[Federal Register Volume 65, Number 44 (Monday, March 6, 2000)]
[Notices]
[Pages 11764-11766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5369]



[[Page 11764]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-810]


Mechanical Transfer Presses From Japan: Preliminary Results and 
Recission in Part of Antidumping Duty Administrative Review

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

ACTION: Notice of Preliminary Results and Recission in Part of 
Antidumping Duty Administrative Review: Mechanical Transfer Presses 
from Japan.

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SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on mechanical 
transfer presses (MTPs) from Japan in response to a request by 
petitioner, Verson Division of Allied Products Corp. This review covers 
shipments of this merchandise to the United States during the period of 
February 1, 1998 through January 31, 1999.
    We have preliminarily determined that sales have not 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 
liquidate entries without regard to antidumping duties.
    Interested parties are invited to comment on these preliminary 
results. Parties who submit argument are requested to submit with each 
argument (1) a statement of the issue and (2) a brief summary of the 
argument.

EFFECTIVE DATE: March 6, 2000.

FOR FURTHER INFORMATION CONTACT: Michael Strollo or Maureen Flannery, 
Antidumping/Countervailing Duty Enforcement, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington DC 20230; telephone 
(202) 482-5255 or (202) 482-3020, respectively.

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. In addition, unless otherwise indicated, 
all citations to the Department's regulations are to the provisions 
codified at 19 CFR part 351 (1999).

Background

    The Department published in the Federal Register an antidumping 
duty order on MTPs from Japan on February 16, 1990 (55 FR 5642). On 
February 26, 1999, the Department received a timely request from 
petitioner to conduct an administrative review pursuant to section 
351.213(b) of the Department's regulations. We initiated an 
administrative review covering three exporters: Hitachi Zosen 
Corporation (Hitachi Zosen), Ishikawajima-Harima Heavy Industries, Ltd. 
(IHI), and Komatsu, Ltd (Komatsu). We published a notice of initiation 
of this antidumping duty administrative review on MTPs on March 29, 
1999 (64 FR 14860).
    Due to extraordinarily complicated issues in this case, the 
Department extended the deadline for completion of this antidumping 
duty administrative review on October 11, 1999. See Mechanical Transfer 
Presses from Japan: Extension of Time Limits for the Preliminary 
Results of Antidumping Duty Administrative Review, 64 FR 57862 (October 
27, 1999).

Preliminary Recission in Part of Antidumping Administrative Review

    On April 12, 1999, we received a letter from Hitachi Zosen 
indicating that there were no entries of subject merchandise during the 
period of review (POR). On June 28, 1999, the petitioner withdrew its 
request for an administrative review with respect to IHI. On August 25, 
1999, we requested that the U.S. Customs Service (Customs) contact us 
if they were suspending liquidation of entries of the subject 
merchandise from Hitachi Zosen. We have received no such response. 
Therefore, we conclude that there have been no entries of subject 
merchandise made by Hitachi Zosen, and thus, are preliminarily 
rescinding the review with respect to Hitachi Zosen and IHI.

Scope of Review

    Imports covered by this review include MTPs currently classfiable 
under Harmonized Tariff Schedule (HTS) item numbers 8462.99.0035 and 
8466.94.5040. The HTS subheadings are provided for convenience and 
Customs purposes only. The written description of the scope of this 
order is dispositive.
    The term ``mechanical transfer presses'' refers to automatic metal-
forming machine tools with multiple die stations in which the work 
piece is moved from station to station by a transfer mechanism designed 
as an integral part of the press and synchronized with the press 
action, whether imported as machines or parts suitable for use solely 
or principally with these machines. These presses may be imported 
assembled or unassembled. This review does not cover certain parts and 
accessories, which were determined to be outside the scope of the 
order. (See ``Final Scope Ruling on Spare and Replacement Parts,'' U.S. 
Department of Commerce, March 20, 1992; and ``Final Scope Ruling on the 
Antidumping Duty Order on Mechanical Transfer Presses (MTPs) from 
Japan: Request by Komatsu, Ltd.,'' U.S. Department of Commerce, October 
3, 1996.)
    This review covers one manufacturer of MTPs, and the period 
February 1, 1998 through January 31, 1999.

Verification

    As provided in section 782(i) of the Act, we verified information 
provided by Komatsu using standard verification procedures, including 
on-site inspection of the manufacturer's facilities and the examination 
of relevant sales and financial records. Our verification results are 
outlined in the public version of the verification reports.

Normal Value Comparisons

    To determine whether respondent's sales of the subject merchandise 
to the United States were made at less than NV, we compared its United 
States price to NV, as described in the ``United States Price'' and 
``Normal Value'' sections of this notice.

United States Price

    For United States price, we calculated an export price (EP) in 
accordance with section 772(a) of the Act. However, because the subject 
merchandise was sold by Komatsu directly to unaffiliated purchasers in 
Japan prior to importation into the United States by Komatsu's wholly-
owned subsidiary, we have used the price paid by the unaffiliated 
purchaser in Japan. Constructed export price was not otherwise 
warranted by facts on the record.
    We calculated EP for Komatsu based on packed, prepaid or delivered 
prices to customers in the United States. We made deductions from the 
starting price for foreign inland freight and inland insurance, and, 
where appropriate, brokerage and handling, international freight, 
installation, supervision, and U.S. Customs duties in accordance with 
section 772(c)(2) of the Act.

Normal Value

    We preliminarily determine that the use of constructed value (CV) 
is warranted to calculate NV for Komatsu, in accordance with section 
773(a)(4) of the Act. While the home market is viable, sales made to 
the United States do not permit proper price-to-price comparisons with 
sales made in the home market.

[[Page 11765]]

    Komatsu asserts that home, third country, and U.S. market products 
are distinguished by the many differences in specifications between the 
various presses, and that no merchandise sold in the home market or to 
a third country is identical or similar to the merchandise sold to the 
United States.
    Petitioner argues that presses may be sufficiently similar to allow 
for price-to-price comparisons because they are all automotive metal-
forming machine tools with multiple die stations.
    On July 1, 1999, the Department requested additional cost 
information from Komatsu. In response to this request, Komatsu placed 
additional information on the record with respect to its variable cost 
of manufacturing (VCOM) for its home market sales. Based on the 
information provided in this response, we asked Komatsu to answer 
section B of the Department's questionnaire so that we might determine 
if any home market sales were within the 20 percent difference in 
merchandise (DIFMER) threshold that we use to determine whether sales 
might be compared.
    Based on the information provided in Komatsu's section B and the 
revisions of Komatsu's variable cost of manufacturing presented to us 
at verification, we have concluded that a price-to-price comparison is 
not feasible. MTPs are made to each customer's specifications, 
resulting in significant differences among machines. In addition, for 
all the sales we found to be contemporaneous matches, we found the 
DIFMER's to be greater than the 20% allowable under Policy Bulletin 
92.2. See Memorandum from Mike Strollo to Edward Yang through Maureen 
Flannery: Decision Memorandum Regarding the Use of a Price-to-Price 
Comparison vs. Constructed Value in the 1998-1999 Administrative Review 
of Mechanical Transfer Presses (Decision Memorandum), dated February 
28, 2000. Therefore, we have resorted to the use of CV.
    We note that, in past proceedings involving large, custom-built 
capital equipment, including prior reviews of this order, we have 
normally resorted to CV. (See, e.g., Large Power Transformers from 
France: Final Result of Antidumping Administrative Review, 61 FR 40403, 
dated August 2, 1996; Notice of Final Determination of Sales at Less 
Than Fair Value: Large Newspaper Printing Presses and Components 
Thereof, Whether Assembled or Unassembled, from Japan, 61 FR 38139, 
dated July 23, 1996; and Mechanical Transfer Presses from Japan: Final 
Results of Antidumping Duty Administrative Review, 63 FR 37331, dated 
July 10, 1998.)
    CV consists of the costs of design and engineering, the cost of 
materials, direct labor cost, variable overhead, fixed overhead, direct 
selling expenses, indirect selling expenses, general and administrative 
expenses, including interest expense, and profit. We used packing costs 
for merchandise exported to the United States. We made a circumstance 
of sale adjustment by deducting from CV home market direct selling 
expenses (i.e., warranties and credit) and adding to CV U.S. direct 
selling expenses (i.e., warranties, credit, and commissions). In 
addition, we made a circumstance-of-sale adjustment by offsetting 
commission expense incurred on sales to the United States to the extent 
of indirect selling expenses incurred in the home market.

Preliminary Results of Review

    We preliminarily determine that the following dumping margin 
exists:

------------------------------------------------------------------------
   Manufacturer/  exporter         Time period        Margin  (percent)
------------------------------------------------------------------------
Komatsu, Ltd................     02/01/98-01/31/99                  0.00
------------------------------------------------------------------------

    Parties to the proceeding may request disclosure within 5 days of 
the date of publication of this notice in accordance with 19 CFR 
351.224(b). Any interested party may request a hearing within 30 days 
of publication in accordance with 19 CFR 351.310(c). Any hearing, if 
requested, will be held 37 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 351.309(c)(1)(ii). Rebuttal briefs, which must 
be limited to issues raised in the case briefs, may be filed not later 
than 35 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, not later than 120 days after the date of publication of this 
notice.
    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries. Upon completion 
of this review, the Department will issue appraisement instructions 
directly to the Customs Service.
    Furthermore, the following deposit rate will be effective upon 
publication of the final results of this administrative review for all 
shipments of MTPs from Japan 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 Komatsu, the cash deposit rate 
will be the rate established in the final results of this review; (2) 
for previously reviewed or investigated companies not listed above, the 
cash deposit rate will be the company-specific rate established for the 
most recent period; (3) if the exporter is not a firm covered in this 
review, a prior review, or the original 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 subject merchandise; 
and (4) for all other producers and/or exporters of this merchandise, 
the cash deposit rate shall be the rate established in the LTFV 
investigation, which is 14.51 percent. See Notice of Final 
Determination of Sales at Less Than Fair Value and Antidumping Duty 
Order: Mechanical Transfer Presses from Japan, dated September 15, 
1997.
    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 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.
    This administrative review and notice are issued in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act (19 U.S.C. 1675(a)(1) and 
19 U.S.C 1677f(i)(1)).


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    Dated: February 28, 2000.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 00-5369 Filed 3-3-00; 8:45 am]
BILLING CODE 3510-DS-P