Certain Tapered Roller Bearings From the Republic of Korea: Initiation of Less-Than-Fair-Value Investigation, 34477-34481 [2017-15563]

Download as PDF Federal Register / Vol. 82, No. 141 / Tuesday, July 25, 2017 / Notices and Inmax Industries are subject to the cash deposit rate currently assigned to Inmax Sdn (i.e., 39.35 percent).8 Therefore, the Department will instruct U.S. Customs and Border Protection to continue suspension of liquidation and to collect estimated antidumping duties for all shipments of subject merchandise produced and exported by Inmax Sdn and/or Inmax Industries at the current cash deposit rate currently applicable to such entries, i.e., the cash deposit rate of 39.35 percent assigned to Inmax Sdn, from the date of the publication of the Final Results.9 This cash deposit requirement shall remain in effect until further notice. Notification to Parties This notice is the only reminder to parties subject to administrative protective order (‘‘APO’’) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. The Department is issuing and publishing these results in accordance with sections 751(b)(1) and (4) and 777(i) of the Tariff Act of 1930, as amended, and 19 CFR 351.216 and 19 CFR 351.221(c)(3)(i). Dated: July 14, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Appendix—List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Discussion of Issues V. Recommendation [FR Doc. 2017–15518 Filed 7–24–17; 8:45 am] mstockstill on DSK30JT082PROD with NOTICES BILLING CODE 3510–DS–P 8 See the Order, 80 FR 39994 (July 13, 2015). 9 Id. VerDate Sep<11>2014 19:30 Jul 24, 2017 Jkt 241001 DEPARTMENT OF COMMERCE International Trade Administration [A–580–894] Certain Tapered Roller Bearings From the Republic of Korea: Initiation of Less-Than-Fair-Value Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. AGENCY: DATES: Issued July 18, 2017. FOR FURTHER INFORMATION CONTACT: Blaine Wiltse at 202–482–6345, or Manuel Rey at 202–482–5518, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: The Petition On June 28, 2017, the U.S. Department of Commerce (the Department) received an antidumping duty (AD) petition concerning imports of certain tapered roller bearings (TRBs) from the Republic of Korea (Korea), filed in proper form, on behalf of the Timken Company (the petitioner).1 The petitioner is a domestic producer of TRBs.2 On July 3, 2017, the Department requested supplemental information pertaining to certain areas of the Petition.3 The petitioner filed its response to this request, including corrections to the margin calculations and revised scope language, on July 6, 2017.4 On July 11, 2017, the petitioner filed an additional amendment to the Petition.5 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that imports of TRBs are being, or are likely to be, 1 See Petition for the Imposition of Antidumping Duties on Imports of Certain Tapered Roller Bearings from the Republic of Korea, dated June 28, 2017 (the Petition). 2 See Volume I of the Petition, at 1 and Exhibit I–1. 3 See Department Letter re: Petition for the Imposition of Antidumping Duties on Imports of Certain Tapered Roller Bearings from the Republic of Korea: Supplemental Questions, dated July 3, 2017. 4 See Letter from the petitioner re: Petitioner’s Response to the Department of Commerce’s July 3, 2017 Supplemental Questionnaire Regarding the Petition for the Imposition of Antidumping Duties on Imports of Tapered Roller Bearings from the Republic of Korea, dated July 6, 2017 (Petition Supplement). 5 See Letter from the petitioner re: Petitioner’s Scope Clarification Regarding the Antidumping Investigation on Certain Tapered Roller Bearings from the Republic of Korea, dated July 11, 2017 (Scope Clarification). PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 34477 sold in the United States at less than fair value within the meaning of section 731 of the Act, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing TRBs in the United States. Also, consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioner supporting its allegations. The Department finds that the petitioner filed this Petition on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(C) of the Act. The Department also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the AD investigation that the petitioner is requesting.6 Period of Investigation Because the Petition was filed on June 28, 2017, the period of investigation (POI) is April 1, 2016, through March 31, 2017. Scope of the Investigation The product covered by this investigation is TRBs from Korea. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in the Appendix to this notice. Comments on Scope of the Investigation During our review of the Petition, the Department issued questions to, and received responses from, the petitioner pertaining to the proposed scope to ensure that the scope language in the Petition would be an accurate reflection of the products for which the domestic industry is seeking relief.7 As discussed in the preamble to the Department’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (scope).8 The Department will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,9 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, the Department requests all interested parties to submit such comments by 5:00 p.m. Eastern Time (ET) on Monday, 6 See ‘‘Determination of Industry Support for the Petition’’ section, below. 7 See Petition Supplement, at 1–5 and Exhibit SQ–1; see also Scope Clarification. 8 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 9 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). E:\FR\FM\25JYN1.SGM 25JYN1 34478 Federal Register / Vol. 82, No. 141 / Tuesday, July 25, 2017 / Notices August 7, 2017, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on Thursday, August 17, 2017, which is 10 calendar days from the initial comments deadline.10 The Department requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact the Department and request permission to submit the additional information. Filing Requirements All submissions to the Department must be filed electronically using Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).11 An electronically filed document must be received successfully in its entirety by the time and date it is due. Documents exempted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadline. Comments on Product Characteristics for AD Questionnaires The Department will provide interested parties an opportunity to comment on the appropriate physical characteristics of TRBs to be reported in response to the Department’s AD questionnaires. This information will be used to identify the key physical characteristics of the merchandise under consideration in order to report the relevant costs of production accurately as well as to develop appropriate product-comparison criteria. Interested parties may provide any information or comments that they feel 10 See 19 CFR 351.303(b). Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014) for details of the Department’s electronic filing requirements, which went into effect on August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/ Handbook%20on%20Electronic%20Filling%20 Procedures.pdf. mstockstill on DSK30JT082PROD with NOTICES 11 See VerDate Sep<11>2014 19:30 Jul 24, 2017 Jkt 241001 are relevant to the development of an accurate list of physical characteristics. Specifically, they may provide comments as to which characteristics are appropriate to use as: (1) General product characteristics and (2) productcomparison criteria. We note that it is not always appropriate to use all product characteristics as productcomparison criteria. We base productcomparison criteria on meaningful commercial differences among products. In other words, although there may be some physical product characteristics used by manufacturers to describe TRBs, it may be that only a select few product characteristics take into account commercially meaningful physical characteristics. In addition, interested parties may comment on the order in which the physical characteristics should be used in matching products. Generally, the Department attempts to list the most important physical characteristics first and the least important characteristics last. In order to consider the suggestions of interested parties in developing and issuing the AD questionnaires, all product characteristics comments must be filed by 5:00 p.m. ET on August 1, 2017. Any rebuttal comments must be filed by 5:00 p.m. ET on August 8, 2017. All comments and submissions to the Department must be filed electronically using ACCESS, as explained above. Determination of Industry Support for the Petition Section 732(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 732(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, the Department shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 to determine whether a petition has the requisite industry support, the statute directs the Department to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both the Department and the ITC must apply the same statutory definition regarding the domestic like product,12 they do so for different purposes and pursuant to a separate and distinct authority. In addition, the Department’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.13 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioner does not offer a definition of domestic like product distinct from the scope of the investigation. Based on our analysis of the information submitted on the record, we have determined that TRBs, as defined in the scope of the investigation, constitute a single domestic like product and we have analyzed industry support in terms of that domestic like product.14 In determining whether the petitioner has standing under section 732(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the ‘‘Scope of 12 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 14 For a discussion of the domestic like product analysis, see Antidumping Duty Investigation Initiation Checklist: Tapered Roller Bearings from the Republic of Korea (Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping Duty Petition Covering Tapered Roller Bearings from the Republic of Korea, (Attachment II). This checklist is dated concurrently with, and hereby adopted by, this notice and on file electronically via ACCESS. Access to documents filed via ACCESS is also available in the Central Records Unit, Room B8024 of the main Department of Commerce building. 13 See E:\FR\FM\25JYN1.SGM 25JYN1 Federal Register / Vol. 82, No. 141 / Tuesday, July 25, 2017 / Notices mstockstill on DSK30JT082PROD with NOTICES Investigation’’ section above. To establish industry support, the petitioner provided its net sales in 2015 and compared its net sales to the estimated total shipments of the domestic like product in 2015 for the entire domestic industry.15 Because data regarding total production of the domestic like product are not reasonably available to the petitioner, and the petitioner has established that shipments are a reasonable proxy for production, we relied on the shipment data for purposes of measuring industry support.16 On July 5, 2017, we received a submission from RBC Oklahoma, Inc. (RBC), a domestic producer of TRBs. In the submission, RBC states that it supports the AD petition on TRBs from Korea. In addition, RBC provided its 2015 shipments of the domestic like product.17 We have relied upon information provided in the Petition, Petition Supplement, and the letter provided by RBC for purposes of measuring industry support.18 Based on information provided in the Petition, Petition Supplement, the letter from RBC, and other information readily available to the Department, we determine that the petitioner has met the statutory criteria for industry support under section 732(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total shipments 19 of the domestic like product.20 Based on the information above, the domestic producers (or workers) have met the statutory criteria for industry support under section 732(c)(4)(A)(ii) of the Act for the Petition because the domestic producers (or workers) who support the Petition account for more than 50 percent of the shipments of the domestic like product produced by that portion of the industry 15 See Volume I of the Petition, at I–8 and I–9 and Exhibit I–2. The petitioner states that there are no publicly available sources of data for U.S. production of the domestic like product in 2016. Therefore, the petitioner contends that shipment data from the U.S. Census Bureau’s Annual Survey of Manufacturers provides the best available and reasonable proxy for U.S. production. The latest year for which such data are available is 2015. Id., at I–8, I–9 and Exhibit I–2; see also Petition Supplement, at SQ–10 and SQ–11. 16 See Initiation Checklist, at Attachment II. 17 See Letter from RBC Oklahoma, Inc., dated July 5, 2017, at 1–2. 18 See Initiation Checklist, at Attachment II. 19 As mentioned above, the petitioner established that shipments are a reasonable proxy for production data. Section 351.203(e)(1) of the Department’s regulations states ‘‘production levels may be established by reference to alternative data that the Secretary determines to be indicative of production levels.’’ 20 See Initiation Checklist, at Attachment II. VerDate Sep<11>2014 19:30 Jul 24, 2017 Jkt 241001 expressing support for, or opposition to, the Petition. In addition, the information above establishes that the domestic producers and workers who support the Petition account for more than 50 percent of total shipments of the domestic like product, pursuant to section 734(c)(4)(D) of the Act. Accordingly, the Department determines that the Petition was filed on behalf of the domestic industry within the meaning of section 732(b)(1) of the Act.21 The Department finds that the petitioner filed the Petition on behalf of the domestic industry because it is an interested party as defined in section 771(9)(C) of the Act and it has demonstrated sufficient industry support with respect to the antidumping duty investigation that it is requesting the Department initiate.22 Allegation and Evidence of Material Injury and Causation The petitioner alleges that the U.S. industry producing the domestic like product is being materially injured, or is threatened with material injury, by reason of the imports of the subject merchandise sold at less than normal value (NV). In addition, the petitioner alleges that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.23 The petitioner contends that the industry’s injured condition is illustrated by the impact on the domestic industry’s reduced market share; underselling and price depression or suppression; lost sales and revenues; decline in wages, hours, and employment; declines in production, capacity utilization, and shipments; decreases in capital expenditures; plant closure and declines in financial performance.24 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.25 21 Id. 22 Id. 23 See Volume I of the Petition, at I–20 and Exhibit I–10. 24 Id., at I–20—I–32, Exhibit I–7, Exhibit I–8, and Exhibits I–11 to I–16; see also Supplemental Response, at SQ–6. 25 See Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping Duty Petition Covering Certain Tapered Roller Bearings from the Republic of Korea. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 34479 Allegation of Sales at Less Than Fair Value The following is a description of the allegation of sales at less than fair value upon which the Department based its decision to initiate an AD investigation of imports of TRBs from Korea. The sources of data for the deductions and adjustments relating to U.S. price and NV are discussed in greater detail in the Initiation Checklist. Export Price and Constructed Export Price The petitioner based the U.S. price on: (1) Average unit values (AUVs) of publicly-available import data for Harmonized Tariff Schedule of the United States (HTSUS) subheadings 8482.20.00.40, 8482.20.00.70, 848220.00.81, and 848299.15.50, covering the period April 2016 through March 2017; 26 and (2) price quotes for sales of TRBs produced in, and exported from, Korea and offered for sale in the United States.27 With respect to the AUVs, the petitioner used export price (EP) methodology. The petitioner conservatively made no deductions from EP. With respect to the price quotes, the petitioner used constructed export price (CEP) methodology because it had reason to believe that sales are made through U.S. affiliates.28 Where applicable, the petitioner made deductions from CEP for movement expenses, consistent with the terms of sale.29 Normal Value The petitioner was unable to obtain home market prices for TRBs and, therefore, calculated NV based on constructed value (CV).30 Normal Value Based on CV Pursuant to 773(e) of the Act, CV consists of the cost of manufacturing (COM); selling, general and administrative (SG&A) expenses; financial expenses; and packing expenses. The petitioner calculated COM during the POI, adjusted for known differences based on information available to the petitioner.31 Because publicly available information pertaining to the cost of raw materials in Korea was not reasonably available to it, the petitioner based its raw material cost calculations on its own 26 See Initiation Checklist. 27 Id. 28 Id. 29 Id. 30 Id. 31 Id. E:\FR\FM\25JYN1.SGM 25JYN1 34480 Federal Register / Vol. 82, No. 141 / Tuesday, July 25, 2017 / Notices experience.32 The petitioner valued labor, electricity, and natural gas inputs using publicly available data multiplied by the product-specific usage rates.33 Because publicly-available information pertaining to the cost of factory overhead in Korea was not reasonably available it, the petitioner based its factory overhead cost calculations on its own experience.34 To calculate the SG&A expense rate, the petitioner relied on the fiscal year end (FYE) December 31, 2016, audited financial statements of Iljin Global Co., Ltd. (Iljin), a Korean producer of comparable merchandise.35 To calculate the financial expense rate, the petitioner relied on the FYE December 31, 2016, audited financial statements of Iljin.36 Because Iljin’s financial statements showed net financial income for FY 2016, the petitioner set the financial expense rate to zero and did not include financial expenses in its CV calculations. Because, as noted above, the petitioner was unable to obtain information pertaining to home market prices, the petitioner calculated NV based on CV.37 Pursuant to section 773(e) of the Act, CV consists of the COM, SG&A, financial expenses, packing expenses, and profit. The petitioner calculated CV using the same COP described above, adding an amount for profit.38 The petitioner calculated the profit rate based on the FYE December 31, 2016, audited financial statements of Iljin.39 The profit rate was applied to the corresponding total COM, SG&A, and financial expenses calculated above to derive CV.40 Fair Value Comparisons Based on the data provided by the petitioner, there is reason to believe that imports of TRBs from Korea, are being, or are likely to be, sold in the United States at less than fair value. Based on comparisons of EP and CEP to NV, in accordance with sections 772 and 773 of the Act, the estimated dumping margins for TRBs from Korea are between 46.28 and 132.24 percent.41 Initiation of Less-Than-Fair-Value Investigation Based upon our examination, we find that the Petition meets the requirements of section 732 of the Act. Therefore, we mstockstill on DSK30JT082PROD with NOTICES 32 Id. 34 Id. 35 Id. 36 Id. 37 Id. 38 Id. 39 Id. 40 Id. Initiation Checklist. VerDate Sep<11>2014 19:30 Jul 24, 2017 Respondent Selection The petitioner named 49 companies in Korea 45 as producers/exporters of TRBs. Following standard practice in AD investigations involving market economy countries, in the event the Department determines that the number of companies is large, the Department intends to review U.S. Customs and Border Protection (CBP) data for U.S. imports of TRBs during the POI under the appropriate HTSUS subheadings, and if it determines that it cannot individually examine each company based upon the Department’s resources, then the Department will select respondents based on those data. We intend to release CBP data under Administrative Protective Order (APO) to all parties with access to information protected by APO within five business days of the announcement of the initiation of this investigation. Comments regarding the CBP data and respondent selection should be submitted seven calendar days after the placement of the CBP data on the record of this investigation. Interested parties wishing to submit rebuttal comments 42 See Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). 43 See Dates of Application of Amendments to the Antidumping and Countervailing Duty Laws Made by the Trade Preferences Extension Act of 2015, 80 FR 46793 (August 6, 2015). 44 Id. at 46794–95. The 2015 amendments may be found at https://www.congress.gov/bill/114thcongress/house-bill/1295/text/pl. 45 See Volume I of the Petition, at Exhibit I–6. 33 Id. 41 See are initiating an AD investigation to determine whether imports of TRBs from Korea are being, or are likely to be, sold in the United States at less than fair value. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 140 days after the date of this initiation. Under the Trade Preferences Extension Act of 2015, numerous amendments to the AD and countervailing duty (CVD) law were made.42 The 2015 law does not specify dates of application for those amendments. On August 6, 2015, the Department published an interpretative rule, in which it announced the applicability dates for each amendment to the Act, except for amendments contained in section 771(7) of the Act, which relate to determinations of material injury by the ITC.43 The amendments to sections 771(15), 773, 776, and 782 of the Act are applicable to all determinations made on or after August 6, 2015, and, therefore, apply to this AD investigation.44 Jkt 241001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 should submit those comments five calendar days after the deadline for initial comments. Comments must be filed electronically using ACCESS. An electronically-filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. We intend to make our decision regarding respondent selection within 20 days of publication of this notice. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on the Department’s Web site at http:// enforcement.trade.gov/apo. Distribution of Copies of the Petition In accordance with section 732(b)(3)(A)(i) of the Act and 19 CFR 351.202(f), copies of the public version of the Petition have been provided to the government of Korea via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, as provided under 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 732(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of TRBs from Korea are materially injuring or threatening material injury to a U.S. industry.46 A negative ITC determination will result in this investigation being terminated.47 Otherwise, this investigation will proceed according to statutory and regulatory time limits. Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the Department; and (v) evidence other than factual information described in (i)–(iv). Any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is 46 See section 733(a) of the Act. 47 Id. E:\FR\FM\25JYN1.SGM 25JYN1 Federal Register / Vol. 82, No. 141 / Tuesday, July 25, 2017 / Notices being submitted 48 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.49 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in this investigation. mstockstill on DSK30JT082PROD with NOTICES Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by the Secretary. In general, an extension request will be considered untimely if it is filed after the expiration of the time limit established under 19 CFR 351.301. For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in the letter or memorandum setting forth the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimely-filed requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/ pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.50 Parties are hereby reminded that revised certification requirements are in effect for company/government officials, as well as their representatives. Investigations initiated on the basis of a petition filed on or after August 16, 2013, and other segments of any AD or 48 See 19 CFR 351.301(b). 19 CFR 351.301(b)(2). 50 See section 782(b) of the Act. 49 See VerDate Sep<11>2014 19:30 Jul 24, 2017 Jkt 241001 CVD proceedings initiated on or after August 16, 2013, should use the formats for the revised certifications provided at the end of the Final Rule.51 The Department intends to reject factual submissions if the submitting party does not comply with applicable revised certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. On January 22, 2008, the Department published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in this investigation should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed in 19 CFR 351.103(d)). This notice is issued and published pursuant to sections 732(c)(2) and 777(i) of the Act, and 19 CFR 351.203(c). Dated: July 18, 2017. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigation The scope of this investigation is certain tapered roller bearings. The scope covers all tapered roller bearings with a nominal outside cup diameter of eight inches and under, regardless of type of steel used to produce the bearing, whether of inch or metric size, and whether the tapered roller bearing is a thrust bearing or not. Certain tapered roller bearings include: Finished cup and cone assemblies entering as a set, finished cone assemblies entering separately, and finished parts (cups, cones, and tapered rollers). Certain tapered roller bearings are sold individually as a set (cup and cone assembly), as a cone assembly, as a finished cup, or packaged as a kit with one or several tapered roller bearings, a seal, and grease. The scope of the investigation includes finished rollers and finished cones that have not been assembled with rollers and a cage. Certain tapered roller bearings can be a single row or multiple rows (e.g., two- or four-row), and a cup can handle a single cone assembly or multiple cone assemblies. Finished cups, cones, and rollers differ from unfinished cups, cones, and rollers in that they have undergone further processing 51 See Certification of Factual Information to Import Administration during Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also Frequently Asked Questions regarding the Final Rule, available at http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 34481 after heat treatment, including, but not limited to, final machining, grinding, and/or polishing. Mere heat treatment of a cup, cone, or roller (without any further processing after heat treatment) does not render the cup, cone, or roller a finished part for the purpose of this investigation. Finished tapered roller bearing parts are understood to mean parts which, at the time of importation, are ready for assembly (if further assembly is required) and require no further finishing or fabrication, such as grinding, lathing, machining, polishing, heat treatment, etc. Finished parts may require grease, bolting, and/or pressing as part of final assembly, and the requirement that these processes be performed, subsequent to importation, does not remove an otherwise finished tapered roller bearing from the scope. Tapered roller bearings that have a nominal outer cup diameter of eight inches and under that may be used in wheel hub units, rail bearings, or other housed bearings, but entered separately, are included in the scope to the same extent as described above. All tapered roller bearings meeting the written description above, and not otherwise excluded, are included, regardless of coating. Excluded from the scope of this investigation are: (1) Unfinished parts of tapered roller bearings (cups, cones, and tapered rollers); (2) cages, whether finished or unfinished; (3) the non-tapered roller bearing components of subject kits (e.g., grease, seal); and (4) tapered roller bearing wheel hub units, rail bearings, and other housed tapered roller bearings (flange, take up cartridges, and hanger units incorporating tapered rollers). Tapered roller bearings subject to this investigation are primarily classifiable under subheadings 8482.20.0040, 8482.20.0061, 8482.20.0070, 8482.20.0081, 8482.91.0050, 8482.99.1550, and 8482.99.1580 of the Harmonized Tariff Schedule of the United States (HTSUS).52 Parts may also enter under 8482.99.4500. While the HTSUS subheadings are provided for convenience and for customs purposes, the written description of the subject merchandise is dispositive. [FR Doc. 2017–15563 Filed 7–24–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–475–819] Certain Pasta From Italy: Preliminary Results of Countervailing Duty Administrative Review; 2015 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) is conducting an AGENCY: 52 Prior to July 2016, products entering under 8482.20.0061 entered under 8482.20.0060, products entering under 8482.20.0081 entered under 8482.20.0080, and products entering under 8482.99.1550 entered under 8482.99.1540. E:\FR\FM\25JYN1.SGM 25JYN1

Agencies

[Federal Register Volume 82, Number 141 (Tuesday, July 25, 2017)]
[Notices]
[Pages 34477-34481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15563]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-894]


Certain Tapered Roller Bearings From the Republic of Korea: 
Initiation of Less-Than-Fair-Value Investigation

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.


DATES: Issued July 18, 2017.

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse at 202-482-6345, or 
Manuel Rey at 202-482-5518, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On June 28, 2017, the U.S. Department of Commerce (the Department) 
received an antidumping duty (AD) petition concerning imports of 
certain tapered roller bearings (TRBs) from the Republic of Korea 
(Korea), filed in proper form, on behalf of the Timken Company (the 
petitioner).\1\ The petitioner is a domestic producer of TRBs.\2\
---------------------------------------------------------------------------

    \1\ See Petition for the Imposition of Antidumping Duties on 
Imports of Certain Tapered Roller Bearings from the Republic of 
Korea, dated June 28, 2017 (the Petition).
    \2\ See Volume I of the Petition, at 1 and Exhibit I-1.
---------------------------------------------------------------------------

    On July 3, 2017, the Department requested supplemental information 
pertaining to certain areas of the Petition.\3\ The petitioner filed 
its response to this request, including corrections to the margin 
calculations and revised scope language, on July 6, 2017.\4\ On July 
11, 2017, the petitioner filed an additional amendment to the 
Petition.\5\
---------------------------------------------------------------------------

    \3\ See Department Letter re: Petition for the Imposition of 
Antidumping Duties on Imports of Certain Tapered Roller Bearings 
from the Republic of Korea: Supplemental Questions, dated July 3, 
2017.
    \4\ See Letter from the petitioner re: Petitioner's Response to 
the Department of Commerce's July 3, 2017 Supplemental Questionnaire 
Regarding the Petition for the Imposition of Antidumping Duties on 
Imports of Tapered Roller Bearings from the Republic of Korea, dated 
July 6, 2017 (Petition Supplement).
    \5\ See Letter from the petitioner re: Petitioner's Scope 
Clarification Regarding the Antidumping Investigation on Certain 
Tapered Roller Bearings from the Republic of Korea, dated July 11, 
2017 (Scope Clarification).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of TRBs are 
being, or are likely to be, sold in the United States at less than fair 
value within the meaning of section 731 of the Act, and that such 
imports are materially injuring, or threatening material injury to, the 
domestic industry producing TRBs in the United States. Also, consistent 
with section 732(b)(1) of the Act, the Petition is accompanied by 
information reasonably available to the petitioner supporting its 
allegations.
    The Department finds that the petitioner filed this Petition on 
behalf of the domestic industry because the petitioner is an interested 
party as defined in section 771(9)(C) of the Act. The Department also 
finds that the petitioner demonstrated sufficient industry support with 
respect to the initiation of the AD investigation that the petitioner 
is requesting.\6\
---------------------------------------------------------------------------

    \6\ See ``Determination of Industry Support for the Petition'' 
section, below.
---------------------------------------------------------------------------

Period of Investigation

    Because the Petition was filed on June 28, 2017, the period of 
investigation (POI) is April 1, 2016, through March 31, 2017.

Scope of the Investigation

    The product covered by this investigation is TRBs from Korea. For a 
full description of the scope of this investigation, see the ``Scope of 
the Investigation,'' in the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the Petition, the Department issued questions 
to, and received responses from, the petitioner pertaining to the 
proposed scope to ensure that the scope language in the Petition would 
be an accurate reflection of the products for which the domestic 
industry is seeking relief.\7\
---------------------------------------------------------------------------

    \7\ See Petition Supplement, at 1-5 and Exhibit SQ-1; see also 
Scope Clarification.
---------------------------------------------------------------------------

    As discussed in the preamble to the Department's regulations, we 
are setting aside a period for interested parties to raise issues 
regarding product coverage (scope).\8\ The Department will consider all 
comments received from interested parties and, if necessary, will 
consult with interested parties prior to the issuance of the 
preliminary determination. If scope comments include factual 
information,\9\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
the Department requests all interested parties to submit such comments 
by 5:00 p.m. Eastern Time (ET) on Monday,

[[Page 34478]]

August 7, 2017, which is 20 calendar days from the signature date of 
this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on Thursday, August 17, 
2017, which is 10 calendar days from the initial comments deadline.\10\
---------------------------------------------------------------------------

    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    The Department requests that any factual information the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact the Department and 
request permission to submit the additional information.

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping Duty and Countervailing 
Duty Centralized Electronic Service System (ACCESS).\11\ An 
electronically filed document must be received successfully in its 
entirety by the time and date it is due. Documents exempted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room 
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadline.
---------------------------------------------------------------------------

    \11\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of the Department's electronic 
filing requirements, which went into effect on August 5, 2011. 
Information on help using ACCESS can be found at https://access.trade.gov/help.aspx and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics for AD Questionnaires

    The Department will provide interested parties an opportunity to 
comment on the appropriate physical characteristics of TRBs to be 
reported in response to the Department's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the merchandise under consideration in order to report the relevant 
costs of production accurately as well as to develop appropriate 
product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics and (2) product-comparison criteria. We note that it is 
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics used by manufacturers to 
describe TRBs, it may be that only a select few product characteristics 
take into account commercially meaningful physical characteristics. In 
addition, interested parties may comment on the order in which the 
physical characteristics should be used in matching products. 
Generally, the Department attempts to list the most important physical 
characteristics first and the least important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on August 1, 
2017. Any rebuttal comments must be filed by 5:00 p.m. ET on August 8, 
2017. All comments and submissions to the Department must be filed 
electronically using ACCESS, as explained above.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\12\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department's 
determination is subject to limitations of time and information. 
Although this may result in different definitions of the like product, 
such differences do not render the decision of either agency contrary 
to law.\13\
---------------------------------------------------------------------------

    \12\ See section 771(10) of the Act.
    \13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of domestic like product distinct from the scope of 
the investigation. Based on our analysis of the information submitted 
on the record, we have determined that TRBs, as defined in the scope of 
the investigation, constitute a single domestic like product and we 
have analyzed industry support in terms of that domestic like 
product.\14\
---------------------------------------------------------------------------

    \14\ For a discussion of the domestic like product analysis, see 
Antidumping Duty Investigation Initiation Checklist: Tapered Roller 
Bearings from the Republic of Korea (Initiation Checklist), at 
Attachment II, Analysis of Industry Support for the Antidumping Duty 
Petition Covering Tapered Roller Bearings from the Republic of 
Korea, (Attachment II). This checklist is dated concurrently with, 
and hereby adopted by, this notice and on file electronically via 
ACCESS. Access to documents filed via ACCESS is also available in 
the Central Records Unit, Room B8024 of the main Department of 
Commerce building.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of

[[Page 34479]]

Investigation'' section above. To establish industry support, the 
petitioner provided its net sales in 2015 and compared its net sales to 
the estimated total shipments of the domestic like product in 2015 for 
the entire domestic industry.\15\ Because data regarding total 
production of the domestic like product are not reasonably available to 
the petitioner, and the petitioner has established that shipments are a 
reasonable proxy for production, we relied on the shipment data for 
purposes of measuring industry support.\16\
---------------------------------------------------------------------------

    \15\ See Volume I of the Petition, at I-8 and I-9 and Exhibit I-
2. The petitioner states that there are no publicly available 
sources of data for U.S. production of the domestic like product in 
2016. Therefore, the petitioner contends that shipment data from the 
U.S. Census Bureau's Annual Survey of Manufacturers provides the 
best available and reasonable proxy for U.S. production. The latest 
year for which such data are available is 2015. Id., at I-8, I-9 and 
Exhibit I-2; see also Petition Supplement, at SQ-10 and SQ-11.
    \16\ See Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    On July 5, 2017, we received a submission from RBC Oklahoma, Inc. 
(RBC), a domestic producer of TRBs. In the submission, RBC states that 
it supports the AD petition on TRBs from Korea. In addition, RBC 
provided its 2015 shipments of the domestic like product.\17\
---------------------------------------------------------------------------

    \17\ See Letter from RBC Oklahoma, Inc., dated July 5, 2017, at 
1-2.
---------------------------------------------------------------------------

    We have relied upon information provided in the Petition, Petition 
Supplement, and the letter provided by RBC for purposes of measuring 
industry support.\18\
---------------------------------------------------------------------------

    \18\ See Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------

    Based on information provided in the Petition, Petition Supplement, 
the letter from RBC, and other information readily available to the 
Department, we determine that the petitioner has met the statutory 
criteria for industry support under section 732(c)(4)(A)(i) of the Act 
because the domestic producers (or workers) who support the Petition 
account for at least 25 percent of the total shipments \19\ of the 
domestic like product.\20\ Based on the information above, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act for the Petition 
because the domestic producers (or workers) who support the Petition 
account for more than 50 percent of the shipments of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the Petition. In addition, the information above 
establishes that the domestic producers and workers who support the 
Petition account for more than 50 percent of total shipments of the 
domestic like product, pursuant to section 734(c)(4)(D) of the Act. 
Accordingly, the Department determines that the Petition was filed on 
behalf of the domestic industry within the meaning of section 732(b)(1) 
of the Act.\21\
---------------------------------------------------------------------------

    \19\ As mentioned above, the petitioner established that 
shipments are a reasonable proxy for production data. Section 
351.203(e)(1) of the Department's regulations states ``production 
levels may be established by reference to alternative data that the 
Secretary determines to be indicative of production levels.''
    \20\ See Initiation Checklist, at Attachment II.
    \21\ Id.
---------------------------------------------------------------------------

    The Department finds that the petitioner filed the Petition on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(C) of the Act and it has demonstrated 
sufficient industry support with respect to the antidumping duty 
investigation that it is requesting the Department initiate.\22\
---------------------------------------------------------------------------

    \22\ Id.
---------------------------------------------------------------------------

Allegation and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\23\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petition, at I-20 and Exhibit I-10.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by the impact on the domestic industry's reduced market 
share; underselling and price depression or suppression; lost sales and 
revenues; decline in wages, hours, and employment; declines in 
production, capacity utilization, and shipments; decreases in capital 
expenditures; plant closure and declines in financial performance.\24\ 
We have assessed the allegations and supporting evidence regarding 
material injury, threat of material injury, and causation, and we have 
determined that these allegations are properly supported by adequate 
evidence, and meet the statutory requirements for initiation.\25\
---------------------------------------------------------------------------

    \24\ Id., at I-20--I-32, Exhibit I-7, Exhibit I-8, and Exhibits 
I-11 to I-16; see also Supplemental Response, at SQ-6.
    \25\ See Initiation Checklist, at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping Duty Petition Covering Certain Tapered Roller Bearings 
from the Republic of Korea.
---------------------------------------------------------------------------

Allegation of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at less 
than fair value upon which the Department based its decision to 
initiate an AD investigation of imports of TRBs from Korea. The sources 
of data for the deductions and adjustments relating to U.S. price and 
NV are discussed in greater detail in the Initiation Checklist.

Export Price and Constructed Export Price

    The petitioner based the U.S. price on: (1) Average unit values 
(AUVs) of publicly-available import data for Harmonized Tariff Schedule 
of the United States (HTSUS) subheadings 8482.20.00.40, 8482.20.00.70, 
848220.00.81, and 848299.15.50, covering the period April 2016 through 
March 2017; \26\ and (2) price quotes for sales of TRBs produced in, 
and exported from, Korea and offered for sale in the United States.\27\
---------------------------------------------------------------------------

    \26\ See Initiation Checklist.
    \27\ Id.
---------------------------------------------------------------------------

    With respect to the AUVs, the petitioner used export price (EP) 
methodology. The petitioner conservatively made no deductions from EP. 
With respect to the price quotes, the petitioner used constructed 
export price (CEP) methodology because it had reason to believe that 
sales are made through U.S. affiliates.\28\ Where applicable, the 
petitioner made deductions from CEP for movement expenses, consistent 
with the terms of sale.\29\
---------------------------------------------------------------------------

    \28\ Id.
    \29\ Id.
---------------------------------------------------------------------------

Normal Value

    The petitioner was unable to obtain home market prices for TRBs 
and, therefore, calculated NV based on constructed value (CV).\30\
---------------------------------------------------------------------------

    \30\ Id.
---------------------------------------------------------------------------

Normal Value Based on CV

    Pursuant to 773(e) of the Act, CV consists of the cost of 
manufacturing (COM); selling, general and administrative (SG&A) 
expenses; financial expenses; and packing expenses. The petitioner 
calculated COM during the POI, adjusted for known differences based on 
information available to the petitioner.\31\ Because publicly available 
information pertaining to the cost of raw materials in Korea was not 
reasonably available to it, the petitioner based its raw material cost 
calculations on its own

[[Page 34480]]

experience.\32\ The petitioner valued labor, electricity, and natural 
gas inputs using publicly available data multiplied by the product-
specific usage rates.\33\ Because publicly-available information 
pertaining to the cost of factory overhead in Korea was not reasonably 
available it, the petitioner based its factory overhead cost 
calculations on its own experience.\34\ To calculate the SG&A expense 
rate, the petitioner relied on the fiscal year end (FYE) December 31, 
2016, audited financial statements of Iljin Global Co., Ltd. (Iljin), a 
Korean producer of comparable merchandise.\35\ To calculate the 
financial expense rate, the petitioner relied on the FYE December 31, 
2016, audited financial statements of Iljin.\36\ Because Iljin's 
financial statements showed net financial income for FY 2016, the 
petitioner set the financial expense rate to zero and did not include 
financial expenses in its CV calculations.
---------------------------------------------------------------------------

    \31\ Id.
    \32\ Id.
    \33\ Id.
    \34\ Id.
    \35\ Id.
    \36\ Id.
---------------------------------------------------------------------------

    Because, as noted above, the petitioner was unable to obtain 
information pertaining to home market prices, the petitioner calculated 
NV based on CV.\37\ Pursuant to section 773(e) of the Act, CV consists 
of the COM, SG&A, financial expenses, packing expenses, and profit. The 
petitioner calculated CV using the same COP described above, adding an 
amount for profit.\38\ The petitioner calculated the profit rate based 
on the FYE December 31, 2016, audited financial statements of 
Iljin.\39\ The profit rate was applied to the corresponding total COM, 
SG&A, and financial expenses calculated above to derive CV.\40\
---------------------------------------------------------------------------

    \37\ Id.
    \38\ Id.
    \39\ Id.
    \40\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of TRBs from Korea, are being, or are likely to 
be, sold in the United States at less than fair value. Based on 
comparisons of EP and CEP to NV, in accordance with sections 772 and 
773 of the Act, the estimated dumping margins for TRBs from Korea are 
between 46.28 and 132.24 percent.\41\
---------------------------------------------------------------------------

    \41\ See Initiation Checklist.
---------------------------------------------------------------------------

Initiation of Less-Than-Fair-Value Investigation

    Based upon our examination, we find that the Petition meets the 
requirements of section 732 of the Act. Therefore, we are initiating an 
AD investigation to determine whether imports of TRBs from Korea are 
being, or are likely to be, sold in the United States at less than fair 
value. In accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 140 days after the date of this initiation.
    Under the Trade Preferences Extension Act of 2015, numerous 
amendments to the AD and countervailing duty (CVD) law were made.\42\ 
The 2015 law does not specify dates of application for those 
amendments. On August 6, 2015, the Department published an 
interpretative rule, in which it announced the applicability dates for 
each amendment to the Act, except for amendments contained in section 
771(7) of the Act, which relate to determinations of material injury by 
the ITC.\43\ The amendments to sections 771(15), 773, 776, and 782 of 
the Act are applicable to all determinations made on or after August 6, 
2015, and, therefore, apply to this AD investigation.\44\
---------------------------------------------------------------------------

    \42\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \43\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015).
    \44\ Id. at 46794-95. The 2015 amendments may be found at 
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
---------------------------------------------------------------------------

Respondent Selection

    The petitioner named 49 companies in Korea \45\ as producers/
exporters of TRBs. Following standard practice in AD investigations 
involving market economy countries, in the event the Department 
determines that the number of companies is large, the Department 
intends to review U.S. Customs and Border Protection (CBP) data for 
U.S. imports of TRBs during the POI under the appropriate HTSUS 
subheadings, and if it determines that it cannot individually examine 
each company based upon the Department's resources, then the Department 
will select respondents based on those data. We intend to release CBP 
data under Administrative Protective Order (APO) to all parties with 
access to information protected by APO within five business days of the 
announcement of the initiation of this investigation. Comments 
regarding the CBP data and respondent selection should be submitted 
seven calendar days after the placement of the CBP data on the record 
of this investigation. Interested parties wishing to submit rebuttal 
comments should submit those comments five calendar days after the 
deadline for initial comments.
---------------------------------------------------------------------------

    \45\ See Volume I of the Petition, at Exhibit I-6.
---------------------------------------------------------------------------

    Comments must be filed electronically using ACCESS. An 
electronically-filed document must be received successfully, in its 
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above. 
We intend to make our decision regarding respondent selection within 20 
days of publication of this notice. Interested parties must submit 
applications for disclosure under APO in accordance with 19 CFR 
351.305(b). Instructions for filing such applications may be found on 
the Department's Web site at http://enforcement.trade.gov/apo.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A)(i) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the government of Korea via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the Petition to each exporter named in the Petition, as provided under 
19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of TRBs from Korea are materially injuring or 
threatening material injury to a U.S. industry.\46\ A negative ITC 
determination will result in this investigation being terminated.\47\ 
Otherwise, this investigation will proceed according to statutory and 
regulatory time limits.
---------------------------------------------------------------------------

    \46\ See section 733(a) of the Act.
    \47\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by the Department; and (v) evidence other than 
factual information described in (i)-(iv). Any party, when submitting 
factual information, to specify under which subsection of 19 CFR 
351.102(b)(21) the information is

[[Page 34481]]

being submitted \48\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\49\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
---------------------------------------------------------------------------

    \48\ See 19 CFR 351.301(b).
    \49\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Parties should review Extension of Time Limits; Final 
Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to 
submitting factual information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\50\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of a petition 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\51\ The Department intends to reject factual submissions if the 
submitting party does not comply with applicable revised certification 
requirements.
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    \50\ See section 782(b) of the Act.
    \51\ See Certification of Factual Information to Import 
Administration during Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
Frequently Asked Questions regarding the Final Rule, available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, the 
Department published Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008). Parties wishing to participate in this investigation should 
ensure that they meet the requirements of these procedures (e.g., the 
filing of letters of appearance as discussed in 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: July 18, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The scope of this investigation is certain tapered roller 
bearings. The scope covers all tapered roller bearings with a 
nominal outside cup diameter of eight inches and under, regardless 
of type of steel used to produce the bearing, whether of inch or 
metric size, and whether the tapered roller bearing is a thrust 
bearing or not. Certain tapered roller bearings include: Finished 
cup and cone assemblies entering as a set, finished cone assemblies 
entering separately, and finished parts (cups, cones, and tapered 
rollers). Certain tapered roller bearings are sold individually as a 
set (cup and cone assembly), as a cone assembly, as a finished cup, 
or packaged as a kit with one or several tapered roller bearings, a 
seal, and grease. The scope of the investigation includes finished 
rollers and finished cones that have not been assembled with rollers 
and a cage. Certain tapered roller bearings can be a single row or 
multiple rows (e.g., two- or four-row), and a cup can handle a 
single cone assembly or multiple cone assemblies.
    Finished cups, cones, and rollers differ from unfinished cups, 
cones, and rollers in that they have undergone further processing 
after heat treatment, including, but not limited to, final 
machining, grinding, and/or polishing. Mere heat treatment of a cup, 
cone, or roller (without any further processing after heat 
treatment) does not render the cup, cone, or roller a finished part 
for the purpose of this investigation. Finished tapered roller 
bearing parts are understood to mean parts which, at the time of 
importation, are ready for assembly (if further assembly is 
required) and require no further finishing or fabrication, such as 
grinding, lathing, machining, polishing, heat treatment, etc. 
Finished parts may require grease, bolting, and/or pressing as part 
of final assembly, and the requirement that these processes be 
performed, subsequent to importation, does not remove an otherwise 
finished tapered roller bearing from the scope.
    Tapered roller bearings that have a nominal outer cup diameter 
of eight inches and under that may be used in wheel hub units, rail 
bearings, or other housed bearings, but entered separately, are 
included in the scope to the same extent as described above. All 
tapered roller bearings meeting the written description above, and 
not otherwise excluded, are included, regardless of coating.
    Excluded from the scope of this investigation are:
    (1) Unfinished parts of tapered roller bearings (cups, cones, 
and tapered rollers);
    (2) cages, whether finished or unfinished;
    (3) the non-tapered roller bearing components of subject kits 
(e.g., grease, seal); and
    (4) tapered roller bearing wheel hub units, rail bearings, and 
other housed tapered roller bearings (flange, take up cartridges, 
and hanger units incorporating tapered rollers).
    Tapered roller bearings subject to this investigation are 
primarily classifiable under subheadings 8482.20.0040, 8482.20.0061, 
8482.20.0070, 8482.20.0081, 8482.91.0050, 8482.99.1550, and 
8482.99.1580 of the Harmonized Tariff Schedule of the United States 
(HTSUS).\52\ Parts may also enter under 8482.99.4500. While the 
HTSUS subheadings are provided for convenience and for customs 
purposes, the written description of the subject merchandise is 
dispositive.
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    \52\ Prior to July 2016, products entering under 8482.20.0061 
entered under 8482.20.0060, products entering under 8482.20.0081 
entered under 8482.20.0080, and products entering under 8482.99.1550 
entered under 8482.99.1540.

[FR Doc. 2017-15563 Filed 7-24-17; 8:45 am]
BILLING CODE 3510-DS-P