[Federal Register Volume 62, Number 49 (Thursday, March 13, 1997)]
[Notices]
[Pages 11824-11825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6384]


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DEPARTMENT OF COMMERCE
[A-588-842]


Initiation of Antidumping Duty Investigation: Needle Bearing Wire 
From Japan

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

EFFECTIVE DATE: March 13, 1997.

FOR FURTHER INFORMATION CONTACT: Beth Graham at (202) 482-4105 or 
Kristin Mowry at (202) 482-3798, Office of AD/CVD Enforcement I, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, DC 
20230.

Initiation of Investigation

The 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).

The Petition

    On February 14, 1997, the Department of Commerce (''the 
Department'') received a petition, filed, in proper form, by E.C.D., 
Inc., of Hillside, New Jersey (''the petitioner''). On February 21 and 
24, 1997, E.C.D., Inc., provided supplemental information concerning 
assertions made in its petition.
    In accordance with section 732(b) of the Act, the petitioner 
alleges that imports of needle bearing wire are being, or are likely to 
be, sold in the United States at less than their fair value within the 
meaning of section 731 of the Act, and that such imports are materially 
injuring, or threatening material injury to, an industry in the United 
States.
    The petitioner states that it has standing to file the petition 
because it is an interested party, as defined in section 771(9)(C) of 
the Act.

Scope of the Investigation

    The scope of this investigation consists of 52100 (SAE (Society of 
American Engineers) standard)) steel needle bearing wire in a diameter 
range of .047 inches (i.e., 1.19 mm.) up to and including .218 inches 
(i.e., 5.54 mm.) supplied in coils. All needle bearing wire is 
generally the same in chemistry and is specifically designed to meet 
specifications designated by automobile and other manufacturers to be 
used in engine parts, and brake assemblies. The needle bearing wire 
imported from Japan, covered by this investigation is classifiable 
under headings 7229.90.5030 and 7229.90.5050 of the Harmonized Tariff 
Schedule of the United States (HTS). Although the HTS headings are 
provided for convenience and customs purposes, our written description 
of the scope of this investigation is dispositive.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that petitions be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for (1) at least 
25 percent of the total production of the domestic like product; and 
(2) more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the petition.
    A review of the industry support data provided in the petition and 
other production information readily available to the Department 
indicates that the petitioner and those expressing support for the 
petition account for more than 50 percent of the total production of 
the domestic like product and for more than 50 percent of that produced 
by companies expressing support for, or opposition to, the petition. 
The Department received no expressions of opposition to the petition 
from any interested party. Accordingly, the Department determines that 
this petition is supported by the domestic industry.

[[Page 11825]]

Export Price and Normal Value

    The petitioner based the export price on quotes for 1997 delivered 
prices. Petitioner combined the per metric ton prices for needle 
bearing wire with two different diameters in order to provide an 
average export price. Petitioner adjusted these prices for the costs of 
inland freight, insurance, handling fees, ocean freight, brokerage, 
packaging, and international fees.
    Petitioner based normal value on Japanese delivered home market 
prices. Petitioner combined the prices for needle bearing wire with two 
different diameters in order to provide a comparable value to the 
average export price.
    We find the petitioner's averaging of the export price and home 
market prices to be inappropriate because the range of diameters 
differed in the two markets. Instead, for purposes of this initiation, 
we have revised the calculation to compare the home market and export 
prices of needle bearing wire with the closest diameter (i.e., the home 
market prices of 2.0 mm. diameter wire to the export price of 2.1 mm. 
diameter wire). We also adjusted the home market price for Japanese 
inland freight and made arithmetic changes to the export price for 
certain movement charges. (Our adjustments to the calculations are 
outlined in a memorandum to the file, dated March 6, 1997.)
    Based on comparisons of the export price to normal value, the 
estimated dumping margin for needle bearing wire from Japan is 40.67 
percent.

Fair Value Comparisons

    Based on the information provided by the petitioner, there is 
reason to believe that needle bearing wire from Japan is likely to be 
sold at less than fair value. If it becomes necessary at a later date 
to consider the petition as a source of facts available under section 
776 of the Act, we may further review the margin calculation in the 
petition.

Initiation of Investigation

    We have examined the petition on needle bearing wire and have found 
that it meets the requirements of section 732 of the Act, including the 
requirements concerning allegations of material injury or threat of 
material injury to the domestic producers of a domestic like product by 
reason of the complained-of imports, allegedly sold at less than fair 
value. Therefore, we are initiating an antidumping duty investigation 
to determine whether needle bearing wire from Japan is being, or is 
likely to be, sold in the United States at less than fair value. Unless 
extended, we will make our preliminary determination by July 24, 1997.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public version of the petition has been provided to the representatives 
of the Government of Japan. We will attempt to provide a copy of the 
public version of the petition to each exporter of needle bearing wire 
named in the petition.

International Trade Commission Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will determine by March 31, 1997, whether there is a 
reasonable indication that imports of needle bearing wire from Japan 
are causing material injury, or threatening to cause material injury, 
to a U.S. industry. A negative ITC determination will result in the 
investigation being terminated; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.

    Dated: March 6, 1997.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-6384 Filed 3-12-97; 8:45 am]
BILLING CODE 3510-DS-P