[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Notices]
[Pages 31507-31508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15683]



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DEPARTMENT OF COMMERCE
[A-583-009]


Color Television Receivers, Except for Video Monitors, From 
Taiwan; Amended 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 October 21, 1994, in the case of Zenith Electronics 
Corporation v. United States, 865 F. Supp. 890 (Zenith), the United 
States Court of International Trade (the Court) affirmed the Department 
of Commerce's (the Department's) third results of redetermination on 
remand and prior remand determinations of the final results of the 
first administrative review of the antidumping duty order on color 
television receivers, except for video monitors (CTVs), from Taiwan, to 
the extent that they were not subsequently modified by the Court. The 
Court also vacated its July 29, 1991, order to the extent that the 
order held that ``no assessment rate cap may be applied in liquidating 
the subject entries unless the importer paid a cash duty for an 
estimated dumping duty.'' As a result, the Court ordered the Department 
to apply the assessment rate cap to all subject imports entered between 
the publication dates of the Department's preliminary affirmative 
determination of sales at less than fair value (LTFV) and the 
International Trade Commission's (ITC's) final affirmative injury 
determination.
    Consistent with the decision of the United States Court of Appeals 
for the Federal Circuit (CAFC) in Timken Co. v. United States, 893 F.2d 
337 (CAFC 1990) (Timken), on January 17, 1995, the Department published 
a notice in the Federal Register which suspended liquidation of the 
subject merchandise entered or withdrawn from warehouse for consumption 
until there was a ``final and conclusive'' decision in this case (60 FR 
3391). On February 12, 1996, the CAFC upheld the Department's 
methodology for determining direct and indirect expenses for purposes 
of making a circumstance-of-sale (COS) adjustment in calculating AOC 
International, Inc.'s (AOC) final margin and remanded the case back to 
the Court for recalculation of dumping margins in a manner consistent 
with the CAFC's decision. Although the case is not yet ``final and 
conclusive'' for AOC, the other respondents in this proceeding are not 
affected by this outstanding issue. We have, therefore, prepared these 
amended final results for those respondents.

EFFECTIVE DATE: June 20, 1996.

FOR FURTHER INFORMATION CONTACT: Maureen McPhillips or John Kugelman, 
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-
5253.

SUPPLEMENTARY INFORMATION:

Background

    On December 29, 1986, the Department published in the Federal 
Register the final results of the first administrative review of the 
antidumping duty order on CTVs from Taiwan (51 FR 46895). In those 
results, the Department set forth its finding of weighted-average 
margins for nine companies, AOC, Capetronic (BSR) Ltd. (Capetronic), 
Fulet Electronic Industrial Co., Ltd. (Fulet), Nettek Corp., Ltd. 
(Nettek), RCA Taiwan (RCA), Shinlee Corp. (Shinlee), Shin-Shirasuna 
Electric Co. (Shin-Shirasuna), and Tatung Co. (Tatung), for the period 
of review (POR) October 19, 1983 through March 31, 1985, and Sampo 
Corp. (Sampo) for the POR April 1, 1984 through March 31, 1985, and 
announced its intent to instruct the U.S. Customs Service to assess 
antidumping duties on all appropriate entries.
    Subsequent to the Department's final results, four of the reviewed 
companies and a domestic producer, Zenith, filed lawsuits with the 
Court challenging these results. Thereafter, on September 11, 1989, the 
Court issued an order and opinion remanding the Department's 
determination so that the Department could make reasonable allowances 
for ``bona fide differences in warranty expenses between the United 
States and the home market'', and to reconsider an adjustment for 
Sampo's bad debt losses based on its bad debt experience during the 
period or another appropriate period. See AOC International, Inc. et. 
al. v. United States, 721 F. Supp. 314 (CIT 1989). The Department 
requested a voluntary remand for the following reasons: to recalculate 
constructed value CV) for Tatung; to recalculate AOC's inland freight 
and explain the calculation methodology; to adjust Tatung's foreign 
market value (FMV) for discounts and rebates which Tatung paid to 
distributors for trade-ins of used CTVs by the dealers in the home 
market; to allocate advertising and sales promotion expenses on a 
product-line, rather than a model-specific basis; and to add to the 
U.S. price (USP) the amount of commodity taxes forgiven upon 
exportation of CTVs. On January 31, 1991, the Department filed its 
first remand results with the Court.
    On July 29, 1991, the Court ordered a second remand for the 
Department to do the following: Determine the amount of commodity tax 
passed through to home market purchasers and add that amount to the 
U.S. price (USP); cease applying an assessment rate cap in liquidating 
entries of the subject merchandise unless the importer paid a cash 
deposit for an estimated antidumping duty; eliminate the use of sales 
adjustments in this case to the extent that they reduce CV general 
expenses to less than the statutory minimum amount; remove all home 
market export-related expenses from exporter's sale's price (ESP); 
request additional information from

[[Page 31508]]

AOC in order to remove from USP the import duties paid with respect to 
home market models, and instead add the import duties forgiven with 
respect to the exported models; investigate whether Shin-Shirasuna's 
sales to Canada were fictitious so as to manipulate the foreign market 
value for comparison with imports to the United States and thereby 
minimize the antidumping duty liability; recalculate Capetronic's 
dumping margins using production data related to a specific sale 
instead of using the weighted-average costs of production, remove from 
USP the value of certain proprietary selling expenses for Shirasuna; 
and correct certain programming errors. See Zenith Electronics 
Corporation v. United States, 770 F. Supp. 648 (CIT 1991). In addition, 
the Department requested a remand to explain the reasons underlying its 
de minimis determination. On January 31, 1992, the Department filed its 
second remand results with the Court.
    On January 28, 1993, the Court ordered a third remand so that the 
Department could reconsider the tax pass-through in a manner consistent 
with the constant costs and imperfect competition characteristic of the 
Taiwanese color television market. In addition, the Court ordered the 
Department to ``cap'' the upward adjustment to USP for foreign tax at 
the amount of tax found to be passed through to home market purchasers, 
to make an adjustment for the difference in circumstances of sale 
included in the U.S. and home market taxable values, to insure that the 
general expenses component of CV was not reduced at any time to less 
than the statutory minimum amount by reason of adjustments for selling 
expenses associated with disregarded home market sales, and to correct 
two clerical errors. See Zenith Electronic Corp. v. United States, 812 
F. Supp. 228 (CIT 1993). On May 5, 1993, the Department filed its third 
remand results with the Court.
    On October 21, 1994, the Court, in Zenith, affirmed the 
Department's third remand results, and affirmed the prior remand 
determinations in this case to the extent that they were not 
subsequently modified by the Court. The Court also vacated its July 29, 
1991 order to the extent that the order held that ``no assessment rate 
cap may be applied in liquidating the subject entries unless the 
importer paid a cash duty for an estimated dumping duty.'' As a result, 
the Court ordered the Department to apply the assessment rate cap to 
all subject imports entered between the publication dates of the 
Department's preliminary affirmative determination of sales at LTFV and 
the ITC's final affirmative injury determination, and it dismissed the 
case.
    Because the Court's October 21, 1994 order affirmed the 
Department's recalculation of Capetronic's rate at 1.36 percent, the 
Department published amended final results of review for Capetronic in 
this administrative review. See 60 FR 11955 (March 3, 1995). As a 
result of this new rate, the Court issued an order in the third 
administrative review of CTVs from Taiwan to rescind its previous 
revocation of Capetronic from the antidumping duty order on CTVs from 
Taiwan because, as a result of the Department's redetermination of its 
rate in the first administrative review, Capetronic did not have three 
consecutive years of sales at not less than fair value. See Tatung 
Company v. United States, Court No. 90-12-00645 (March 8, 1995); see 
also 60 FR 29822 (June 6, 1995).
    On January 17, 1995, the Department, consistent with the decision 
of the CAFC in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken), published a notice in the Federal Register stating that 
it would not order the liquidation of the subject merchandise entered 
or withdrawn from warehouse for consumption prior to a ``final and 
conclusive'' decision in this case. Although further action is required 
by the Court with regard to the Department's calculation of COS 
adjustments for AOC, this issue does not affect the other respondents 
in this review and, therefore, the Court's October 21, 1994 decision is 
``final and conclusive'' for those respondents.
    As a result of the Department's redeterminations on remand, we have 
determined the weighted-average dumping margins for CTVs from Taiwan 
for the following periods to be:

------------------------------------------------------------------------
                                                                 Margin 
      Manufacturer/ exporter               Time period           percent
------------------------------------------------------------------------
Fulet Elect. Industrial, Co......  10/19/83-03/31/85                0.08
Sampo Corp.......................  04/01/84-03/31/85                6.29
Tatung Co........................  10/19/83-03/31/85                2.56
------------------------------------------------------------------------

    The Department will determine, and the Customs Service will assess, 
antidumping duties on the appropriate entries for the above companies.
    Once the Court remands Zenith back to the Department and the case 
is ``final and conclusive'' with respect to AOC, we will recalculate 
AOC's dumping margin in accordance with the Court's opinion, publish an 
amended Federal Register notice, and issue liquidation instructions for 
AOC for the first administrative review of CTVs from Taiwan.
    This amendment of final results of review and notice are in 
accordance with section 751(f) of the Tariff Act of 1930, as amended 
(19 U.S.C. 1675(f)) and 19 CFR 353.28(c).

    Dated: June 4, 1996.
Paul L. Joffe,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-15683 Filed 6-19-96; 8:45 am]
BILLING CODE 3510-DS-M