[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)] [Notices] [Pages 35724-35726] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-17278] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE [A-583-810] Chrome-Plated Lug Nuts From Taiwan; Preliminary Results of Antidumping Duty Administrative Review and Termination in Part AGENCY: Import Administration, International Trade Administration, Department of Commerce. ACTION: Notice of Preliminary Results of Antidumping Duty Administrative Review and Termination in Part. ----------------------------------------------------------------------- SUMMARY: In response to a request by the petitioner, the Department of Commerce (the Department) is conducting an administrative review of the antidumping duty order on chromeplated lug nuts from Taiwan. The review covers 19 manufacturers/exporters of the subject merchandise to the United States for the period September 1, 1994, through August 31, 1995. The review indicates the existence of margins for all firms. We have preliminarily determined that sales have been made below normal value (NV). If these preliminary results are adopted in our final results of administrative review, we will instruct U.S. Customs to assess antidumping duties equal to the difference between export price and the NV. Interested parties are invited to comment on these preliminary results. Parties who submit argument are requested to submit with each argument (1) and statement of the issue and (2) a brief summary of the argument. EFFECTIVE DATE: July 8, 1996. FOR FURTHER INFORMATION CONTACT: Todd Peterson or Thomas Futtner, Office of Antidumping Compliance, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-4195 or 482-3814, respectively. Applicable Statute and Regulations Unless otherwise indicated, all citations to the statute are references to the provisions effective January 1, 1995, the effective date of the amendments made to the Tariff Act of 1930 (the Act) by the Uruguay Round Agreements Act (URAA). In addition, unless otherwise indicated, all citations to the Department's regulations are to the current regulations, as amended by the interim regulations published in the Federal Register on May 11, 1995 (60 FR 25130). SUPPLEMENTARY INFORMATION: Background On September 20, 1991, the Department published the antidumping duty order on chrome-plated lug nuts from Taiwan (56 FR 47736). The Department published a notice of ``Opportunity to Request Administrative Review'' on September 12, 1995 (60 FR 47349). The petitioner, Consolidated International Automotive, Inc. (Consolidated), requested that we conduct an administrative review for the period September 1, 1994, through August 31, 1995. A respondent, Chuen Chao Enterprise Company LTD (Chuen Chao) requested an administrative review of its sales. We published a notice of ``Initiation of Antidumping and Countervailing Duty Administrative Review'' on October 12, 1995 (60 FR 53164), and sent questionnaires to the following firms: Anmax Industrial Co., Ltd. (Anmax), Buxton International Corporation (Buxton), Chu Fong Metallic Electric Co. (Chu Fong), Everspring Plastic Corp. (Everspring), Gingen Metal Corp. (Gingen), Goldwinate Associates, Inc. (Goldwinate), Gourmet Equipment Corporation (Gourmet), Hwen Hsin Enterprises Co., Ltd. (Hwen), Kwan How Enterprises Co., Ltd. (Kwan How), Kwan Ta Enterprises Co. Ltd (Kwan Ta), Kuang Hong Industries, Ltd. (Kuang), Multigrand Industries Inc. (Multigrand), San Chien Electric Industrial Works, Ltd. (San Chien), San Shing Hardware Works Co., Ltd. (San Shing), Transcend International Co. (Transcend), Trade Union International Inc./Top Line (Top Line), Uniauto, Inc. (Uniauto), Wing Tang Electrical Manufacturing Company, Inc (Wing) and Chuen Chao. On December 11, 1995, Chuen Chao withdrew its request for administrative review. Since Chuen Chao was the only party which requested a review of its sales, we are terminating the review of Chuen Chao and its entries will be liquidated at the rate at which they were entered. Gourmet responded to the questionnaire. Buxton and Uniauto are related parties and so responded to the questionnaire as one respondent. Questionnaires that were sent to Chu Fong, Kwan How, Kwan Ta, Everspring, Gingen, Goldwinate, Multigrand and Kuang were returned as undeliverable. These firms will receive the ``all others'' [[Page 35725]] rate established in the less-than-fair-value (LTFV) investigation, 6.93 percent. The Department has now conducted the administrative review in accordance with section 751 of the Act. Scope of the Review On April 19, 1994, the Department issued its Final Scope Clarifications on Chrome-Plated lug Nuts from Taiwan and the PRC. The scope, as clarified, is described in the subsequent paragraph. All lug nuts covered by this review conform to the April 19, 1994 scope clarification. Imports covered by this review are shipments of one-piece and two- piece chrome-plated lug nuts, finished or unfinished, more than 11/16 inches (17.45 millimeters) in height and which have a hexagonal (hex) size of at lease 3/4 inches (19.05 millimeters) but not more than on inch (25.4 mm), plus or minus 1/16 of an inch (1.59 mm). The term ``unfinished'' refers to unplated and/or unassembled chrome-plated lug nuts. The subject merchandise is used for securing wheels to cars, vans, trucks, utility vehicles, and trailers. Zinc-plated lug nuts, finished or unfinished, and stainless-steel capped lug nuts are not in the scope of this review. Chrome-plated lock nuts are also not in the scope of the review. During the period of review (POR), chrome-plated lug nuts were classifiable under Harmonized Tariff Schedule (HTS) subheading 7318.16.00.00. Although the HTS subheading is provided for convenience and Customs purposes, our written description of the scope of this review is dispositive. Use of Facts Otherwise Available We preliminarily determine that in accordance with section 776(d) of the Act, the use of facts available is appropriate for Anmax, Hwen, San Chien, San Shing, Transcend, Top Line, and Wing because these firms did not respond to the Department's antidumping questionnaire. The Department finds that, in not responding to the questionnaire, these firms failed to cooperate by not acting to the best of their ability to comply with requests for information from the Department. Because necessary information is not available on the record with regard to sales by these firms as a result of their withholding the requested information, we must make our preliminary determination based on facts otherwise available pursuant to section 776(a) of the Act. Where the department must base the entire dumping margin for a respondent in an administrative review on the facts available because that respondent failed to cooperate, section 776(b) authorizes the Department to use an inference adverse to the interests of the respondent in choosing the facts available. Section 776(b) also authorizes the Department to use as adverse facts available information derived from the petition, the final determination, a previous administrative review, or other information placed on the record. The statute also provides that the facts otherwise available may be based on secondary information. Because information from prior proceedings constitutes secondary information, section 776(c) provides that the Department shall, to the extend practicable, corroborate that secondary information from independent sources reasonably at its disposal. The Statement of Administrative Action (SAA) provides that corroborate means simply that the Department will satisfy itself that the secondary information to be used has probative value. To corroborate secondary information, the Department will, to the extent practicable, examine the reliability and relevance of the information to be used. However, unlike other types of information, such as input costs or selling expenses, there are no independent sources for calculated dumping margins. The only source for margins is administrative determinations. Thus, in an administrative review, if the Department chooses as total adverse facts available a calculated dumping margin from a prior segment of the proceeding, it is not necessary to question the reliability of the margin for that time period. With respect to the relevance aspect of corroboration, however, the Department will consider information reasonably at its disposal as to whether there are circumstances that would render a margin not relevant. Where circumstances indicate that the selected margin is not appropriate as adverse facts available, the Department will disregard the margin and determine an appropriate margin (see, e.g., Fresh Cut Flowers from Mexico; Preliminary Results of Antidumping Duty Administrative Review (60 FR 49567), where the Department disregarded the highest margin as adverse facts available because the margin was based on another company's uncharacteristic business expense resulting in an unusually high margin). No such circumstances exist in this case which would cause the Department to disregard a prior margin. In this case, we have used the highest rate from any prior segment of the proceeding. 10.67 percent. This rate was calculated in the Amendment to the Final Determination of Sales at Less Than Fair Value (56 FR 47737), covering the period May 1, 1990 through October 31, 1990. The Department also sent questionnaires to Gourmet and Buxton/ Uniauto which provided us with responses to our questionnaires. However, while planning for verification of these two firms, the Department received submissions from each firm stating that a verification would produce the same results as in previous reviews where the Department was unable to reconcile the data Gourmet and Buxton/Uniauto submitted in their responses to our questionnaire with their audited financial statements (see Buxton/Uniauto and Gourmet submissions dated March 28, 1996, and May 1, 1996, respectively). Reliance on the accounting system used for the preparation of the audited financial statements is a key and vital part of the Department's determination that a company's sales and constructed value data are credible. Section 776(a)(2)(D) states that the Department ``shall, subject to section 782(d), use the facts otherwise available in reaching the applicable determination under this title'' if an interested party or any other person provides information but the information can not be verified. Because their submissions were unreconcilable to their audited financial statements and thus unverifiable, we have determined to apply facts available to Gourmet and Buxton/Uniauto. However, because these firms cooperated with our request for information, we are not using an adverse inference in selecting from among the facts otherwise available. In this case, we have used Gourmet's and Buxton/Uniauto's highest rates from a prior review which are 6.47 percent and 6.93 percent respectively. Preliminary Results of Review As a result of this review, we preliminarily determine that the following margins exist for the period September 1, 1994, through August 31, 1995: ------------------------------------------------------------------------ Percent Manufacturer/Exporter margin ------------------------------------------------------------------------ Gourmet Equipment (Taiwan) Corporation........................ 6.47 Buxton International/Uniauto.................................. 6.93 Chu Fong Metallic Electric Co................................. 6.93 Transcend International....................................... 10.67 San Chien Industrial Works, Ltd............................... 10.67 Anmax Industrial Co., Ltd..................................... 10.67 Everspring Plastic Corp....................................... 6.93 Gingen Metal Corp............................................. 6.93 Goldwinate Associates, Inc.................................... 6.93 Hwen Hsin Enterprises Co., Ltd................................ 10.67 [[Page 35726]] Kwan How Enterprises Co., Ltd................................. 6.93 Kwan Ta Enterprises Co., Ltd.................................. 6.93 Kuang Hong Industries Ltd..................................... 6.93 Multigrand Industries Inc..................................... 6.93 San Shing Hardware Works Co., Ltd............................. 10.67 Trade Union International Inc./Top Line....................... 10.67 Uiauto, Inc................................................... 6.93 Wing Tang Electrical Manufacturing Company.................... 10.67 ------------------------------------------------------------------------ Parties to the proceeding may request disclosure within 5 days of the date of publication of this notice in accordance with 19 CFR 353.22(c)(6). Any interested party may request a hearing within 10 days of the date of publication (19 CFR 353.38(b)). Any hearing, if requested, will be held 44 days after publication of this notice, or the first workday thereafter. Interested parties may submit case briefs within 30 days after the date of publication of this notice (19 CFR 353.38(c)). Rebuttal briefs and rebuttal comments, which must be limited to issues raised in the case briefs, may be filed not later than 37 days after the date of publication. The Department will publish the final results of review, including the results of its analysis of issues raised in any such written comments. The Department shall determine, and the Customs Service shall assess, antidumping duties on all appropriate entries. Individual differences between export price and NV may vary from the percentage stated above. Upon completion of this review, the Department will issue appraisement instructions on each manufacturer/exporter directly to the U.S. Customs Service. Furthermore, the following deposit requirements will be effective for all shipments of the subject merchandise, entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this administrative review, as provided for by section 751(a)(2)(c) of the Act: (1) The cash deposit rate for the reviewed firms will be those firms' rates established in the final results of this administrative review; (2) for previously reviewed or investigated companies not listed above, the cash deposit rate will continue to be the company-specific rate published for the most recent period; (3) if the exporter is not a firm covered in this review, a previous review, or the original LTFV investigation, but the manufacturer is, the cash deposit rate will be the rate established for the most recent period for the manufacturer of the merchandise; and (4) if neither the exporter nor the manufacturer is a firm covered in this or any previous review conducted by the Department, the cash deposit rate will be 6.93 percent, the ``all others'' rate established in the LTFV investigation. These deposit requirements, when imposed, shall remain in effect until publication of the final results of the next administrative review. This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 353.26 to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary's presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. This administrative review and notice are in accordance with section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22. Dated: July 1, 1996. Robert S. LaRussa, Acting Assistant Secretary for Import Administration. [FR Doc. 96-17278 Filed 7-5-96; 8:45 am] BILLING CODE 3510-DS-M