[Federal Register Volume 68, Number 175 (Wednesday, September 10, 2003)]
[Notices]
[Pages 53347-53349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23064]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-803]


Heavy Forged Hand Tools, Finished or Unfinished, With or Without 
Handles, From the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review of the Order on Bars and Wedges

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

ACTION: Notice of final results of antidumping duty administrative 
review on bars/wedges and revision of country-wide cash deposit rates.

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SUMMARY: On March 6, 2003, the Department of Commerce (the Department) 
published the preliminary results of the administrative reviews of the 
antidumping duty orders on heavy forged hand tools (HFHTs) from the 
People's Republic of China (PRC). As the Department rescinded the 
reviews of the orders on axes/adzes, hammers/sledges, and picks/
mattocks on January 3, 2003, imports covered by these preliminary 
results of review comprise bars over 18 inches in length, track tools 
and wedges. The period of review (POR) is February 1, 2001, through 
January 31, 2002. Based on our analysis of the comments received, we 
have made changes in the margin calculation. Therefore, the final 
results differ from the preliminary results. The final weighted-average 
dumping margin for the reviewed firm is listed below in the section 
entitled Final Results of Review. We will instruct the Bureau of 
Customs and Border Protection (BCBP) to assess antidumping duties on 
all appropriate entries.

EFFECTIVE DATE: September 10, 2003.

FOR FURTHER INFORMATION CONTACT: Thomas Martin or Mark Manning, Office 
of AD/CVD Enforcement, Office 4, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone 
(202) 482-3936 and (202) 482-5253, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 1, 2002, the Department published a notice of 
opportunity to request administrative reviews of the antidumping orders 
on HFHTs from the PRC covering the period February 1, 2001 through 
January 31, 2002 (67 FR 4945). On February 28, 2002, Tianjin Machinery 
Import & Export Corporation (TMC), Shandong Machinery Import & Export 
Corporation (SMC), Liaoning Machinery Import & Export Corporation 
(LMC), and Shandong Huarong Machinery Company (Huarong) requested 
administrative reviews in the above-referenced orders. Specifically, 
TMC requested reviews of the hammers/sledges, bars/wedges, picks/
mattocks and axes/adzes orders, SMC requested reviews of the hammers/
sledges, bars/wedges, and picks/mattocks orders, LMC requested a review 
of the bars/wedges order, and Huarong requested a review of the bars/
wedges order. Based on these requests, the Department initiated 
administrative reviews of TMC, SMC, LMC, and Huarong under the 
requested orders on March 20, 2002. See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Requests for Revocations 
in Part, 67 FR 14696 (March 27, 2002).
    On May 3, 2002, LMC withdrew its request for review of the bars/
wedges order. On May 10, 2002, TMC withdrew its requests for review of 
the hammers/sledges and picks/mattocks orders. On June 7, 2002, SMC 
withdrew its request for review under the picks/mattocks order. 
Additionally, on September 26, 2002, TMC withdrew its requests for 
review of the axes/adzes order and bars/wedges order, and SMC withdrew 
its requests for review of the bars/wedges and hammers/sledges orders. 
The Department rescinded these reviews on January 3, 2003. See Notice 
of Rescission of Antidumping Duty Administrative Review: Heavy Forged 
Hand Tools from the People's Republic of China: Partial Rescission of 
Antidumping Duty Administrative Review, 68 FR 352 (January 3, 2003). 
The remaining review covers bars/wedges sold by Huarong.
    On March 6, 2003, the Department published the preliminary results 
of this administrative review. See Heavy Forged Hand Tools, Finished or 
Unfinished, With or Without Handles, From the People's Republic of 
China: Preliminary Results of Antidumping Duty Administrative Review of 
the Order on Bars and Wedges, 68 FR 10690 (March 6, 2003) (Preliminary 
Results). We invited parties to comment on the preliminary results. 
Both petitioner and respondent filed case briefs on April 7, 2003, and 
rebuttal briefs on April 14, 2003. A hearing was held pursuant to a 
request from the respondent on April 30, 2003.

Scope of Review

    The products covered by the HFHT orders comprise the following 
classes or kinds of merchandise: (1) Hammers and sledges with heads 
over 1.5 kg (3.33 pounds) (hammers/sledges); (2) bars over 18 inches in 
length, track tools and wedges (bars/wedges); (3) picks and mattocks 
(picks/mattocks); and (4) axes, adzes and similar hewing tools (axes/
adzes).
    HFHTs include heads for drilling hammers, sledges, axes, mauls, 
picks and mattocks, which may or mat not be painted, which may or may 
not be finished, or which may or may not be imported with handles; 
assorted bar products and track tools including wrecking bars, digging 
bars and tampers; and steel woodsplitting wedges. HFHTs are 
manufactured through a hot forge operation in which steel is sheared to 
required length, heated to forging temperature, and formed to final 
shape on forging equipment using dies specific to the desired product 
shape and size.Depending on the product, finishing operations may 
include shot blasting, grinding, polishing and painting, and the 
insertion of handles for handled products. HFHTs are currently provided 
for under the following Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings: 8205.20.60, 8205.59.30, 8201.30.00, and 
8201.40.60. Specifically excluded from these investigations are hammers 
and sledges with heads 1.5 kg. (3.33 pounds) in weight and under, hoes 
and rakes, and bars 18 inches in length and under. The Max Multipurpose 
Tool is within the scope of the order. (See Notice of Scope Rulings, 58 
FR 59991, November 12, 1993.) The HTSUS subheadings are provided for 
convenience and customs purposes. The written description remains 
dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these administrative reviews are addressed in the Issues and Decision 
Memorandum from Holly A Kuga, Acting Deputy Assistant Secretary, Import 
Administration, to James J. Jochum, Assistant Secretary for Import 
Administration (Decision Memorandum), dated concurrently with this 
notice, which is hereby adopted by this notice. A list of the issues 
which parties have raised and to which we

[[Page 53348]]

have responded, all of which are in the Decision Memorandum, 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 Record Unit, room B-099 of the main Department of Commerce 
building. In addition, the Decision Memorandum can be accessed directly 
on Import Administration's Web site at http://ia.ita.doc.gov. The paper 
copy and the electronic version of the Decision Memorandum are 
identical in content.

Separate Rates Determination

    As stated in the preliminary results, Huarong is entitled to a 
separate rate.

Changes Since the Preliminary Results

    In calculating the final results, the Department has made the 
following changes from the Preliminary Results:
1. We have corrected a typographical error in the calculation of the 
surrogate value for steel billet;
2. We have clarified that the Department used an average-to-transaction 
methodology for calculating the weighted-average dumping margin;
3. We have correctly re-labeled the CONNUMs of Huarong's indirect 
sales, thereby allowing the direct and indirect sales databases to be 
correctly merged;
4. We have assigned a separate observation number to all of Huarong's 
indirect sales so that observation numbers are not duplicated in the 
merged database; and
5. We have removed the deduction for additional port charges from our 
calculation of the net U.S. price.

Final Results of Review

    We determine that the following weighted-average percentage margin 
exists for the period February 1, 2001, through January 31, 2002:

------------------------------------------------------------------------
             Manufacturer/exporter                   Margin (percent)
------------------------------------------------------------------------
Shandong Huarong Machinery Company.............
Bars/Wedges --- 2/1/01-1/31/02.................                    30.02
------------------------------------------------------------------------

Assessment Rates

    The Department will determine, and the BCBP shall assess, 
antidumping duties on all appropriate entries. In accordance with 19 
CFR 351.212(b)(1), we have calculated importer-specific assessment 
rates. Where the importer-specific assessment rate is above de minimis, 
we will instruct the BCBP to assess antidumping duties on that 
importer's entries of subject merchandise. Since the entered value of 
the merchandise was not reported to us, we have divided, where 
applicable, the total dumping margins (calculated as the difference 
between normal value and export price) for each importer by the total 
number of units sold to the importer. We will direct the BCBP to assess 
the resulting unit dollar amount against each unit of subject 
merchandise entered by the importer during the POR. The Department will 
issue appropriate assessment instructions directly to the BCBP within 
15 days of publication of these amended final results of review.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of bars and wedges from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
this notice, as provided by section 751(a)(1) of the Tariff Act of 
1930, as amended (the Act): (1) the cash deposit rates for the reviewed 
companies will be the rates shown above except that, for firms whose 
weighted-average margins are less than 0.5 percent, and therefore, de 
minimis, the Department shall require a zero deposit of estimated 
antidumping duties; (2) for previously reviewed or investigated 
companies with a separate rate not listed above, the cash deposit rates 
will continue to be the company-specific rates published for the most 
recent period; (3) for all other PRC exporters, the cash deposit rates 
will be the PRC-wide rates; (4) for all non-PRC exporters of the 
subject merchandise, the cash deposit rate will be the rate applicable 
to the PRC exporter that supplied that exporter.

The PRC-Wide Cash Deposit Rates

    The current PRC-wide cash deposit rates for Axes/Adzes and Bars/
Wedges have been revised pursuant to the final results of a 
redetermination for the eighth administrative review of this 
proceeding, which can be accessed directly on Import Administration's 
Web site at http://www.ia.ita.doc.gov/remands/01-88.htm. The current 
PRC-wide cash deposit rates are 55.74 percent for Axes/Adzes, 139.31 
percent for Bars/Wedges, 27.71 percent for Hammers/Sledges and 98.77 
percent for Picks/Mattocks. These deposit requirements shall remain in 
effect until publication of the final results of the next 
administrative reviews.

Notification

    This notice also serves as a final reminder to importers of their 
responsibility under19 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.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely written notification of 
return/destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.
    These final results of administrative review are issued and 
published 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)).

    Dated: September 2, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix Issues in Decision Memorandum

Part I- Surrogate Country Issues
Comment 1: India as a surrogate country
Comment 2: Exclusion of Indian import prices that may be subsidized
Part II - General Surrogate Value Issues
Comment 3: The surrogate value calculation for steel
Comment 4: The surrogate value for steel billet
Comment 5: The surrogate brokerage and handling value
Comment 6: The surrogate value for steel scrap sold by Huarong
Comment 7: The surrogate value for steel pallets

[[Page 53349]]

Part III- Other Comments
Comment 8: Huarong's control numbers
Comment 9: Merging Huarong's direct and indirect sales into a single 
database
Comment 10: Huarong's date of sale methodology, and the use of entry 
date as the date of sale.
Comment 11: Costs for agency sales and net U.S. Price
Comment 12: Movement expenses
Comment 13: Clerical error in weight-averaging of U.S. sales
Comment 14: Offset adjustment for Huarong's steel scrap
Comment 15: The application of the Sigma rule to Huarong's inland 
freight for the steel factor
Comment 16: Separate port charges not substantiated in the record
[FR Doc. 03-23064 Filed 9-9-03; 8:45 am]
BILLING CODE 3510-DS-S