[Federal Register Volume 60, Number 111 (Friday, June 9, 1995)]
[Notices]
[Pages 30518-30519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14212]



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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-703]


Internal Combustion Forklift Trucks From Japan; Amendment to 
Final Results of Antidumping Duty Administrative Review

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

ACTION: Notice of Amendment to Final Results of Antidumping Duty 
Administrative Review.

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SUMMARY: On March 1, 1994, and June 23, 1994, the United States Court 
of International Trade (CIT) affirmed the final results of 
redetermination issued by the Department of Commerce (the Department) 
pursuant to three remands of the final results of the first review of 
the antidumping duty order on internal combustion industrial forklift 
trucks from Japan (57 FR 3167, January 28, 1992). These remands 
pertained to three manufacturers/exporters of forklift trucks from 
Japan. The period of review was November 25, 1987, through May 31, 
1989. The CIT's opinions have not been appealed. Therefore, we are 
amending the final results of this review.

EFFECTIVE DATE: June 9, 1995.

FOR FURTHER INFORMATION CONTACT: Davina Friedmann or Michael Rill, 
Office of Antidumping Compliance, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC, 20230; telephone: (202) 482-
4733.

SUPPLEMENTARY INFORMATION:

Background

    On January 28, 1992, the Department published in the Federal 
Register the final results of the first administrative review of the 
antidumping duty order on forklift trucks from Japan (57 FR 3167; 
January 28, 1992). The review covered four manufacturers/exporters of 
forklift trucks. The period of review was November 25, 1987, through 
May 31, 1989. In February 1992, interested parties initiated actions in 
the CIT contesting the final results of this review.
    On July 23, 1993, the CIT, in Toyota Motor Sales, U.S.A., Inc. and 
Toyo Umpanki Company, Ltd. v. United States, remanded the final results 
to the Department. The CIT instructed the Department to (1) reconsider 
whether it properly allocated Toyota Motor Corporation's (Toyota) U.S. 
brokerage and handling, inland freight, and warranty expenses to the 
forklifts subject to the administrative review; (2) reconsider whether 
it properly recategorized Toyota's home market direct warranty 
expenses; (3) correct the treatment of the circumstance-of-sale (COS) 
adjustment for certain direct selling expenses of Toyo Umpanki, Ltd. 
(TCM) ; and (4) correct the treatment of TCM's credit income in the 
calculation of U.S. price (USP).
    The Department submitted its final results of redetermination 
pursuant to court remand on September 17, 1993. In the final results of 
redetermination, the Department reallocated Toyota's U.S. brokerage and 
handling, inland freight, and warranty expenses over Toyota's total 
industrial truck sales for exporter's sales price (ESP) sales, as 
opposed to allocating these expenses only over Toyota's sales of 
subject merchandise. The Department also corrected arithmetic errors in 
the treatment of Toyota's home market warranty expenses in both the 
purchase price and ESP analyses for two categories of forklift trucks.
    The Department changed TCM's ESP analysis so that the direct 
selling expenses which were included in constructed value (CV) were 
subtracted from foreign market value (FMV). As ordered by the CIT, the 
Department also corrected TCM's purchase price analysis by adding U.S. 
credit income to USP instead of to FMV. As a result of these changes, 
the dumping margins changed from 12.22% to 12.02% for Toyota, and 
changed from 7.71% to 6.17% for TCM. The CIT affirmed these results and 
dismissed the case on March 1, 1994.
    The CIT, in Hyster Co., et al. v. United States, issued a second 
remand on August 6, 1993. This remand pertained only to Toyota. The 
Department submitted its final results of redetermination on October 4, 
1993. In accordance with the CIT's instructions, [[Page 30519]] the 
Department corrected its treatment of selling expenses, recategorizing 
certain U.S. advertising expenses from indirect to direct selling 
expenses. This recategorization affected ESP sales only. Despite this 
change, Toyota's dumping margin remained at 12.02%.
    On March 1, 1994, the CIT, in NACCO Materials Handling Group, Inc. 
v. United States (formerly known as Hyster Co., et al. v. United 
States), issued another order remanding the final results to the 
Department to (1) reconsider the treatment of the commodity tax in 
Japan for Toyota, TCM, and Nissan Motor Company (Nissan); (2) 
redetermine whether Nissan's and Toyota's related-party sales were at 
arm's-length prices; and (3) correct certain errors in TCM's database.
    The Department changed its methodology for commodity tax 
adjustments by eliminating the COS adjustment for differences in taxes. 
The Department added to USP the result of multiplying the foreign 
market tax rate by the price of the U.S. merchandise at the same point 
in the chain of commerce that the foreign market tax was applied to 
foreign market sales. The Department also adjusted the tax amount 
calculated for USP and the amount of tax included in FMV. We deducted 
the portions of the foreign market tax and the U.S. tax adjustment that 
are the result of expenses that are included in the foreign market 
price used to calculate the foreign market tax and in the USP used to 
calculate the USP tax, but later deducted to calculate FMV and USP.
    The CIT ordered the Department to point to substantial evidence on 
the record in support of its determination that Nissan and Toyota's 
related-party transfer prices were negotiated at arm's length, and, if 
unable to do so, to make any necessary adjustments. The Department was 
not able to find evidence on the record to support its original 
determination that Nissan's and Toyota's reported transfer prices were 
at arm's length. Therefore, the Department adjusted Nissan's material 
costs in the calculation of home market cost of production, CV, and 
further manufacturing in the United States. The Department also 
adjusted for Toyota's material costs by disallowing Toyota's claimed 
discount from the dealer price list and using the related supplier's 
prices to unrelated dealers in calculating the cost of inputs in the 
computation of Toyota's United States further manufacturing costs.
    As directed by the CIT, the Department also corrected certain 
errors in TCM's database. The Department corrected errors regarding (1) 
reported fees paid to trading companies, (2) U.S. brokerage and 
handling, (3) containerization costs, (4) ocean freight, (5) marine 
insurance, (6) U.S. duty, (7) U.S. freight to warehouse, (8) credit, 
and (9) warranty.
    The CIT affirmed these results and dismissed the case on June 23, 
1994.

Amended Final Results of Review

    As a result of the revisions made pursuant to these remands, we 
determine that the following weighted-average dumping margins exist for 
the period November 25, 1987, through May 31, 1989:

------------------------------------------------------------------------
                                                                Margin  
                   Manufacturer/Exporter                      (percent) 
------------------------------------------------------------------------
Nissan.....................................................        7.39%
TCM........................................................        6.74%
Toyota.....................................................       13.75%
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    Because the CIT's decision has not been appealed, the Department 
will order the immediate lifting of the suspension of liquidation of, 
and instruct the U.S. Customs Service to assess antidumping duties on, 
entries subject to these reviews, as appropriate. Individual 
differences between FMV and USP may vary from the percentages stated 
above. The Department will issue appraisement instructions concerning 
these entries directly to the Customs Service.
    This notice is published in accordance with section 751(a) (1) of 
the Tariff Act of 1930, as amended (19 U.S.C. 1675(a) (1)), and 19 CFR 
353.22(c) (8).

    Dated: June 2, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-14212 Filed 6-8-95; 8:45 am]
BILLING CODE 3510-DS-P