[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Notices]
[Pages 20090-20093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10071]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-868]


Notice of Final Determination of Sales at Less Than Fair Value: 
Folding Metal Tables and Chairs from the People's Republic of China

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

DATES: April 24, 2002.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or John Drury at (202) 
482-0405 and (202) 482-0195, respectively, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, D.C. 20230.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    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 (``the 
Department'') regulations are to the regulations at 19 CFR Part 351 
(2001).

Final Determination

    We determine that folding metal tables and chairs (``FMTC'') from 
the People's Republic of China 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 at LTFV is shown 
in the ``Continuation of Suspension of Liquidation'' section of this 
notice.

Scope of Investigation

    The merchandise subject to this investigation consists of assembled 
and unassembled folding tables and folding chairs made primarily or 
exclusively from steel or other metal, as described below:
    1) Assembled and unassembled folding tables made primarily or 
exclusively from steel or other metal (``folding metal tables''). 
Folding metal tables include square, round, rectangular, and any other 
shapes with legs affixed with rivets, welds, or any other type of 
fastener, and which are made most commonly, but not exclusively, with a 
hardboard top covered with vinyl or fabric. Folding metal tables have 
legs that mechanically fold independently of one another, and not as a 
set. The subject merchandise is commonly, but not exclusively, packed 
singly, in multiple packs of the same item, or in five piece sets 
consisting of four chairs and one table. Specifically excluded from the 
scope of folding metal tables are the following:
 Lawn furniture;
 Trays commonly referred to as ``TV trays '';
 Side tables;
 Child-sized tables;
 Portable counter sets consisting of rectangular tables 36'' 
high and matching stools; and
 Banquet tables. A banquet table is a rectangular table with a 
plastic or laminated wood table top approximately 28'' to 36'' wide by 
48'' to 96'' long and with a set of folding legs at each end of the 
table. One set of legs is composed of two individual legs that are 
affixed together by one or more cross-braces using welds or fastening 
hardware. In contrast, folding metal tables have legs that mechanically 
fold independently of one another, and not as a set.
    2) Assembled and unassembled folding chairs made primarily or 
exclusively from steel or other metal (``folding metal chairs''). 
Folding metal chairs include chairs with one or more cross-braces, 
regardless of shape or size, affixed to the front and/or rear legs with 
rivets, welds or any other type of fastener. Folding metal chairs 
include: those that are made solely of steel or other metal; those that 
have a back pad, a seat pad, or both a back pad and a seat pad; and 
those that have seats or backs

[[Page 20091]]

made of plastic or other materials. The subject merchandise is 
commonly, but not exclusively, packed singly, in multiple packs of the 
same item, or in five piece sets consisting of four chairs and one 
table. Specifically excluded from the scope of folding metal chairs are 
the following:
 Folding metal chairs with a wooden back or seat, or both;
 Lawn furniture;
 Stools;
 Chairs with arms; and
 Child-sized chairs.
The subject merchandise is currently classifiable under subheadings 
9401710010, 9401710030, 9401790045, 9401790050, 9403200010 and 
9403200030 of the HTSUS. Although the HTSUS subheadings are provided 
for convenience and U.S. Customs Service purposes, the Department's 
written description of the merchandise is dispositive.

Case History

    The preliminary determination in this investigation was published 
on December 3, 2001. See Notice of Preliminary Determination of Sales 
at Less Than Fair Value:Folding Metal Tables and Chairs from the 
People's Republic of China, 66 FR 60185 (``Preliminary 
Determination''). The investigation covers two manufacturers/exporters, 
Feili Furniture Development Co., Ltd. and Feili (Fujian) Co., Ltd. 
(``Feili Group'') and Shin Crest Pte. Ltd. (``Shin Crest''). The 
petitioner is Meco Corporation.
    The Department verified Feili Group's and Shin Crest's responses to 
the antidumping questionnaire from January 14 - 18, 2002 (Feili Group) 
and from January 21 - 25, 2002 (Shin Crest). We invited parties to 
comment on our Preliminary Determination. We received comments and 
rebuttal briefs from the petitioner, Feili Group, and Shin Crest. At 
the requests of the petitioner and Feili Group, a hearing was held on 
March 22, 2002. On March 22, 2002, the petitioner filed an allegation 
of critical circumstances in this investigation.
    Based on our analysis of verification findings and the comments 
received, we have made changes in the margin calculation. Therefore, 
the final determination differs from the preliminary determination.

Period of Investigation

    The Period of Investigation (``POI'') is October 1, 2000 through 
March 31, 2001.

Non-Market Economy

    The Department has treated the PRC as a non-market economy (NME) 
country in all its past antidumping investigations. See, e.g., 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 mandatory 
respondents, Feili Group and Shin Crest, had met the criteria for the 
application of separate antidumping duty rates and that the cooperative 
PRC companies, Dongguan Shichang Metals Factory Co. Ltd. (``Dongguan'') 
and New-Tec Integration Co., Ltd. (``New-Tec''), had met the criteria 
for a rate equal to the weighted-average of the mandatory respondents' 
rates (excluding zero or de minimis rates and rates based entirely on 
adverse facts available). We have not received any other information 
since the Preliminary Determination which would warrant reconsideration 
of our separates rates determination with respect to these companies. 
Therefore, we continue to find that the respondents should be assigned 
individual dumping margins and that Dongguan and New-Tec should be 
assigned a weighted-average rate. 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 
60189-90.

Surrogate Country

    For purposes of the final determination, we find that India remains 
the appropriate surrogate country for the PRC. For further discussion 
and analysis regarding the surrogate country selection for the PRC, see 
the Department's Preliminary Determination and the Memorandum to 
Richard O. Weible from John Drury and Helen M. Kramer on Surrogate 
Country Selection (November 23, 2001) on file in the Department's 
Central Records Unit, Room B-099 of the Main Department of Commerce 
Building.

Critical Circumstances

    On March 22, 2002, the petitioner filed an allegation of critical 
circumstances in this investigation based on data for one importer. 
Because the calculated margins for both Shin Crest and Feili Group in 
the final determination are 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. As to Dongguan and New-Tec, the PRC exporters that were not 
selected as respondents but did not fail to respond to our requests for 
information, the final margins also are below 25 percent. Therefore, we 
do not find critical circumstances with respect to these exporters. See 
Notice of Final Determination of Sales at Less Than Fair Value: Certain 
Non-Frozen Apple Juice Concentrate from the People's Republic of China, 
65 FR 19873 (April 13, 2000).
    With respect to exporters subject to the PRC-wide rate, the final 
margin is above 25 percent. Furthermore, the ITC preliminarily 
determined that there is material injury by reason of imports of the 
subject merchandise. Therefore, the first prong of the test is met. 
With regard to massive imports, because the PRC-wide entity failed to 
respond to our request for information, the Department has based its 
massive imports determination on facts available and used an adverse 
inference in accordance with section 776(b) of the Act. We cannot use 
U.S. Customs import data to analyze imports from the PRC-wide entity, 
in part because the relevant product categories include both subject 
and non-subject merchandise. Because we have no independent means by 
which to determine import levels for the PRC-wide entity, we have 
determined, as adverse facts available, that there were massive 
imports. Accordingly, we determine that there are critical 
circumstances with respect to the PRC-wide entity.
    For a discussion of interested party comments on this issue, see 
Issues and Decision Memorandum for the Less Than Fair Value 
Investigation of Folding Metal Tables and Chairs from the People's 
Republic of China from Joseph A. Spetrini, Deputy Assistant Secretary, 
Import Administration, to Faryar Shirzad, Assistant Secretary for 
Import Administration, dated April 17, 2002 (``Issues and Decision 
Memorandum'').

[[Page 20092]]

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. In addition, a complete version of 
the Issues and Decision Memorandum can be accessed directly on the 
Internet at http://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 corrections to the respondents' reported factor 
usage and surrogate value changes. We have also corrected certain 
clerical errors in our preliminary determination. These changes are 
discussed in the relevant sections of the Issues and Decision 
Memorandum. See also the Factors of Production Valuation Memorandum for 
the Final Determination, dated April 17, 2002, and the respective 
Analysis Memorandum for the Final Determination for Feili Group and 
Shin Crest on the same date.

Verification

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

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 
entries of subject merchandise from the PRC exported by Feili Group, 
Shin Crest, Dongguan and New-Tec that are entered, or withdrawn from 
warehouse, for consumption on or after December 3, 2001. With respect 
to the PRC-wide entity, we are directing the Customs Service to suspend 
liquidation of entries of subject merchandise entered on or afer 
September 4, 2001, the date 90 days prior to the date of publication of 
the preliminary determination in the Federal Register, in accordance 
with our critical circumstances finding. We will instruct the Customs 
Service to require a cash deposit or the posting of a bond equal to the 
weighted-average amount by which the normal value exceeds the U.S. 
price, as indicated in the chart below. These suspension-of-liquidation 
instructions will remain in effect until further notice.
    The margins in the final determination are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                Average
                    Exporter/Manufacturer                       Percent
                                                                Margin
------------------------------------------------------------------------
Shin Crest Pte. Ltd.........................................       00.00
Feili Furniture Development Co., Ltd. and Feili (Fujian)           23.48
 Co., Ltd...................................................
Dongguan Shichang Metals Factory Co. Ltd....................       23.48
New-Tec Integration Co., Ltd................................       23.48
PRC-Wide....................................................       70.71
------------------------------------------------------------------------

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 berefunded 
or canceled. If the ITC determines that such injury does exist, the 
Department will issue an antidumping duty order directing Customs 
officials to assess antidumping duties on all imports of the subject 
merchandise entered for consumption on or after the effective date of 
the suspension of liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    DATED: April 17, 2002
Bernard T. Carreau,
Acting Assistant Secretaryfor Import Administration.

Appendix

List of Comments and Responses

    1. Whether import prices paid by Feili Group for cold-rolled steel 
coils from Korea may be distorted by reason of subsidies
    2. Whether import prices paid by Feili Group and Shin Crest for 
inputs from Taiwan may be distorted by reason of subsidies
    3. Whether Shin Crest is affiliated with its steel supplier in 
Taiwan by reason of control and its import prices should be disregarded
    4. Whether the Department's practice regarding allegedly dumped 
inputs is too restrictive, and the Department should disregard Shin 
Crest's import prices for steel as putatively dumped
    5. Whether it is appropriate to use Indian surrogate values for 
steel if the Department disregards market economy prices for steel from 
Korea and/or Taiwan
    6. Whether the Department should disregard Indian steel imports 
from Belgium, Brazil, France, Korea, Russia, South Africa, Thailand and 
Ukraine in calculating surrogate value
    7.Whether Feili Group's ``multi-chair'' falls within the scope of 
the investigation
    8. Whether National Public Seating Corp.'s double-hinged commercial 
chair is within the scope
    9. Whether the Department should use P.T. Lion Metal Works' 
financial statements to value overhead, SG&A and profit
    10. Whether the Department should use adverse facts available 
(``FA'') to calculate the PRC-wide margin
    11. Whether the Department should use updated Indian import 
statistics for surrogate values and ``correct'' the exchange rate
    12. Whether the dates of sale for Feili Group and Shin Crest should 
be the purchase order date
    13. Whether the Department should apply adverse FA to Feili Group's 
steel consumption
    14. Whether the Department should apply a value to steel Feili 
Group purchased before the POI and used during the POI
    15. Whether Feili Group should be required to report usage rates 
for inputs purchased from third parties
    16. Whether the Department should deny a steel scrap adjustment to 
Feili Group
    17. Whether the Department should apply the Indian surrogate value 
for supported vinyl to all of Feili Group's vinyl consumption
    18. Whether Feili Group impermissibly included physically different 
models in the same control number
    19. Whether the Department should require Feili Group to report the 
usage rate for plastic pellets used to make cup corners for folding 
metal tables
    20. Whether the Department should assume Feili Group's production 
workers worked 12-hour shifts

[[Page 20093]]

    21. Whether the Department used the wrong weight for sets in the 
margin calculation program for Feili Group
    22. Whether the Department used the wrong inflation rate to value 
electricity for Feili Group
    23. Whether the Department incorrectly used Feili Group's market 
economy purchases of plastic pellets to value nylon caps instead of the 
Indian surrogate value for plastic caps
    24. Whether the Department incorrectly calculated the surrogate 
value of poly bags for Feili Group
    25. Whether the Department erred in adding, instead of subtracting, 
the steel scrap offset for Feili Group
    26. Whether the Department should correct the surrogate value for 
wooden pallets by dividing the average value by the average pallet 
weight for Feili Group
    27. Whether the Department incorrectly included Indian import 
values for cardboard other than boxes in its calculation of surrogate 
value for cardboard cartons for Feili Group
    28. Whether the Department made clerical errors in calculations of 
surrogate values for screws. other metal fittings and rubber washers 
for Feili Group
    29. Whether the Department should correct the weights of foam, 
vinyl and fabric inputs incorrectly reported by Feili Group
    30. Whether the Department should correct the number of tables 
packed in a carton for Feili Group
    31. Whether Shin Crest should include inland freight for one U.S. 
sale in the sales listing
    32. Whether the Department should apply adverse FA for Shin Crest's 
consumption of hardboard because it was not verified
    33. Whether the Department should apply Feili Group's usage of 
wooden pallets for packing to Shin Crest as FA
    34. Whether the Department's calculations of the surrogate value of 
water were incorrect
    35. Whether the Department should make a finding of critical 
circumstances for all Chinese producers of folding metal tables and 
chairs
[FR Doc. 02-10071 Filed 4-23-02; 8:45 am]
BILLING CODE 3510-DS-S