[Federal Register Volume 61, Number 62 (Friday, March 29, 1996)]
[Notices]
[Pages 14075-14076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7626]



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DEPARTMENT OF COMMERCE
[A-570-601]


Court Decision and Continuation of Suspension of Liquidation: 
1989-1990 Administrative Review of Tapered Roller Bearings and Parts 
Thereof From the People's Republic of China

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

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EFFECTIVE DATE: March 29, 1996.

FOR FURTHER INFORMATION CONTACT: John Beck, Office of Antidumping 
Investigations, Import Administration, U.S. Department of Commerce, 
14th Street and Constitution Avenue, N.W., Washington, D.C. 20230, 
telephone: (202) 482-3464.

SUMMARY: On February 27, 1996, in the case of UCF America Inc. and 
Universal Automotive Co., Ltd. v. United States and the Timken Company, 
Cons. Ct. No. 92-01-00049, Slip Op. 96-42 (UCF), the United States 
Court of International Trade (the Court) affirmed in part the 
Department of Commerce's (the Department's) results of redetermination 
on remand of the Final Results of Sales at Less Than Fair Value: 1989-
1990 Administrative Review of Tapered Roller Bearings and Parts Thereof 
from the People's Republic of China. Consistent with the decision of 
the United States Court of Appeals for the Federal Circuit (Federal 
Circuit) in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) 
(Timken), the Department will not order the liquidation of the subject 
merchandise entered or withdrawn from warehouse for consumption prior 
to a ``conclusive'' decision in this case.

SUPPLEMENTARY INFORMATION:

Background

    During 1987, the Department completed its investigation of tapered 
roller bearings from the People's Republic of China (Final 
Determination of Sales at Less Than Fair Value: Tapered Roller Bearings 
From the People's Republic of China (52 FR 19748, May 27, 1987)). In 
addition to setting a rate for Premier Bearing (a Hong Kong trading 
company), the Department issued an ``all others'' rate of 0.97 percent.
    Subsequently, interested parties challenged the final 
determination. The

[[Page 14076]]
Court remanded the case and, on February 26, 1990, the Department 
issued an amendment to the final determination (Amendment to Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order in Accordance With Decision Upon Remand: Tapered Roller Bearings 
From the People's Republic of China (55 FR 6669, Feb. 26, 1990)). In 
its amendment, the Department issued a new ``all others'' rate of 2.96 
percent.
    On July 26, 1990, the Department initiated the third administrative 
review of tapered roller bearings from the People's Republic of China, 
covering the period June 1, 1989 through May 31, 1990 (Initiation of 
Antidumping Duty Administrative Reviews (55 FR 30490, July 26, 1990)). 
The Department initiated on CMEC (a state trading company) and Premier.
    In 1991, the Department established a new policy concerning non-
market economies. Under this policy, all non-market economy exporters 
are presumed to be a single enterprise controlled by the central 
government, which receives a single rate (the ``PRC rate'') (see the 
Final Determination of Sales At Less Than Fair Value: Heavy Forged Hand 
Tools, Finished or Unfinished, With or Without Handles, From the 
People's Republic of China (56 FR 241, Jan. 3, 1991); and Final Results 
of Antidumping Duty Administrative Review: Iron Construction Castings 
from the People's Republic of China (56 FR 2742, Jan. 24, 1991)). A 
company is entitled to a separate rate only if it establishes that it 
is not subject to de jure or de facto control by the central government 
(see the Final Determination of Sales at Less Than Fair Value: Silicon 
Carbide from the People's Republic of China (59 FR 22585, May 2, 
1994)).
    The Department issued its preliminary results for the third 
administrative review of TRB's from the PRC on October 4, 1991 
(Preliminary Results of Antidumping Duty Administrative Review: Tapered 
Roller Bearings and Parts Thereof From the People's Republic of China 
(56 FR 50309, Oct. 4, 1991)). The Department preliminarily issued 
separate rates to all reviewed companies. Id. at 50310.
    On December 31, 1991, the Department issued its final results 
(Final Results of Antidumping Duty Administrative Review: Tapered 
Roller Bearings and Parts Thereof From the People's Republic of China 
(56 FR 67590, Dec. 31, 1991)). The Department issued separate rates for 
all companies participating in the review. For non-reviewed companies, 
the Department issued ``an `all others' rate equal to the highest rate 
for any company in this administrative review.'' Id. at 67597.
    Interested parties challenged the results of the third 
administrative review. On December 5, 1994, the CIT issued its opinion 
in UCF America v. United States, 870 F. Supp. 1120 (CIT 1994), 
remanding the results to the Department. The CIT instructed the 
Department to: 1) reinstate the ``all others'' cash deposit rate to 
unreviewed companies which was applicable prior to the final results 
for entries which have not become subject to assessment pursuant to a 
subsequent administrative review; and 2) eliminate the arithmetic error 
with regard to Jilin's foreign inland freight costs.
    The Department filed its remand results on March 6, 1995. In the 
remand results, the Department: 1) reinstated the PRC rate for the 
third review at 2.96 percent and 2) corrected the error in the foreign 
inland freight calculation for Jilin. However, the Department stated 
that while it agreed that it incorrectly established an ``all others'' 
rate of 8.83 percent in the final results of the review, its reasoning 
differed from that of the Court.
    On February 27, 1996, the Court sustained the Department's remand 
results (see UCF America Inc. and Universal Automotive Co., Ltd. v. 
United States and the Timken Company, Cons. Ct. No. 92-01-00049, Slip 
Op. 96-42. The Court stated that it ``sees no basis for a ``PRC rate'' 
but finds that Commerce properly 1) reinstated the ``all others'' cash 
deposit rate of 2.96% to unreviewed companies for entries which have 
not become subject to assessment pursuant to a subsequent 
administrative review; and 2) corrected the arithmetic error related to 
foreign inland freight costs for Jilin Machinery Import and Export 
Corporation.'' Thus, the Court sustained the rate applied by the 
Department but rejected the ``PRC rate'' terminology.

Continuation of Suspension of Liquidation

    In its decision in Timken, the Federal Circuit held that, pursuant 
to 19 U.S.C. 1516a(e), the Department must publish notice of a decision 
of the Court or Federal Circuit which is ``not in harmony'' with the 
Department's determination. Publication of this notice fulfills this 
obligation. The Federal Circuit also held that in such a case, the 
Department must suspend liquidation until there is a ``conclusive'' 
decision in the action. A ``conclusive'' decision cannot be reached 
until the opportunity to appeal expires or any appeal is decided by the 
Federal Circuit. Therefore, the Department will continue to suspend 
liquidation at the current rates pending the expiration of the period 
to appeal or pending a final decision of the Federal Circuit if UCF is 
appealed.

    Dated: March 21, 1996.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 96-7626 Filed 3-28-96; 8:45 am]
BILLING CODE 3510-DS-P