Metal-Top, Ironing Tables and
Parts Thereof from the People's Republic of China (``PRC''): Surrogate
Country List, dated July 13, 2010 (Surrogate Country List). On August
17, 2010, the Department received information to value factors of
production (FOP) from Foshan Shunde, Since Hardware and the Petitioner.
With the exception of the surrogate value data to value labor, all of
the surrogate values placed on the record were obtained from sources in
India.
Scope of the Order
For purposes of this order, the product covered consists of floor-
standing, metal-top ironing tables, assembled or unassembled, complete
or incomplete, and certain parts thereof. The subject tables are
designed and used principally for the hand ironing or pressing of
garments or other articles of fabric. The subject tables have full-
height leg assemblies that support the ironing surface at an
appropriate (often adjustable) height above the floor. The subject
tables are produced in a variety of leg finishes, such as painted,
plated, or matte, and they are available with various features,
including iron rests, linen racks, and others. The subject ironing
tables may be sold with or without a pad and/or cover. All types and
configurations of floor-standing, metal-top ironing tables are covered
by this review.
Furthermore, this order specifically covers imports of ironing
tables, assembled or unassembled, complete or incomplete, and certain
parts thereof. For purposes of this order, the term ``unassembled''
ironing table means a product requiring the attachment of the leg
assembly to the top or the attachment of an included feature such as an
iron rest or linen rack. The term ``complete'' ironing table means
product sold as a ready-to-use ensemble consisting of the metal-top
table and a pad and cover, with or without additional features, e.g.,
iron rest or linen rack. The term ``incomplete'' ironing table means
product shipped or sold as a ``bare board'' i.e., a metal-top table
only, without the pad and cover with or without additional features,
e.g., iron rest or linen rack. The major parts or components of ironing
tables that are intended to be covered by this order under the term
``certain parts thereof'' consist of the metal top component (with or
without assembled supports and slides) and/or the leg components,
whether or not attached together as a leg assembly. The order covers
separately shipped metal top components and leg components, without
regard to whether the respective quantities would yield an exact
quantity of assembled ironing tables.
Ironing tables without legs (such as models that mount on walls or
over doors) are not floor-standing and are specifically excluded.
Additionally, tabletop or countertop models with short legs that do not
exceed 12 inches in length (and which may or may not collapse or
retract) are specifically excluded.
The subject ironing tables are currently classifiable under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
9403.20.0011. The subject metal top and leg components are classified
under HTSUS subheading 9403.90.8040. Although the HTSUS subheadings are
provided for convenience and for Customs and Border Protection (CBP)
purposes, the Department's written description of the scope remains
dispositive.
Non-Market-Economy Status
In every case conducted by the Department involving the PRC, the
PRC has been treated as a non-market economy (NME). In accordance with
section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by the
administering authority. See, e.g., Brake Rotors from the People's
Republic of China: Final Results and Partial Rescission of the 2004/
2005 Administrative Review and Notice of Rescission of 2004/2005 New
Shipper Review, 71 FR 66304 (November 14, 2006). None of the parties to
this administrative review has contested such treatment. Accordingly,
we calculated normal value (NV) in accordance with section 773(c) of
the Act, which applies to NME countries.
Surrogate Country
When the Department investigates imports from an NME country and
available information does not permit the Department to determine NV
pursuant to section 773(a) of the Act, then, pursuant to section
773(c)(4) of the Act, the Department bases NV on an NME producer's FOPs
to the extent possible, in one or more market-economy countries that
(1) are at a level of economic development comparable to that of the
NME country, and (2) are significant producers of comparable
merchandise. The Department determined India, the Philippines,
Indonesia, Thailand, Ukraine and Peru are countries comparable to the
PRC in economic development. (See Memorandum to Richard Weible from
Carole Showers Request for a List of Surrogate Countries for an
Administrative Review of the Antidumping Order on Floor Standing Metal-
Top Ironing Tables and Certain Parts (``Ironing Tables'') from the
People's Republic of China dated July 8, 2010 (Surrogate Country
List)).
Based on publicly available information placed on the record by
interested parties (e.g., production data), the Department determines
India to be a reliable source for surrogate values because India is at
a comparable level of economic development pursuant to section
773(c)(4) of the Act, is a significant producer of the subject
merchandise, and has publicly available and reliable data. Accordingly,
the Department has selected India as the surrogate country for purposes
of valuing the FOPs because it meets the Department's criteria for
surrogate country selection.
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 assigned a single
antidumping duty rate. It is the Department's policy to assign all
exporters of subject merchandise 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. See Policy Bulletin 05.1:
Separate Rates Practice and Application of Combination Rates in
Antidumping Investigations involving Non-Market Economy Countries,
available at https://ia.ita.gov/policy/bull05-1.pdf. Exporters can
demonstrate this independence through the absence of both de jure and
de facto governmental control over export activities. The Department
analyzes each entity exporting the subject merchandise under a test
arising from the Final Determination of Sales at Less Than Fair Value:
Sparklers from the People's Republic of China, 56 FR 20588 at Comment 1
(May 6, 1991) (Sparklers). This concept was further developed in Notice
of Final Determination of Sales at Less Than Fair Value: Silicon
Carbide from the People's Republic of China, 59 FR 22585 (May 2, 1994).
(Silicon Carbide). However, if the Department
[[Page 55756]]
determines that a company is wholly foreign-owned or located in a
market economy, then a separate rate analysis is unnecessary to
determine whether it is independent from government control.
Accordingly, we have considered whether Foshan Shunde and Since
Hardware are independent from government control, and therefore
eligible for separate rates. The Department's separate-rate test to
determine whether the exporters are independent from government control
does not consider, in general, macroeconomic/border-type controls,
e.g., export licenses, quotas, and minimum export prices, particularly
if these controls are imposed to prevent dumping. See Notice of Final
Determination of Sales at Less Than Fair Value: Certain Preserved
Mushrooms from the People's Republic of China, 63 FR 72255, 72256
(December 31, 1998). The test focuses, rather, on controls over the
investment, pricing, and output decision-making process at the
individual firm level. See, e.g., Notice of Final Determination of
Sales at Less than Fair Value: Certain Cut-to-Length Carbon Steel Plate
from Ukraine, 62 FR 61754, 61758 (November 19, 1997); see also Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, From the
People's Republic of China; Final Results of Antidumping Duty
Administrative Review, 62 FR 61276, 61279 (November 17, 1997).
Foshan Shunde and Since Hardware both provided complete separate-
rate information in their responses to our original and supplemental
questionnaires. Accordingly, we performed a separate-rates analysis to
determine whether Foshan Shunde and Since Hardware are independent from
government control.
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 20588 at Comment 1. The evidence provided by Foshan
Shunde and Since Hardware supports a preliminary finding of de jure
absence of control based on the following: (1) an absence of
restrictive stipulations associated with their business and export
licenses; (2) applicable legislative enactments decentralizing control
of companies; and (3) formal measures (e.g., the Foreign Trade Law)
decentralizing control of companies. See, e.g., Foshan Shunde November
13, 2009 Section A questionnaire response at pages at A-4-A-5; see also
Since Hardware October 29, 2009 questionnaire response at pages A-3-A-
5.
Absence of De Facto Control
Typically, the Department considers four factors in evaluating
whether a respondent is subject to de facto government control of its
export functions: (1) whether the export prices are set by, or subject
to, the approval of a government authority; (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 its management; and (4) whether
the respondent retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses. See Silicon Carbide 59 FR 22857; 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 (May 8, 1995) The
Department has determined that an analysis of de facto control is
critical in determining whether respondents are, in fact, subject to a
degree of governmental control, which would preclude the Department
from assigning separate rates. .
The evidence provided by Foshan Shunde and Since Hardware support a
preliminary finding of de facto absence of government control based on
the following: (1) the absence of evidence that the export prices are
set by or are subject to the approval of a government agency; (2) the
respondents have authority to negotiate and sign contracts and other
agreements; (3) the respondents have autonomy from government in making
decisions regarding the selection of management; and (4) the
respondents retain the proceeds of their export sales and make
independent decisions regarding disposition of profits or financing of
losses. See Foshan Shunde November 13, 2010 Section A questionnaire
response at A-7 through- A-9; see also Since Hardware October 29, 2010
Section A questionnaire response at A-5 through A-8.
In accordance with the criteria identified in Sparklers and Silicon
Carbide, the evidence placed on the record of this review by Foshan
Shunde and Since Hardware demonstrates an absence of and de facto
government control with respect to Foshan Shunde's and Since Hardware's
exports of the subject merchandise. Accordingly, we have determined
that Foshan Shunde and Since Hardware have demonstrated eligibility for
separate rates.
Fair Value Comparisons
To determine whether the respondents' sales of the subject
merchandise to the United States were made at prices below normal value
(NV), we compared its United States prices to normal values, as
described in the ``U.S. Price'' and ``Normal Value'' sections of this
notice. See section 773(a) of the Act.
U.S. Price
Export Price
We based U.S. price for Foshan Shunde and Since Hardware on export
price (EP) in accordance with section 772(a) of the Act, because the
first sale to an unaffiliated purchaser was made prior to importation,
and constructed export price (CEP) was not otherwise warranted by the
facts on the record. We calculated EP based on the packed price from
the exporter to the first unaffiliated customer in the United States.
We deducted foreign inland freight, and foreign brokerage and handling
expenses from the starting price (gross unit price), in accordance with
section 772(c) of the Act. Where appropriate, we made an addition to
U.S. price for billing adjustments.
Both Since Hardware and Forever Holdings incurred foreign inland
freight and foreign brokerage and handling expenses from PRC service
providers. We therefore valued these services using Indian surrogate
values (see ``Factors of Production'' section below for further
discussion).
Normal Value
Factors of Production (FOPs)
Section 773(c)(1) of the Act provides that the Department shall
determine NV using an FOP methodology if the merchandise is exported
from an NME country and the Department finds that the available
information does not permit the calculation of NV using home-market
prices, third-country prices, or constructed value under section 773(a)
of the Act. When determining NV in an NME context, the Department will
base NV on FOPs because the presence of government control on various
aspects of these economies renders price comparisons and the
calculation of production costs invalid under our normal methodologies.
The Department's
[[Page 55757]]
questionnaires required Foshan Shunde and Since Hardware to provide
information regarding the weighted-average FOP.
In accordance with 19 CFR 351.408(c)(1), the Department will
normally use publically available information to find an appropriate SV
to value FOPs, but when a producer sources an input from a market
economy and pays for it in market-economy currency, the Department may
value the factor using the actual price paid for the input. See 19 CFR
351.408(c)(1); see also Shakeproof Assembly Components, Div. of Ill.
Tool Works, Inc. v. United States, 268 F. 3rd 1376, 1382-1383 (Fed.
Cir. 2001) (affirming the Department's use of market-based prices to
value FOPs). During the POR, Foshan Shunde reported that it purchased a
certain production material from a market economy supplier. See Foshan
Shunde November 20, 2009 Section D response at exhibit D-2. Because
Foshan Shunde purchased more than 33 percent of its total volume of
this particular input from a market economy supplier, we used the
market economy price paid for that material to value this input. See
Foshan Shunde November 20, 2009 questionnaire response at exhibit D-2.)
During the POR, Since Hardware made no purchases from market economy
suppliers. See Since Hardware December 1, 2009 at Appendix D-6.
We calculated NV based on FOPs in accordance with section 773(c)(3)
and (4) of the Act and 19 CFR 351.408(c). The FOPs include but are not
limited to: (1) hours of labor required; (2) quantities of raw material
employed; (3) amounts of energy and other utilities consumed; and (4)
representative capital costs. The Department used FOPs reported by
Foshan Shunde and Since Hardware for materials, energy, labor, by-
products, and packing. To calculate NV, we multiplied the reported unit
factor quantities by publicly available values in the surrogate
country, India.
Foshan Shunde and Since Hardware both reported by-product sales.
Consistent with the Department's determination in the investigation of
Diamond Sawblades from the PRC, we will deduct the surrogate value of
by-products sold from normal value because the surrogate financial
statements on the record of this administrative review contain no
references to the treatment of by-products and because Since Hardware
and Foshan Shunde provided evidence to demonstrate sales of their by-
products. See Final Determination of Sales at Less Than Fair Value and
Final Partial Affirmative Determination of Critical Circumstances:
Diamond Sawblades and Parts Thereof from the People's Republic of
China, 71 FR 29303 (May 22, 2006) (Diamond Sawblades from the PRC), and
accompanying Issues and Decision Memorandum at Comment 9, unchanged in
Notice of Amended Final Determination of Sales at Less Than Fair Value:
Diamond Sawblades and Parts Thereof from the People's Republic of
China, 71 FR 35864 (June 22, 2006). This is consistent with accounting
principles based on a reasonable assumption that if a company sells a
by-product, the by-product necessarily incurs expenses for overhead,
SG&A, and profit. Id.
In selecting the surrogate Indian values, we considered the
quality, specificity, and contemporaneity of the data, in accordance
with our practice. See, e.g., Electrolytic Manganese Dioxide from the
People's Republic of China: Final Determination of Sales at Less Than
Fair Value and accompanying Issues and Decision Memorandum at Comment
2. The Department adjusted input prices by including freight costs to
make them delivered prices, as appropriate. Specifically, the
Department added to Indian import SVs 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 of
production. This adjustment is in accordance with the decision of the
U.S. Court of Appeals for the Federal Circuit (Federal Circuit) in
Sigma Corp. v. United States, 117 F. 3rd 1401, 1407-08 (Fed. Cir.
1997). A detailed description of all SVs used to value Foshan Shunde's
and Since Hardware's FOPs may be found in the September 7, 2010
Memorandum to the File through Robert James, Program Manager Office 7
from Michael J. Heaney International Trade Analyst: Antidumping Duty
Administrative Review of Floor-Standing, Metal Top Ironing Tables and
Certain Parts Thereof from the People's Republic of China, dated
September 7, 2010 (Factors Valuation Memorandum.)
The Department calculated SVs for the majority of reported FOPs
purchased from NME sources using the contemporaneous, weighted average
unit import value derived from the Ministry of Commerce of India
(Indian Import Statistics) for the POR. The Department used Indian
import data from the Global Trade Atlas (GTA) published by Global Trade
Information Services, Inc. (GTIS) which is sourced from the Directorate
General of Commercial Intelligence & Statistics, Indian Ministry of
Commerce, to determine the surrogate values for most raw materials, by-
products and packing material inputs. The Department has disregarded
statistics from NMEs, countries with generally available export
subsidies, and undetermined countries, in calculating average value. In
accordance with the Omnibus Trade and Competiveness Act of 1988, Conf.
Report to Accompany HR. 3, HR Rep. No., 100th Cong,. 2nd Session
(1988), 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. 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. 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 Decisions
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
Decisions Memorandum at page 4; 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. For a detailed description of all
surrogate values used for Foshan Shunde and Since Hardware, see the
Factors Valuation Memorandum.
In past cases, it has been the Department's practice to value
various FOPs using import statistics of the primary selected surrogate
country from the World Trade Atlas (WTA), as published by GTIS. See,
e.g., 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). 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
[[Page 55758]]
manage. Therefore, GTIS made a decision to change the official
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. 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 GTA software report import
statistics, such as data from India, in the original reporting currency
and thus these data correspond to the original currency value reported
by each country. Additionally, the data reported in GTA software are
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 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.
The Department valued electricity using the updated electricity
price data for small, medium, and large industries, as published by the
Central Electricity Authority, an administrative body of the Government
of India, in its publication titled Electricity Tariff & Duty and
Average Rates of Electricity Supply in India, dated March 2008. These
electricity rates represent actual, country-wide, publically-available
information on tax-exclusive electricity rates charged to small,
medium, and large 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 Factors
Valuation Memorandum at page 7.
The Department valued water using data from the Maharashtra
Industrial Development Corporation (MDIC) as it includes a wide range
of industrial water tariffs. To value water, we used the average rate
for industrial use from MDIC water rates at https://www.midcindia.org.
See Factors Valuation Memorandum at page 8.
We valued diesel fuel using the rates provided by the OECD's
International Energy Agency's publication: Key World Energy Statistics.
The prices are based on July 2007 prices in India for diesel. See
Factor Valuation Memorandum at page 7.
For direct, indirect, and packing labor, pursuant to a recent
decision by the Federal Circuit, we have calculated an hourly wage rate
to use in valuing Foshan Shunde's and Since Hardware'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. See Dorbest Ltd. v. United States, 2009-1257
at 20 (Fed. Cir. 2010). Because this wage rate does not separate 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 either Foshan Shunde or Since Hardware. See Factors
Valuation Memorandum at page 7.
Since Hardware claimed that it utilized hot rolled steel as a
production input of the subject merchandise. However, Since Hardware's
supporting documentation provided to Department officials at
verification did not demonstrate Since Hardware purchased hot-rolled
steel in sizes of less than 1.1 millimeters. See Since Hardware 2008-
2009 Verification Report at pages 21-23. We, therefore, assigned the
surrogate value of cold-rolled steel to value this production input.
The Department valued truck freight expenses using a per-unit
average rate calculated from data on the Infobanc Web site: https://www.infobanccom/logistics/logtruck.htm. The logistics section of this
Web site contains inland freight truck rates between many large Indian
cities. Since this value is not contemporaneous with the POR, the
Department deflated the rate using the Wholesale Price Index of India.
See Factors Valuation Memorandum at page 9.
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, by the World Bank.
To value factory overhead, selling, general and administrative
(SG&A) expenses, and profit the Department used the audited 2005-2006
financial statements of Infiniti Modules Pvt. Ltd. (Infiniti Modules).
We are preliminarily granting a by-product offset to both Foshan
Shunde and Since Hardware for scrap steel sales. See Factors Valuation
Memorandum at pages 3-4.
Currency Conversion
Where necessary, the Department made currency conversions into U.S.
dollars, in accordance with section 773(A) of the Act, based on the
exchange rates in effect on the date of the U.S. sale, as certified by
the Federal Reserve Board.
Preliminary Results of Review
We preliminarily determine that the following antidumping duty
margins exist:
------------------------------------------------------------------------
Exporter Margin (percent)
------------------------------------------------------------------------
Foshan Shunde Yongjian Housewares & Hardware Co., 8.49
Ltd................................................
Since Hardware...................................... 56.49
------------------------------------------------------------------------
Assessment Rates
Pursuant to 19 CFR 351.212(b), the Department will determine, and
CBP shall assess, antidumping duties on all appropriate entries. The
Department will issue appropriate assessment instructions directly to
CBP 15 days after the date of publication of the final results of this
review. For assessment purposes, where possible, we calculated
importer-specific ad valorem assessment rates for ironing tables from
the PRC based on the ratio of the total amount of the dumping duties
calculated for the examined sales to the total entered value of those
same sales. 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
final results of this review shall be the basis for the assessment of
antidumping duties on entries of merchandise covered by the final
results of these reviews and for future deposits of estimated duties,
where applicable.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date, as
provided for by section 751(a)(2)(C) of the Act: (1) for the exporters
listed above, the cash deposit rate will be established in the final
results of this review (except, if the rate is zero or de minimis,
i.e., less than 0.5
[[Page 55759]]
percent, no cash deposit will be required for that company); (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 which have not
been found to be entitled to a separate rate, the cash deposit rate
will be the PRC-wide rate of 157.68 percent (see Amended Final and
Order); and (4) for all non-PRC exporters of subject merchandise which
have not received their own rate, the cash deposit rate will be the
rate applicable to the PRC exporters that supplied that non-PRC
exporter. These deposit requirements, when imposed, shall remain in
effect until publication of the final results of the next
administrative review.
Public Comment
The Department will disclose calculations performed in connection
with the preliminary results of this review within five days of the
date of publication of this notice in accordance with 19 CFR
351.224(b). Any interested party may request a hearing within 30 days
of publication of this notice in accordance with 19 CFR 351.310(c). Any
hearing will be held 37 days after the publication of this notice, or
the first workday thereafter unless the Department alters the date
pursuant to 19 CFR 351.310(d). Individuals who wish to request a
hearing must submit a written request within 30 days of the publication
of this notice in the Federal Register to the Assistant Secretary for
Import Administration, U.S. Department of Commerce, Room 1870, 14th
Street and Constitution Avenue, NW, Washington, DC 20230. Requests for
a public hearing should contain: (1) the party's name, address, and
telephone number; (2) the number of participants; and (3) to the extent
practicable, an identification of the arguments to be raised at the
hearing.
Unless otherwise notified by the Department, interested parties may
submit case briefs within 30 days of the date of publication of this
notice in accordance with 19 CFR 351.309(c)(1)(ii). As part of the case
brief, parties are encouraged to provide a summary of the arguments and
a table of authorities cited in accordance with 19 CFR 351.309(c)(2).
Rebuttal briefs, which must be limited to issues raised in the case
briefs, must be filed within five days after the case brief is filed in
accordance with 19 CFR 351.309(d). If a hearing is held, an interested
party may make an affirmative presentation only on arguments included
in that party's case brief and may make a rebuttal presentation only on
arguments included in that party's rebuttal brief in accordance with 19
CFR 351.310(c). Parties should confirm by telephone the time, date, and
place of the hearing within 48 hours before the scheduled time. The
Department will issue the final results of this review, which will
include the results of its analysis of issues raised in the briefs, not
later than 120 days after the date of publication of this notice in
accordance with section 751(a)(3)(A) of the Act and 19 CFR
351.213(h)(1).
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 these review periods. 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.
Dated: September 7, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-22893 Filed 9-13-10; 8:45 am]
BILLING CODE 3510-DS-S