[Federal Register Volume 67, Number 29 (Tuesday, February 12, 2002)]
[Notices]
[Pages 6482-6485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3383]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-867]


Final Determination of Sales at Less Than Fair Value: Certain 
Automotive Replacement Glass Windshields From The People's Republic of 
China

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

ACTION: Notice of final determination of sales at less than fair value.

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EFFECTIVE DATE: February 12, 2002.

FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Stephen Bailey, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue N.W., 
Washington, DC 20230; telephone: (202) 482-0182, 482-1102, 
respectively.

SUPPLEMENTARY INFORMATION:

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''). In addition, unless 
otherwise indicated, all citations to the Department of Commerce's 
(``the Department'') regulations are to the regulations at 19 CFR part 
351 (April 2000).

[[Page 6483]]

FINAL DETERMINATION

    We determine that certain automotive replace glass windshields 
(``ARG windshields'') from the People's Republic of China (``PRC'') are 
being, or are likely to be, sold in the United States at less than fair 
value (``LTFV''), as provided in section 735 of the Act. The estimated 
margin of sales is shown in the ``Final Margin'' section of this 
notice.

Case History

    We published in the Federal Register the preliminary determination 
in this investigation on September 19, 2001. See Notice of Preliminary 
Determination of Sales at Less Than Fair Value: Certain Automotive 
Replacement Glass Windshields from the People's Republic of China, 66 
FR 48233 (September 19, 2001) (``Preliminary Determination''). On 
October 4, 2001, we published in the Federal Register a postponement of 
the final determination in this investigation. See Notice of 
Postponement of Final Determination of Antidumping Duty Investigation: 
Automotive Replacement Glass Windshields from the People's Republic of 
China, 66 FR 50607 (October 4, 2001).
    On September 21, 2001, the Department received timely filed 
allegations that we made ministerial errors in the preliminary 
determination from Fuyao Glass Industry Group Company, Ltd, (``FYG'') 
and PPG Industries, Inc., Safelite Glass Corporation, Apogee 
Enterprises, Inc., and its subsidiary Viracon/Curvelite, (collectively, 
``Petitioners''). We published in the Federal Register the amended 
preliminary determination in this investigation on October 24, 2001. 
See Notice of Amended Preliminary Antidumping Duty Determination of 
Sales at Less Than Fair Value: Automotive Replacement Glass Windshields 
from the People's Republic of China, 66 FR 53776 (October 24, 2002) 
(``Amended Preliminary Determination''). Since the publication of the 
Amended Preliminary Determination, the following events have occurred.
    On October 18, 2001, Petitioners submitted a request for a public 
hearing in accordance with 19 CFR 351.310(c). On October 19, 2001, 
2001, FYG submitted a request for a public hearing.
    On November 4, 2001 through November 8, 2001, the Department 
conducted a sales and factors factor of production verification of FYG. 
On November 12, 2001 through November 16, 2001, the Department 
conducted sales and factors of production verification of Xinyi 
Automotive Glass (Shenzhen) Co., Ltd. (``Xinyi''). On December 5, 2001 
through December 6, 2001, the Department conducted a sales verification 
of FYG's U.S. affiliate, Greenville Glass Industries, Inc. (``GGI'').
    On December 27, 2001, Petitioners, FYG, Xinyi, Benxun, and TCGI 
International, Inc. (``TCGI''), submitted their case briefs with 
respect to the sales and factors of production verification and the 
Department's Preliminary Determination. On December 27, 2001, 
Petitioners submitted their case brief with respect to the sales and 
factors of production verification and the Department's Preliminary 
Determination. On January 4, 2002, FYG submitted its rebuttal brief 
with respect to the Department's Preliminary Determination. On January 
7, 2002, Petitioners, Xinyi, Benxun and TCGI submitted their rebuttal 
brief with respect to the sales and factors of production verification 
and the Department's Preliminary Determination. On January 7, 2002, 
Changchun Pilkington Safety Glass Company Limited, Guilin Pilkington 
Safety Glass Company Limited, Wuhan Yaohua Pilkington Safety Glass 
Company Limited and Shanghai Guangda Trading Company (``the Pilkington 
Companies'') submitted their rebuttal brief with regard to critical 
circumstances.
    On January 8, 2002, the Department held a public hearing in 
accordance with 19 CFR 351.310(d)(1). Representatives for Petitioners, 
FYG, Xinyi, TCGI, and the Pilkington Companies were present. All 
parties present were allowed an opportunity to make affirmative 
presentations only on arguments included in that party's case briefs 
and were also allowed to make rebuttal presentations only on arguments 
included in that party's rebuttal brief. Also, on January 8, 2002, at 
Petitioner's request, the Department held a closed hearing, in 
accordance with 19 CFR 351.310(f), to permit the discussion of issues 
involving business proprietary information.

Period of Investigation

    The period of investigation is July 1, 2000, through December 31, 
2000.

Non-Market Economy

    The Department has treated the PRC as a non market economy (NME) 
country in all its past antidumping investigations. See Notice of Final 
Determination of Sales at Less Than Fair Value: Honey from the People's 
Republic of China, 66 FR 50608 (October 4, 2001) and Notice of Final 
Determination of Sales at Less Than Fair Value: Certain Folding Gift 
Boxes from the People's Republic of China, 66 FR 58115 (November 20, 
2001). A designation as an NME country remains in effect until it is 
revoked by the Department. See section 771(18)(C) of the Act. The 
respondents in this investigation have not requested a revocation of 
the PRC's NME status. Therefore, we have continued to treat the PRC as 
an NME in this investigation. For further details, see the Department's 
Preliminary Determination.

Separate Rates

    In our Preliminary Determination, we found that the respondents had 
met the criteria for the application of separate antidumping duty 
rates. We have not received any other information since the Preliminary 
Determination which would warrant reconsideration of our separates 
rates determination with respect to the respondents. Therefore, we 
continue to find that the respondents should be assigned individual 
dumping margins. For a complete discussion of the Department's 
determination that the respondents are entitled to separate rates, see 
the Preliminary Determination.

The PRC-Wide Rate

    For the reasons set forth in the Preliminary Determination, we 
continue to believe that use of adverse facts available for the PRC-
wide rate is appropriate. See Preliminary Determination, 66 FR at 
48237.

Surrogate Country

    For purposes of the final determination, we find that India remains 
the appropriate primary surrogate country for the PRC. For further 
discussion and analysis regarding the surrogate country selection for 
the PRC, see the Department's Preliminary Determination.

Critical Circumstances

    In the Department's Preliminary Determination, we determined that 
critical circumstances exist for imports of ARG windshields from the 
PRC manufactured and/or exported by the PRC-wide entity. We, however, 
preliminarily found that critical circumstances do not exist for FYG, 
Xinyi, Benxun, TCGI, Changchun, Guilin, and Wuhan based on lack of 
importer knowledge. For this final determination, we continue to find 
critical circumstances for imports of ARG windshields from the PRC 
manufactured and/or exported by the PRC-wide entity. Additionally, 
because the final calculated margin for FYG is

[[Page 6484]]

below 15 percent, the Department's threshold for imputing knowledge of 
dumping for CEP sales is not met. For Xinyi because the final 
calculated margin for is below 25 percent, the Department's threshold 
for imputing knowledge of dumping for EP sales is not met. We therefore 
do not find critical circumstances with respect to these companies. 
Furthermore, the weighted-average margin we calculated for the non-
mandatory respondents Benxun, TCGI, Changchun, Guilin and Wuhan, is 
less than either the 25 percent threshold for imputing knowledge for EP 
sales or the 15 percent threshold for CEP sales. Although the record as 
to these respondents does not indicate whether their sales were EP or 
CEP, neither threshold is met. See Notice of Final Determination of 
Sales at Less Than Fair: Certain Non-Frozen Apple Juice Concentrate 
from the People's Republic of China, 65 FR 19873 (April 13, 2000). 
Therefore, we do not consider critical circumstances to exist with 
regard to these non-mandatory respondents. For a discussion of 
interested party comments on this issue, see Issues and Decision 
Memorandum for the Less Than Fair Value Investigation of Certain 
Automotive Replacement Glass Windshields from the People's Republic of 
China: July 1, 2000 through December 31, 2001 from Joseph A. Spetrini, 
Deputy Assistant Secretary, Import Administration, to Faryar Shirzad, 
Assistant Secretary for Import Administration, dated February 1, 2002 
(Issues and Decision Memorandum).

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
investigation are addressed in the Issues and Decision Memorandum. A 
list of the issues which parties raised, and to which we have 
responded, all of which are in the Issues and Decision Memorandum, is 
attached to this notice as an Appendix. Parties can find a complete 
discussion of all issues raised in this investigation and the 
corresponding recommendations in this public memorandum, which is on 
file in the Central Records Unit, Room B-099 of the Main Department of 
Commerce Building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly on the World Wide Web at 
www.ia.ita.doc.gov/. The paper copy and electronic version of the 
Issues and Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our findings at verification, and analysis of comments 
received, we have made adjustments to the calculation methodology in 
calculating the final dumping margin in this proceeding and have 
surrogate value changes. See Analysis Memorandum Xinyi, Analysis 
Memorandum for FYG, and Factors of Production Valuation Memorandum for 
the Final Determination, dated February 1, 2002.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by each respondent for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by the respondents. For changes from the 
Preliminary Determination as a result of verification, see Analysis 
Memorandum for Xinyi and Analysis Memo for FYG.

Scope of Investigation  

    Interested parties requested that the Department clarify whether 
ARG windshields for buses, farm and heavy machinery are included in the 
scope of this investigation. Based on the information received, we 
clarified that ARG windshields for buses, farm and heavy machinery are 
included in the scope of this investigation. For further discussion, 
please see the Issues and Decision Memorandum for the Scope 
Clarification for the Antidumping Duty Investigation of Automotive 
Replacement Glass Windshields from the People's Republic of China: July 
1, 2000 through December 31, 2001 from Edward C. Yang, Director, Office 
9 to Joseph A. Spetrini, Deputy Assistant Secretary, AD/CVD Enforcement 
Group III, dated January 24, 2002.
    The products covered by this investigation are ARG windshields, and 
parts thereof, whether clear or tinted, whether coated or not, and 
whether or not they include antennas, ceramics, mirror buttons or VIN 
notches, and whether or not they are encapsulated. ARG windshields are 
laminated safety glass (i.e., two layers of (typically float) glass 
with a sheet of clear or tinted plastic in between (usually polyvinyl 
butyral)), which are produced and sold for use by automotive glass 
installation shops to replace windshields in automotive vehicles (e.g., 
passenger cars, light trucks, vans, sport utility vehicles, etc.) that 
are cracked, broken or otherwise damaged.
    ARG windshields subject to this investigation are currently 
classifiable under subheading 7007.21.10.10 of the Harmonized Tariff 
Schedules of the United States (HTSUS). Specifically excluded from the 
scope of this investigation are laminated automotive windshields sold 
for use in original assembly of vehicles. While HTSUS subheadings are 
provided for convenience and Customs purposes, our written description 
of the scope of this investigation is dispositive.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Act, we are 
directing the Customs Service to continue to suspend liquidation of all 
entries of subject merchandise from the PRC, that are entered, or 
withdrawn from warehouses, for consumption on or after the date of 
publication of the Amended Preliminary Determination in the Federal 
Register. The Customs Service shall continue to require a cash deposit 
or posting of a bond equal to the estimated amount by which the normal 
value exceeds the U.S. price as shown below. These suspension of 
liquidation instructions will remain in effect until further notice.
The weighted-average dumping margin is as follows:

------------------------------------------------------------------------
                                                            Weighted-
                 Manufacturer/exporter                    average margin
                                                            (percent)
------------------------------------------------------------------------
FYG....................................................           9.67
Xinyi..................................................           3.70
Benxun.................................................           8.22
Changchun..............................................           8.22
Guilin.................................................           8.22
Wuhan..................................................           8.22
TCGI...................................................           8.22
China-Wide.............................................         124.50
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. As our 
final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order.
    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the

[[Page 6485]]

disposition of proprietary information disclosed under APO in 
accordance with 19 CFR 351.305. Timely notification of return or 
destruction of APO materials, or conversion to judicial protective 
order, is hereby requested. Failure to comply with the regulations and 
the terms of APO is a sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    February 1, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

APPENDIX I

Discussion of the Issues
Petitioners' Issues
Comment 1: Whether Import Prices Paid by FYG and Xinyi for Float Glass 
from Korea may be Subsidized
Comment 2: Whether Import Prices Paid by FYG and Xinyi for Float Glass 
from Thailand may be Subsidized
Comment 3: Whether Import Prices Paid by FYG and Xinyi for Float Glass 
from Korea and Thailand may be Dumped
Comment 4: Whether Xinyi's Prices for Imports of Float Glass From India 
May be Subsidized
Comment 5: Whether Chinese Prices for Indonesian Float Glass May Be 
Subsidized and/or Dumped
Comment 6: Whether the Department Should Continue to Use Indian Import 
Statistics as the Surrogate Value for Float Glass
Comment 7: Whether the Department Should Use as its Surrogate Value the 
Electricity rate Paid by the Indian Auto Glass Producers
Comment 8: Whether the Department Should Use Actual Molding Prices and 
Mirror Brackets/Button Prices as the Surrogate Value for Xinyi's 
Moldings and Mirror Brackets/Buttons
Comment 9: Whether the Department Should Use the Updated Surrogate 
Value Information Provided by Petitioners for Certain Inputs and Also 
Use a More Appropriate HTS Number for Scrap Iron Input
Comment 10: Whether the Department Should Calculate Factory Overhead, 
Selling, General and Administrative Expenses, and Profit in Accordance 
with Petitioners Proposed Methodology
Comment 11: Whether the Department Should Value the Labor Factor of 
Production on the Basis of Fully-Loaded Labor Costs
Comment 12: Whether Xinyi's Market Economy Based Inland Freight 
Expenses Are Controlled by the Chinese Government
Comment 13: Whether the Department Should Make Certain Adjustments to 
Freight for FYG
Comment 14: Whether Respondents Reported Usage Rates for Float Glass 
and PVB Are Understated
Comment 15: Whether Respondents Reported U.S. Selling Prices are 
Reliable
Comment 16: Critical Circumstances
Comment 17: Whether the Scope Includes ARG Windshields for Buses, 
Recreational Vehicles and Farm Machinery
Comment 18: Whether the Department Used Incorrect Inflation Figures

Company Specific Issues  

FYG's Comments  
Comment 19: Whether the Department Should Use the Remaining Average 
Float Glass Costs Specific to the Thickness and Type Required for the 
CONNUM
Comment 20: Whether the Department Should Calculate the Profit Ratio 
Based on the 1999-2000 Financial Report of Asahi India Safety Glass 
Ltd.
Comment 21: Whether the Net Profit Ratio Should be Based on a Simple 
Average of the Financial Results of Saint-Gobain Sekurit and Asahi
Comment 22: Whether the Asahi India Profit Ratio Contains a Clerical 
Error
Comment 23: Whether the Department's Calculation of the Factory 
Overhead Ratio Should Exclude the Cost of Stores and Spare Parts
Comment 24: Whether the Department's Calculation of the SG&A Expense 
Ratio Contains Errors
Comment 25: Whether Water as Part of Energy in the Cost of 
Manufacturing Results in Double-Counting
Comment 26: Whether the Department Should Value Water Using the Asian 
Development Bank Data
Comment 27: Whether the Department Erred in Including U.S. Duty and 
International Freight Charges Among the CEP Selling Expenses
Comment 28: Whether the Department Double-Counted Molding
Comment 29: Updated Labor Rate for 1999  
Comment 30: Surrogate Value for Styrofoam
Comment 31: Whether the Department Should Remove International Freight 
and Insurance Costs from Indian Surrogate Values
Xinyi's Comments
Comment 32: Whether Market Economy Expenditures Should be Used in Place 
of Surrogate Values
Comment 33: Verification Issues
Comment 34: Whether Negative Margins Should be Taken into Consideration 
in Calculating Certain Overall Weighted Average Margins
Comment 35: Whether the Department Should Calculate a Margin for Non-
Mandatory Respondent Benxun Based on Its Data
Comment 36: Whether Recent Changes to the Antidumping Statute have 
Transformed the Law into a Penal Statute, thereby Violating Certain 
Respondent Parties' Procedural Due Process Rights
[FR Doc. 02-3383 Filed 2-11-02; 8:45 am]
BILLING CODE 3510-DS-S