Diamond Sawblades and Parts Thereof From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Intent To Rescind Review in Part, 76135-76143 [2011-31281]
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Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Notices
Dated: November 30, 2011.
Paul Piquado,
Assistant Secretary for Import
Administration.
[FR Doc. 2011–31285 Filed 12–5–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–900]
Diamond Sawblades and Parts Thereof
From the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review and Intent
To Rescind Review in Part
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to timely
requests, the Department of Commerce
(the Department) is conducting an
administrative review of the
antidumping duty order on diamond
sawblades and parts thereof (diamond
sawblades) from the People’s Republic
of China (PRC). The period of review
(POR) is January 23, 2009, through
October 31, 2010. We have preliminarily
determined that sales have been made
below normal value by the companies
subject to individual examination in
this review.
We invite interested parties to
comment on these preliminary results.
Parties who submit comments in this
review are requested to submit with
each argument (1) A statement of the
issue and (2) a brief summary of the
argument.
AGENCY:
DATES:
Effective Date: December 6, 2011.
FOR FURTHER INFORMATION CONTACT:
Jerrold Freeman or Yang Jin Chun, AD/
CVD Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–0180 and (202)
482–5760, respectively.
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Background
On November 4, 2009, the Department
published in the Federal Register an
antidumping duty order on diamond
sawblades from the PRC. See Diamond
Sawblades and Parts Thereof From the
People’s Republic of China and the
Republic of Korea: Antidumping Duty
Orders, 74 FR 57145 (November 4,
2009). On November 1, 2010, the
Department published in the Federal
Register a notice of opportunity to
request an administrative review of the
order. See Antidumping or
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Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity
To Request Administrative Review, 75
FR 67079 (November 1, 2010).
On December 28, 2010, based on
timely requests for an administrative
review, the Department published in the
Federal Register a notice of initiation of
an administrative review of the
antidumping duty order on diamond
sawblades from the PRC. See Initiation
of Antidumping and Countervailing
Duty Administrative Reviews and
Request for Revocation in Part, 75 FR
81565 (December 28, 2010) (Initiation
Notice).
Consistent with our determination in
Final Determination of Sales at Less
Than Fair Value and Final Partial
Affirmative Determination of Critical
Circumstances: Diamond Sawblades
and Parts Thereof from the People’s
Republic of China, 71 FR 29303 (May
22, 2006), and the accompanying Issues
and Decision Memorandum (I&D Memo)
(LTFV Final) at Comment 5, we solicited
comments from interested parties
concerning whether to change in this
review the physical characteristics we
use to identify the various products
covered by this order. See the letter to
all interested parties dated February 17,
2011. After reviewing the parties’
comments, we decided to continue
relying on the physical characteristics
used in the investigation. See the
memorandum entitled ‘‘Diamond
Sawblades and Parts Thereof from the
People’s Republic of China: Physical
Characteristics’’ dated April 8, 2011.
On February 18, 2011, we selected
Advanced Technology & Materials Co.,
Ltd. (ATM), Beijing Gang Yan Diamond
Products Co. (BGY), and Cliff
International Ltd. (Cliff) (treated as a
single entity in the investigation) and
Weihai Xiangguang Mechanical
Industrial Co., Ltd. (Weihai), for
individual examination in this review.
See the memorandum entitled
‘‘Diamond Sawblades and Parts Thereof
from the People’s Republic of China:
Selection of Respondents for Individual
Examination’’ dated February 18, 2011
(Respondent Selection Memo).
We extended the due date for the
preliminary results of review by 120
days to November 30, 2011. See
Diamond Sawblades and Parts Thereof
From the People’s Republic of China:
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Review, 76 FR 41759
(July 15, 2011), and Diamond Sawblades
and Parts Thereof From the People’s
Republic of China: Extension of Time
Limit for Preliminary Results of
Antidumping Duty Administrative
Review, 76 FR 64896 (October 19, 2011).
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76135
We are conducting this review in
accordance with section 751 of the
Tariff Act of 1930, as amended (the Act).
Scope of the Order
The products covered by the order are
all finished circular sawblades, whether
slotted or not, with a working part that
is comprised of a diamond segment or
segments, and parts thereof, regardless
of specification or size, except as
specifically excluded below. Within the
scope of the order are semifinished
diamond sawblades, including diamond
sawblade cores and diamond sawblade
segments. Diamond sawblade cores are
circular steel plates, whether or not
attached to non-steel plates, with slots.
Diamond sawblade cores are
manufactured principally, but not
exclusively, from alloy steel. A diamond
sawblade segment consists of a mixture
of diamonds (whether natural or
synthetic, and regardless of the quantity
of diamonds) and metal powders
(including, but not limited to, iron,
cobalt, nickel, tungsten carbide) that are
formed together into a solid shape (from
generally, but not limited to, a heating
and pressing process).
Sawblades with diamonds directly
attached to the core with a resin or
electroplated bond, which thereby do
not contain a diamond segment, are not
included within the scope of the order.
Diamond sawblades and/or sawblade
cores with a thickness of less than 0.025
inches, or with a thickness greater than
1.1 inches, are excluded from the scope
of the order. Circular steel plates that
have a cutting edge of non-diamond
material, such as external teeth that
protrude from the outer diameter of the
plate, whether or not finished, are
excluded from the scope of the order.
Diamond sawblade cores with a
Rockwell C hardness of less than 25 are
excluded from the scope of the order.
Diamond sawblades and/or diamond
segment(s) with diamonds that
predominantly have a mesh size number
greater than 240 (such as 250 or 260) are
excluded from the scope of the order.
Merchandise subject to the order is
typically imported under heading
8202.39.00.00 of the Harmonized Tariff
Schedule of the United States (HTSUS).
When packaged together as a set for
retail sale with an item that is separately
classified under headings 8202 to 8205
of the HTSUS, diamond sawblades or
parts thereof may be imported under
heading 8206.00.00.00 or 6804.21.00 of
the HTSUS. The tariff classification is
provided for convenience and customs
purposes; however, the written
description of the scope of the order is
dispositive.
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Intent To Rescind Review in Part
Surrogate Country
In accordance with 19 CFR
351.213(d)(3), the Department may
rescind an administrative review, ‘‘in
whole or only with respect to a
particular exporter or producer, if (the
Department) concludes that, during the
period covered by the review, there
were no entries, exports, or sales of the
subject merchandise * * *’’ Record
evidence indicates that Shanghai Deda
Industry & Trading Co., Ltd., did not
have any exports of subject merchandise
during the POR. See the February 28,
2011, submission from Shanghai Deda
Industry & Trading Co., Ltd. Moreover,
we have reviewed the U.S. Customs and
Border Protection (CBP) entry data for
the POR and found no evidence of
exports from this company. See the
memorandum entitled ‘‘Diamond
Sawblades and Parts Thereof from the
People’s Republic of China (‘PRC’): U.S.
Customs and Border Protection (‘CBP’)
Data’’ dated January 4, 2011.
Additionally, on October 24, 2011, we
requested that CBP report any contrary
information. To date, we have not
received any evidence that this
company had any shipments to the
United States of subject merchandise
during the POR. Therefore, pursuant to
19 CFR 351.213(d)(3), the Department
intends to rescind this review in part
with respect to Shanghai Deda Industry
& Trading Co., Ltd.
In antidumping proceedings involving
NME countries, pursuant to section
773(c)(1) of the Act, the Department
generally bases normal value on the
value of the NME producer’s factors of
production (FOP). In accordance with
section 773(c)(4) of the Act, in valuing
the FOP, the Department uses to the
extent possible the prices or costs of the
FOP 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 merchandise
comparable to the subject merchandise.
Moreover, as we stated in Policy
Bulletin No. 04.1: Non-Market Economy
Surrogate Country Selection Process,
dated March 1, 2004, it is the
Department’s practice to select an
appropriate surrogate country based on
the availability and reliability of data
from these countries.
The Department has determined that
India, Indonesia, Peru, the Philippines,
Thailand, and Ukraine are countries that
are at a level of economic development
comparable to that of the PRC. See the
memorandum entitled ‘‘Request for a
List of Surrogate Countries for an
Administrative Review of the
Antidumping Duty Order on Diamond
Sawblades and Parts Thereof (‘Diamond
Sawblades’) from the People’s Republic
of China (‘China’)’’ dated May 9, 2011.
On June 23, 2011, we issued a letter
inviting comments on the selection of
surrogate country and surrogate value.
See the June 23, 2011, letter to all
interested parties.
On August 11, 2011, the petitioner 1
and the respondents selected for
individual examination recommended
that the Department select India as the
surrogate country. On August 25, 2011,
Bosun Tools Co., Ltd., and the
respondents selected for individual
examination submitted information
concerning surrogate values based on
Indian statistics. For the preliminary
results, we have selected India as the
surrogate country and used Indian
statistics for surrogate values. See the
memorandum entitled ‘‘Diamond
Sawblades and Parts Thereof from the
People’s Republic of China: Selection of
a Surrogate Country’’ dated November
30, 2011.
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Non-Market Economy Country Status
The Department considers the PRC to
be a non-market economy (NME)
country. In accordance with section
771(18)(C)(i) of the Act, any
determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See Brake Rotors From the People’s
Republic of China: Preliminary Results
and Partial Rescission of the 2004/2005
Administrative Review and Preliminary
Notice of Intent To Rescind the 2004/
2005 New Shipper Review, 71 FR 26736
(May 8, 2006), unchanged in 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
proceeding has contested NME
treatment for the PRC. Therefore, for the
preliminary results of this review, we
have treated the PRC as an NME country
and applied our current NME
methodology in accordance with section
773(c) of the Act.
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Affiliation
In the less-than-fair-value
investigation, we determined that ATM,
BGY, and Yichang HXF Circular Saw
Industrial Co., Ltd. (HXF), were a single
entity and calculated a single
1 Diamond
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antidumping duty margin for this single
entity. See LTFV Final, 71 FR at 29304,
29306–07. We also determined that BGY
and Gang Yan Diamond Products, Inc.
(GYDP) were affiliated and that GYDP,
SANC Materials, Inc., and Cliff were
affiliated with each other. Id.
For the preliminary results of this
review, we find that ATM, BGY, and
HXF continue to be affiliated as the facts
are similar to those at the time of the
investigation. Moreover, record
evidence indicates that BGY determines
the prices of the subject merchandise
Cliff exports to the United States and
thus controls Cliff’s business operations
with respect to exports of the subject
merchandise. For this reason, we
preliminarily find that BGY and Cliff are
affiliated pursuant to section 771(33)(G)
of the Act and 19 CFR 351.102(b)(3). We
also preliminarily find that ATM and
AT&M International Trading Co., Ltd.
(ATMI) were affiliates pursuant to
sections 771(33)(E) and (G) of the Act
and 19 CFR 351.102(b)(3) for a majority
of the POR. For the remainder of the
POR, we find that ATM and ATMI were
affiliates pursuant to section 771(33)(F)
of the Act and 19 CFR 351.102(b)(3). For
more details on these companies’
affiliation status, which includes these
companies’ business proprietary
information, see the memorandum
entitled ‘‘Diamond Sawblades and Parts
Thereof from the People’s Republic of
China: Determination to Include
Additional Companies in the ATM
Single Entity’’ dated November 30,
2011. Because ATM, BGY, HXF, Cliff,
and ATMI (collectively ATM Single
Entity) 2 are affiliated respondents in
this review, we treated these five
companies as a single entity for
purposes of calculating a single margin
for these preliminary results.
Separate Rates
A designation of a country as an NME
remains in effect until it is revoked by
the Department. See section 771(18)(C)
of the Act. 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
2 The ATM Single Entity submitted information
showing that HXF changed its name in December
2008 from Yichang HXF Circular Saw Industrial
Co., Ltd., a company for which we initiated this
review in Initiation Notice, 75 FR at 81568, to HXF
Saw Co., Ltd. See the ATM Single Entity’s
November 14, 2011, supplemental response at 1–2
and Exhibit SA2–1. The ATM Single Entity also
reported that ATM International Trading Co., Ltd.,
a company for which we initiated this review in
Initiation Notice, 75 FR at 81567, is the same
company as ATMI. See the ATM Single Entity’s
November 17, 2011, supplemental response at 1.
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duty rate. See, e.g., Notice of Final
Determination of Sales at Less Than
Fair Value, and Affirmative Critical
Circumstances, In Part: Certain Lined
Paper Products From the People’s
Republic of China, 71 FR 53079
(September 8, 2006), and LTFV Final.
In the Initiation Notice, the
Department notified parties of the
application process by which exporters
and producers may obtain separate rate
status in NME proceedings. See
Initiation Notice, 75 FR at 81566. It is
the Department’s policy to assign all
exporters of merchandise subject to a
proceeding involving an NME country
this single rate unless an exporter can
demonstrate that it is sufficiently
independent from the government so as
to be entitled to a separate rate. The
Department assigns separate rates in
NME proceedings only if respondents
can demonstrate the absence of both de
jure and de facto government control
over export activities under a test
developed by the Department and
described in Final Determination of
Sales at Less Than Fair Value: Sparklers
From the People’s Republic of China, 56
FR 20588 (May 6, 1991) (Sparklers), and
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).
In this review, the following
companies submitted separate rate
applications:
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ASHINE Diamond Tools Co., Ltd.
Bosun Tools Co., Ltd.3
Danyang Hantronic Import & Export Co., Ltd.
Danyang Huachang Diamond Tools
Manufacturing Co., Ltd.
Hangzhou Deer King Industrial & Trading
Co., Ltd.
Hebei Husqvarna-Jikai Diamond Tools Co.,
Ltd.
Hebei XMF Tools (Group) Co., Ltd.
Henan Huanghe Whirlwind Co., Ltd.
Henan Huanghe Whirlwind International Co.,
Ltd.
Huzhou Gu’s Import & Export Co., Ltd.
Jiangsu Fengtai Diamond Tool Manufacture
Co., Ltd.
Jiangsu Inter-China Group Corporation 4
3 Bosun Tools Co., Ltd., submitted information
showing that it was previously known as Bosun
Tools Group Co., Ltd., a company for which we
initiated this review in Initiation Notice, 75 FR at
81567. See, inter alia, Bosun Tools Co., Ltd.’s
February 28, 2011, separate rate application at
Exhibit 5.
4 Jiangsu Inter-China Group Corporation
submitted information showing that it was
previously known as Zhenjiang Inter-China Import
& Export Co., Ltd., a company for which we
initiated this review in Initiation Notice, 75 FR at
81567. See Jiangsu Inter-China Group Corporation’s
February 28, 2011, separate rate application at
Exhibit 3.
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Jiangsu Youhe Tool Manufacturer Co., Ltd.5
Rizhao Hein Saw Co., Ltd.
Saint-Gobain Abrasives (Shanghai) Co., Ltd.6
Shanghai Robtol Tool Manufacturing Co.,
Ltd.
Xiamen ZL Diamond Technology Co., Ltd.7
Also, the following companies
submitted separate rate certifications:
Chengdu Huifeng Diamond Tools Co., Ltd.
Danyang NYCL Tools Manufacturing Co.,
Ltd.
Fujian Quanzhou Wanlong Stone Co., Ltd.
Guilin Tebon Superhard Material Co., Ltd.
Qingdao Shinhan Diamond Industrial Co.,
Ltd.
Quanzhou Zhongzhi Diamond Tool Co. Ltd.
Shijiazhuang Global New Century Tools Co.,
Ltd.
Wuhan Wanbang Laser Diamond Tools Co.
Zhejiang Wanli Tools Group Co., Ltd.8
Additionally, the Department received
complete responses for the antidumping
questionnaires which contain additional
information pertaining to the company’s
eligibility for a separate rate from the
following respondents selected for
individual examination:
ATM Single Entity
Weihai Xiangguang Mechanical Industrial
Co., Ltd.
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; (3) any other formal
measures by the government
5 Jiangsu Youhe Tool Manufacturer Co., Ltd.,
submitted information showing that it was
previously known as Danyang Youhe Tool
Manufacturer Co., Ltd., a company for which we
initiated this review in Initiation Notice, 75 FR at
81567. See Jiangsu Youhe Tool Manufacturer Co.,
Ltd.’s February 28, 2011, separate rate application
at 3 and Exhibit 1.
6 Saint-Gobain Abrasives (Shanghai) Co., Ltd.,
reported that Saint-Gobain Abrasives Inc., a
company for which we initiated this review in
Initiation Notice, 75 FR at 81568, is its U.S. affiliate.
See Saint-Gobain Abrasives (Shanghai) Co., Ltd.’s
February 28, 2011, separate rate application at 8.
7 Xiamen ZL Diamond Tools Co., Ltd., a company
for which we initiated this review in Initiation
Notice, 75 FR at 81568, submitted information
showing that it changed its name to Xiamen ZL
Diamond Technology Co., Ltd., during the POR. See
Xiamen ZL Diamond Technology Co., Ltd.’s January
14, 2011, separate rate application at 3 and Exhibit
4.
8 In Initiation Notice, we initiated the review for
Zhejiang Wanli Tools Group Co., Ltd., aka Wanli
Tools Group. See Initiation Notice, 75 FR at 81568.
In its separate rate certification, Zhejiang Wanli
Tools Group Co., Ltd., certified that it used the
same trade name as identified in the investigation,
which is Zhejiang Wanli Tools Group Co., Ltd. See
Zhejiang Wanli Tools Group Co., Ltd.’s February 28,
2011, separate rate certification at 3 and LTFV
Final.
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76137
decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The companies listed above have
placed on the administrative record
both a copy of their business licenses
and export licenses. The selected
respondents and companies that filed
separate rate applications also placed on
the administrative record a copy of their
articles of association. None of these
documents contains restrictions with
respect to export activities.
In their submissions, the companies
listed above stated that they are
independent legal entities and placed
evidence on the record of the review
indicating that the government of the
PRC does not have de jure control over
their export activities. The companies
listed above submitted evidence of their
legal right to set prices independent of
all governmental oversight.
Furthermore, the business licenses of
these companies indicate that they are
permitted to engage in the exportation
of diamond sawblades. We also found
no evidence of de jure government
control restricting these companies’
exportation of the subject merchandise.
The Department has found previously
that the Company Law of the People’s
Republic of China (Company Law)
indicates a lack of de jure government
control. See, e.g., Freshwater Crawfish
Tail Meat From the People’s Republic of
China: Preliminary Results of
Antidumping Duty Administrative and
New-Shipper Reviews, 75 FR 34100,
34103 (June 16, 2010), unchanged in
Freshwater Crawfish Tail Meat From the
People’s Republic of China: Final
Results of Antidumping Duty
Administrative and New-Shipper
Reviews, 75 FR 79337 (December 20,
2010). The Company Law governs
business activities of the companies
listed above, made effective on July 1,
1994, with the amended version
promulgated on August 28, 2004, and
states that a company is an enterprise
legal person, that shareholders shall
assume liability towards the company to
the extent of their shareholdings, and
that the company shall be liable for its
debts to the extent of all its assets. Id.
Additionally, the Foreign Trade Law
of the People’s Republic of China also
indicates a lack of de jure government
control. Id. Specifically, this document
identifies the rights and responsibilities
of organizations engaging in foreign
trade, grants autonomy to foreign-trade
operators in management decisions, and
establishes the foreign-trade operator’s
accountability for profits and losses. Id.
Based on the foregoing, the Department
has preliminarily determined that there
is an absence of de jure governmental
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control over the export activities of
these companies listed above.
Absence of De Facto Control
As stated in previous cases, there is
some evidence that certain enactments
of the PRC central government have not
been implemented uniformly among
different sectors and/or jurisdictions in
the PRC. See Silicon Carbide, 59 FR at
22587. Therefore, the Department has
determined that an analysis of de facto
control is critical in determining
whether the respondents are, in fact,
subject to a degree of government
control which would preclude the
Department from assigning separate
rates. The Department typically
considers the following 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 agency; (2)
whether the respondent has the
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;
(4) whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding the
disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at
22586–87, and 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).
Companies listed above have each
certified the following: (1) The company
establishes its own export prices; (2) it
negotiates contracts without guidance
from any government entities or
organizations; (3) it makes its own
personnel decisions; (4) it retains the
proceeds of its export sales, uses profits
according to its business needs, and has
the authority to sell its assets and to
obtain loans.
Based on the information on the
record of this review, the Department
has preliminarily determined that there
is an absence of de facto governmental
control over the export activities of the
companies listed above. Given that the
Department has found that the
companies listed above operate free of
de jure and de facto governmental
control, we have preliminarily
determined that the companies listed
above have satisfied the criteria for a
separate rate.
Separate Rate for Non-Selected
Companies
In accordance with section
777A(c)(2)(B) of the Act, we selected
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companies within the ATM Single
Entity and Weihai for individual
examination because we did not have
the resources to examine all companies
for which a review was requested. See
Respondent Selection Memo.
The statute and the Department’s
regulations do not address the
establishment of a rate to be applied to
individual companies not selected for
examination when the Department
limits its examination in an
administrative review pursuant to
section 777A(c)(2) of the Act. Generally
we have used section 735(c)(5) of the
Act, which provides instructions for
calculating the all-others rate in an
investigation, for guidance when
calculating the rate for respondents we
did not examine in an administrative
review. Section 735(c)(5)(A) of the Act
articulates a preference that we do not
calculate an all-others rate using any
zero or de minimis margins or any
margins based entirely on facts
available. Accordingly, the
Department’s usual practice has been to
average the rates for the selected
companies, excluding zero, de minimis,
and rates based entirely on facts
available. See, e.g., Ball Bearings and
Parts Thereof From France, Germany,
Italy, Japan, and the United Kingdom:
Final Results of Antidumping Duty
Administrative Reviews and Rescission
of Reviews in Part, 73 FR 52823, 52824
(September 11, 2008), and the
accompanying I&D Memo at Comment
16.
Because the weighted-average
antidumping duty margin for the ATM
Single Entity is de minimis, the
antidumping duty margin for Weihai is
the only weighted-average margin
which is applicable to companies not
selected for individual examination and
eligible for a separate rate. Accordingly,
for the preliminary results of this
review, we are assigning the rate of 8.50
percent to companies not selected for
individual examination and eligible for
a separate rate. In assigning this separate
rate, we did not impute the actions of
any other companies to the behavior of
the companies not individually
examined but based this determination
on record evidence that may be deemed
reasonably reflective of the potential
dumping margin for the companies not
selected for individual examination and
eligible for a separate rate in this
administrative review.
Additionally, in its February 25, 2011,
separate rate application, Hebei
Husqvarna-Jikai Diamond Tools Co.,
Ltd., claimed that it is the successor-ininterest to Hebei Jikai Industrial Group
Co., Ltd., which is another respondent
in this review. The Department has
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determined that Hebei Husqvarna-Jikai
Diamond Tools Co., Ltd., is not the
successor-in-interest to Hebei Jikai
Industrial Group Co., Ltd., and that
Hebei Husqvarna-Jikai Diamond Tools
Co., Ltd., is a new entity. See Diamond
Sawblades and Parts Thereof From the
People’s Republic of China: Preliminary
Results and Preliminary Intent To
Terminate, in Part, Antidumping Duty
Changed Circumstances Review and
Extension of Time Limit for Final
Results, 76 FR 38357 (June 30, 2011),
unchanged in Diamond Sawblades and
Parts Thereof From the People’s
Republic of China: Final Results and
Termination, in Part, of the
Antidumping Duty Changed
Circumstances Review, 76 FR 64898
(October 19, 2011). Accordingly,
because Hebei Jikai Industrial Group
Co., Ltd., did not file a separate rate
application or a separate rate
certification, we assigned a PRC-wide
rate to this company for the preliminary
results of this review.
U.S. Price
For the price to the United States, we
used export price (EP) or constructed
export price (CEP) as defined in sections
772(a) and (b) of the Act, as appropriate.
Export Price Sales
For the ATM Single Entity and
Weihai, in accordance with section
772(a) of the Act, the Department
calculated EP for a portion of sales to
the United States because the first sale
to an unaffiliated party was made before
the date of importation and the use of
CEP was not otherwise warranted. The
Department calculated EP based on the
sales price to unaffiliated purchasers in
the United States. In accordance with
section 772(c)(2)(A) of the Act, as
appropriate, the Department deducted
from the sales price expenses for certain
foreign inland freight, brokerage and
handling (B&H), and international
movement costs. For the inland freight
and B&H services provided by an NME
vendor or paid for using an NME
currency, the Department based the
deduction of these charges on surrogate
values. See the memorandum entitled
‘‘Diamond Sawblades and Parts Thereof
from the People’s Republic of China:
Surrogate Value for the Preliminary
Results of Review’’ dated November 30,
2011 (Surrogate Value Memo), for
details regarding the surrogate values for
movement expenses. For international
freight provided by a market economy
provider and paid in U.S. dollars, the
Department used the actual cost per
kilogram of the freight.
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Constructed Export Price Sales
For some of the U.S. sales the ATM
Single Entity and Weihai reported, the
Department based U.S. price on CEP in
accordance with section 772(b) of the
Act because sales were made on behalf
of the China-based exporter by a U.S.
affiliate to unaffiliated customers in the
United States. For these sales, the
Department based CEP on prices to the
first unaffiliated purchaser in the United
States. Where appropriate, the
Department made deductions from the
starting price (gross unit price) for
foreign movement expenses,
international movement expenses, U.S.
movement expenses, and appropriate
selling adjustments, in accordance with
section 772(c)(2)(A) of the Act.
In accordance with section 772(d)(1)
of the Act, the Department also
deducted those selling expenses
associated with economic activities
occurring in the United States. The
Department deducted, where
appropriate, commissions, inventory
carrying costs, credit expenses, warranty
expenses, and indirect selling expenses.
Where foreign movement expenses,
international movement expenses, or
U.S. movement expenses were provided
by PRC service providers or paid for in
renminbi, the Department valued these
services using surrogate values. See the
‘‘Surrogate Values’’ section, infra, for
further discussion. For those expenses
that were provided by a market
economy provider and paid for in a
market economy currency, the
Department used the reported expense.
Due to the proprietary nature of certain
adjustments to U.S. price, see the
company-specific analysis memoranda
dated November 30, 2011, for a detailed
description of all adjustments made to
U.S. price for each company.
jlentini on DSK4TPTVN1PROD with NOTICES
Further Manufactured Sales
The ATM Single Entity reported sales
of subject merchandise that its U.S.
affiliate further manufactured in the
United States and responded to section
E of the Department’s questionnaire.
Section E requests data related to cost of
further manufacturing or assembly
performed in the United States of
subject merchandise. Based on the ATM
Single Entity’s responses and data, we
have made the deduction required by
section 772(d)(2) of the Act for the costs
of the further manufacturing.
On April 27, 2011, Weihai requested
that the Department exempt the
company from responding to section E.
On June 1, 2011, we directed the
company to provide the information
regarding further manufacturing in
section A of our questionnaire and to
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17:04 Dec 05, 2011
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report its sales of further manufactured
products to unaffiliated customers. See
the June 1, 2011, letter from the
Department to Weihai. Weihai
submitted the requested information on
June 8, 2011, and August 24, 2011,
respectively. After reviewing Weihai’s
responses, we granted Weihai’s request
not to respond to section E because the
total value of Weihai’s U.S. sales of
further manufactured products was
insignificant and did not justify the
extensive use of our resources to
analyze those sales for the preliminary
results of this review. See Notice of
Preliminary Determination of Sales at
Less Than Fair Value and Postponement
of Final Determination: Static Random
Access Memory Semiconductors From
the Republic of Korea, 62 FR 51437,
51438 (October 1, 1997), unchanged in
Notice of Final Determination of Sales
at Less Than Fair Value: Static Random
Access Memory Semiconductors From
the Republic of Korea, 63 FR 8934
(February 23, 1998). For business
proprietary details on our decision, see
the Weihai preliminary analysis
memorandum dated November 30,
2011.
Revenue Caps
Weihai received freight revenues from
its customers for certain U.S. sales. In
Certain Orange Juice From Brazil: Final
Results and Partial Rescission of
Antidumping Duty Administrative
Review, 73 FR 46584 (August 11, 2008),
and the accompanying I&D Memo at
Comment 7 and in Polyethylene Retail
Carrier Bags From the People’s Republic
of China: Final Results of Antidumping
Duty Administrative Review, 74 FR 6857
(February 11, 2009), and accompanying
I&D Memo at Comment 6, the
Department determined to treat such
revenues as an offset to the specific
expenses for which they were intended
to compensate. Accordingly, we have
used Weihai’s freight revenues as an
offset to its corresponding freight
expenses.
Normal Value
Section 773(c)(1) of the Act provides
that the Department shall determine
normal value using an FOP
methodology if the merchandise is
exported from an NME country and the
available information does not permit
the calculation of normal value using
home market prices, third-country
prices, or constructed value under
section 773(a) of the Act. The
Department uses an FOP methodology
because the presence of government
controls on various aspects of NMEs
renders price comparisons and the
calculation of production costs invalid
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76139
under its normal methodologies. See
Tapered Roller Bearings and Parts
Thereof, Finished or Unfinished, From
the People’s Republic of China:
Preliminary Results of Antidumping
Duty Administrative Review and Notice
of Intent To Rescind in Part, 70 FR
39744, 39754 (July 11, 2005), unchanged
in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From
the People’s Republic of China: Final
Results of 2003–2004 Administrative
Review and Partial Rescission of
Review, 71 FR 2517 (January 17, 2006).
In accordance with section 773(c) of
the Act, we relied on the FOP data
reported by the ATM Single Entity and
Weihai.9 We calculated normal value by
adding together the value of the FOP,
overhead, general expenses, profit, and
packing costs. Specifically, we valued
material, labor, energy, and packing by
multiplying the reported per-unit rates
for the factors consumed in producing
the subject merchandise by the average
per-unit surrogate value of the factor. In
addition, we added freight costs to the
surrogate costs that we calculated for
material inputs. We calculated freight
costs by multiplying surrogate freight
rates by the shorter of the reported
distance from the domestic supplier to
the factory that produced the subject
merchandise or the distance from the
nearest seaport to the factory that
produced the subject merchandise, as
appropriate. This adjustment is in
accordance with the decision by the
United States Court of Appeals for the
Federal Circuit (CAFC) in Sigma Corp.
v. United States, 117 F.3d 1401, 1407–
1408 (Fed. Cir. 1997). We increased the
calculated costs of the FOP for surrogate
general expenses and profit. See
Surrogate Value Memo.
Surrogate Values
In selecting surrogate values, we
considered the quality, specificity, and
contemporaneity of the data. For these
preliminary results, in selecting the best
available data for valuing FOPs in
accordance with section 773(c)(1) of the
Act, we followed our practice of
choosing publicly available values
which are non-export average values,
most contemporaneous with the POR,
product-specific, and tax-exclusive. See,
e.g., Notice of Preliminary
Determination of Sales at Less Than
Fair Value, Negative Preliminary
Determination of Critical Circumstances
and Postponement of Final
Determination: Certain Frozen and
Canned Warmwater Shrimp From the
9 We based the values of the FOPs on surrogate
values, as applicable. See the ‘‘Surrogate Values’’
section, infra.
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jlentini on DSK4TPTVN1PROD with NOTICES
Socialist Republic of Vietnam, 69 FR
42672, 42682 (July 16, 2004), unchanged
in Final Determination of Sales at Less
Than Fair Value: Certain Frozen and
Canned Warmwater Shrimp From the
Socialist Republic of Vietnam, 69 FR
71005 (December 8, 2004). We also
considered the quality of the source of
surrogate information in selecting
surrogate values. See Notice of Final
Determination of Sales at Less Than
Fair Value: Certain Cased Pencils From
the People’s Republic of China, 59 FR
55625, 55633 (November 8, 1994).
Where we could only obtain surrogate
values that were not contemporaneous
with the POR, we inflated the surrogate
values using, where appropriate, the
Indian Wholesale Price Index (Indian
WPI), as published in the International
Financial Statistics of the International
Monetary Fund. See Surrogate Value
Memo.
As explained in the legislative history
of the Omnibus Trade and
Competitiveness Act of 1988, the
Department continues to apply its longstanding practice of disregarding
surrogate values if it has a reason to
believe or suspect the source data may
be subsidized as discussed below.10 In
this regard, we have found previously
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, nonindustry specific export subsidies.11
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. Additionally, we disregarded
prices from NME countries.12 Finally,
10 See Omnibus Trade and Competitiveness Act of
1988, Conf. Report to Accompany H.R. 3, H.R. Rep.
No. 576, 100th Cong., 2nd Sess. (1988) at 590,
reprinted in 1988 U.S.C.C.A.N. 1547, 1623–24.
11 See, e.g., Carbazole Violet Pigment 23 From
India: Final Results of the Expedited Five-Year
(Sunset) Review of the Countervailing Duty Order,
75 FR 13257 (March 19, 2010), and the
accompanying I&D Memo at 4–5, Certain Cut-toLength Carbon-Quality Steel Plate From Indonesia:
Final Result of Expedited Sunset Review, 70 FR
45692 (August 8, 2005), and the accompanying I&D
Memo at 4, 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 the accompanying
I&D Memo at 17, 19–20, and Final Affirmative
Countervailing Duty Determination: Certain HotRolled Carbon Steel Flat Products From Thailand,
66 FR 50410 (October 3, 2001), and the
accompanying I&D Memo at 23.
12 See, e.g., Certain Kitchen Appliance Shelving
and Racks From the People’s Republic of China:
Preliminary Determination of Sales at Less Than
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imports that were labeled as originating
from an ‘‘unspecified’’ country were
excluded from the average value
because the Department could not be
certain that they were not from either an
NME country or a country with
generally available export subsidies.13
We used the following surrogate
values in our margin calculations for
these preliminary results of review. We
valued raw materials, packing materials,
and energy consumption (with the
exception of electricity) using January
2009–October 2010 weighted-average
Indian import values derived from the
Global Trade Atlas online (GTA). The
Indian import statistics that we obtained
from the GTA were published by the
Directorate General of Commercial
Intelligence & Statistics, Ministry of
Commerce of India, and are
contemporaneous with the POR.
To value electricity, we used March
2008 electricity price rates from
Electricity Tariff & Duty and Average
Rates of Electricity Supply in India,
published by the Central Electricity
Authority of the Government of India.
As the rates listed in this source became
effective on a variety of different dates,
we are not adjusting the average value
for inflation.
We valued truck-freight expenses
using an average of the per-unit average
rates for January 2009, April 2009, July
2009, October 2009, January 2010, April
2010, July 2010, and October 2010
which we calculated from data at
www.infobanc.com/logistics/
logtruck.htm. The logistics section of
this Web site contains rates for inlandfreight trucking between many large
Indian cities. We inflated or deflated,
depending on the month, the per-unit
average truck-freight rates for the
selected months of the POR using the
Indian WPI to make it contemporaneous
with the POR.
We valued B&H expenses 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 2011: India, published
by the World Bank. Because these data
were current throughout the POR, we
did not inflate the value for B&H. See
Surrogate Value Memo for further
details.
Fair Value and Postponement of Final
Determination, 74 FR 9591, 9600 (March 5, 2009),
unchanged in Certain Kitchen Appliance Shelving
and Racks From the People’s Republic of China:
Final Determination of Sales at Less Than Fair
Value, 74 FR 36656 (July 24, 2009).
13 Id.
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We valued international freight using
the data obtained from the Descartes
Carrier Rate Retrieval Database
(Descartes) which is available at https://
descartes.com/. The Descartes database
is a web-based service which publishes
the ocean freight rates of numerous
carriers. In the less-than-fair-value
investigation of the subject
merchandise, the Department did not
use the Descartes database as an ocean
freight surrogate value source because
the data did not appear to be publicly
available. Upon reexamination, we have
found that this database is accessible to
government agencies without charge in
compliance with Federal Maritime
Commission regulations and, thus, we
now find that this is a publicly available
source.
In addition to being publicly
available, the Descartes data reflect rates
for multiple carriers, the Web site
reports rates on a daily basis, the price
data are based on routes that correspond
closely to those used by a respondent,
and they reflect merchandise similar to
subject merchandise. Therefore, the
Descartes data are product-specific,
publicly available, a broad-market
average, and contemporaneous with the
POR. Accordingly, we find that the
Descartes database is the best available
source for valuing international freight
on the record of this review because it
provides rates that are representative of
the entire POR and a broader
representation of product-specificity.
While we find that the Descartes
database is the best available source on
the record of the review for valuing
international freight, to make the source
less impractical, we had to define
certain parameters in our selection of
data. For example, we calculated the
period-average international freight rate
by obtaining rates from multiple carriers
for a single day in each quarter of the
POR. Further, we did not include rates
in the period-average international
freight calculation that we determined
were from NME carriers. Additionally,
we excluded from any individual rate
calculation any charges that are covered
by the B&H expenses that a respondent
incurred and which are valued by the
appropriate surrogate value. See
Surrogate Value Memo for further
details.
We valued international air freight
using rates obtained from DHL Hong
Kong. See Surrogate Value Memo. We
valued marine insurance using a price
quote retrieved from RJG Consultants,
online at https://
www.rjgconsultants.com/163.html, a
market economy provider of marine
insurance. We did not inflate this rate
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because it is contemporaneous with the
POR. Id.
Previously, with respect to valuation
of labor inputs, the Department used
regression-based wages that captured
the worldwide relationship between per
capita Gross National Income (GNI) and
hourly manufacturing wages pursuant to
19 CFR 351.408(c)(3) to value the
respondent’s cost of labor. On May 14,
2010, the CAFC in Dorbest Ltd. v.
United States, 604 F.3d 1363, 1372 (Fed.
Cir. 2010) (Dorbest), invalidated 19 CFR
351.408(c)(3). As a consequence of the
CAFC’s ruling in Dorbest, the
Department no longer relies on the
regression-based wage rate methodology
described in its regulations. On
February 18, 2011, the Department
published in the Federal Register a
request for public comment on the
interim methodology and the data
sources. See Antidumping
Methodologies in Proceedings Involving
Non-Market Economies: Valuing the
Factor of Production: Labor; Request for
Comment, 76 FR 9544 (February 18,
2011).
On June 21, 2011, the Department
revised its methodology for valuing the
labor input in NME antidumping
proceedings. See Antidumping
Methodologies in Proceedings Involving
Non-Market Economies: Valuing the
Factor of Production: Labor, 76 FR
36092 (June 21, 2011) (Labor
Methodologies). In Labor Methodologies,
the Department determined that the best
methodology to value the labor input is
to use industry-specific labor rates from
the primary surrogate country.
Additionally, the Department
determined that the best data source for
industry-specific labor rates is Chapter
6A: Labor Cost in Manufacturing, from
the International Labor Organization
(ILO) Yearbook of Labor Statistics
(Yearbook).
For the preliminary results, we have
calculated the labor inputs using the
method described in Labor
Methodologies. To value the labor
inputs, we relied on data reported by
India to the ILO in Chapter 6A of the
Yearbook. We find further that the twodigit description under ISIC–Revision 3,
i.e., 28—‘‘Manufacture of Fabricated
Metal Products, except Machinery and
Equipment,’’ is the best available
information on the record because it is
specific to the industry being examined
and is therefore derived from industries
that produce comparable merchandise.
Specifically, this category captures class
2893—‘‘Manufacture of cutlery, hand
tools and general hardware’’ and
‘‘includes the manufacture of . . . saws
and sawblades including circular
sawblades and chainsaw blades.’’
Accordingly, relying on Chapter 6A of
the Yearbook, we calculated the labor
inputs using labor data reported by
India to the ILO under SubClassification 28 of the ISIC–Revision 3
standard in accordance with section
773(c)(4) of the Act. The ILO data
reported under Chapter 6A of the
Yearbook reflects all costs related to
labor, including wages, benefits,
housing, training, etc. A more detailed
description of the wage-rate calculation
methodology is provided in the
Surrogate Value Memo.
We valued factory overhead costs,
selling, general, and administrative
expenses, and profit using the 2010–11
financial statements of Carborundum
Universal Limited, an Indian abrasives
manufacturer. See Surrogate Value
Memo. Because the financial statements
used to calculate the surrogate financial
ratios do not include an itemized detail
of labor costs, we did not make
adjustments to certain labor costs in the
surrogate financial ratios. See Labor
Methodologies, 76 FR at 36093.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A(a) of the Act based on the
exchange rates in effect on the dates of
the U.S. sales as certified by the Federal
Reserve Bank. These exchange rates are
available on the Import Administration
Web site at https://ia.ita.doc.gov/
exchange/.
Preliminary Results of Review
As a result of the administrative
review, we preliminarily determine that
the following weighted-average
percentage dumping margins exist for
the period January 23, 2009, through
October 31, 2010:
Margin
(percent)
jlentini on DSK4TPTVN1PROD with NOTICES
Company
Advanced Technology & Materials Co., Ltd ........................................................................................................................................
ASHINE Diamond Tools Co., Ltd ........................................................................................................................................................
AT&M International Trading Co., Ltd ...................................................................................................................................................
Beijing Gang Yan Diamond Products Co. ...........................................................................................................................................
Bosun Tools Co., Ltd ...........................................................................................................................................................................
Central Iron and Steel Research Institute Group ................................................................................................................................
Chengdu Huifeng Diamond Tools Co., Ltd .........................................................................................................................................
Cliff International Ltd 14 ........................................................................................................................................................................
Danyang Aurui Hardware Products Co., Ltd .......................................................................................................................................
Danyang Dida Diamond Tools Manufacturing Co., Ltd ......................................................................................................................
Danyang Hantronic Import & Export Co., Ltd .....................................................................................................................................
Danyang Huachang Diamond Tools Manufacturing Co., Ltd .............................................................................................................
Danyang NYCL Tools Manufacturing Co., Ltd ....................................................................................................................................
Danyang Tsunda Diamond Tools Co., Ltd ..........................................................................................................................................
Danyang Weiwang Tools Manufacturing Co., Ltd ...............................................................................................................................
Electrolux Construction Products (Xiamen) Co. Ltd ............................................................................................................................
Fujian Quanzhou Wanlong Stone Co., Ltd .........................................................................................................................................
Guilin Tebon Superhard Material Co., Ltd ..........................................................................................................................................
Hangzhou Deer King Industrial & Trading Co., Ltd ............................................................................................................................
Hebei Husqvarna-Jikai Diamond Tools Co., Ltd .................................................................................................................................
Hebei Jikai Industrial Group Co., Ltd ..................................................................................................................................................
Hebei XMF Tools (Group) Co., Ltd .....................................................................................................................................................
Henan Huanghe Whirlwind Co., Ltd ....................................................................................................................................................
Henan Huanghe Whirlwind International Co., Ltd ...............................................................................................................................
Hua Da Superabrasive Tools Technology Co., Ltd ............................................................................................................................
Huachang Diamond Tools Manufacturing Co., Ltd .............................................................................................................................
14 Cliff International Ltd. also used the company
name Cliff (Tianjin) International Ltd., according to
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various documents provided in the ATM Single
Entity’s May 10, 2011, section A response.
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Margin
(percent)
Company
Huzhou Gu’s Import & Export Co., Ltd ...............................................................................................................................................
HXF Saw Co., Ltd ................................................................................................................................................................................
Jiangsu Fengtai Diamond Tool Manufacture Co., Ltd ........................................................................................................................
Jiangsu Fengyu Tools Co., Ltd ...........................................................................................................................................................
Jiangyin Likn Industry Co., Ltd ............................................................................................................................................................
Jiangsu Inter-China Group Corporation. .............................................................................................................................................
Jiangsu Youhe Tool Manufacturer Co., Ltd ........................................................................................................................................
Protech Diamond Tools .......................................................................................................................................................................
Pujiang Talent Diamond Tools Co., Ltd ..............................................................................................................................................
Qingdao Shinhan Diamond Industrial Co., Ltd ....................................................................................................................................
Quanzhou Shuangyang Diamond Tools Co., Ltd ...............................................................................................................................
Quanzhou Zhongzhi Diamond Tool Co. Ltd ........................................................................................................................................
Rizhao Hein Saw Co., Ltd ...................................................................................................................................................................
Saint-Gobain Abrasives (Shanghai) Co., Ltd ......................................................................................................................................
Shanghai Robtol Tool Manufacturing Co., Ltd ....................................................................................................................................
Shijiazhuang Global New Century Tools Co., Ltd ...............................................................................................................................
Sichuan Huili Tools Co. .......................................................................................................................................................................
Task Tools & Abrasives .......................................................................................................................................................................
Weihai Xiangguang Mechanical Industrial Co., Ltd ............................................................................................................................
Wuhan Wanbang Laser Diamond Tools Co. ......................................................................................................................................
Wuxi Lianhua Superhard Material Tools Co., Ltd ...............................................................................................................................
Xiamen ZL Diamond Technology Co., Ltd ..........................................................................................................................................
Zhejiang Tea Import & Export Co., Ltd ...............................................................................................................................................
Zhejiang Wanda Import and Export Co. ..............................................................................................................................................
Zhejiang Wanda Tools Group Corp. ...................................................................................................................................................
Zhejiang Wanli Super-hard Materials Co., Ltd ....................................................................................................................................
Zhejiang Wanli Tools Group Co., Ltd ..................................................................................................................................................
jlentini on DSK4TPTVN1PROD with NOTICES
Comments
We will disclose the calculations used
in our analysis to interested parties to
this review within five days of the date
of publication of this notice. See 19 CFR
351.224(b). Interested parties may
submit publicly available information to
value factors no later than 20 days after
the date of publication of these
preliminary results of review. See 19
CFR 351.301(c)(3)(ii).
Case briefs from interested parties
may be submitted not later than 30 days
after the date of publication of this
notice of preliminary results of review.
See 19 CFR 351.309(c)(1)(ii). Rebuttal
briefs from interested parties, limited to
the issues raised in the case briefs, may
be submitted not later than five days
after the time limit for filing the case
briefs or comments. See 19 CFR
351.309(d)(1).
Any interested party may request a
hearing no later than the date on which
the case briefs are due. See 19 CFR
351.310. Interested parties who wish to
request a hearing or to participate in a
hearing if a hearing is requested must
submit a written request to the Assistant
Secretary for Import Administration.
Requests should contain the following
information: (1) The party’s name,
address, and telephone number; (2) the
number of participants; (3) a list of
issues to be discussed. See 19 CFR
351.310(c). Issues raised in the hearing
will be limited to those raised in the
case briefs. See 19 CFR 351.310(c).
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If requested, any hearing will be held
two days after the scheduled date for
submission of rebuttal briefs. See 19
CFR 351.310(d). Parties who submit
case briefs or rebuttal briefs in this
review are requested to submit with
each argument a statement of the issue,
a summary of the arguments not
exceeding five pages, and a table of
statutes, regulations, and cases cited.
See 19 CFR 351.309(c)(2).
The Department intends to issue the
final results of this administrative
review, including the results of its
analysis of issues raised in any such
written briefs or at the hearing, if held,
not later than 120 days after the date of
publication of this notice. See section
751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. In accordance
with 19 CFR 351.212(b)(1), we have
calculated, whenever possible, an
exporter/importer (or customer)-specific
assessment rate or value for
merchandise subject to this review as
described below. We intend to issue
assessment instructions to CBP 15 days
after the date of publication of the final
results of review.
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of review
for all shipments of the subject
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164.09
164.09
164.09
164.09
8.50
merchandise entered, or withdrawn
from warehouse, for consumption on or
after the publication date as provided by
section 751(a)(2)(C) of the Act: (1) For
subject merchandise exported by the
ATM Single Entity and Weihai, the cash
deposit rate will be that established in
the final results of review; (2) for
previously investigated companies not
listed above that have separate rates, the
cash deposit rate will continue to be the
company-specific rate published for the
investigation; (3) for all other PRC
exporters of subject merchandise which
have not been found to be entitled to a
separate rate, the cash deposit rate will
be PRC-wide rate of 164.09 percent; (4)
for all non-PRC exporters of subject
merchandise the cash deposit rate will
be the rate applicable to the PRC entity
that supplied that exporter. These
deposit requirements, when imposed,
shall remain in effect until further
notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
E:\FR\FM\06DEN1.SGM
06DEN1
Federal Register / Vol. 76, No. 234 / Tuesday, December 6, 2011 / Notices
This review and notice are in
accordance with sections 751(a)(1),
751(a)(2)(B)(iv), 751(a)(3), and 777(i) of
the Act.
Dated: November 30, 2011.
Paul Piquado,
Assistant Secretary for Import
Administration.
[FR Doc. 2011–31281 Filed 12–5–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–601]
Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished,
From the People’s Republic of China:
Final Results of the Expedited Third
Sunset Review of the Antidumping
Duty Order
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On August 1, 2011, the
Department of Commerce
(‘‘Department’’) initiated the third
sunset review of the antidumping duty
order on tapered roller bearings and
parts thereof, finished and unfinished
(‘‘TRBs’’) from the People’s Republic of
China (‘‘PRC’’) pursuant to section
751(c) of the Tariff Act of 1930, as
amended (‘‘Act’’). On August 16, 2011,
the Timken Company (‘‘Timken’’), a
domestic producer and the petitioner in
the TRBs less-than-fair-value
investigation, notified the Department
that it intended to participate in the
sunset review. On August 16, 2011, the
United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers
International Union, AFL–CIO–CLC
(‘‘USW’’), a union that represents
workers engaged in the manufacturing
of tapered roller bearings and parts
thereof in the United States, also
notified the Department that it intended
to participate in the sunset review. The
Department did not receive a notice of
intent to participate from any
respondent interested party. Based on
the notices of intent to participate and
adequate response filed by Timken and
USW (together, ‘‘the domestic parties’’),
and the lack of response from any
respondent interested party, the
Department conducted an expedited
(120-day) sunset review of the
antidumping duty order on tapered
roller bearings from the PRC pursuant to
section 751(c)(3)(B) of the Act and 19
CFR 351.218(e)(1)(ii)(C)(2). See
Antidumping Duty Order; Tapered
jlentini on DSK4TPTVN1PROD with NOTICES
AGENCY:
VerDate Mar<15>2010
17:04 Dec 05, 2011
Jkt 226001
Roller Bearings and Parts Thereof,
Finished or Unfinished, From the
People’s Republic of China, 52 FR 22667
(June 15, 1987), as amended, Tapered
Roller Bearings From the People’s
Republic of China; Amendment to Final
Determination of Sales at Less Than
Fair Value and Antidumping Duty
Order in Accordance With Decision
Upon Remand, 55 FR 6669 (Feb. 26,
1990) (‘‘Order’’). As a result of this
sunset review, the Department finds that
revocation of the Order would likely
lead to continuation or recurrence of
dumping, at the levels indicated in the
‘‘Final Results of Sunset Review’’
section of this notice, infra.
DATES: Effective Date: December 6, 2011.
FOR FURTHER INFORMATION CONTACT:
Lindsey Novom; AD/CVD Operations,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue NW., Washington,
DC 20230; telephone: (202) 482–5256.
SUPPLEMENTARY INFORMATION:
Background
On August 1, 2011, the Department
initiated a sunset review of the order on
TRBs pursuant to section 751(c) of the
Act. See Initiation of Five-Year
(‘‘Sunset’’) Review, 76 FR 45778, 45779
(August 1, 2011) (‘‘Sunset Initiation’’).
On August 16, 2011, the Department
received a timely notice of intent to
participate in the sunset review from the
domestic parties, pursuant to 19 CFR
351.218(d)(1)(i). In accordance with 19
CFR 351.218(d)(1)(ii)(A), Timken
claimed interested party status under
section 771(9)(C) of the Act as a
domestic producer. USW is a certified
or recognized union that represents
workers engaged in manufacturing the
domestic like product, and therefore, is
an interested party pursuant to section
771(9)(D) of the Act.
On August 31, 2011, Timken and
USW collectively filed an adequate
substantive response in the sunset
review within the 30-day deadline as
specified in 19 CFR 351.218(d)(3)(i).
The Department did not receive a
substantive response from any
respondent interested party in the
sunset review. As a result, pursuant to
section 751(c)(3)(B) of the Act and 19
CFR 351.218(e)(1)(ii)(C)(2), the
Department conducted an expedited
sunset review of the Order.
Scope of the Order
The products covered by the order are
tapered roller bearings and parts thereof,
finished and unfinished, from the PRC;
flange, take up cartridge, and hanger
units incorporating tapered roller
PO 00000
Frm 00024
Fmt 4703
Sfmt 4703
76143
bearings; and tapered roller housings
(except pillow blocks) incorporating
tapered rollers, with or without
spindles, whether or not for automotive
use. These products are currently
classifiable under Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’) item numbers 8482.20.00,
8482.91.00.50, 8482.99.15, 8482.99.45,
8483.20.40, 8483.20.80, 8483.30.80,
8483.90.20, 8483.90.30, 8483.90.80,
8708.99.80.15 1 and 8708.99.80.80.2
Although the HTSUS item numbers are
provided for convenience and customs
purposes, the written description of the
scope of the order and this review is
dispositive.
Subsequent to the issuance of the
order, we issued the following scope
rulings:
On February 7, 2011, in response to
an inquiry from Blackstone OTR LLC
and OTR Wheel Engineering, Inc.
(collectively, ‘‘Blackstone OTR’’), the
Department ruled that Blackstone OTR’s
wheel hub assemblies are included in
the scope of the order.3
On April 18, 2011, in response to an
inquiry from New Trend Engineering
Limited (‘‘New Trend’’), the Department
ruled that: (1) New Trend’s splined and
non-splined wheel hub assemblies
without antilock braking system
(‘‘ABS’’) elements are included in the
scope of the order; and (2) New Trend’s
wheel hub assemblies with ABS
elements are also included in the scope
of the Order.4
On June 14, 2011, in response to an
inquiry from Bosda International (USA)
LLC (‘‘Bosda’’), the Department ruled
that Bosda’s wheel hub assemblies are
included in the scope of the Order.5
On August 2, 2011, in response to an
inquiry from DF Machinery
International, Inc. (‘‘DF Machinery’’),
the Department ruled that DF
1 Effective January 1, 2007, the HTSUS
subheading 8708.99.8015 is renumbered as
8708.99.8115. See United States International Trade
Commission (‘‘USITC’’) publication entitled,
‘‘Modifications to the Harmonized Tariff Schedule
of the United States Under Section 1206 of the
Omnibus Trade and Competitiveness Act of 1988,’’
USITC Publication 3898 (Dec. 2006) found at
www.usitc.gov.
2 Effective January 1, 2007, the HTSUS
subheading 8708.99.8080 is renumbered as
8708.99.8180. Id.
3 See Memorandum entitled ‘‘Tapered Roller
Bearings from the People’s Republic of China: Final
Scope Ruling on Blackstone OTR LLC and OTR
Wheel Engineering, Inc.’s Wheel Hub Assemblies
and TRBs,’’ dated February 7, 2011.
4 See Memorandum entitled, ‘‘Tapered Roller
Bearings from the People’s Republic of China: Final
Scope Ruling on New Trend Engineering Ltd.’s
Wheel Hub Assemblies,’’ dated April 18, 2011.
5 See Memorandum entitled ‘‘Tapered Roller
Bearings from the People’s Republic of China Final
Scope Determination on Bosda’s Wheel Hub
Assemblies,’’ dated June 14, 2011.
E:\FR\FM\06DEN1.SGM
06DEN1
Agencies
[Federal Register Volume 76, Number 234 (Tuesday, December 6, 2011)]
[Notices]
[Pages 76135-76143]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31281]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-900]
Diamond Sawblades and Parts Thereof From the People's Republic of
China: Preliminary Results of Antidumping Duty Administrative Review
and Intent To Rescind Review in Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to timely requests, the Department of Commerce
(the Department) is conducting an administrative review of the
antidumping duty order on diamond sawblades and parts thereof (diamond
sawblades) from the People's Republic of China (PRC). The period of
review (POR) is January 23, 2009, through October 31, 2010. We have
preliminarily determined that sales have been made below normal value
by the companies subject to individual examination in this review.
We invite interested parties to comment on these preliminary
results. Parties who submit comments in this review are requested to
submit with each argument (1) A statement of the issue and (2) a brief
summary of the argument.
DATES: Effective Date: December 6, 2011.
FOR FURTHER INFORMATION CONTACT: Jerrold Freeman or Yang Jin Chun, AD/
CVD Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0180 and (202) 482-5760, respectively.
Background
On November 4, 2009, the Department published in the Federal
Register an antidumping duty order on diamond sawblades from the PRC.
See Diamond Sawblades and Parts Thereof From the People's Republic of
China and the Republic of Korea: Antidumping Duty Orders, 74 FR 57145
(November 4, 2009). On November 1, 2010, the Department published in
the Federal Register a notice of opportunity to request an
administrative review of the order. See Antidumping or Countervailing
Duty Order, Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 75 FR 67079 (November 1, 2010).
On December 28, 2010, based on timely requests for an
administrative review, the Department published in the Federal Register
a notice of initiation of an administrative review of the antidumping
duty order on diamond sawblades from the PRC. See Initiation of
Antidumping and Countervailing Duty Administrative Reviews and Request
for Revocation in Part, 75 FR 81565 (December 28, 2010) (Initiation
Notice).
Consistent with our determination in Final Determination of Sales
at Less Than Fair Value and Final Partial Affirmative Determination of
Critical Circumstances: Diamond Sawblades and Parts Thereof from the
People's Republic of China, 71 FR 29303 (May 22, 2006), and the
accompanying Issues and Decision Memorandum (I&D Memo) (LTFV Final) at
Comment 5, we solicited comments from interested parties concerning
whether to change in this review the physical characteristics we use to
identify the various products covered by this order. See the letter to
all interested parties dated February 17, 2011. After reviewing the
parties' comments, we decided to continue relying on the physical
characteristics used in the investigation. See the memorandum entitled
``Diamond Sawblades and Parts Thereof from the People's Republic of
China: Physical Characteristics'' dated April 8, 2011.
On February 18, 2011, we selected Advanced Technology & Materials
Co., Ltd. (ATM), Beijing Gang Yan Diamond Products Co. (BGY), and Cliff
International Ltd. (Cliff) (treated as a single entity in the
investigation) and Weihai Xiangguang Mechanical Industrial Co., Ltd.
(Weihai), for individual examination in this review. See the memorandum
entitled ``Diamond Sawblades and Parts Thereof from the People's
Republic of China: Selection of Respondents for Individual
Examination'' dated February 18, 2011 (Respondent Selection Memo).
We extended the due date for the preliminary results of review by
120 days to November 30, 2011. See Diamond Sawblades and Parts Thereof
From the People's Republic of China: Extension of Time Limit for
Preliminary Results of Antidumping Duty Administrative Review, 76 FR
41759 (July 15, 2011), and Diamond Sawblades and Parts Thereof From the
People's Republic of China: Extension of Time Limit for Preliminary
Results of Antidumping Duty Administrative Review, 76 FR 64896 (October
19, 2011).
We are conducting this review in accordance with section 751 of the
Tariff Act of 1930, as amended (the Act).
Scope of the Order
The products covered by the order are all finished circular
sawblades, whether slotted or not, with a working part that is
comprised of a diamond segment or segments, and parts thereof,
regardless of specification or size, except as specifically excluded
below. Within the scope of the order are semifinished diamond
sawblades, including diamond sawblade cores and diamond sawblade
segments. Diamond sawblade cores are circular steel plates, whether or
not attached to non-steel plates, with slots. Diamond sawblade cores
are manufactured principally, but not exclusively, from alloy steel. A
diamond sawblade segment consists of a mixture of diamonds (whether
natural or synthetic, and regardless of the quantity of diamonds) and
metal powders (including, but not limited to, iron, cobalt, nickel,
tungsten carbide) that are formed together into a solid shape (from
generally, but not limited to, a heating and pressing process).
Sawblades with diamonds directly attached to the core with a resin
or electroplated bond, which thereby do not contain a diamond segment,
are not included within the scope of the order. Diamond sawblades and/
or sawblade cores with a thickness of less than 0.025 inches, or with a
thickness greater than 1.1 inches, are excluded from the scope of the
order. Circular steel plates that have a cutting edge of non-diamond
material, such as external teeth that protrude from the outer diameter
of the plate, whether or not finished, are excluded from the scope of
the order. Diamond sawblade cores with a Rockwell C hardness of less
than 25 are excluded from the scope of the order. Diamond sawblades
and/or diamond segment(s) with diamonds that predominantly have a mesh
size number greater than 240 (such as 250 or 260) are excluded from the
scope of the order. Merchandise subject to the order is typically
imported under heading 8202.39.00.00 of the Harmonized Tariff Schedule
of the United States (HTSUS). When packaged together as a set for
retail sale with an item that is separately classified under headings
8202 to 8205 of the HTSUS, diamond sawblades or parts thereof may be
imported under heading 8206.00.00.00 or 6804.21.00 of the HTSUS. The
tariff classification is provided for convenience and customs purposes;
however, the written description of the scope of the order is
dispositive.
[[Page 76136]]
Intent To Rescind Review in Part
In accordance with 19 CFR 351.213(d)(3), the Department may rescind
an administrative review, ``in whole or only with respect to a
particular exporter or producer, if (the Department) concludes that,
during the period covered by the review, there were no entries,
exports, or sales of the subject merchandise * * *'' Record evidence
indicates that Shanghai Deda Industry & Trading Co., Ltd., did not have
any exports of subject merchandise during the POR. See the February 28,
2011, submission from Shanghai Deda Industry & Trading Co., Ltd.
Moreover, we have reviewed the U.S. Customs and Border Protection (CBP)
entry data for the POR and found no evidence of exports from this
company. See the memorandum entitled ``Diamond Sawblades and Parts
Thereof from the People's Republic of China (`PRC'): U.S. Customs and
Border Protection (`CBP') Data'' dated January 4, 2011. Additionally,
on October 24, 2011, we requested that CBP report any contrary
information. To date, we have not received any evidence that this
company had any shipments to the United States of subject merchandise
during the POR. Therefore, pursuant to 19 CFR 351.213(d)(3), the
Department intends to rescind this review in part with respect to
Shanghai Deda Industry & Trading Co., Ltd.
Non-Market Economy Country Status
The Department considers the PRC to be a non-market economy (NME)
country. In accordance with section 771(18)(C)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See Brake Rotors From the
People's Republic of China: Preliminary Results and Partial Rescission
of the 2004/2005 Administrative Review and Preliminary Notice of Intent
To Rescind the 2004/2005 New Shipper Review, 71 FR 26736 (May 8, 2006),
unchanged in 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 proceeding has
contested NME treatment for the PRC. Therefore, for the preliminary
results of this review, we have treated the PRC as an NME country and
applied our current NME methodology in accordance with section 773(c)
of the Act.
Surrogate Country
In antidumping proceedings involving NME countries, pursuant to
section 773(c)(1) of the Act, the Department generally bases normal
value on the value of the NME producer's factors of production (FOP).
In accordance with section 773(c)(4) of the Act, in valuing the FOP,
the Department uses to the extent possible the prices or costs of the
FOP 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 merchandise comparable to the subject
merchandise. Moreover, as we stated in Policy Bulletin No. 04.1: Non-
Market Economy Surrogate Country Selection Process, dated March 1,
2004, it is the Department's practice to select an appropriate
surrogate country based on the availability and reliability of data
from these countries.
The Department has determined that India, Indonesia, Peru, the
Philippines, Thailand, and Ukraine are countries that are at a level of
economic development comparable to that of the PRC. See the memorandum
entitled ``Request for a List of Surrogate Countries for an
Administrative Review of the Antidumping Duty Order on Diamond
Sawblades and Parts Thereof (`Diamond Sawblades') from the People's
Republic of China (`China')'' dated May 9, 2011. On June 23, 2011, we
issued a letter inviting comments on the selection of surrogate country
and surrogate value. See the June 23, 2011, letter to all interested
parties.
On August 11, 2011, the petitioner \1\ and the respondents selected
for individual examination recommended that the Department select India
as the surrogate country. On August 25, 2011, Bosun Tools Co., Ltd.,
and the respondents selected for individual examination submitted
information concerning surrogate values based on Indian statistics. For
the preliminary results, we have selected India as the surrogate
country and used Indian statistics for surrogate values. See the
memorandum entitled ``Diamond Sawblades and Parts Thereof from the
People's Republic of China: Selection of a Surrogate Country'' dated
November 30, 2011.
---------------------------------------------------------------------------
\1\ Diamond Sawblades Manufacturers Coalition.
---------------------------------------------------------------------------
Affiliation
In the less-than-fair-value investigation, we determined that ATM,
BGY, and Yichang HXF Circular Saw Industrial Co., Ltd. (HXF), were a
single entity and calculated a single antidumping duty margin for this
single entity. See LTFV Final, 71 FR at 29304, 29306-07. We also
determined that BGY and Gang Yan Diamond Products, Inc. (GYDP) were
affiliated and that GYDP, SANC Materials, Inc., and Cliff were
affiliated with each other. Id.
For the preliminary results of this review, we find that ATM, BGY,
and HXF continue to be affiliated as the facts are similar to those at
the time of the investigation. Moreover, record evidence indicates that
BGY determines the prices of the subject merchandise Cliff exports to
the United States and thus controls Cliff's business operations with
respect to exports of the subject merchandise. For this reason, we
preliminarily find that BGY and Cliff are affiliated pursuant to
section 771(33)(G) of the Act and 19 CFR 351.102(b)(3). We also
preliminarily find that ATM and AT&M International Trading Co., Ltd.
(ATMI) were affiliates pursuant to sections 771(33)(E) and (G) of the
Act and 19 CFR 351.102(b)(3) for a majority of the POR. For the
remainder of the POR, we find that ATM and ATMI were affiliates
pursuant to section 771(33)(F) of the Act and 19 CFR 351.102(b)(3). For
more details on these companies' affiliation status, which includes
these companies' business proprietary information, see the memorandum
entitled ``Diamond Sawblades and Parts Thereof from the People's
Republic of China: Determination to Include Additional Companies in the
ATM Single Entity'' dated November 30, 2011. Because ATM, BGY, HXF,
Cliff, and ATMI (collectively ATM Single Entity) \2\ are affiliated
respondents in this review, we treated these five companies as a single
entity for purposes of calculating a single margin for these
preliminary results.
---------------------------------------------------------------------------
\2\ The ATM Single Entity submitted information showing that HXF
changed its name in December 2008 from Yichang HXF Circular Saw
Industrial Co., Ltd., a company for which we initiated this review
in Initiation Notice, 75 FR at 81568, to HXF Saw Co., Ltd. See the
ATM Single Entity's November 14, 2011, supplemental response at 1-2
and Exhibit SA2-1. The ATM Single Entity also reported that ATM
International Trading Co., Ltd., a company for which we initiated
this review in Initiation Notice, 75 FR at 81567, is the same
company as ATMI. See the ATM Single Entity's November 17, 2011,
supplemental response at 1.
---------------------------------------------------------------------------
Separate Rates
A designation of a country as an NME remains in effect until it is
revoked by the Department. See section 771(18)(C) of the Act. 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
[[Page 76137]]
duty rate. See, e.g., Notice of Final Determination of Sales at Less
Than Fair Value, and Affirmative Critical Circumstances, In Part:
Certain Lined Paper Products From the People's Republic of China, 71 FR
53079 (September 8, 2006), and LTFV Final.
In the Initiation Notice, the Department notified parties of the
application process by which exporters and producers may obtain
separate rate status in NME proceedings. See Initiation Notice, 75 FR
at 81566. It is the Department's policy to assign all exporters of
merchandise subject to a proceeding involving an NME country this
single rate unless an exporter can demonstrate that it is sufficiently
independent from the government so as to be entitled to a separate
rate. The Department assigns separate rates in NME proceedings only if
respondents can demonstrate the absence of both de jure and de facto
government control over export activities under a test developed by the
Department and described in Final Determination of Sales at Less Than
Fair Value: Sparklers From the People's Republic of China, 56 FR 20588
(May 6, 1991) (Sparklers), and 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).
In this review, the following companies submitted separate rate
applications:
ASHINE Diamond Tools Co., Ltd.
Bosun Tools Co., Ltd.\3\
---------------------------------------------------------------------------
\3\ Bosun Tools Co., Ltd., submitted information showing that it
was previously known as Bosun Tools Group Co., Ltd., a company for
which we initiated this review in Initiation Notice, 75 FR at 81567.
See, inter alia, Bosun Tools Co., Ltd.'s February 28, 2011, separate
rate application at Exhibit 5.
---------------------------------------------------------------------------
Danyang Hantronic Import & Export Co., Ltd.
Danyang Huachang Diamond Tools Manufacturing Co., Ltd.
Hangzhou Deer King Industrial & Trading Co., Ltd.
Hebei Husqvarna-Jikai Diamond Tools Co., Ltd.
Hebei XMF Tools (Group) Co., Ltd.
Henan Huanghe Whirlwind Co., Ltd.
Henan Huanghe Whirlwind International Co., Ltd.
Huzhou Gu's Import & Export Co., Ltd.
Jiangsu Fengtai Diamond Tool Manufacture Co., Ltd.
Jiangsu Inter-China Group Corporation \4\
---------------------------------------------------------------------------
\4\ Jiangsu Inter-China Group Corporation submitted information
showing that it was previously known as Zhenjiang Inter-China Import
& Export Co., Ltd., a company for which we initiated this review in
Initiation Notice, 75 FR at 81567. See Jiangsu Inter-China Group
Corporation's February 28, 2011, separate rate application at
Exhibit 3.
---------------------------------------------------------------------------
Jiangsu Youhe Tool Manufacturer Co., Ltd.\5\
---------------------------------------------------------------------------
\5\ Jiangsu Youhe Tool Manufacturer Co., Ltd., submitted
information showing that it was previously known as Danyang Youhe
Tool Manufacturer Co., Ltd., a company for which we initiated this
review in Initiation Notice, 75 FR at 81567. See Jiangsu Youhe Tool
Manufacturer Co., Ltd.'s February 28, 2011, separate rate
application at 3 and Exhibit 1.
---------------------------------------------------------------------------
Rizhao Hein Saw Co., Ltd.
Saint-Gobain Abrasives (Shanghai) Co., Ltd.\6\
---------------------------------------------------------------------------
\6\ Saint-Gobain Abrasives (Shanghai) Co., Ltd., reported that
Saint-Gobain Abrasives Inc., a company for which we initiated this
review in Initiation Notice, 75 FR at 81568, is its U.S. affiliate.
See Saint-Gobain Abrasives (Shanghai) Co., Ltd.'s February 28, 2011,
separate rate application at 8.
---------------------------------------------------------------------------
Shanghai Robtol Tool Manufacturing Co., Ltd.
Xiamen ZL Diamond Technology Co., Ltd.\7\
---------------------------------------------------------------------------
\7\ Xiamen ZL Diamond Tools Co., Ltd., a company for which we
initiated this review in Initiation Notice, 75 FR at 81568,
submitted information showing that it changed its name to Xiamen ZL
Diamond Technology Co., Ltd., during the POR. See Xiamen ZL Diamond
Technology Co., Ltd.'s January 14, 2011, separate rate application
at 3 and Exhibit 4.
---------------------------------------------------------------------------
Also, the following companies submitted separate rate
certifications:
Chengdu Huifeng Diamond Tools Co., Ltd.
Danyang NYCL Tools Manufacturing Co., Ltd.
Fujian Quanzhou Wanlong Stone Co., Ltd.
Guilin Tebon Superhard Material Co., Ltd.
Qingdao Shinhan Diamond Industrial Co., Ltd.
Quanzhou Zhongzhi Diamond Tool Co. Ltd.
Shijiazhuang Global New Century Tools Co., Ltd.
Wuhan Wanbang Laser Diamond Tools Co.
Zhejiang Wanli Tools Group Co., Ltd.\8\
---------------------------------------------------------------------------
\8\ In Initiation Notice, we initiated the review for Zhejiang
Wanli Tools Group Co., Ltd., aka Wanli Tools Group. See Initiation
Notice, 75 FR at 81568. In its separate rate certification, Zhejiang
Wanli Tools Group Co., Ltd., certified that it used the same trade
name as identified in the investigation, which is Zhejiang Wanli
Tools Group Co., Ltd. See Zhejiang Wanli Tools Group Co., Ltd.'s
February 28, 2011, separate rate certification at 3 and LTFV Final.
---------------------------------------------------------------------------
Additionally, the Department received complete responses for the
antidumping questionnaires which contain additional information
pertaining to the company's eligibility for a separate rate from the
following respondents selected for individual examination:
ATM Single Entity
Weihai Xiangguang Mechanical Industrial Co., Ltd.
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; (3) any other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The companies listed above have placed on the administrative record
both a copy of their business licenses and export licenses. The
selected respondents and companies that filed separate rate
applications also placed on the administrative record a copy of their
articles of association. None of these documents contains restrictions
with respect to export activities.
In their submissions, the companies listed above stated that they
are independent legal entities and placed evidence on the record of the
review indicating that the government of the PRC does not have de jure
control over their export activities. The companies listed above
submitted evidence of their legal right to set prices independent of
all governmental oversight. Furthermore, the business licenses of these
companies indicate that they are permitted to engage in the exportation
of diamond sawblades. We also found no evidence of de jure government
control restricting these companies' exportation of the subject
merchandise.
The Department has found previously that the Company Law of the
People's Republic of China (Company Law) indicates a lack of de jure
government control. See, e.g., Freshwater Crawfish Tail Meat From the
People's Republic of China: Preliminary Results of Antidumping Duty
Administrative and New-Shipper Reviews, 75 FR 34100, 34103 (June 16,
2010), unchanged in Freshwater Crawfish Tail Meat From the People's
Republic of China: Final Results of Antidumping Duty Administrative and
New-Shipper Reviews, 75 FR 79337 (December 20, 2010). The Company Law
governs business activities of the companies listed above, made
effective on July 1, 1994, with the amended version promulgated on
August 28, 2004, and states that a company is an enterprise legal
person, that shareholders shall assume liability towards the company to
the extent of their shareholdings, and that the company shall be liable
for its debts to the extent of all its assets. Id.
Additionally, the Foreign Trade Law of the People's Republic of
China also indicates a lack of de jure government control. Id.
Specifically, this document identifies the rights and responsibilities
of organizations engaging in foreign trade, grants autonomy to foreign-
trade operators in management decisions, and establishes the foreign-
trade operator's accountability for profits and losses. Id. Based on
the foregoing, the Department has preliminarily determined that there
is an absence of de jure governmental
[[Page 76138]]
control over the export activities of these companies listed above.
Absence of De Facto Control
As stated in previous cases, there is some evidence that certain
enactments of the PRC central government have not been implemented
uniformly among different sectors and/or jurisdictions in the PRC. See
Silicon Carbide, 59 FR at 22587. Therefore, the Department has
determined that an analysis of de facto control is critical in
determining whether the respondents are, in fact, subject to a degree
of government control which would preclude the Department from
assigning separate rates. The Department typically considers the
following 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
agency; (2) whether the respondent has the 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; (4) whether the respondent retains the
proceeds of its export sales and makes independent decisions regarding
the disposition of profits or financing of losses. See Silicon Carbide,
59 FR at 22586-87, and 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).
Companies listed above have each certified the following: (1) The
company establishes its own export prices; (2) it negotiates contracts
without guidance from any government entities or organizations; (3) it
makes its own personnel decisions; (4) it retains the proceeds of its
export sales, uses profits according to its business needs, and has the
authority to sell its assets and to obtain loans.
Based on the information on the record of this review, the
Department has preliminarily determined that there is an absence of de
facto governmental control over the export activities of the companies
listed above. Given that the Department has found that the companies
listed above operate free of de jure and de facto governmental control,
we have preliminarily determined that the companies listed above have
satisfied the criteria for a separate rate.
Separate Rate for Non-Selected Companies
In accordance with section 777A(c)(2)(B) of the Act, we selected
companies within the ATM Single Entity and Weihai for individual
examination because we did not have the resources to examine all
companies for which a review was requested. See Respondent Selection
Memo.
The statute and the Department's regulations do not address the
establishment of a rate to be applied to individual companies not
selected for examination when the Department limits its examination in
an administrative review pursuant to section 777A(c)(2) of the Act.
Generally we have used section 735(c)(5) of the Act, which provides
instructions for calculating the all-others rate in an investigation,
for guidance when calculating the rate for respondents we did not
examine in an administrative review. Section 735(c)(5)(A) of the Act
articulates a preference that we do not calculate an all-others rate
using any zero or de minimis margins or any margins based entirely on
facts available. Accordingly, the Department's usual practice has been
to average the rates for the selected companies, excluding zero, de
minimis, and rates based entirely on facts available. See, e.g., Ball
Bearings and Parts Thereof From France, Germany, Italy, Japan, and the
United Kingdom: Final Results of Antidumping Duty Administrative
Reviews and Rescission of Reviews in Part, 73 FR 52823, 52824
(September 11, 2008), and the accompanying I&D Memo at Comment 16.
Because the weighted-average antidumping duty margin for the ATM
Single Entity is de minimis, the antidumping duty margin for Weihai is
the only weighted-average margin which is applicable to companies not
selected for individual examination and eligible for a separate rate.
Accordingly, for the preliminary results of this review, we are
assigning the rate of 8.50 percent to companies not selected for
individual examination and eligible for a separate rate. In assigning
this separate rate, we did not impute the actions of any other
companies to the behavior of the companies not individually examined
but based this determination on record evidence that may be deemed
reasonably reflective of the potential dumping margin for the companies
not selected for individual examination and eligible for a separate
rate in this administrative review.
Additionally, in its February 25, 2011, separate rate application,
Hebei Husqvarna-Jikai Diamond Tools Co., Ltd., claimed that it is the
successor-in-interest to Hebei Jikai Industrial Group Co., Ltd., which
is another respondent in this review. The Department has determined
that Hebei Husqvarna-Jikai Diamond Tools Co., Ltd., is not the
successor-in-interest to Hebei Jikai Industrial Group Co., Ltd., and
that Hebei Husqvarna-Jikai Diamond Tools Co., Ltd., is a new entity.
See Diamond Sawblades and Parts Thereof From the People's Republic of
China: Preliminary Results and Preliminary Intent To Terminate, in
Part, Antidumping Duty Changed Circumstances Review and Extension of
Time Limit for Final Results, 76 FR 38357 (June 30, 2011), unchanged in
Diamond Sawblades and Parts Thereof From the People's Republic of
China: Final Results and Termination, in Part, of the Antidumping Duty
Changed Circumstances Review, 76 FR 64898 (October 19, 2011).
Accordingly, because Hebei Jikai Industrial Group Co., Ltd., did not
file a separate rate application or a separate rate certification, we
assigned a PRC-wide rate to this company for the preliminary results of
this review.
U.S. Price
For the price to the United States, we used export price (EP) or
constructed export price (CEP) as defined in sections 772(a) and (b) of
the Act, as appropriate.
Export Price Sales
For the ATM Single Entity and Weihai, in accordance with section
772(a) of the Act, the Department calculated EP for a portion of sales
to the United States because the first sale to an unaffiliated party
was made before the date of importation and the use of CEP was not
otherwise warranted. The Department calculated EP based on the sales
price to unaffiliated purchasers in the United States. In accordance
with section 772(c)(2)(A) of the Act, as appropriate, the Department
deducted from the sales price expenses for certain foreign inland
freight, brokerage and handling (B&H), and international movement
costs. For the inland freight and B&H services provided by an NME
vendor or paid for using an NME currency, the Department based the
deduction of these charges on surrogate values. See the memorandum
entitled ``Diamond Sawblades and Parts Thereof from the People's
Republic of China: Surrogate Value for the Preliminary Results of
Review'' dated November 30, 2011 (Surrogate Value Memo), for details
regarding the surrogate values for movement expenses. For international
freight provided by a market economy provider and paid in U.S. dollars,
the Department used the actual cost per kilogram of the freight.
[[Page 76139]]
Constructed Export Price Sales
For some of the U.S. sales the ATM Single Entity and Weihai
reported, the Department based U.S. price on CEP in accordance with
section 772(b) of the Act because sales were made on behalf of the
China-based exporter by a U.S. affiliate to unaffiliated customers in
the United States. For these sales, the Department based CEP on prices
to the first unaffiliated purchaser in the United States. Where
appropriate, the Department made deductions from the starting price
(gross unit price) for foreign movement expenses, international
movement expenses, U.S. movement expenses, and appropriate selling
adjustments, in accordance with section 772(c)(2)(A) of the Act.
In accordance with section 772(d)(1) of the Act, the Department
also deducted those selling expenses associated with economic
activities occurring in the United States. The Department deducted,
where appropriate, commissions, inventory carrying costs, credit
expenses, warranty expenses, and indirect selling expenses. Where
foreign movement expenses, international movement expenses, or U.S.
movement expenses were provided by PRC service providers or paid for in
renminbi, the Department valued these services using surrogate values.
See the ``Surrogate Values'' section, infra, for further discussion.
For those expenses that were provided by a market economy provider and
paid for in a market economy currency, the Department used the reported
expense. Due to the proprietary nature of certain adjustments to U.S.
price, see the company-specific analysis memoranda dated November 30,
2011, for a detailed description of all adjustments made to U.S. price
for each company.
Further Manufactured Sales
The ATM Single Entity reported sales of subject merchandise that
its U.S. affiliate further manufactured in the United States and
responded to section E of the Department's questionnaire. Section E
requests data related to cost of further manufacturing or assembly
performed in the United States of subject merchandise. Based on the ATM
Single Entity's responses and data, we have made the deduction required
by section 772(d)(2) of the Act for the costs of the further
manufacturing.
On April 27, 2011, Weihai requested that the Department exempt the
company from responding to section E. On June 1, 2011, we directed the
company to provide the information regarding further manufacturing in
section A of our questionnaire and to report its sales of further
manufactured products to unaffiliated customers. See the June 1, 2011,
letter from the Department to Weihai. Weihai submitted the requested
information on June 8, 2011, and August 24, 2011, respectively. After
reviewing Weihai's responses, we granted Weihai's request not to
respond to section E because the total value of Weihai's U.S. sales of
further manufactured products was insignificant and did not justify the
extensive use of our resources to analyze those sales for the
preliminary results of this review. See Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination: Static Random Access Memory Semiconductors From
the Republic of Korea, 62 FR 51437, 51438 (October 1, 1997), unchanged
in Notice of Final Determination of Sales at Less Than Fair Value:
Static Random Access Memory Semiconductors From the Republic of Korea,
63 FR 8934 (February 23, 1998). For business proprietary details on our
decision, see the Weihai preliminary analysis memorandum dated November
30, 2011.
Revenue Caps
Weihai received freight revenues from its customers for certain
U.S. sales. In Certain Orange Juice From Brazil: Final Results and
Partial Rescission of Antidumping Duty Administrative Review, 73 FR
46584 (August 11, 2008), and the accompanying I&D Memo at Comment 7 and
in Polyethylene Retail Carrier Bags From the People's Republic of
China: Final Results of Antidumping Duty Administrative Review, 74 FR
6857 (February 11, 2009), and accompanying I&D Memo at Comment 6, the
Department determined to treat such revenues as an offset to the
specific expenses for which they were intended to compensate.
Accordingly, we have used Weihai's freight revenues as an offset to its
corresponding freight expenses.
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine normal value using an FOP methodology if the merchandise is
exported from an NME country and the available information does not
permit the calculation of normal value using home market prices, third-
country prices, or constructed value under section 773(a) of the Act.
The Department uses an FOP methodology because the presence of
government controls on various aspects of NMEs renders price
comparisons and the calculation of production costs invalid under its
normal methodologies. See Tapered Roller Bearings and Parts Thereof,
Finished or Unfinished, From the People's Republic of China:
Preliminary Results of Antidumping Duty Administrative Review and
Notice of Intent To Rescind in Part, 70 FR 39744, 39754 (July 11,
2005), unchanged in Tapered Roller Bearings and Parts Thereof, Finished
and Unfinished, From the People's Republic of China: Final Results of
2003-2004 Administrative Review and Partial Rescission of Review, 71 FR
2517 (January 17, 2006).
In accordance with section 773(c) of the Act, we relied on the FOP
data reported by the ATM Single Entity and Weihai.\9\ We calculated
normal value by adding together the value of the FOP, overhead, general
expenses, profit, and packing costs. Specifically, we valued material,
labor, energy, and packing by multiplying the reported per-unit rates
for the factors consumed in producing the subject merchandise by the
average per-unit surrogate value of the factor. In addition, we added
freight costs to the surrogate costs that we calculated for material
inputs. We calculated freight costs by multiplying surrogate freight
rates by the shorter of the reported distance from the domestic
supplier to the factory that produced the subject merchandise or the
distance from the nearest seaport to the factory that produced the
subject merchandise, as appropriate. This adjustment is in accordance
with the decision by the United States Court of Appeals for the Federal
Circuit (CAFC) in Sigma Corp. v. United States, 117 F.3d 1401, 1407-
1408 (Fed. Cir. 1997). We increased the calculated costs of the FOP for
surrogate general expenses and profit. See Surrogate Value Memo.
---------------------------------------------------------------------------
\9\ We based the values of the FOPs on surrogate values, as
applicable. See the ``Surrogate Values'' section, infra.
---------------------------------------------------------------------------
Surrogate Values
In selecting surrogate values, we considered the quality,
specificity, and contemporaneity of the data. For these preliminary
results, in selecting the best available data for valuing FOPs in
accordance with section 773(c)(1) of the Act, we followed our practice
of choosing publicly available values which are non-export average
values, most contemporaneous with the POR, product-specific, and tax-
exclusive. See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value, Negative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain Frozen
and Canned Warmwater Shrimp From the
[[Page 76140]]
Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004),
unchanged in Final Determination of Sales at Less Than Fair Value:
Certain Frozen and Canned Warmwater Shrimp From the Socialist Republic
of Vietnam, 69 FR 71005 (December 8, 2004). We also considered the
quality of the source of surrogate information in selecting surrogate
values. See Notice of Final Determination of Sales at Less Than Fair
Value: Certain Cased Pencils From the People's Republic of China, 59 FR
55625, 55633 (November 8, 1994). Where we could only obtain surrogate
values that were not contemporaneous with the POR, we inflated the
surrogate values using, where appropriate, the Indian Wholesale Price
Index (Indian WPI), as published in the International Financial
Statistics of the International Monetary Fund. See Surrogate Value
Memo.
As explained in the legislative history of the Omnibus Trade and
Competitiveness Act of 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 as
discussed below.\10\ In this regard, we have found previously 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.\11\
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. Additionally, we disregarded prices
from NME countries.\12\ Finally, imports that were labeled as
originating from an ``unspecified'' country were excluded from the
average value because the Department could not be certain that they
were not from either an NME country or a country with generally
available export subsidies.\13\
---------------------------------------------------------------------------
\10\ See Omnibus Trade and Competitiveness Act of 1988, Conf.
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd
Sess. (1988) at 590, reprinted in 1988 U.S.C.C.A.N. 1547, 1623-24.
\11\ See, e.g., Carbazole Violet Pigment 23 From India: Final
Results of the Expedited Five-Year (Sunset) Review of the
Countervailing Duty Order, 75 FR 13257 (March 19, 2010), and the
accompanying I&D Memo at 4-5, Certain Cut-to-Length Carbon-Quality
Steel Plate From Indonesia: Final Result of Expedited Sunset Review,
70 FR 45692 (August 8, 2005), and the accompanying I&D Memo at 4,
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 the accompanying I&D Memo at 17,
19-20, and Final Affirmative Countervailing Duty Determination:
Certain Hot-Rolled Carbon Steel Flat Products From Thailand, 66 FR
50410 (October 3, 2001), and the accompanying I&D Memo at 23.
\12\ See, e.g., Certain Kitchen Appliance Shelving and Racks
From the People's Republic of China: Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final
Determination, 74 FR 9591, 9600 (March 5, 2009), unchanged in
Certain Kitchen Appliance Shelving and Racks From the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, 74 FR 36656 (July 24, 2009).
\13\ Id.
---------------------------------------------------------------------------
We used the following surrogate values in our margin calculations
for these preliminary results of review. We valued raw materials,
packing materials, and energy consumption (with the exception of
electricity) using January 2009-October 2010 weighted-average Indian
import values derived from the Global Trade Atlas online (GTA). The
Indian import statistics that we obtained from the GTA were published
by the Directorate General of Commercial Intelligence & Statistics,
Ministry of Commerce of India, and are contemporaneous with the POR.
To value electricity, we used March 2008 electricity price rates
from Electricity Tariff & Duty and Average Rates of Electricity Supply
in India, published by the Central Electricity Authority of the
Government of India. As the rates listed in this source became
effective on a variety of different dates, we are not adjusting the
average value for inflation.
We valued truck-freight expenses using an average of the per-unit
average rates for January 2009, April 2009, July 2009, October 2009,
January 2010, April 2010, July 2010, and October 2010 which we
calculated from data at www.infobanc.com/logistics/logtruck.htm. The
logistics section of this Web site contains rates for inland-freight
trucking between many large Indian cities. We inflated or deflated,
depending on the month, the per-unit average truck-freight rates for
the selected months of the POR using the Indian WPI to make it
contemporaneous with the POR.
We valued B&H expenses 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 2011: India,
published by the World Bank. Because these data were current throughout
the POR, we did not inflate the value for B&H. See Surrogate Value Memo
for further details.
We valued international freight using the data obtained from the
Descartes Carrier Rate Retrieval Database (Descartes) which is
available at https://descartes.com/. The Descartes database is a web-
based service which publishes the ocean freight rates of numerous
carriers. In the less-than-fair-value investigation of the subject
merchandise, the Department did not use the Descartes database as an
ocean freight surrogate value source because the data did not appear to
be publicly available. Upon reexamination, we have found that this
database is accessible to government agencies without charge in
compliance with Federal Maritime Commission regulations and, thus, we
now find that this is a publicly available source.
In addition to being publicly available, the Descartes data reflect
rates for multiple carriers, the Web site reports rates on a daily
basis, the price data are based on routes that correspond closely to
those used by a respondent, and they reflect merchandise similar to
subject merchandise. Therefore, the Descartes data are product-
specific, publicly available, a broad-market average, and
contemporaneous with the POR. Accordingly, we find that the Descartes
database is the best available source for valuing international freight
on the record of this review because it provides rates that are
representative of the entire POR and a broader representation of
product-specificity.
While we find that the Descartes database is the best available
source on the record of the review for valuing international freight,
to make the source less impractical, we had to define certain
parameters in our selection of data. For example, we calculated the
period-average international freight rate by obtaining rates from
multiple carriers for a single day in each quarter of the POR. Further,
we did not include rates in the period-average international freight
calculation that we determined were from NME carriers. Additionally, we
excluded from any individual rate calculation any charges that are
covered by the B&H expenses that a respondent incurred and which are
valued by the appropriate surrogate value. See Surrogate Value Memo for
further details.
We valued international air freight using rates obtained from DHL
Hong Kong. See Surrogate Value Memo. We valued marine insurance using a
price quote retrieved from RJG Consultants, online at https://www.rjgconsultants.com/163.html, a market economy provider of marine
insurance. We did not inflate this rate
[[Page 76141]]
because it is contemporaneous with the POR. Id.
Previously, with respect to valuation of labor inputs, the
Department used regression-based wages that captured the worldwide
relationship between per capita Gross National Income (GNI) and hourly
manufacturing wages pursuant to 19 CFR 351.408(c)(3) to value the
respondent's cost of labor. On May 14, 2010, the CAFC in Dorbest Ltd.
v. United States, 604 F.3d 1363, 1372 (Fed. Cir. 2010) (Dorbest),
invalidated 19 CFR 351.408(c)(3). As a consequence of the CAFC's ruling
in Dorbest, the Department no longer relies on the regression-based
wage rate methodology described in its regulations. On February 18,
2011, the Department published in the Federal Register a request for
public comment on the interim methodology and the data sources. See
Antidumping Methodologies in Proceedings Involving Non-Market
Economies: Valuing the Factor of Production: Labor; Request for
Comment, 76 FR 9544 (February 18, 2011).
On June 21, 2011, the Department revised its methodology for
valuing the labor input in NME antidumping proceedings. See Antidumping
Methodologies in Proceedings Involving Non-Market Economies: Valuing
the Factor of Production: Labor, 76 FR 36092 (June 21, 2011) (Labor
Methodologies). In Labor Methodologies, the Department determined that
the best methodology to value the labor input is to use industry-
specific labor rates from the primary surrogate country. Additionally,
the Department determined that the best data source for industry-
specific labor rates is Chapter 6A: Labor Cost in Manufacturing, from
the International Labor Organization (ILO) Yearbook of Labor Statistics
(Yearbook).
For the preliminary results, we have calculated the labor inputs
using the method described in Labor Methodologies. To value the labor
inputs, we relied on data reported by India to the ILO in Chapter 6A of
the Yearbook. We find further that the two-digit description under
ISIC-Revision 3, i.e., 28--``Manufacture of Fabricated Metal Products,
except Machinery and Equipment,'' is the best available information on
the record because it is specific to the industry being examined and is
therefore derived from industries that produce comparable merchandise.
Specifically, this category captures class 2893--``Manufacture of
cutlery, hand tools and general hardware'' and ``includes the
manufacture of . . . saws and sawblades including circular sawblades
and chainsaw blades.'' Accordingly, relying on Chapter 6A of the
Yearbook, we calculated the labor inputs using labor data reported by
India to the ILO under Sub-Classification 28 of the ISIC-Revision 3
standard in accordance with section 773(c)(4) of the Act. The ILO data
reported under Chapter 6A of the Yearbook reflects all costs related to
labor, including wages, benefits, housing, training, etc. A more
detailed description of the wage-rate calculation methodology is
provided in the Surrogate Value Memo.
We valued factory overhead costs, selling, general, and
administrative expenses, and profit using the 2010-11 financial
statements of Carborundum Universal Limited, an Indian abrasives
manufacturer. See Surrogate Value Memo. Because the financial
statements used to calculate the surrogate financial ratios do not
include an itemized detail of labor costs, we did not make adjustments
to certain labor costs in the surrogate financial ratios. See Labor
Methodologies, 76 FR at 36093.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act based on the exchange rates in effect on the
dates of the U.S. sales as certified by the Federal Reserve Bank. These
exchange rates are available on the Import Administration Web site at
https://ia.ita.doc.gov/exchange/.
Preliminary Results of Review
As a result of the administrative review, we preliminarily
determine that the following weighted-average percentage dumping
margins exist for the period January 23, 2009, through October 31,
2010:
---------------------------------------------------------------------------
\14\ Cliff International Ltd. also used the company name Cliff
(Tianjin) International Ltd., according to various documents
provided in the ATM Single Entity's May 10, 2011, section A
response.
------------------------------------------------------------------------
Margin
Company (percent)
------------------------------------------------------------------------
Advanced Technology & Materials Co., Ltd................ 0.14
ASHINE Diamond Tools Co., Ltd........................... 8.50
AT&M International Trading Co., Ltd..................... 0.14
Beijing Gang Yan Diamond Products Co.................... 0.14
Bosun Tools Co., Ltd.................................... 8.50
Central Iron and Steel Research Institute Group......... 164.09
Chengdu Huifeng Diamond Tools Co., Ltd.................. 8.50
Cliff International Ltd \14\............................ 0.14
Danyang Aurui Hardware Products Co., Ltd................ 164.09
Danyang Dida Diamond Tools Manufacturing Co., Ltd....... 164.09
Danyang Hantronic Import & Export Co., Ltd.............. 8.50
Danyang Huachang Diamond Tools Manufacturing Co., Ltd... 8.50
Danyang NYCL Tools Manufacturing Co., Ltd............... 8.50
Danyang Tsunda Diamond Tools Co., Ltd................... 164.09
Danyang Weiwang Tools Manufacturing Co., Ltd............ 164.09
Electrolux Construction Products (Xiamen) Co. Ltd....... 164.09
Fujian Quanzhou Wanlong Stone Co., Ltd.................. 8.50
Guilin Tebon Superhard Material Co., Ltd................ 8.50
Hangzhou Deer King Industrial & Trading Co., Ltd........ 8.50
Hebei Husqvarna-Jikai Diamond Tools Co., Ltd............ 8.50
Hebei Jikai Industrial Group Co., Ltd................... 164.09
Hebei XMF Tools (Group) Co., Ltd........................ 8.50
Henan Huanghe Whirlwind Co., Ltd........................ 8.50
Henan Huanghe Whirlwind International Co., Ltd.......... 8.50
Hua Da Superabrasive Tools Technology Co., Ltd.......... 164.09
Huachang Diamond Tools Manufacturing Co., Ltd........... 164.09
[[Page 76142]]
Huzhou Gu's Import & Export Co., Ltd.................... 8.50
HXF Saw Co., Ltd........................................ 0.14
Jiangsu Fengtai Diamond Tool Manufacture Co., Ltd....... 8.50
Jiangsu Fengyu Tools Co., Ltd........................... 164.09
Jiangyin Likn Industry Co., Ltd......................... 164.09
Jiangsu Inter-China Group Corporation................... 8.50
Jiangsu Youhe Tool Manufacturer Co., Ltd................ 8.50
Protech Diamond Tools................................... 164.09
Pujiang Talent Diamond Tools Co., Ltd................... 164.09
Qingdao Shinhan Diamond Industrial Co., Ltd............. 8.50
Quanzhou Shuangyang Diamond Tools Co., Ltd.............. 164.09
Quanzhou Zhongzhi Diamond Tool Co. Ltd.................. 8.50
Rizhao Hein Saw Co., Ltd................................ 8.50
Saint-Gobain Abrasives (Shanghai) Co., Ltd.............. 8.50
Shanghai Robtol Tool Manufacturing Co., Ltd............. 8.50
Shijiazhuang Global New Century Tools Co., Ltd.......... 8.50
Sichuan Huili Tools Co.................................. 164.09
Task Tools & Abrasives.................................. 164.09
Weihai Xiangguang Mechanical Industrial Co., Ltd........ 8.50
Wuhan Wanbang Laser Diamond Tools Co.................... 8.50
Wuxi Lianhua Superhard Material Tools Co., Ltd.......... 164.09
Xiamen ZL Diamond Technology Co., Ltd................... 8.50
Zhejiang Tea Import & Export Co., Ltd................... 164.09
Zhejiang Wanda Import and Export Co..................... 164.09
Zhejiang Wanda Tools Group Corp......................... 164.09
Zhejiang Wanli Super-hard Materials Co., Ltd............ 164.09
Zhejiang Wanli Tools Group Co., Ltd..................... 8.50
------------------------------------------------------------------------
Comments
We will disclose the calculations used in our analysis to
interested parties to this review within five days of the date of
publication of this notice. See 19 CFR 351.224(b). Interested parties
may submit publicly available information to value factors no later
than 20 days after the date of publication of these preliminary results
of review. See 19 CFR 351.301(c)(3)(ii).
Case briefs from interested parties may be submitted not later than
30 days after the date of publication of this notice of preliminary
results of review. See 19 CFR 351.309(c)(1)(ii). Rebuttal briefs from
interested parties, limited to the issues raised in the case briefs,
may be submitted not later than five days after the time limit for
filing the case briefs or comments. See 19 CFR 351.309(d)(1).
Any interested party may request a hearing no later than the date
on which the case briefs are due. See 19 CFR 351.310. Interested
parties who wish to request a hearing or to participate in a hearing if
a hearing is requested must submit a written request to the Assistant
Secretary for Import Administration. Requests should contain the
following information: (1) The party's name, address, and telephone
number; (2) the number of participants; (3) a list of issues to be
discussed. See 19 CFR 351.310(c). Issues raised in the hearing will be
limited to those raised in the case briefs. See 19 CFR 351.310(c).
If requested, any hearing will be held two days after the scheduled
date for submission of rebuttal briefs. See 19 CFR 351.310(d). Parties
who submit case briefs or rebuttal briefs in this review are requested
to submit with each argument a statement of the issue, a summary of the
arguments not exceeding five pages, and a table of statutes,
regulations, and cases cited. See 19 CFR 351.309(c)(2).
The Department intends to issue the final results of this
administrative review, including the results of its analysis of issues
raised in any such written briefs or at the hearing, if held, not later
than 120 days after the date of publication of this notice. See section
751(a)(3)(A) of the Act.
Assessment Rates
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. In accordance with 19 CFR
351.212(b)(1), we have calculated, whenever possible, an exporter/
importer (or customer)-specific assessment rate or value for
merchandise subject to this review as described below. We intend to
issue assessment instructions to CBP 15 days after the date of
publication of the final results of review.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of review for all shipments of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the publication date as provided by section
751(a)(2)(C) of the Act: (1) For subject merchandise exported by the
ATM Single Entity and Weihai, the cash deposit rate will be that
established in the final results of review; (2) for previously
investigated companies not listed above that have separate rates, the
cash deposit rate will continue to be the company-specific rate
published for the investigation; (3) for all other PRC exporters of
subject merchandise which have not been found to be entitled to a
separate rate, the cash deposit rate will be PRC-wide rate of 164.09
percent; (4) for all non-PRC exporters of subject merchandise the cash
deposit rate will be the rate applicable to the PRC entity that
supplied that exporter. These deposit requirements, when imposed, shall
remain in effect until further notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
[[Page 76143]]
This review and notice are in accordance with sections 751(a)(1),
751(a)(2)(B)(iv), 751(a)(3), and 777(i) of the Act.
Dated: November 30, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2011-31281 Filed 12-5-11; 8:45 am]
BILLING CODE 3510-DS-P