[Federal Register Volume 61, Number 60 (Wednesday, March 27, 1996)]
[Notices]
[Pages 13481-13482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7346]



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DEPARTMENT OF COMMERCE

International Trade Administration
[A-437-001]


Truck Trailer Axle and Brake Assemblies From Hungary; Termination 
of Antidumping Duty Investigation

AGENCY: International Trade Administration/Import Administration, 
Commerce.

ACTION: Notice of termination of antidumping duty investigation.

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SUMMARY: On December 1, 1995, the Department received a letter from 
counsel to Rockwell International Corporation (``the petitioner''). The 
letter notified the Department that the petitioner had no further 
interest in the suspended investigation on truck trailer axle-and-brake 
assemblies and parts thereof from Hungary and that it was, therefore, 
withdrawing the petition. On December 8, 1995, the Department requested 
parties to the proceeding to provide comments on the Department's 
proposal to terminate the suspended antidumping duty investigation on 
truck trailer axle-and-brake assemblies and parts thereof from Hungary. 
The Department is now terminating this suspended investigation.

EFFECTIVE DATE: March 27, 1996.

FOR FURTHER INFORMATION CONTACT: Steven Presing, Office of Agreements 
Compliance, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street & Constitution Avenue, N.W., 
Washington, D.C. 20230; telephone (202) 482-3793.

SUPPLEMENTARY INFORMATION:

Background

    On February 12, 1981, the Department received a petition from 
counsel representing Rockwell International Corporation of Pittsburgh, 
Pennsylvania. The petitioner simultaneously filed a copy of the 
petition with the United States International Trade Commission (the 
Commission). The petitition alleged that truck trailer axle-and-brake 
assemblies and parts thereof were being sold in the United States at 
less than fair value and that the truck trailer axle industry in the 
United States was being materially injured by reason of the importation 
of this merchandise. After conducting a summary review of the petition, 
the Department instituted an investigation, and notice was published in 
the Federal Register of March 11, 1981 (46 FR 16109).
    On March 30, 1981, the Commission notified us that it had 
determined, as required by section 733(a) of the Act, that there was a 
reasonable indication that an industry in the United States was 
materially injured by reason of the importation of the subject imports. 
The Commission's determination and the reasons therefore were published 
in the Federal Register on April 8, 1981 (46 FR 21121).
    On September 30, 1981, the Department preliminarily determined that 
truck trailer axle-and-brake assemblies were being sold in the United 
States at less than fair value. Notice of the preliminary affirmative 
antidumping determination was published in the Federal Register on 
September 17, 1981 (46 FR 46152).
    In a letter dated October 29, 1981, counsel for the respondent 
Hungarian Railway Carriage and Machine Works (RABA) proposed to enter 
into a suspension agreement pursuant to section 734 of the Act and 
section 353.18 (19 CFR 353.18 (1994)) of the Department's regulations. 
On November 3, 1981, the Department provided copies of the proposed 
suspension agreement between RABA and the Department of Commerce to the 
petitioner for its consultation and to other parties to the proceeding 
for their comments. On December 1, 1981, Rockwell International 
Corporation (the petitioner) and Dana Corporation (a U.S. producer of 
the subject merchandise) submitted comments on the proposed suspension 
agreement. After considering all comments and consulting with the 
petitioner in accordance with section 734(e) of the Act, the Department 
determined that the criteria for suspension of an investigation 
pursuant to section 734(e) of the Act had been met.
    On January 4, 1982, the Department published in the Federal 
Register a notice of suspension of antidumping duty investigation on 
truck trailer axles from Hungary (47 FR 66). The basis for the 
suspension of investigation was an agreement reached between the 
Department and RABA in which RABA agreed to revise its prices to 
eliminate sales of this merchandise to the United States at less than 
fair value.
    Between January 1982 and June 1993, the suspension agreement was 
administered pursuant to the terms of the agreement. On June 9, 1993, 
the Department received a letter from RABA notifying the Department 
that RABA was withdrawing from the suspension agreement. In RABA's 
letter of withdrawal, RABA stated that it no longer possessed any 
physical capacity to manufacture truck trailer axles, and that its 
contractual obligations to provide truck trailer axles to its sole U.S. 
importer of the merchandise had terminated. Further, RABA stated that 
it had no intention for the foreseeable future of reinvesting in 
machinery and equipment in order to be able to manufacture truck 
trailer axles. Therefore, RABA stated that there was no purpose in 
continuing to maintain the suspension agreement, and that RABA was 
thereby withdrawing from it.
    On June 21, 1993, the petitioner objected to RABA's withdrawal from 
the suspension agreement. The petitioner alleged that BPW-RABA, the 
company formed when RABA sold its truck trailer axle-producing facility 
to the German company BPW in 1991, was a successor in interest to RABA 
with regard to the suspension agreement. Therefore, the petitioner 
argued that BPW-RABA, and not RABA, was the proper party to withdraw 
from the suspension agreement.
    In light of petitioner's objection regarding RABA's standing to 
withdraw from the suspension agreement, the Department, in a letter 
dated November 8, 1993, inquired into BPW-RABA's interest in the 
suspension agreement. The Department stated in the letter that if BPW-
RABA indicated that it was not

[[Page 13482]]
interested in the suspension agreement, the Department would terminate 
the suspension agreement and resume the suspended investigation. 
Conversely, if BPW-RABA were to indicate that it was interested in the 
suspension agreement, the Department could initiate a changed 
circumstances administrative review to determine whether BPW-RABA 
should be treated as a successor in interest to RABA. The Department 
requested a response from BPW-RABA, indicating its interest in the 
continuation of the suspension agreement, no later than 60 days from 
the date of the letter. Absent a response from BPW-RABA by January 7, 
1994, the Department would assume that BPW-RABA had no interest in the 
agreement and, therefore, the Department would resume the 
investigation.
    On January 5, 1994, BPW-RABA notified the Department that the 
agreement seemed to have no relevance to it for the following reasons: 
1) it had never been an exporter of truck trailer axles to the United 
States, although it had supplied RABA with certain truck trailer axle 
components; 2) it had stopped production of truck trailer axles for the 
United States in 1992; and 3) it had removed the truck trailer axle 
production equipment from its plant.
    On May 5, 1994, the petitioner stated that they believed that BPW-
RABA still produced axles, but that it was not currently exporting them 
to the United States. Rockwell stated that it would like the Department 
to inquire further into BPW-RABA's production capabilities. On 
September 29, 1994, the Department conducted a verification at the 
production facilities of BPW-RABA in Szombathely, Hungary. The primary 
purpose of the verification was to investigate BPW-RABA's claim that 
the agreement was no longer relevant due to BPW-RABA's cessation of 
production/exports of subject merchandise to the United States. Based 
on the verification, there was no evidence to support the claim that 
BPW-RABA was continuing to produce covered merchandise for the U.S. 
market. For further details of the verification, please see the 
verification report placed on the record.
    On December 1, 1995, counsel to the petitioner notified the 
Department that Rockwell International Corporation had no further 
interest in the suspended investigation on truck trailer axle-and-brake 
assemblies and parts thereof from Hungary and that it was, therefore, 
withdrawing the petition.
    On December 8, 1995, the Department notified parties to the 
proceeding of its intent to terminate the suspended investigation 
pursuant to Sec. 353.17(a)(1) of the Department's regulations (19 CFR 
353.17(a)(1)(1994)). We received comments from interested parties 
concerning the proposed termination on January 11, 1996.

Scope of Investigation

    The merchandise covered by the investigation are those trailer 
axle-and-brake assemblies and parts thereof (the ``product'') imported 
under item numbers 692.32 and 692.60 of the Tariff Schedules of the 
United States (TSUS) or under item number 8716.40 and 8716.90 of the 
Harmonized Tariff Schedule (HTS) of the United States. This includes 
any parts which may be imported under any other TSUS category to be 
utilized in trailer axles. These parts include, but are not limited to 
the beam, spindle, brake spider, camshaft, brake shoes, and separate 
brake assemblies when imported for use on trailer axles. The agreement 
did not include separate brake assemblies and other parts which are to 
be utilized solely in truck components other than trailer axles.

Termination of Investigation

    Under Sec. 353.17(a) of the Department's regulations (19 CFR 
353.17(a)(1994)) the Department may terminate an investigation if the 
petitioner withdraws the petition, after notifying all parties to the 
proceeding and after consultation with the International Trade 
Commission (ITC). Section 353.17(a) further provides that the 
Department may not terminate an investigation unless it concludes that 
the termination is in the public interest. We have notified all parties 
to the proceeding and have consulted with the ITC. We also conclude 
that termination of the investigation is in the public interest (see 
public interest assessment memo, March 6, 1996).
    On December 1, 1995, Rockwell International Corporation notified 
the Department that it has no further interest in the suspended 
investigation on truck trailer axle-and-brake assemblies and parts 
thereof from Hungary and that it was, therefore, withdrawing its 
petition. Based on the Department's request for comments to the 
proposed termination, two letters were filed on January 11, 1996. Eaton 
Corporation (an importer of the subject merchandise) expressed its 
support for the proposed termination. Dana Corporation objected to the 
proposed termination. In its public interest assessment regarding the 
termination of the suspended investigaton , the Department addresses 
the objections raised by Dana Corporation.
    Based on information contained in the record, the Department is 
terminating the antidumping duty investigation on truck trailer axle-
and-brake assemblies and parts thereof from Hungary. This action is 
taken pursuant to section 734(a)(1) of the Tariff Act of 1930, as 
amended (19 U.S.C. 1673c(a)(2)), and Sec. 353.17(a)(2) of Commerce's 
regulations (19 CFR 353.17(a)(2)(1994)).

    Dated: March 14, 1996.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 96-7346 Filed 3-26-96; 8:45 am]
BILLING CODE 3510-DS-P