[Federal Register Volume 59, Number 227 (Monday, November 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29237]


[Federal Register: November 28, 1994]


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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-839]


Initiation of Antidumping Duty Investigation: Certain Partial-
Extension Steel Drawer Slides With Rollers From the People's Republic 
of China (PRC)

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

EFFECTIVE DATE: November 28, 1994.

FOR FURTHER INFORMATION CONTACT: Michelle A. Frederick or John 
Brinkmann, Office of Antidumping Investigations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230; 
telephone: (202) 482-0186 or (202) 482-5288, respectively.

INITIATION OF INVESTIGATION:

The Petition

    On October 31, 1994, we received a petition filed in proper form 
from Hardware Designers, Inc. (the petitioner). At the request of the 
Department of Commerce (the Department), the petitioner filed 
supplements to support and clarify the petition's data on November 16 
and 18, 1994. In accordance with 19 CFR 353.12, the petitioner alleges 
that certain partial-extension steel drawer slides with rollers (drawer 
slides) 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 Tariff 
Act of 1930, as amended (the Act), and that these imports are 
materially injuring, or threaten material injury to, a U.S. industry.
    The petitioner states that it has standing to file the petition 
because it is an interested party, as defined under section 771(9)(C) 
of the Act, and because the petition is filed on behalf of the U.S. 
industry producing the product subject to this investigation. If any 
interested party, as described under paragraphs (C), (D), (E), or (F) 
of section 771(9) of the Act, wishes to register support for, or 
opposition to, this petition, such party should file a written 
notification with the Assistant Secretary for Import Administration.

Scope of Investigation

    The subject merchandise in this investigation is certain partial-
extension steel drawer slides of any length with rollers. A drawer 
slide is composed of two separate drawer slide rails. Each rail has 
screw holes and an attached polymer roller. The polymer roller may or 
may not have ball bearings. The subject drawer slides come in two 
models: European or Low-Profile and Over-Under or High-Profile. The 
former model has two opposing rails that provide one channel along 
which both rollers move and the latter has two opposing rails that 
provide two channels, one for each roller. For both models of drawer 
slides, the two opposing rails differ slightly in shape depending on 
whether the rail is to be affixed to the side of a cabinet or the side 
of a drawer. A rail may also feature a flange for affixing to or 
aligning along the bottom of a drawer.
    Drawer slides may be packaged in an assembly pack with two drawer 
slides; that is, four rails with their attached rollers, or in an 
assembly pack with one drawer slide; that is, two rails with their 
attached rollers; or individually; as a drawer slide rail with its 
attached roller. An assembly pack may or may not contain a packet of 
screws.
    Not included in the scope of this investigation are linear ball 
bearing steel drawer slides (with ball bearing in a linear plane 
between the steel elements of the slide), roller bearing drawer slides 
(with roller bearings in the wheel), metal box drawer slides (slides 
built into the side of a metal or aluminum drawer), full extension 
drawer slides (with more than four rails per pair), and industrial 
slides (customized, high-precision slides without polymer rollers).
    The subject merchandise is currently classifiable under subheading 
8302.42.30 of the Harmonized Tariff Schedule of the United States 
(HTSUS). It may also be classified under 9403.90.80. Although the HTSUS 
subheadings are provided for convenience and customs purposes, our 
written description of the scope of this proceeding is dispositive.

United States Price and Foreign Market Value

    The petitioner based United States Price (USP) on a January 1994 
price quotation obtained for a set of 14-inch drawer slides. The terms 
of the price quotation were CIF New York. In calculating USP, the 
petitioner deducted amounts for foreign inland freight, ocean freight, 
and marine insurance.
    The petitioner contends that the PRC is a non-market economy (NME) 
country within the meaning of section 771(18)(A) of the Act. The 
Department has determined in all previous investigations that the PRC 
is an NME, and the presumption of NME status continues for purposes of 
initiation of this investigation. See e.g., Final Determination of 
Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR 
51168 (October 7, 1994).
    In accordance with section 773(c) of the Act, foreign market value 
in NME cases is based on NME producers' factors of production, valued 
in a market economy country. Consistent with Department practice absent 
evidence that the PRC government determines which of its factories 
shall produce for export to the United States, we intend, for purposes 
of this investigation, to base FMV only on those factories that 
produced drawer slides sold to the United States during the period of 
investigation (POI).
    In the course of this investigation, parties will have the 
opportunity to address this NME designation and provide relevant 
information and argument related to the issues of the PRC's NME status 
and granting of separate rates to individual exporters. In addition, 
parties will have the opportunity in this investigation to submit 
comments on whether FMV should be based on prices or costs in the PRC 
consistent with section 773(c)(1)(B) of the Act. See Amendment to Final 
Determination of Sales at Less Than Fair Value and Amendment to 
Antidumping Duty Order: Chrome-Plated Lug Nuts from the People's 
Republic of China, 57 FR 15052 (April 24, 1992).
    The petitioner calculated FMV on the basis of the valuation of the 
factors of production. The petitioner, claiming that its production 
process is similar to the Chinese production process, based the factors 
of production on its own experience. The factors of production were 
valued, where possible, on publicly available published information 
pertaining to India. The petitioner argues that India is a country at a 
comparable level of economic development to the PRC and that India is a 
significant producer of comparable merchandise, thus meeting the 
requirements of section 773(c)(4) of the Act. For purposes of this 
initiation, we have accepted India as an appropriate surrogate country 
selection.
    Where Indian values were not available, the petitioner valued the 
factors of production using either a ratio based on its own experience 
or its own costs.
    In accordance with section 773(c)(1)(B) of the Act, the 
petitioner's FMV consisted of the sum of values assigned to materials, 
labor, energy, overhead and selling, general and administrative (SG&A) 
expenses. Certain of these factor values were adjusted for inflation. 
Pursuant to section 773(e)(1) of the Act, the petitioner added to the 
cost of manufacturing (COM), overhead and SG&A expenses, the statutory 
minimum of eight percent for profit.
    Based on our analysis of the petition and subsequent amendments, we 
have made certain adjustments to the petitioner's FMV calculation as 
follows:
    (1) We disallowed all factors valued using the petitioner's own 
costs;
    (2) We recalculated factory overhead and SG&A expenses to account 
for certain energy and inventory expenses excluded from the 
petitioner's calculation of COM;
    (3) We disallowed an amount included by the petitioner for scrap 
loss because this cost was already included in the cost of steel.

Fair Value Comparisons

    Based on a comparison of USP and FMV, the petitioner's alleged 
dumping margin, as revised by the Department, is 55.69 percent.

Initiation of Investigation

    Pursuant to section 732(c) of the Act, the Department must 
determine, within 20 days after a petition is filed, whether a petition 
sets forth an allegation necessary for the initiation of an antidumping 
duty investigation, and whether the petition contains information 
reasonably available to the petitioner supporting the allegation.
    We have examined the petition for drawer slides from the PRC, as 
amended, and have found that it meets the requirements of section 
732(b) of the Act. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of drawer slides from the 
PRC are being, or are likely to be, sold in the United States at less 
than fair value. If this investigation proceeds normally, we will make 
our preliminary determination by April 9, 1995.

International Trade Commission (ITC) Notification

    Section 732(d) of the Act requires us to notify the ITC of this 
action and we have done so.

Preliminary Determinations by the ITC

    The ITC will determine by December 15, 1994, whether there is a 
reasonable indication that imports of drawer slides from the PRC are 
materially injuring, or threaten material injury to, a U.S. industry. 
Pursuant to section 733(a) of the Act, a negative ITC determination 
will result in the investigation being terminated; otherwise, the 
investigation will proceed according to statutory and regulatory time 
limits.
    This notice is published pursuant to section 732(c)(2) of the Act 
and 19 CFR 353.13(b).

    Dated: November 21, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-29237 Filed 11-25-94; 8:45 am]
BILLING CODE 3510-DS-P