[Federal Register Volume 68, Number 45 (Friday, March 7, 2003)]
[Notices]
[Pages 11039-11041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5496]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-810]


Mechanical Transfer Presses from Japan: Preliminary Results of 
Antidumping Duty Administrative Review

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

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 Hitachi 
Zosen Corp. (HZC), and its subsidiary, Hitachi Zosen Fukui Corporation, 
doing business as H&F Corporation (H&F). This review covers shipments 
of this merchandise to the United States during the period of February 
1, 2001, through January 31, 2002. We have preliminarily determined 
that U.S. 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. See Preliminary Results of Review section of this 
notice.

EFFECTIVE DATE: March 7, 2003.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith or Doug Campau, 
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) 482-1395, respectively.

Background

    The Department published an antidumping duty order on MTPs from 
Japan on February 16, 1990 (55 FR 5642). On February 19, 2002, the 
Department received a timely request for an administrative review of 
the antidumping duty order on MTPs from HZC and its subsidiary, H&F. On 
February 28, 2002, the Department received a timely request from the 
petitioner, IHI-Verson Press Technology, LLC, for an administrative 
review of HZC, H&F, Komatsu Corporation, Ltd. (Komatsu) and Komatsu 
American Industries, LLC. On March 27, 2002, we published a notice 
initiating an administrative review of MTPs (67 FR 14696) for HZC, and 
HZC's subsidiary, H&F, and Komatsu. On May 22, 2002, we published 
Mechanical Transfer Presses from Japan: Final Results of Antidumping 
Duty Administrative Review and Revocation, in-Part, in which we revoked 
the antidumping order with respect to Komatsu. The revocation was 
effective for subject merchandise entered, or withdrawn from warehouse, 
for consumption on or after February 1, 2001. See 67 FR 35958.
    Due to complicated issues in this case, on October 25, 2002, the 
Department extended the deadline for the preliminary results of this 
antidumping duty administrative review until no later than February 28, 
2003. See Mechanical Transfer Presses From Japan: Extension of Time 
Limit for Preliminary Results and Preliminary Rescission, in Part, of 
Antidumping Administrative Review 67 FR 14696 (November 1, 2002).

Scope of the Antidumping Duty Order

    Imports covered by this order include mechanical transfer presses 
(MTPs) currently classifiable under Harmonized Tariff Schedule of the 
United States (HTSUS) item numbers 8462.99.8035, 8462.21.8085, and 
8466.94.5040. The HTSUS 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.
    The Department published in the Federal Register several notices of 
scope rulings with respect to MTPs from Japan, determining that (1) 
spare and replacement parts are outside the scope of the order (see 
Notice of Scope Rulings, 57 FR 19602 (May 7, 1992); (2) a destack sheet 
feeder designed to be used with a mechanical transfer press is an 
accessory and, therefore, is not within the scope of the order (see 
Notice of Scope Rulings, 57 FR 32973 (July 24, 1992); (3) the FMX cold 
forging press is

[[Page 11040]]

within the scope of the order (see Notice of Scope Rulings, 59 FR 8910 
(February 24, 1994); and (4) certain mechanical transfer press parts 
exported from Japan are outside the scope of the order (see Notice of 
Scope Rulings, 62 FR 9176 (February 28, 1997).)

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), we verified the sales and cost information provided by H&F 
using standard verification procedures, on-site inspection of the 
manufacturer's facilities and the examination of relevant sales, 
financial, and cost accounting records. Our verification results are 
outlined in the public and proprietary versions of the verification 
report, which are on file in the Central Records Unit of the 
Department.

Affiliation of HZC and H&F

    HZC owns significantly more than 50 percent of H&F. Accordingly, we 
preliminarily find HZC and H&F to be affiliated pursuant to sections 
771(33)(E) and (G) of the Act.

Collapsing HZC and H&F

    Section 351.401(f) of the Department's regulations outlines the 
criteria for collapsing (i.e., treating as a single entity) affiliated 
producers. Pursuant to section 351.401(f), the Department will treat 
two or more affiliated producers as a single entity where (1) those 
producers have production facilities for similar or identical products 
that would not require substantial retooling of either facility in 
order to restructure manufacturing priorities, and (2) the Department 
concludes that there is a significant potential for the manipulation of 
price or production. Pursuant to section 351.401(f)(2), in identifying 
a significant potential for the manipulation of price or production, 
the Department may consider the following factors:
    (i) The level of common ownership;
    (ii) The extent to which managerial employees or board members of 
one firm sit on the board of directors of an affiliated firm; and,
    (iii) Whether operations are intertwined, such as through the 
sharing of sales information, involvement in production and pricing 
decisions, the sharing of facilities or employees, or significant 
transactions between the affiliated producers.
    To establish the first prong of the collapsing test, pursuant to 
section 351.401(f)(1), the producers must have production facilities 
equipped to manufacture similar or identical products that would not 
require substantial retooling of either facility to restructure 
manufacturing priorities. H&F maintains a production facility that 
produces MTPs in Fukui Prefecture and another facility at Kanazu Town 
that produces press accessories. HZC owns two subsidiaries that 
sometimes fabricate significant MTP components: Hitachi Zosen Diesel 
and Engineering Co., Ltd. (HZD&E) and IMEX Corporation. HZD&E, which is 
wholly-owned by HZC, is capable of manufacturing complete MTPs, 
according to the H&F's response.
    With regard to common ownership, which is one of the factors to be 
considered under 19 CFR 351.401(f)(2)(i), HZC owns significantly more 
than 50 percent of H&F's voting stock.
    Finally, with regard to 19 CFR 351.401(f)(2)(iii), there are 
intertwined operations between companies. According to section A of the 
July 2, 2001 response for the 2000-2001 administrative review, HZC's 
and H&F's press businesses were integrated in July 1999. The former HZC 
engineers moved to a newly created Large Presses Department. See 
``Memorandum from Jacqueline Arrowsmith to the File: Mechanical 
Transfer Presses from Japan,'' dated February 25, 2003, placing this 
information on the record of this review. Moreover, HZC sometimes acts 
as the nominal `reseller' for H&F's MTPs; for these `resales,' HZC does 
not perform any selling functions; it merely allows H&F to use its name 
for consideration in order to inspire the customer's confidence.
    Based upon our review of the level of common ownership and the 
intertwined operations, we preliminarily find that collapsing of these 
two entities under 19 CFR 351.401(f) is appropriate in this case.

Normal Value Comparisons

    To determine whether respondents' exports of the subject 
merchandise to the United States were made at less than NV, we compared 
export price (EP) to NV, as described in the ``Export Price'' and 
``Normal Value'' sections of this notice.

Export Price

    In accordance with section 772(a) of the Act, EP is the price at 
which subject merchandise is first sold (or agreed to be sold) before 
the date of importation by the producer or exporter of the subject 
merchandise outside the United States to an unaffiliated purchaser for 
export to the United States. For purposes of this administrative 
review, HZC/H&F has classified its sales as EP. Based on the fact that 
HZC/H&F sold the subject merchandise to unaffiliated trading companies 
in Japan prior to importation into the United States, we preliminarily 
determine that HZC/H&F's sales were EP sales. Furthermore, we found no 
evidence that treating these sales as constructed export price sales is 
warranted. We calculated EP for HZC/ H&F based on the packed, freight 
prepaid price to the U.S. customer. We made deductions from the 
starting price for foreign inland freight, foreign inland insurance, 
foreign brokerage and handling, international freight, marine 
insurance, U.S. inland freight, U.S. inland brokerage and handling, and 
supervision installation expenses, in accordance with section 772(c)(2) 
of the Act.

Normal Value

    While the home market is viable, in accordance with precedent in 
this proceeding, we have determined that constructed value (CV) should 
be used to calculate NV. MTPs are made-to-order, and there are 
significant physical differences among these machines. For example, 
when discussing two MTPs with similar ton capacities, H&F officials 
explained that two particular subject presses had fundamentally 
different designs because of the number of strikes, even when these 
MTPs have similar capacities. See ``Memorandum from Jacqueline 
Arrowsmith and Doug Campau to the File: Sales and Cost Verification of 
Hitachi Zosen Corporation & Hitachi Zosen Fukui Corporation in the 
Antidumping Administrative Review of Mechanical Transfer Presses from 
Japan,'' dated January 31, 2003. See also Mechanical Transfer Presses 
From Japan; Preliminary Results of Antidumping Duty Administrative 
Review, and Intent To Revoke, In-Part, 63 FR 10363 (March 7, 2002); 
Mechanical Transfer Presses From Japan: Final Results of Antidumping 
Duty Administrative Review and Revocation, in-Part, 67 FR 35958 (May 
22, 2002).
    Accordingly, we are using CV as the basis for NV for HZC/H&F, in 
accordance with section 773(a)(4) of the Act. CV consists of direct 
materials, direct labor, variable overhead, fixed overhead (yielding 
total cost of manufacturing), plus selling, general and administrative 
expenses, net interest expense, profit, and U.S. packing expenses. We 
subtracted home market direct selling expenses (warranties and credit). 
We added to CV amounts for direct selling expenses (warranties and 
credit) for merchandise exported to the United States.

[[Page 11041]]

Currency Conversion

    We made currency conversions pursuant to section 351.415 of the 
Department's regulations at the rates certified by the Federal Reserve 
Bank.

Preliminary Results of Review

    We preliminarily determine that the following dumping margin 
exists:

------------------------------------------------------------------------
                                                              Margin
       Manufacturer/Exporter             Time period         (percent)
------------------------------------------------------------------------
Hitachi Zosen Corp./Hitachi Zosen      02/01/01-01/31/02            0.00
 Fukui Corp........................
------------------------------------------------------------------------

Duty Assessments and Cash Deposit Requirements

    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries. The Department 
will issue appropriate appraisement instructions directly to the U.S. 
Customs Service within 15 days of publication of the final results of 
review. Furthermore, the following deposit rates will be effective with 
respects to all shipments of MTPs from Japan entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results, as provided for by section 751(a)(2)(C) of the Act: (1) 
For HZC and H&F, 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 less-than-fair-value (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 all other 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, 55 FR 5642 (February 16, 
1990). These deposit rates, when imposed, shall remain in effect until 
publication of the final results of the next administrative review.

Public Comment

    Pursuant to 19 CFR 351.224(b), the Department will disclose to 
parties to the proceeding any calculations performed in connection with 
these preliminary results within five days after the date of 
publication of this notice. Pursuant to 19 CFR 351.309, interested 
parties may submit written comments in response to these preliminary 
results. Normally, case briefs are to be submitted within 30 days after 
the date of publication of this notice, and rebuttal briefs, limited to 
arguments raised in case briefs, are to be submitted no later than five 
days after the time limit for filing case briefs. Parties who submit 
arguments in this proceeding are requested to submit with the argument: 
(1) A statement of the issues, and (2) a brief summary of the argument. 
Case and rebuttal briefs must be served on interested parties in 
accordance with 19 CFR 351.303(f).
    Also, pursuant to 19 CFR 351.310, within 30 days of the date of 
publication of this notice, interested parties may request a public 
hearing on arguments to be raised in the case and rebuttal briefs. 
Unless the Secretary specifies otherwise, the hearing, if requested, 
will be held two days after the date for submission of rebuttal briefs. 
Parties will be notified of the time and location. The Department will 
publish the final results of this administrative review, including the 
results of its analysis of issues raised in any case or rebuttal brief, 
not later than 120 days after publication of these preliminary results, 
unless extended.

Notification to Importers

    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.
    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. Sec.  1675(a)(1) 
and 19 U.S.C 1677f(i)(1)).

    Dated: February 28, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 03-5496 Filed 3-6-03; 8:45 am]
BILLING CODE 3510-DS-P