[Federal Register Volume 61, Number 157 (Tuesday, August 13, 1996)]
[Notices]
[Pages 42000-42003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20614]


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DEPARTMENT OF COMMERCE
[A-570-822]


Certain Helical Spring Lock Washers From The People's Republic of 
China; Preliminary Results of Antidumping Administrative Review

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

ACTION: Notice of preliminary results of the antidumping duty 
administrative review.

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SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain helical 
spring lock washers (HSLWs) from the People's Republic of China (PRC) 
in response to requests by the respondent, Zhejiang Wanxin Group Co., 
Ltd., (ZWG), and the petitioner, Shakeproof Industrial Products 
Division of Illinois Tool Works (petitioner). This review covers 
shipments of this merchandise to the United States during the period 
October 1, 1994, through September 30, 1995.
    We have preliminarily determined that sales have been made below 
normal value (NV). If these preliminary results are adopted in our 
final results, we will instruct the U.S. Customs Service to assess 
antidumping duties equal to the difference between export price and NV.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument are

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requested to submit with each argument (1) A statement of the issue and 
(2) a brief summary of the argument.

EFFECTIVE DATE: August 13, 1996.

FOR FURTHER INFORMATION CONTACT: Donald Little or Maureen Flannery, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington DC 20230; telephone (202) 482-4733.

Applicable Statute

    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).

Background

    The Department published in the Federal Register the antidumping 
duty order on HSLWs from the PRC on October 19, 1993 (58 FR 53914). On 
October 5, 1995, the Department published in the Federal Register (60 
FR 52149) a notice of opportunity to request an administrative review 
of the antidumping duty order on HSLWs from the PRC covering the period 
October 1, 1994 through September 30, 1995.
    On October 30 and 31, 1995, in accordance with 19 CFR 353.22(a), 
petitioner and ZWG, respectively, requested that we conduct an 
administrative review of ZWG, also known as Hangzhou Spring Washer 
Plant. We published a notice of initiation of this antidumping duty 
administrative review on November 16, 1995 (60 FR 57573). The 
Department is conducting this administrative review in accordance with 
section 751 of the Act.

Scope of Review

    The products covered by this review are HSLWs of carbon steel, of 
carbon alloy steel, or of stainless steel, heat-treated or non-heat-
treated, plated or non-plated, with ends that are off-line. HSLWs are 
designed to: (1) Function as a spring to compensate for developed 
looseness between the component parts of a fastened assembly; (2) 
distribute the load over a larger area for screws or bolts; and (3) 
provide a hardened bearing surface. The scope does not include internal 
or external tooth washers, nor does it include spring lock washers made 
of other metals, such as copper.
    HSLWs subject to this review are currently classifiable under 
subheading 7318.21.0030 of the Harmonized Tariff Schedule of the United 
States (HTS). Although the HTS subheading is provided for convenience 
and Customs purposes, the written description of the scope of this 
proceeding is dispositive.
    This review covers one exporter of HSLWs from the PRC, ZWG, and the 
period October 1, 1994, through September 30, 1995.

Separate Rates

    To establish whether a company operating in a state-controlled 
economy is sufficiently independent to be entitled to a separate rate, 
the Department analyzes each exporting entity under the test 
established in the Final Determination of Sales at Less Than Fair 
Value: Sparklers from the People's Republic of China (56 FR 20588, May 
6, 1991) (Sparklers), as amplified by 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) (Silicon Carbide). Under this policy, 
exporters in non-market economies (NMEs) are entitled to separate, 
company-specific margins when they can demonstrate an absence of 
government control, both in law and in fact, with respect to export 
activities. Evidence supporting, though not requiring, a finding of de 
jure absence of government control over export activities includes: (1) 
An absence of restrictive stipulations associated with an individual 
exporter's business and export licenses; (2) any legislative enactments 
decentralizing control of companies; and (3) any other formal measures 
by the government decentralizing control of companies. De facto absence 
of government control over exports is based on four factors: (1) 
Whether each exporter sets its own export prices independently of the 
government and without the approval of a government authority; (2) 
whether each exporter retains the proceeds from its sales and makes 
independent decisions regarding the disposition of profits or financing 
of losses; (3) whether each exporter has the authority to negotiate and 
sign contracts and other agreements; and (4) whether each exporter has 
autonomy from the government regarding the selection of management.
    In the less than fair value investigation, we determined that ZWG, 
then known as Hangzhou Spring Washer Plant, warranted a company-
specific dumping margin according to the criteria identified in 
Sparklers. (See Final Determination of Sales at Less Than Fair Value: 
Certain Helical Spring Lock Washers From the People's Republic of 
China, 58 FR 48833 (September 20, 1993) (Lock Washers).) In the 
administrative review covering the period from October 15, 1993 through 
September 30, 1994 (1993-94 review), we preliminarily determined that 
ZWG merited a separate rate under Sparklers and the additional criteria 
identified in Silicon Carbide. Because the results from the 1993-94 
review are not final, we analyzed ZWG's submission in this review to 
determine whether ZWG continues to merit a separate rate under 
Sparklers and Silicon Carbide. We have found that the evidence on the 
record of this review also demonstrates an absence of government 
control, both in law and in fact, with respect to ZWG's exports 
according to the criteria identified in Sparklers, and an absence of 
government control with respect to the additional criteria identified 
in Silicon Carbide. For further discussion of the Department's 
preliminary determination that ZWG is entitled to a separate rate, see 
Decision Memorandum to Edward Yang, Director, Office 9, Import 
Administration, dated July 19, 1996, ``Separate Rates in the Second 
Administrative Review of Certain Helical Spring Lock Washers from the 
People's Republic of China,'' which is on file in the Central Records 
Unit (room B099 of the Main Commerce Building).

Export Price

    For sales made by ZWG we used export price, in accordance with 
section 772(a) of the Act, because the subject merchandise was sold to 
unrelated purchasers in the United States prior to importation into the 
United States.
    We calculated export price based on the price to unrelated 
purchasers. We deducted an amount, where appropriate, for foreign 
inland freight, brokerage and handling, ocean freight, and marine 
insurance. We valued foreign inland freight, brokerage and handling, 
ocean freight, and marine insurance using surrogate data based on 
Indian costs. We selected India as the surrogate country for the 
reasons explained in the ``Normal Value'' section of this notice.

Normal Value

    For companies located in NME countries, section 773(c)(1) of the 
Act provides that the Department shall determine NV using a factors-of-
production methodology if (1) The merchandise is exported from an NME

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country, and (2) the information does not permit the calculation of NV 
using home-market prices, third-country prices, or constructed value 
under section 773(a) of the Act.
    We calculated NV based on factors of production in accordance with 
section 773(c)(4) of the Act and section 353.52(c) of our regulations. 
We determined that India is comparable to the PRC in terms of (1) Per 
capita gross national product (GNP), (2) the growth rate in per capita 
GNP, and (3) the national distribution of labor. In addition, India is 
a significant producer of comparable merchandise. Therefore, for this 
review, we chose India as the most comparable surrogate on the basis of 
the above criteria, and have used publicly available information 
relating to India to value the various factors of production. (See 
Memorandum to Laurie Parkhill from David Mueller, dated May 6, 1996, 
``Certain Helical Spring Lock Washers from the People's Republic of 
China: Non-market Economy Status and Surrogate Country Selection,'' and 
Memorandum to the File from Donald Little, dated July 22, 1996, 
``India: Significant Production of Comparable Merchandise,'' which are 
on file in the Central Records Unit (room B099 of the Main Commerce 
Building).)
    We valued the factors of production as follows:
     For steel wire rods, we used a per kilogram value obtained 
from the Monthly Statistics of Foreign Trade of India (Indian Import 
Statistics). Using wholesale price indices (WPI) obtained from the 
International Financial Statistics, published by the International 
Monetary Fund (IMF), we adjusted these values to reflect inflation up 
to the period of review (POR). We made further adjustments to include 
freight costs incurred between the supplier and ZWG.
     For chemicals used in the production and plating of lock 
washers, we used per kilogram values obtained from the Indian 
publication Chemical Weekly and the Indian Import Statistics. We 
adjusted the Indian Import Statistics and Chemical Weekly rates to 
reflect inflation up to the POR using WPI published by the IMF. We made 
further adjustments to include freight costs incurred between the 
supplier and ZWG.
     For hydrochloric acid, we based the value on an Indian 
price quote used in the Final Determination of Sales at Less Than Fair 
Value: Coumarin from the People's Republic of China (59 FR 66895, 
December 28, 1994) (Coumarin), because data in the Indian Import 
Statistics for hydrochloric acid has been found to be aberrational (see 
Coumarin). We adjusted the value used in Coumarin to reflect inflation 
up to the POR using WPI published by the IMF.
     For direct labor, we used the labor rates reported in the 
Economic Intelligence Unit report Investing, Licensing & Trading 
Conditions Abroad: India, released November 1995. This source breaks 
out labor rates between skilled and unskilled labor for 1995 and 
provides information on the number of labor hours worked per week. We 
adjusted these rates to reflect the average inflation throughout the 
POR using WPI published by the IMF.
     For factory overhead, we used information reported in the 
April 1995 Reserve Bank of India Bulletin for the Indian metals and 
chemicals industries. From this information, we were able to determine 
factory overhead as a percentage of the total cost of manufacture.
     For selling, general and administrative (SG&A) expenses, 
we used information obtained from the April 1995 Reserve Bank of India 
Bulletin for the Indian metals and chemicals industries. We calculated 
an SG&A rate by dividing SG&A expenses by the cost of manufacture.
     To calculate a profit rate, we used information obtained 
from the April 1995 Reserve Bank of India Bulletin for the Indian 
metals and chemicals industries. We calculated a profit rate by 
dividing the before-tax profit by the cost of manufacturing plus SG&A.
     For packing materials, we used per kilogram values 
obtained from the Indian Import Statistics. We adjusted these values to 
reflect inflation up to the POR using WPI published by the IMF.
     To value electricity, we used the price of electricity for 
1995 reported in the Confederation of Indian Industries Handbook of 
Statistics. We adjusted the value of electricity to reflect the average 
inflation throughout the POR using WPI published by the IMF.
     To value coal, we used a per kilogram value obtained from 
the Monthly Statistics of Foreign Trade of India. We adjusted these 
rates to reflect inflation up to the POR using WPI published by the 
IMF.
     To value water, we used the Asian Development Bank's Water 
Utilities Data Book for the Asian and Pacific Region, November 1993. We 
adjusted the value of water to reflect inflation up to the POR using 
WPI published by the IMF.
     To value truck freight, we used a rate derived from The 
Times of India as used in the Final Determination of Sales at Less Than 
Fair Value: Polyvinyl Alcohol from the People's Republic of China (61 
FR 14057, March 29, 1996). We adjusted the rate to reflect inflation up 
to the POR using WPI published by the IMF.
     To value rail freight, we used the price reported in a 
December 1989 cable from the U.S. Embassy in India submitted for the 
Final Results of Antidumping Duty Administrative Review: Shop Towels of 
Cotton from the People's Republic of China (56 FR 4040, February 1, 
1991). We adjusted the rail freight rates to reflect inflation up to 
the POR using WPI published by the IMF.

Currency Conversion

    We made currency conversions pursuant to section 353.60 of the 
Department's regulations at the rates certified by the Federal Reserve 
Bank.

Preliminary Results of Review

    We preliminarily determine that the following dumping margin 
exists:

------------------------------------------------------------------------
                                                                 Margin 
      Manufacturer/exporter               Time period          (percent)
------------------------------------------------------------------------
Zhejiang Wanxin Group Co., Ltd..  10/01/94-09/30/95..........      39.11
PRC rate........................  10/01/94-09/30/95..........     128.63
------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within 5 days of 
the date of publication of this notice in accordance with 19 CFR 
353.28. Any interested party may request a hearing within 10 days of 
publication in accordance with 19 CFR 353.38(b). Any hearing, if 
requested, will be held 44 days after the publication of this notice, 
or the first workday thereafter. Interested parties may submit case 
briefs within 30 days of the date of publication of this notice in 
accordance with 19 CFR 353.38(c). Rebuttal briefs, which must be 
limited to issues raised in the case briefs, may

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be filed not later than 37 days after the date of publication. The 
Department will publish a notice of final results of this 
administrative review, which will include the results of its analysis 
of issues raised in any such comments.
    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries. Individual 
differences between export price and NV may vary from the percentage 
stated above for ZWG. The Department will issue appraisement 
instructions directly to the U.S. Customs Service.
    Furthermore, the following deposit rates will be effective upon 
publication of the final results of this administrative review for all 
shipments of HSLWs from the PRC entered, or withdrawn from warehouse, 
for consumption on or after the publication date, as provided for by 
section 751(a)(2)(C) of the Act: (1) For ZWG, which has a separate 
rate, the cash deposit rate will be the company-specific rate 
established in the final results of this administrative review; (2) for 
all other PRC exporters, the cash deposit rate will be the PRC rate; 
and (3) for non-PRC exporters of subject merchandise from the PRC, the 
cash deposit rate will be the rate applicable to the PRC supplier of 
that exporter.
    These deposit rates, 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 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 Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.

    Dated: August 6, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-20614 Filed 8-12-96; 8:45 am]
BILLING CODE 3510-DS-P