[Federal Register Volume 62, Number 129 (Monday, July 7, 1997)]
[Notices]
[Pages 36305-36306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17581]


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INTERNATIONAL TRADE COMMISSION


Heavy Forged Handtools From the People's Republic of China; 
Dismissal of Request for Institution of a Section 751(b) Review 
Investigation

AGENCY: International Trade Commission.

ACTION: Dismissal of a request to institute a section 751(b) 
investigation concerning the Commission's affirmative determinations in 
investigation No. 731-TA-457 (Final), Heavy Forged Handtools from the 
People's Republic of China.

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SUMMARY: The Commission determines, pursuant to section 751(b) of the 
Tariff Act of 1930 (the Act) (19 U.S.C. 1675(b)) and Commission rule 
207.45 (19 CFR 207.45), that the subject request does not show changed 
circumstances sufficient to warrant institution of an investigation to 
review the Commission's affirmative determinations in investigation No. 
731-TA-457 (Final), Heavy Forged Handtools from the People's Republic 
of China, in particular the determination concerning picks and 
mattocks. Picks and mattocks are provided for in subheading 8201.30.00 
of the Harmonized Tariff Schedule of the United States.

FOR FURTHER INFORMATION CONTACT: Jonathan Seiger (202-205-3183) or Vera 
Libeau (202-205-3176), Office of Investigations, U.S. International 
Trade Commission, 500 E Street SW., Washington, DC 20436. Hearing-
impaired persons can obtain information on this matter by contacting 
the Commission's TDD terminal on 202-205-1810. Persons with mobility 
impairments who will need special assistance in gaining access to the 
Commission should contact the Office of the Secretary at 202-205-2000. 
General information concerning the Commission may also be obtained by 
accessing its internet server (http://www.usitc.gov or ftp://
ftp.usitc.gov).

Background Information

    On April 16, 1997, the Commission received a request to review its 
affirmative determination with respect to picks and mattocks in light 
of changed circumstances (the request), pursuant to section 751(b) of 
the Act (19 U.S.C. 1675(b)). The request was filed by counsel on behalf 
of Olympia Industrial, Inc. (Olympia), a major importer and distributor 
of heavy forged handtools, including picks and mattocks.
    Pursuant to Sec. 207.45(b) of the Commission's rules of practice 
and procedure (19 CFR 207.45(b)), the Commission published a notice in 
the Federal Register on April 30, 1997 (62 FR 23484) requesting 
comments as to whether the alleged changed circumstances warranted the 
institution of a review investigation. The Commission received comments 
in opposition to the request from counsel on behalf of Woodings-Verona, 
a domestic producer of picks and mattocks.

Analysis

    In considering whether to institute a review investigation under 
section 751(b), the Commission will not institute such an investigation 
unless it is persuaded there is sufficient information demonstrating:

    (1) That there are significant changed circumstances from those 
in existence at the time of the original investigation;
    (2) That those changed circumstances are not the natural and 
direct result of the imposition of the antidumping order, and;
    (3) That the changed circumstances, allegedly indicating that 
revocation of the order would not be likely to lead to continuation 
or recurrence of material injury to the domestic industry, warrant a 
full investigation.

See 19 U.S.C. 1675(b)(2)(A); Certain Cold-Rolled Carbon Steel Flat 
Products from Germany and the Netherlands, 61 FR 17319, 17320 (April 
19, 1996); A. Hirsh, Inc. v. United States, 737 F. Supp. 1186 (CIT 
1990); Avesta AB v. United States, 724 F. Supp. 974 (CIT 1989), aff'd 
914 F.2d 232 (Fed Cir. 1990), cert. denied, 111 S. Ct. 1308 (1991). In 
the URAA, Congress changed the substantive standard applicable to 
changed circumstances reviews from whether the domestic industry would 
be materially injured or threatened with material injury if the order 
were revoked to whether revocation of the order is likely to lead to 
the continuation or recurrence of material injury to the domestic 
industry. 19 U.S.C. 1675(b)(2)(A).
    After consideration of the request for review and the response to 
the notice inviting comments, the Commission has determined, pursuant 
to section 751(b) of the Act (19 U.S.C. 1675(b)) and Commission rule 
207.45 (19 CFR 207.45), that the information of record, including the 
request and the comments received in response to the notice, does not 
show changed circumstances sufficient to warrant institution of an 
investigation to review the Commission's affirmative determination 
regarding picks and mattocks in investigation No. 731-TA-457 (Final).
    The request alleged four changed circumstances warranting review: 
(1) Lack of production for commercial markets in the United States; (2) 
lack of competition between imports and U.S.-made picks and mattocks; 
(3) the argument that any production decline in the United States since 
imposition of the antidumping order is not the ``natural and direct 
result'' of the order, and; (4) the argument that prices of imports of 
picks and mattocks from nonsubject countries, such as Mexico, Poland, 
and India, are lower than prices of imports of picks and mattocks from 
China. The information available on the record does not persuade us 
that a full investigation is warranted for any of these 
allegations.1
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    \1\ The second and third alleged changed circumstances are very 
closely related to the first, namely, the alleged cessation of 
production for commercial markets in the United States. In 
particular, the argument that the alleged cessation in domestic 
production for commercial markets is not the ``natural and direct 
result'' of the order is not a changed circumstance in and of 
itself, but rather an argument that the alleged cessation of 
production is a changed circumstance. Similarly, the allegation that 
there is no competition between imports and domestically-produced 
picks and mattocks is not a changed circumstance in and of itself, 
but rather a result of the alleged changed circumstance of the 
cessation in domestic production for commercial markets.
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    First, the request argues that there is currently no known 
production of picks and mattocks for sale in so-called ``commercial 
markets'' in the United States. Based on information currently 
available, however, the Commission concludes that U.S. production of 
picks and mattocks for commercial markets has not ceased, but, on the 
contrary,

[[Page 36306]]

commercial sales of U.S. production of picks and mattocks are still 
significant. There is no evidence of the complete, or virtually 
complete, cessation of production that the Commission has, in the past, 
considered to be a changed circumstance warranting institution of a 
review investigation.
    Second, the request argues that prices of picks and mattocks from 
China are currently higher, and quantities lower, than prices and 
quantities of picks and mattocks from countries not subject to the 
order. Replacement of subject imports by nonsubject imports alone, 
however, does not necessarily constitute a changed circumstance. 
Moreover, changes in volumes of subject versus non-subject imports, and 
any associated changes in relative prices, may in fact be attributable 
to the effects of the order. Further, to the extent that the transfer 
of market share from subject to nonsubject imports could be a changed 
circumstance warranting review, there is no evidence that this has 
occurred in the picks and mattocks industry.
    In light of the above analysis, the Commission determines that 
institution of a review investigation under section 751(b) of the Act 
concerning the Commission's affirmative determination regarding picks 
and mattocks in investigation No. 731-TA-457 (Final), is not warranted.

    Issued: June 30, 1997.

    By order of the Commission.
Donna R. Koehnke,
Secretary.
[FR Doc. 97-17581 Filed 7-3-97; 8:45 am]
BILLING CODE 7020-02-P