Certain Tapered Roller Bearings From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, Postponement of Final Determination, and Extension of Provisional Measures, 4901-4903 [2018-02104]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 83, Number 23 (Friday, February 2, 2018)]
[Notices]
[Pages 4901-4903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-02104]



[[Page 4901]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-894]


Certain Tapered Roller Bearings From the Republic of Korea: 
Preliminary Affirmative Determination of Sales at Less-Than-Fair-Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain tapered roller bearings (TRBs) from the Republic of Korea 
(Korea) are being, or are likely to be, sold in the United States at 
less than fair value (LTFV). The period of investigation (POI) is April 
1, 2016, through March 31, 2017.

DATES: Applicable February 2, 2018.

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

SUPPLEMENTARY INFORMATION: Commerce has exercised its discretion to 
toll deadlines for the duration of the closure of the Federal 
Government from January 20 through 22, 2018. If the new deadline falls 
on a non-business day, in accordance with Commerce's practice, the 
deadline will become the next business day. Accordingly, the revised 
deadline for the preliminary determination of this investigation is now 
January 29, 2018.\1\
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    \1\ See Memorandum for the Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
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Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 25, 
2017.\2\ On November 21, 2017, Commerce postponed the preliminary 
determination of this investigation.\3\ For a complete description of 
the events that followed the initiation of this investigation, see the 
Preliminary Decision Memorandum.\4\ A list of topics included in the 
Preliminary Decision Memorandum is included as Appendix II to this 
notice. The Preliminary Decision Memorandum is a public document and is 
on file electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \2\ See Certain Tapered Roller Bearings from the Republic of 
Korea: Initiation of Less-Than-Fair-Value Investigation, 82 FR 34477 
(July 25, 2017) (Initiation Notice).
    \3\ See Certain Tapered Roller Bearings from the Republic of 
Korea: Postponement of Preliminary Determination of Less-Than-Fair-
Value Investigation, 82 FR 55351 (November 21, 2017).
    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Certain 
Tapered Roller Bearings from the Republic of Korea'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain TRBs from 
Korea. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. After evaluating these comments,\7\ Commerce is 
not preliminarily modifying the scope language as it appeared in the 
Initiation Notice. See the scope in Appendix I to this notice.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice, 82 FR at 34478.
    \7\ For further discussion of these comments, see the 
Preliminary Decision Memorandum.
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Allegation of a Particular Market Situation

    On October 24, 2017, the petitioner alleged that a particular 
market situation (PMS) existed during the POI with respect to the 
production of TRBs in Korea.\8\ On December 15, 2017, the petitioner 
supplemented its PMS allegation, including additional new factual 
information to support this allegation.\9\ After analyzing the 
information submitted by the petitioner, we preliminarily find that the 
petitioner's PMS allegation, and supporting factual information, is not 
sufficient to find that a PMS exists. For our analysis of the 
petitioner's PMS allegation, see the Preliminary Decision Memorandum.
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    \8\ See the petitioner's letter, ``Certain Tapered Roller 
Bearings from the Republic of Korea--Petitioner's Preliminary 
Particular Market Situation Comments and Section D RFI,'' dated 
October 24, 2017.
    \9\ See Petitioner's Letter, ``Certain Tapered Roller Bearings 
from Korea: Petitioner's Pre-Preliminary Determination Comments,'' 
dated December 15, 2017.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export price in 
accordance with section 772(a) of the Act. Alternatively, as 
appropriate, constructed export price has been calculated in accordance 
with section 772(b) of the Act. Normal value (NV) is calculated in 
accordance with section 773 of the Act. For a full description of the 
methodology underlying the preliminary determination, see the 
Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the average of the 
estimated weighted-average dumping margins established for exporters or 
producers individually investigated, excluding any zero or de minimis 
margins, or any margins determined entirely under section 776 of the 
Act. In this investigation, Commerce calculated estimated weighted-
average dumping margins for Bearing Art \10\ and Schaeffler Korea 
Corporation (Schaeffler) that are not zero, de minimis, or based 
entirely on facts otherwise available. Commerce calculated the all-
others' rate using a

[[Page 4902]]

weighted average of the estimated weighted-average dumping margins 
calculated for the examined respondents using each respondent's 
publicly-ranged quantity of U.S. sales for the merchandise under 
consideration.\11\
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    \10\ Commerce selected Bearing Art Corporation as a mandatory 
respondent in this investigation. Further, for this preliminary 
determination, Commerce preliminarily has determined to collapse, 
and treat as a single entity, this company and two affiliated 
parties, Iljin Bearing Corporation and Iljin Global Corporation. See 
Preliminary Decision Memorandum at 5-7. The collapsed entity is 
hereinafter collectively referred to as ``Bearing Art.''
    \11\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents weighted 
using each respondent's actual U.S. sale quantity; (B) a simple 
average of the estimated weighted-average dumping margins calculated 
for the examined respondents; and (C) a weighted-average of the 
estimated weighted-average dumping margins calculated for the 
examined respondents using each respondent's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all-other producers and exporters. 
See Ball Bearings and Parts Thereof from France, Germany, Italy, 
Japan, and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. For a complete analysis of 
the data, please see the All-Others' Rate Calculation Memorandum.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
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Bearing Art Corporation/Iljin Bearing Corporation/Iljin            45.53
 Global Corporation.........................................
Schaeffler Korea Corporation................................       21.23
All-Others..................................................       33.42
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin. These suspension of liquidation 
instructions will remain in effect until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making this preliminary 
determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On January 2, 2018, and January 10, 2018, pursuant to 19 CFR 
351.210(e), Schaeffler and Bearing Art, respectively, requested that 
Commerce postpone the final determination and that provisional measures 
be extended to a period not to exceed six months.\13\ In accordance 
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), 
because: (1) The preliminary determination is affirmative; (2) the 
requesting exporters account for a significant proportion of exports of 
the subject merchandise; and (3) no compelling reasons for denial 
exist, Commerce is postponing the final determination and extending the 
provisional measures from a four-month period to a period not greater 
than six months. Accordingly, Commerce will make its final 
determination no later than 135 days after the date of publication of 
this preliminary determination.
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    \13\ See Letter from Schaeffler, ``Request to Extend the Final 
Determination: Antidumping Duty Investigation on Tapered Roller 
Bearings from Korea (A-580-894),'' dated January 2, 2018; and Letter 
from Bearing Art, ``Certain Tapered Roller Bearings from Korea: 
Request to Postpone Final Determination,'' dated January 10, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days

[[Page 4903]]

after the final determination whether these imports are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: January 29, 2018.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

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).\14\ 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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    \14\ 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.
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Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Affiliation and Collapsing
VI. PMS Allegation
VII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price/Constructed Export Price
XI. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
    E. Price-to-CV Comparisons
XII. Currency Conversion
XIII. Conclusion

[FR Doc. 2018-02104 Filed 2-1-18; 8:45 am]
 BILLING CODE 3510-DS-P