[Federal Register Volume 59, Number 204 (Monday, October 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26325]


[[Page Unknown]]

[Federal Register: October 24, 1994]


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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-810]

 

Notice of Preliminary Determination of Sales at Less Than Fair 
Value: Disposable Pocket Lighters From Thailand

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

EFFECTIVE DATE: October 24, 1994.

FOR FURTHER INFORMATION CONTACT: David Boyland or Susan Strumbel, 
Office of Countervailing Investigations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone 
(202) 482-4198 and 482-1442, respectively.

Preliminary Determination: We preliminarily determine that disposable 
pocket lighters from Thailand are being, or are likely to be, sold in 
the United States at less than fair value, as provided in section 733 
of the Tariff Act of 1930 (the ``Act''), as amended. The estimated 
margins of sales at less than fair value are shown in the ``Suspension 
of Liquidation'' section of this notice.

Case History

    Since the initiation of this investigation on May 31, 1994 (59 FR 
29412), the following events have occurred:
    On June 29, 1994, the United States International Trade Commission 
(``ITC'') issued an affirmative preliminary injury determination (see 
ITC Investigation No. 731-TA-701).
    In accordance with 19 CFR 353.42(b)(1994), an antidumping duty 
questionnaire was presented on July 1, 1994, to Thai Merry Co., Ltd. 
(``Thai Merry'') which accounts for over 60 percent of all Thai exports 
of lighters to the United States during the POI. On August 11, 1994, we 
sent a deficiency questionnaire regarding respondent's section A 
questionnaire response. On August 19, 1994, the Department granted 
respondent's request to extend the deadline for response to section B 
and C of the Department's questionnaire, as well as the section A 
deficiency questionnaire. On September 6, 1994, the Department received 
responses to section B and C of the Department's questionnaire, as well 
as the section A deficiency questionnaire. On September 13, 1994, the 
Department issued a deficiency questionnaire with regard to 
respondent's section B and C responses. On September 22, 1994, the 
Department received the response to the second deficiency 
questionnaire. On September 29, 1994, respondent was requested to 
submit information regarding the single national distributor in the 
home market. On October 3, 1994, the Department received additional 
information regarding the home market national distributor.

Scope of the Investigation

    The products covered by this investigation are disposable pocket 
lighters, whether or not refillable, whose fuel is butane, isobutane, 
propane, or other liquified hydrocarbon, or a mixture containing any of 
these, whose vapor pressure at 75 degrees fahrenheit (24 degrees 
celsius) exceeds a gage pressure of 15 pounds per square inch. Non-
refillable pocket lighters are imported under subheading 9613.10.0000 
of the Harmonized Tariff Schedule of the United States (``HTSUS''). 
Refillable, disposable pocket lighters would be imported under 
subheading 9613.20.0000. Although the HTSUS subheadings are provided 
for convenience and Customs purposes, our written descriptions of the 
scope of these proceedings are dispositive.

Period of Investigation

    The period of investigation (``POI'') is December 1, 1993 through 
May 31, 1994.

Product Comparisons

    We have determined that the class or kind of merchandise subject to 
this investigation constitutes a single such or similar category. In 
making our fair value comparisons, in accordance with the Department's 
standard methodology, we first compared merchandise identical in all 
respects. If no identical merchandise was sold, we compared the most 
similar merchandise, as reflected in Appendix V of the questionnaire 
(``Appendix V'') (on file in Room B-099 of the main building of the 
Department of Commerce (``Public File'')) and incorporated by Thai 
Merry in its response. For the U.S. sales compared to sales of similar 
merchandise, we made an adjustment, pursuant to 19 CFR 353.57, for 
physical differences in merchandise.

Fair Value Comparisons

    To determine whether Thai Merry's sales for export to the United 
States were made at less than fair value, we compared the United States 
price (``USP'') to the foreign market value (``FMV''), as specified in 
the ``United States Price'' and ``Foreign Market Value'' sections of 
this notice.
    Because all of Thai Merry's sales to the U.S. were made to national 
distributors, respondent has argued that the Department should base FMV 
on sales to a national distributor in Thailand and that sales to other 
home market distributors should be excluded from the Department's 
analysis. The Department normally makes its comparisons at the same 
level of trade when sales are made to customers who fall into broad 
categories such as retailers, distributors, and original equipment 
manufacturers (see, Import Administration Policy Bulletin 92/1). Thai 
Merry has claimed that there are different ``levels of trade'' within 
the general category of distributors.
    The ``levels of trade'' claimed by Thai Merry, i.e., national 
distributor vs. distributor, are not clearly delineated. Both are 
resellers, and the record does not establish that different functions 
are involved in performing this activity. Hence, we would require 
further information to determine whether national distributors and 
other distributors are actually different levels of trade, rather than 
simply different names for a common level.
    We have preliminarily determined that respondent has not provided 
sufficient information demonstrating that these two types of 
distributors perform different selling functions. The Department has 
requested that Thai Merry supply additional information to support its 
claim, and we will evaluate this issue further for purposes of the 
final determination. For purposes of this preliminary determination, we 
are basing FMV on Thai Merry's sales to all distributors in Thailand.

United States Price

    Because Thai Merry's U.S. sales of disposable pocket lighters were 
made to unrelated purchasers prior to importation into the United 
States, and the exporter's sales price methodology was not indicated by 
other circumstances, in accordance with section 772(b) of the Act, we 
based USP on the purchase price (``PP'') sales methodology. We 
calculated Thai Merry's PP sales based on packed, CIF prices to 
unrelated customers in the United States. We made deductions to the 
U.S. price, where appropriate, for foreign inland freight, foreign 
brokerage/handling expenses, marine insurance, and ocean freight. In 
calculating U.S. credit expense, we used the borrowing rate in the 
United States on short-term dollar-denominated loans. For a further 
discussion of the Department's treatment of U.S. credit expense, please 
see Memorandum from Barbara R. Stafford to Susan G. Esserman (September 
26, 1994) on file in room B-099 of the U.S. Department of Commerce.
    In accordance with Section 772(d)(1)(B) of the Act, we made an 
addition to the U.S. price for the amount of import duties imposed on 
inputs which were subsequently rebated upon exportation of the finished 
merchandise to the United States.
    We made an adjustment to U.S. price for VAT taxes paid on the 
comparison sales in Thailand, in accordance with our practice, pursuant 
to the Court of International Trade (CIT) decision in Federal-Mogul, et 
al v. United States, 834 F. Supp. 1993. See Preliminary Antidumping 
Duty Determination and Postponement of Final Determination; Color 
Negative Photographic Paper and Chemical Components Thereof from Japan, 
59 FR 16177, 16179, April 6, 1994, for an explanation of this tax 
methodology.

Foreign Market Value

    In order to determine whether there was a sufficient volume of 
sales in the home market to serve as a viable basis for calculating 
FMV, we compared the volume of home market sales of subject merchandise 
to the volume of third country sales of subject merchandise, in 
accordance with section 773(a)(1)(B) of the Act. As a result, we 
determined that the home market was viable.
    We calculated FMV based on delivered prices, inclusive of packing, 
to customers in the home market. From the delivered price, we deducted 
home market packing and added U.S. packing costs. Pursuant to section 
773(a)(4)(B) of the Act and 19 CFR 353.56(a)(2), we made circumstance-
of-sale-adjustments for differences in movement charges between 
shipments to the United States and shipments in the home market. We 
also made circumstance-of-sale-adjustments for differences in 
advertising expenses and expenses related to securing credit (i.e., 
bank charges, and the imputed cost of credit).
    For packing, movement, credit, and advertising expense we adjusted 
respondent's reported values by using the net unit price as the 
multiple of the value-based allocation factor. Additionally, because 
average credit days were reported in the home market, as opposed to 
transaction specific data, we are using average credit days to 
calculate an imputed credit cost for all home market sales.

Currency Conversion

    We made currency conversions based on the official exchange rates 
in effect on the dates of the U.S. sales as certified by the Federal 
Reserve Bank of New York.

Verification

    As provided in section 776(b) of the Act, we will verify 
information used in making our final determination.

Suspension of Liquidation

    In accordance with section 733(d)(1) of the Act, we are directing 
the Customs Service to suspend liquidation of all entries of disposable 
pocket lighters from Thailand, as defined in the ``Scope of the 
Investigation'' section of this notice, that are entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
this notice in the Federal Register. The Customs Service shall require 
a cash deposit or posting of a bond equal to the estimated dumping 
margins, as shown below. This suspension of liquidation will remain in 
effect until further notice. The weighted-average dumping margins are 
as follows: 

------------------------------------------------------------------------
                                                                 Margin 
                Manufacture/producer/exporter                    percent
------------------------------------------------------------------------
Thai Merry....................................................     14.74
All others....................................................    14.74 
------------------------------------------------------------------------

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. If our final determination is affirmative, 
the ITC will determine whether these imports are materially injuring, 
or threaten material injury to, the U.S. industry within 75 days after 
our final determination.

Public Comment

    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Import Administration, 
U.S. Department of Commerce, Room B-099, within ten days of the 
publication of this notice. Requests should contain: (1) the party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of the issues to be discussed.
    In accordance with 19 CFR 353.38, case briefs or other written 
comments in at least ten copies must be submitted to the Assistant 
Secretary no later than November 28, 1994, and rebuttal briefs no later 
than December 5, 1994. A hearing, if requested, will be held on 
December 8, 1994, at 1:00 pm at the U.S. Department of Commerce in Room 
1815. Parties should confirm by telephone the time, date, and place of 
the hearing 48 hours prior to the scheduled time. In accordance with 19 
CFR 353.38(b), oral presentations will be limited to issues raised in 
the briefs.
    We will make our final determination not later than 75 days after 
this preliminary determination.
    This determination is published pursuant to section 733(f) of the 
Act and 19 CFR 353.15(a)(4).

    Dated: October 17, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-26325 Filed 10-21-94; 8:45 am]
BILLING CODE 3510-DS-P