[Federal Register Volume 64, Number 153 (Tuesday, August 10, 1999)]
[Notices]
[Pages 43344-43346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20559]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration
[A-583-826]


Collated Roofing Nails From Taiwan: Preliminary Results of 
Antidumping Administrative Review

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

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

-----------------------------------------------------------------------

SUMMARY: The Department of Commerce is conducting an administrative 
review of the antidumping duty order on collated roofing nails from 
Taiwan in response to a request by Dinsen Fastening System, Inc., a 
producer/exporter of subject merchandise. This review covers the period 
November 20, 1997, through October 31, 1998.
    We have preliminarily determined that sales have not been made 
below normal value. Interested parties are invited to comment on these 
preliminary results. If these preliminary results are adopted in our 
final results of administrative review, we will instruct the Customs 
Service not to assess antidumping duties on entries subject to this 
review.

EFFECTIVE DATE: August 10, 1999.

FOR FURTHER INFORMATION CONTACT: Mary J. Jenkins or Katherine Johnson, 
Office 2, AD/CVD Enforcement Group I, Import Administration, Room 3099, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington DC 20230; telephone 
(202) 482-1756, or 482-4929, respectively.

Applicable Statute and Regulations

    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''). In addition, 
unless otherwise indicated, all citations to the Department of 
Commerce's (``the Department's'') regulations are to the regulations at 
19 CFR Part 351 (1998).

SUPPLEMENTARY INFORMATION:

Background

    On November 19, 1997, the Department published in the Federal 
Register the antidumping duty order on collated roofing nails from 
Taiwan (62 FR 61729).
    On November 12, 1998, we published in the Federal Register (63 FR 
63287) a notice of opportunity to request an administrative review of 
the antidumping duty order on collated roofing nails from Taiwan 
covering the period November 20, 1997, through October 31, 1998.
    In accordance with 19 CFR 351.213(b)(1), Dinsen Fastening System, 
Inc. (``Dinsen'') requested that we conduct an administrative review of 
its sales. We published a notice of initiation of this antidumping duty 
administrative review on December 23, 1998 (63 FR 71091).
    On January 14, 1999, the Department issued an antidumping duty 
questionnaire to Dinsen. We also issued a supplemental questionnaire on 
April 12, 1999. On March 8, March 15, and May 3, 1999, we received from 
Dinsen responses to the original antidumping questionnaire and the 
supplemental questionnaire. We conducted verification of Dinsen's 
antidumping duty questionnaire responses from June 1, through June 4, 
1999, and issued our report on July 6, 1999, (see Memorandum to the 
File: Sales and Cost of Production Verification) (Verification Report).
    On June 2, 1999, Dinsen provided the Department with changes to its 
response as a result of errors found during the preparation for 
verification. At the Department's request, on June 30, 1999, the 
respondent provided revised sales and cost databases reflecting the 
correction of certain errors found by Dinsen in preparing for 
verification and also to account for certain errors found at 
verification.
    We made the following additional adjustments to Dinsen's June 30, 
1999, reported databases based on verification findings:
    1. We deleted threading cost for all control numbers except one, 
based on the verification results. We also corrected an error in the 
per-unit threading cost for the one control number based on the 
verification results.
    2. We adjusted the plastic sheet cost to account for a correction 
in the cost of packing.
    3. We corrected the product code and control number for a specific 
transaction.

Scope of the Review

    The product covered by this review is collated roofing nails made 
of steel, having a length of \13/16\ inch to 1\13/16\ inches (or 20.64 
to 46.04 millimeters), a head diameter of 0.330 inch to 0.415 inch (or 
8.38 to 10.54 millimeters), and a shank diameter of 0.100 inch to 0.125 
inch (or 2.54 to 3.18 millimeters), whether or not galvanized, that are 
collated with two wires.
    Collated roofing nails within the scope of this investigation are 
classifiable under the Harmonized Tariff Schedule of the United States 
(``HTSUS'') subheadings 7317.00.55.06. Although the HTSUS subheadings 
are provided for convenience and customs purposes, our written 
description of the scope of this review is dispositive.

Fair Value Comparisons

    To determine whether sales of the subject merchandise sold by 
Dinsen and exported to the United States were made at less than normal 
value (``NV''), we compared export price (``EP'') to the NV, as 
described in the ``Export Price'' and ``Normal Value'' sections of this 
notice.
    Pursuant to section 777A(d)(2) of the Act, we compared the EPs of 
individual

[[Page 43345]]

U.S. transactions to the weighted-average NVs of the foreign like 
product.
    Consistent with our July 29, 1999, preliminary determination that 
stainless steel collated roofing nails are not within the scope of the 
antidumping duty order on collated roofing nails from Taiwan (see 
Memorandum for Richard Moreland from Louis Apple regarding 
``Preliminary Scope Ruling-Antidumping Duty Order on Collated Roofing 
Nails from Taiwan Requested by the Stanley Bostitch Fastener Division 
of Stanley Works, Inc.'' dated July 29, 1999), we have excluded all 
U.S. sales of such merchandise from our preliminary margin analysis in 
this review.

Export Price

    We based United States price on EP, as defined in section 772(a) of 
the Act, because the merchandise was sold directly by Dinsen to 
unaffiliated U.S. purchasers prior to importation or sold to 
unaffiliated purchasers in Taiwan for exportation to the United States, 
and constructed export price was not otherwise indicated by the facts 
of record.
    We calculated EP based on packed, FOB Taiwan port or C&I (cost and 
insurance) U.S. port prices to customers in the United States, or FOB 
at Taiwan port for trading companies in Taiwan that purchase the 
subject merchandise from Dinsen and export the subject merchandise to 
its U.S. customers. We made deductions, where applicable, for inland 
freight expenses, brokerage and handling expenses (inclusive of marine 
insurance charges) and harbor maintenance fees, in accordance with 
section 772(c) of the Act.

Home Market or Third Country Viability

    In order to determine whether there was a sufficient volume of 
sales in the home market or third country to serve as a viable basis 
for calculating NV (i.e., the aggregate volume of home market or third 
country sales of the foreign like product are equal to or greater than 
five percent of the aggregate volume of U.S. sales), we compared the 
respondent's volume of home market and third country sales of the 
foreign like product to the volume of U.S. sales of the subject 
merchandise, in accordance with sections 773(a)(1)(B) and (C) of the 
Act. Because the respondent's aggregate volume of home market and third 
country sales of the foreign like product was less than five percent of 
its aggregate volume of U.S. sales of the subject merchandise, we 
determined that its home and third country markets were not viable. 
Therefore, we used constructed value (``CV'') as the basis for 
calculating NV, in accordance with section 773(a)(4) of the Act.

Normal Value

    After testing home market viability, we calculated NV as noted in 
the ``Price-to-CV Comparisons'' section of this notice.

Calculation of CV

    We calculated CV for the respondent in accordance with section 
773(e)(1) of the Act, which indicates that CV shall be based on the sum 
of the respondent's cost of materials and fabrication for the foreign 
like product, plus amounts for selling, general, and administrative 
expenses (SG&A), profit, and U.S. packing costs.
    Because there are no viable comparison markets for the respondent 
and, hence, no actual company-specific profit and selling expense data 
available for the respondent, we calculated these items in accordance 
with section 773(e)(2)(B)(iii) of the Act and the Statement of 
Administrative Action (``SAA'') accompanying the URAA, H.R. Doc. No. 
316, 103d Cong, 2d Sess (1994), at 841. Dinsen reported general and 
administrative expenses in its questionnaire response.
    Specifically, the SAA provides that where, due to the absence of 
data, the Department cannot determine amounts for profit under 
alternatives (i) or (ii) of section 773(e)(2)(B) of the Act or a 
``profit cap'' under alternative (iii) of section 773(e)(2)(B) of the 
Act, the Department may apply alternative (iii) on the basis of the 
facts available. In this case, we are unable to determine an amount for 
profit under alternatives (i) or (ii), or a ``profit cap'' under 
alternative (iii) because the respondent does not have a viable home 
market. See 19 CFR 351.405(b)(2) (clarifying that under section 
773(e)(2)(B) of the Act, ``foreign country'' means the country in which 
the merchandise is produced) (62 FR 27296, 27412-13 (May 19, 1997)). 
The statute directs us to use an amount which reflects profit in 
connection with sales for consumption in the foreign country of the 
same general category of products as the subject merchandise. See 
section 773(e)(2) of the Act. Because Dinsen did not have a viable home 
market, the profit and selling expenses shown on its financial 
statement do not reflect profit and selling expenses realized in the 
home market. Therefore, we did not rely on the profit or selling 
expense data in the respondent's financial statements in calculating 
CV. Instead, we applied alternative (iii) and determined profit and 
selling expense on the basis of the facts available consistent with the 
SAA (see Notice of Final Determination of Sales at Less Than Fair 
Value: Certain Preserved Mushrooms from Indonesia, 63 FR 72268, 72273, 
(December 31, 1998)). As facts available, we calculated Dinsen's profit 
and selling expenses for CV based on the weighted-average selling 
expenses and profit contained in the 1998 financial statement of Chun 
Yu Works & Company, Ltd. (``Chun Yu''), a Taiwan producer of fasteners, 
lug nuts and steel bars. See Calculation Memorandum dated August 2, 
1999.

Price-to-CV Comparisons

    For price-to-CV comparisons, we did not make a circumstance-of-sale 
adjustment, pursuant to section 773(a)(6)(C)(iii) of the Act, because 
the Department was unable to distinguish between home market direct and 
indirect selling expenses based on the 1998 financial statement of Chun 
Yu.

Preliminary Results of the Review

    As a result of our comparison of EP and NV, we preliminarily 
determine that the following weighted-average dumping margin exists:

----------------------------------------------------------------------------------------------------------------
            Manufacturer/exporter                    Period                       Margin (percent)
----------------------------------------------------------------------------------------------------------------
Dinsen Fastening System, Inc................     11/20/97-10/31/98  0.02 (de minimis).
----------------------------------------------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within five days 
of the date of publication of this notice. Any interested party may 
request a hearing within 30 days of publication. Any hearing, if 
requested, will be held 44 days after the date of publication or the 
first business day thereafter.
    Issues raised in the hearing will be limited to those raised in the 
respective case briefs and rebuttal briefs. Case briefs from interested 
parties and rebuttal briefs, limited to the issues raised in the 
respective case briefs, may be submitted not later than 30 days and 37 
days, respectively, from the date of publication of these preliminary 
results. See 19 CFR 351.309(c)(1)(ii) and (d)(1).

[[Page 43346]]

Parties who submit case briefs or rebuttal briefs in this proceeding 
are requested to submit with each argument (1) a statement of the issue 
and (2) a brief summary of the argument. Parties are also encouraged to 
provide a summary of the arguments not to exceed five pages and a table 
of statutes, regulations, and cases cited.
    The Department will subsequently issue the final results of this 
administrative review, including the results of its analysis of issues 
raised in any such written briefs or at the hearing, if held, not later 
than 120 days after the date of publication of this notice.
    Interested parties who wish to request a hearing or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration, Room B-099, within 30 days of the 
date of publication of this notice. Requests should contain: (1) The 
party's name, address and telephone number; (2) the number of 
participants; and (3) a list of issues to be discussed. See 19 CFR 
351.310(c).

Assessment Rates

    The Department shall determine, and the Customs Service shall 
assess, antidumping duties on all appropriate entries. The Department 
will issue appropriate appraisement instructions directly to the 
Customs Service upon completion of this review. The final results of 
this review shall be the basis for the assessment of antidumping duties 
on entries of merchandise covered by this review and for future 
deposits of estimated duties. We will instruct the Customs Service to 
assess antidumping duties on all appropriate entries covered by this 
review if any assessment rate calculated in the final results of this 
review is above de minimis (i.e, at or above 0.5 percent) (see, 19 CFR 
351.106(c)(2)). For assessment purposes, if applicable, we intend to 
calculate an importer-specific assessment rate by aggregating the 
dumping margins calculated for all U.S. sales and dividing this amount 
by the total quantity sold.

Cash Deposit Requirements

    The following cash 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) the cash deposit rate for Dinsen will be that 
established in the final results of this review, except if the rate is 
less than 0.5 percent, and therefore, de minimis within the meaning of 
19 CFR 351.106(c)(1), in which case the cash deposit rate will be zero; 
(2) for merchandise exported by manufacturers or exporters not covered 
in this review but covered in the original less-than-fair-value (LTFV) 
investigation, the cash deposit rate will continue to be the rate 
published in the final determination; or (3) if the manufacturer or 
exporter is not a firm covered in this review or the 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) the cash deposit rate for all other 
manufacturers or exporters will continue to be 2.98 percent, the ``All 
Others'' rate made effective by the LTFV investigation. These 
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 351.402(f) 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. See 19 CFR 351.402(f)(3).
    This administrative review and notice are published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: August 2, 1999.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 99-20559 Filed 8-9-99; 8:45 am]
BILLING CODE 3510-DS-P