[Federal Register Volume 61, Number 152 (Tuesday, August 6, 1996)]
[Notices]
[Pages 40815-40817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19999]


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DEPARTMENT OF COMMERCE
[A-475-031]


Large Power Transformers From Italy; Preliminary Results of 
Antidumping Duty Administrative Review and Intent To Revoke Antidumping 
Finding in Part

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

ACTION: Notice of Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Revoke Antidumping Finding in Part.

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SUMMARY: In response to requests by the petitioner, ABB Power T&D Co., 
Inc. (ABB), and by Tamini Costruzioni Elettromeccaniche (Tamini), a 
manufacturer/exporter of transformers, the Department of Commerce (the 
Department) is conducting an administrative review of the antidumping 
finding on large power

[[Page 40816]]

transformers from Italy. The review covers exports of subject 
merchandise by Tamini to the United States during the period from June 
1, 1994, through May 31, 1995.
    We have preliminarily determined that Tamini did not make sales at 
prices below normal value (NV) during the period of review (POR). If 
these preliminary results are adopted in our final results of 
administrative review, we intend to revoke the antidumping duty order 
with respect to Tamini based on three years of sales at not less than 
normal value. See Intent to Revoke, infra. Interested parties are 
invited to comment on these preliminary results. Parties who submit 
comments in this proceeding are requested to submit with each argument 
(1) a statement of the issue, and (2) a brief summary of the argument.

EFFECTIVE DATE: August 6, 1996.

FOR FURTHER INFORMATION CONTACT: Andrea Chu or Kris Campbell, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, Washington, D.C. 20230; telephone: (202) 482-4733.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended, (the Act) are references to the provisions effective 
January 1, 1995, the effective date of the amendments made to the Act 
by the Uruguay Round Agreements Act (URAA).

Background

    On June 6, 1995, the Department published a notice of ``Opportunity 
to Request Administrative Review'' (60 FR 29821) of the antidumping 
finding on large power transformers from Italy (37 FR 11772, June 14, 
1972). ABB and Tamini both requested administrative reviews on June 30, 
1995. We published a notice of initiation of the review on July 14, 
1995 (60 FR 36260), covering the period June 1, 1994, through May 31, 
1995. The Department is conducting this review in accordance with 
section 751 of the Act.

Scope of the Review

    Imports covered by the review are shipments of large power 
transformers (LPTs); that is, all types of transformers rated 10,000 
kVA (kilovolt-amperes) or above, by whatever name designated, used in 
the generation, transmission, distribution, and utilization of electric 
power. The term ``transformers'' includes, but is not limited to, shunt 
reactors, autotransformers, rectifier transformers, and power rectifier 
transformers. Not included are combination units, commonly known as 
rectiformers, if the entire integrated assembly is imported in the same 
shipment and entered on the same entry and the assembly has been 
ordered and invoiced as a unit, without a separate price for the 
transformer portion of the assembly. This merchandise is currently 
classifiable under the Harmonized Tariff Schedule (HTS) item numbers 
8504.22.00, 8504.23.00, 8504.34.33, 8504.40.00, and 8504.50.00. The HTS 
item numbers are provided for convenience and Customs purposes. The 
written description remains dispositive.
    The review covers shipments of transformers by Tamini during the 
period June 1, 1994, through May 31, 1995.

Verification

    In accordance with section 782(i) of the Act, we conducted a 
verification of the information Tamini submitted during the review at 
Tamini's headquarters in Melegnano, Italy, from May 20-24, 1996.

United States Price

    We reviewed three U.S. sales that entered into the United States 
during the POR. In calculating U.S. prices, the Department used export 
price (EP), as defined in section 772(a) of the Act, because the 
subject merchandise was sold by the producer or exporter outside the 
United States to unaffiliated U.S. purchasers prior to the date of 
importation. We calculated EP based on the packed price to the U.S. 
customer. We made adjustments to EP for transportation expenses and 
duty drawback.

Normal Value

    Although the home market is viable, based on a review of product 
specifications, we have preliminarily determined that the LPTs sold in 
the home market during the period of review are not appropriate matches 
to the LPTs involved in the three U.S. sales. See Memorandum from 
Andrea M. Chu to File: Preliminary Analysis Memo for Tamini Costruzioni 
Elettromeccaniche, 1994-95 Administrative Review (July 27, 1996). 
Therefore, pursuant to section 773(a)(4) of the Act, we calculated NV 
based on the constructed value of the model sold in the United States.
    In accordance with section 773(e) of the Act, the constructed value 
includes the costs of (1) materials and fabrication, (2) selling, 
general, and administrative (SG&A) expenses, (3) profit, and (4) 
packing for shipment to the United States. Where possible, we use an 
amount based on sales of the foreign like product, in the ordinary 
course of trade, for consumption in the home market. See section 
773(e)(2)(A) of the Act. If such information is not available, we 
calculate profit using one of three non-hierarchical alternatives. The 
third alternative is any other reasonable method, capped by the amount 
normally realized on sales in the foreign country of the general 
category of products. See section 773(e)(2)(B)(iii) of the Act. The 
Statement of Administrative Action states that, if the Department does 
not have the data to determine this profit cap, it may apply 
alternative three on the basis of ``the facts available.''
    Tamini stated in its questionnaire response that it was unable to 
provide a profit rate attributable to sales made for consumption in 
Italy because it does not maintain records of the profitability of LPTs 
by market. At verification, we confirmed that Tamini does not maintain 
market-, product-, or sale-specific profit information. We also 
calculated estimated profits on selected home market sales, all of 
which were less than Tamini's worldwide profit rate. See Memorandum 
from Andrea M. Chu to File: Cost Verification Report of Tamini 
Costruzioni Elettromeccaniche, 1994-95 Administrative Review. As a 
result of our analysis of the information submitted by Tamini, as well 
as our findings at verification, we have preliminarily determined that 
the use of Tamini's worldwide profit rate for transformer sales, as 
derived from its 1994 financial statements, is a reasonable method for 
calculating profits given the facts available in this case. Although we 
do not have the data to determine the profit cap regarding profits 
normally realized by LPT producers in Italy, we have preliminarily 
determined that the use of this rate is a reasonable method of 
calculating profit, within the meaning of section 773(e)(2)(B)(iii), 
based on the facts available. See section 776(a) of the Act.
    In accordance with sections 773(a)(6)(C) and 773(a)(8) of the Act, 
we made circumstance-of-sale adjustments for differences in credit 
expenses, direct bank charges, warranty expenses, technical service 
expenses, and commissions. Since commissions were granted only in the 
home market, we offset the commission adjustment by adding U.S. 
indirect selling expenses to the constructed value in accordance with 
section 353.56 of our regulations.

[[Page 40817]]

Intent To Revoke

    Tamini requested, pursuant to 19 C.F.R. 353.25(b), revocation of 
the order with respect to its sales of the merchandise in question and 
submitted the certification required by 19 C.F.R. 353.25(b)(1). Tamini 
was not required to provide the certification required by 19 C.F.R. 
353.25(b)(2) (a statement in writing agreeing to its immediate 
reinstatement in the order if the Department concludes, subsequent to 
revocation, that the respondent sold merchandise at less than normal 
value) because the Department has not previously determined that Tamini 
sold subject merchandise in the United States at less than NV. Based on 
the preliminary results in this review and the two preceding reviews 
(see Large Power Transformers from Italy; Final Results of Antidumping 
Duty Administrative Review, 59 FR 48851 (September 23, 1994), and Large 
Power Transformers from Italy; Final Results of Antidumping Duty 
Administrative Review, 61 FR 37443 (July 18, 1996), Tamini has 
demonstrated three consecutive years of sales at not less than NV.
    Given the results of the two preceding reviews, if the final 
results of this review demonstrate that Tamini sold the merchandise at 
not less than NV, and if we determine that it is not likely that Tamini 
will sell the subject merchandise at less than NV in the future, we 
intend to revoke the order with respect to merchandise produced and 
exported by Tamini.

Preliminary Results of Review

    As a result of our comparison of USP to NV, we preliminarily 
determine that a weighted-average margin of zero percent exists for 
sales of LPTs made to the United States by Tamini during the period 
June 1, 1994, through May 31, 1995.
    Parties to this proceeding may request disclosure within 5 days of 
publication of this notice and may request a hearing within 10 days of 
publication. Any hearing, if requested, will be held 44 days after the 
date of publication or the first business day thereafter. Case briefs 
and/or written comments from interested parties may be submitted not 
later than 30 days after the date of publication of this notice. 
Rebuttal briefs and rebuttals to written comments, limited to issues 
raised in those comments, may be filed not later than 37 days after the 
date of publication of this notice. Parties who submit comments in this 
proceeding are requested to submit with each argument (1) a statement 
of the issue, and (2) a brief summary of the argument. Service of all 
briefs and written comments must be in accordance with 19 C.F.R. 
353.38(e). The Department will publish the final results of the 
administrative review, including the results of its analysis of any 
such comments or hearing, within 180 days of publication of these 
preliminary results of review.
    The Department will issue appropriate appraisement instructions 
directly to the Customs Service upon completion of this review. 
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 by section 
751(a)(1) of the Act: (1) for Tamini, if we revoke the order with 
respect to its merchandise, suspension of liquidation and cash deposits 
will no longer be required; (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 prior review, or 
the original less-than-fair-value (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; (4) the 
cash deposit rate for all other manufacturers or exporters will be 
92.47 percent, which is the ``new shipper'' rate established in the 
first final results of review of this finding. See Large Power 
Transformers from Italy: Notice of Final Results of Administrative 
Review, 49 FR 31313 (August 6, 1984). For a further explanation of our 
policy concerning the all other deposit rate in this case, see Large 
Power Transformers from Italy: Notice of Final Results of 
Administrative Review, 59 FR 48851 (September 23, 1994). These deposit 
requirements, when imposed, shall remain in effect until publication of 
the final results of the next administrative review.
    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 C.F.R. 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 Act (19 U.S.C. 1675(a)(1)) and 19 C.F.R. 
353.22(c)(5).

    Dated: July 26, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-19999 Filed 8-5-96; 8:45 am]
BILLING CODE 3510-DS-P