[Federal Register Volume 66, Number 7 (Wednesday, January 10, 2001)]
[Notices]
[Pages 1953-1956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-777]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-601]


Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China; Final Results of 1998-
1999 Administrative Review, Partial Rescission of Review, and 
Determination Not To Revoke Order in Part

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

ACTION: Notice of final results of 1998-1999 (twelfth) administrative 
review, partial rescission of the review, and determination not to 
revoke the order in part.

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SUMMARY: We have determined that sales of tapered roller bearings and 
parts thereof, finished and unfinished, from the People's Republic of 
China, were made below normal value during the period June 1, 1998, 
through May 31, 1999. Based on our review of comments received and a 
reexamination of surrogate value data, we have made certain changes in 
the margin calculation of all of the reviewed companies. Consequently, 
the final results differ from the preliminary results. The final 
weighted-average dumping margins for these firms are listed below in 
the section entitled ``Final Results of the Review.'' Based on these 
final results of review, we will instruct the Customs Service to assess 
antidumping duties based on the difference between the export price and 
normal value on all appropriate entries.
    China National Machinery Import & Export Corporation, Wafangdian 
Bearing Group Corp. Import & Export Company, Wanxiang Group 
Corporation, and Zhejiang Machinery Import & Export Corp. have 
requested revocation of the antidumping duty order in part. Based on 
record evidence, we find that none of these companies qualify for 
revocation. Accordingly, we are not revoking the order with respect to 
the subject merchandise produced and exported by these four companies.

EFFECTIVE DATE: January 10, 2001.

FOR FURTHER INFORMATION CONTACT: Greg Campbell or Jarrod Goldfedder, 
Group 1, Office I, 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) 482-2239 or (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    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 
(Department) regulations are to 19 CFR part 351 (2000).

Background

    On July 7, 2000, the Department published the Preliminary 
Results.\1\ The period of review (POR) is June 1, 1998, through May 31, 
1999. This review covers the following exporters (referred to 
collectively as the respondents): Wafangdian Bearing Group Corp. Import 
& Export Company (Wafangdian), Zhejiang Machinery Import & Export Corp. 
(ZMC), Wanxiang Group Corporation (Wanxiang), China National Machinery 
Import & Export Corporation (CMC), Liaoning MEC Group Co. Ltd. 
(Liaoning), Luoyang Bearing Corp. (Group) (Luoyang), Premier Bearing & 
Equipment Ltd. (Premier), Tianshui Hailin Import and Export 
Corporation/Hailin Bearing Factory (Hailin), Weihai Machinery Holding 
(Group) Co., Ltd. (Weihai), Zhejiang Changshan Changhe Bearing Corp. 
(``ZCCBC''), and Zhuzhou Torch Spark Plug Co., Ltd. (Torch).
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    \1\ Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China; Preliminary Results 
of 1998-1999 Administrative Review, Partial Rescission of Review, 
and Notice of Intent to Revoke Order in Part, 65 FR 41944 (July 7, 
2000) (Preliminary Results).
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    We invited parties to comment on our preliminary results of review. 
By August 17, 2000, we received case briefs from the Timken Company 
(petitioner), as well as from CMC, Liaoning, Wanxiang, Hailin, Weihai, 
Premier, ZMC, Luoyang, Wafangdian and Torch. By August 21, 2000, each 
of these parties (with the exception of Torch) also submitted rebuttal 
briefs. At the request of certain interested parties, we held a public 
hearing on August 31, 2000.
    The Department has conducted this administrative review in 
accordance with section 751 of the Act.

[[Page 1954]]

Scope of Review

    Merchandise covered by this review includes tapered roller bearings 
(TRBs) and parts thereof, finished and unfinished, from the PRC; 
flange, take up cartridge, and hanger units incorporating tapered 
roller bearings; and tapered roller housings (except pillow blocks) 
incorporating tapered rollers, with or without spindles, whether or not 
for automotive use. This merchandise is currently classifiable under 
the Harmonized Tariff Schedule of the United States (``HTSUS'') item 
numbers 8482.20.00, 8482.91.00.50, 8482.99.30, 8483.20.40, 8483.20.80, 
8483.30.80, 8483.90.20, 8483.90.30, 8483.90.80, 8708.99.80.15, and 
8708.99.80.80. Although the HTSUS item numbers are provided for 
convenience and customs purposes, the written description of the scope 
of the order and this review is dispositive.

Rescission of Review in Part

    As stated in the Preliminary Results, ZCCBC reported no shipments 
of subject merchandise to the United States during the POR other than 
those shipments already examined by the Department as part of ZCCBC's 
new shipper review.\2\ Entry data provided by the Customs Service 
confirms that there were no POR entries from ZCCBC of TRBs other than 
those examined under the new shipper review. Therefore, consistent with 
the Department's regulations and practice,\3\ we are rescinding this 
review with respect to ZCCBC.
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    \2\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China; Final Results of 
1997-1998 Antidumping Duty Administrative Review and Final Results 
of New Shipper Review, 64 FR 61837 (November 15, 1999).
    \3\ See 19 CFR 351.213(d)(3); Silicon Metal from Brazil; Final 
Results of Antidumping Duty Administrative Review, 61 FR 46763 
(September 5, 1996).
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    As stated in the Preliminary Results, Torch shipped TRBs to an 
affiliated Canadian party during the POR. According to Torch, the TRBs 
were originally intended for shipment to Canada. However, they entered 
the United States and, according to Torch, were erroneously categorized 
as consumption entries. Torch has provided documentation demonstrating 
that the merchandise has not been sold to an unaffiliated party in the 
United States.
    As noted in the Preliminary Results, in situations where an 
affiliated importer enters merchandise during a review period, but does 
not sell that merchandise during the POR, our normal practice is to 
liquidate the entries based on other sales of the merchandise made by 
the affiliated importer during the POR.\4\ In this case, however, the 
company indicated that it did not intend to sell this merchandise in 
the United States. Thus, we stated our intent to liquidate Torch's 
merchandise in question without regard to any dumping liability if 
certain requirements were met. In a June 29, 1999, memorandum, ``Review 
of Zhuzhou Torch Spark Plug Company, Ltd.,'' we specified the proof 
required before we could reach a final determination of whether to 
liquidate the merchandise in question without regard to dumping 
liability. The importer, Undercar Canada, Inc., submitted the requisite 
information in letters dated May 15, September 8, and October 17, 2000.
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    \4\ See Silicon Metal from Brazil; Final Results of Antidumping 
Duty Administration {sic} Review, 61 FR 46763 (September 5, 1996).
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    We, therefore, find that Torch did not sell the merchandise in the 
United States and, thus, there is no basis to calculate a dumping 
margin for this merchandise. Accordingly, we are rescinding this review 
with respect to Torch, and will instruct the Customs Service to 
liquidate the merchandise in question without regard to any dumping 
liability.

Determination Not To Revoke Order, in Part

    The Department ``may revoke, in whole or in part'' an antidumping 
duty order upon completion of a review under section 751 of the Act. 
While Congress has not specified the procedures that the Department 
must follow in revoking an order, the Department has developed a 
procedure for revocation that is described in 19 CFR 351.222. This 
regulation requires, inter alia, that a company requesting revocation 
must submit the following: (1) A certification that the company has 
sold the subject merchandise at not less than normal value (``NV'') in 
the current review period and that the company will not sell at less 
than NV in the future; (2) a certification that the company sold the 
subject merchandise in each of the three years forming the basis of the 
request in commercial quantities; and (3) an agreement to reinstatement 
of the order if the Department concludes that the company, subsequent 
to the revocation, sold subject merchandise at less than NV. See 19 CFR 
351.222(e)(1). Upon receipt of such a request, the Department may 
revoke an order, in part, if it concludes that (1) the company in 
question has sold subject merchandise at not less than NV for a period 
of at least three consecutive years; (2) it is not likely that the 
company will in the future sell the subject merchandise at less than 
NV; and (3) the company has agreed to its immediate reinstatement in 
the order if the Department concludes that the company, subsequent to 
the revocation, sold subject merchandise at less than NV. See 19 CFR 
351.222(b)(2).
    As noted in the Preliminary Results, pursuant to 19 CFR 
351.222(e)(1), CMC, Wafangdian, Wanxiang, and ZMC requested revocation 
of the antidumping duty order, in part, based on an absence of dumping 
for at least three consecutive years. As noted below in the 
``Suspension of Liquidation'' section, CMC, Wafangdian, and ZMC were 
found to have made sales below normal value in the instant review. As 
such, we find that CMC, Wafangdian, and ZMC do not qualify for 
revocation.
    Wanxiang sold the subject merchandise at not less than normal value 
for a period of at least three consecutive years. We must determine, as 
a threshold matter, in accordance with 19 CFR 351.222(e)(1)(ii), 
whether the company requesting revocation sold the subject merchandise 
in commercial quantities in each of the three years forming the basis 
of the request. After consideration of the various comments that were 
submitted in response to the Preliminary Results, we determine that 
Wanxiang did not sell the subject merchandise in the United States in 
commercial quantities in each of the three years cited by Wanxiang to 
support its request for revocation. See ``Analysis of Comments 
Received, Comment 21,'' below. Therefore, we find that Wanxiang does 
not qualify for revocation of the order on TRBs under 19 CFR 
351.222(e)(1)(ii).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this administrative review are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memo) from Richard W. Moreland, Deputy Assistant 
Secretary, Import Administration, to Troy H. Cribb, Assistant Secretary 
for Import Administration, dated January 3, 2001, which is hereby 
adopted by this notice. A list of the issues which parties have raised 
and to which we have responded, all of which are in the Decision Memo, 
is attached to this notice as an Appendix. Parties can find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum, which is on file in the 
Central Records Unit, room B-099 of the main Department building. In 
addition,

[[Page 1955]]

a complete version of the Decision Memo can be accessed directly on the 
Web at http://ia.ita.doc.gov/frn/summary/list.htm. The paper copy and 
electronic version of the Decision Memo are identical in content.

Changes Since the Preliminary Results

    Based on our review of comments received and a reexamination of 
surrogate value data, we have made certain changes to the calculations 
for the final results. These changes are discussed in the following 
Comments in the Decision Memo or in the referenced final calculation 
memoranda for particular companies:

All Companies

Use of Market Economy Steel Values--Comments 1 through 3
Valuation of Certain Steel Inputs--Comments 4, 5, 6, and 13
Valuation of Ocean Freight--Comment 11
Valuation of Pallets and Wooden Cases--Comment 10

    For changes in the valuation of overhead, SG&A, and profit see 
comments 8 and 9 of the Decision Memo. In addition to those changes 
noted in the Decision Memo, we have also revised the calculation of all 
company-specific overhead costs by adding back into the direct costs 
(to which the surrogate overhead rate is applied) the value of scrap.

Wafangdian

    We applied the Sigma cap to the inland freight expenses of 
Wafangdian's suppliers. See Comment 14 of the Decision Memo. We 
increased skilled and unskilled labor hours to account for downtime. 
See Comment 29 of the Decision Memo. We accounted for post-sale price 
adjustments relating to previous sales of defective merchandise. See 
Comment 27 of the Decision Memo. Finally, we used a different surrogate 
to value plastic bags. See Final Factors of Production Memorandum dated 
January 3, 2001.

Premier

    We have applied partial facts available to fill certain data gaps 
in Premier's reporting of foreign inland freight. As partial facts 
available, we have used the average of the unit expenses across those 
sales for which such expenses were reported. See Comment 33 of the 
Decision Memo.
    We have deducted Premier's reported constructed export price (CEP) 
credit expenses from U.S. price. For those CEP sales where Premier 
reported a negative expense, we added the absolute value of that amount 
to U.S. price. See Comment 34 of the Decision Memo.

Liaoning

    We have used the corrected database submitted along with Liaoning's 
March 20, 2000 supplemental response. See Comment 36 of the Decision 
Memo.

ZMC

    We are using surrogate steel values for ZMC instead of market 
economy steel values as we did in the Preliminary Results. See 
Memorandum to the Case File; Calculations for Final Results for Premier 
(January 3, 2001).

Wehai

    We are using surrogate steel values for Weihai instead of market 
economy steel values as we did in the Preliminary Results. See Comment 
38 of the Decision Memo.

Wanxiang

    Based on verification findings, we made certain revisions to the 
calculation of SG&A labor.

Final Results of Review

    We determine that the following dumping margins exist for the 
period June 1, 1998, through May 31, 1999:

------------------------------------------------------------------------
                                                               Margin
                  Manufacturer  /exporter                     (percent)
------------------------------------------------------------------------
Wafangdian................................................          0.67
Wanxiang..................................................          0.00
CMC.......................................................          0.82
ZMC.......................................................          7.37
Liaoning..................................................          0.00
Hailin....................................................          0.00
Weihai....................................................          0.00
Luoyang...................................................          4.37
Premier...................................................          7.36
------------------------------------------------------------------------

Assessment Rates

    Pursuant to 19 CFR 351.212(b), the Department calculates an 
assessment rate for each importer of the subject merchandise. Because 
certain importer-specific assessment rates calculated in these final 
results are above de minimis (i.e., at or above 0.5 percent), the 
Department will issue appraisement instructions directly to the Customs 
Service to assess antidumping duties on appropriate entries by applying 
the assessment rate to the entered value of the merchandise. For 
assessment purposes, we calculate importer-specific assessment rates 
for the subject merchandise by aggregating the dumping duties due for 
all U.S. sales to each importer and dividing the amount by the total 
entered value of the sales to that importer.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(1) of the Act: (1) For the PRC companies 
named above, the cash deposit rates will be the rates for these firms 
established in the final results of this review, except that, for 
exporters with de minimis rates (i.e., less than 0.5 percent) no 
deposit will be required; (2) for previously-reviewed PRC and non-PRC 
exporters with separate rates, the cash deposit rate will be the 
company-specific rate established for the most recent period during 
which they were reviewed; (3) for all other PRC exporters, the rate 
will be the PRC country-wide rate, which is 33.12 percent; and (4) for 
all other 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 requirements, when imposed, shall remain 
in effect until publication of the final results of the next 
administrative review.

Notification to Importers

    This notice also serves as a final 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 doubled antidumping duties.

Notification Regarding APOs

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305, which continues 
to govern business proprietary information in this segment of the 
proceeding. Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance

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with sections section 751(a)(1) and 771(i) of the Act.

    Dated: January 3, 2001.
Richard W. Moreland,
Acting Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Market Economy Steel Values
Comment 2: Insignificant Imports from Market Economy Sources
Comment 3: Weight-Averaging Market Economy with Surrogate Steel 
Values
Comment 4: Cage Surrogate Steel Values
Comment 5: Roller Surrogate Steel Values
Comment 6: Excluding Certain Data from Surrogate Source Data
Comment 7: Labor Costs
Comment 8: Surrogate Calculations for Overhead, SG&A and Profit
Comment 9: Inclusion of Traded Goods in Overhead, SG&A and Profit
Comment 10: Surrogate Values for Pallets and Wooden Cases
Comment 11: Ocean Freight Expenses
Comment 12: Adjusting Surrogate Export Values for Duties
Comment 13: Adding Ocean Freight and Insurance to FOB Export Values
Comment 14: Sigma Cap and PRC Freight Expenses
Comment 15: Exchange Rates
Comment 16: Separate Rates Analysis of Suppliers
Comment 17: U.S. Credit Expenses for EP Sales
Comment 18: The Department Should Grant Revocations
Comment 19: Limiting Revocation to Certain Trading Companies
Comment 20: Limiting Revocation to Particular Models
Comment 21: Revocation with Respect to Wanxiang
Comment 22: CMC's Market Economy Steel Values
Comment 23: Accounting for CMC's Rejects
Comment 24: CMC's Negative Inventory Carrying Costs
Comment 25: Applying Adverse Facts Available to ZMC
Comment 26: Wanxiang's Surrogate Steel Values
Comment 27: Wafangdian's Price Adjustments
Comment 28: Wafangdian's Normal Value for Non-Specification Parts
Comment 29: Double-Counting of Wafangdian's Labor Inputs
Comment 30: Application of the PRC-wide Rate to Premier
Comment 31: Application of Total Adverse Facts Available to Premier
Comment 32: Department's Choice of FOP Data for Each of Premier's 
Inputs
Comment 33: Premier's Foreign Inland Freight
Comment 34: Deducting Premier's U.S. Credit Expenses in CEP Sales 
Situations
Comment 35: Adjusting Luoyang's Normal Value for U.S. Credit 
Expenses for EP Sales
Comment 36: Use of Liaoning's Correct Database
Comment 37: Adjusting Liaoning's normal value for U.S. Credit 
Expenses for EP Sales
Comment 38: Surrogate Steel Valuation for Weihai
Comment 39: Torch's Affiliated Sales and Transshipped TRBs

[FR Doc. 01-777 Filed 1-9-01; 8:45 am]
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