[Federal Register Volume 68, Number 226 (Monday, November 24, 2003)]
[Notices]
[Pages 65873-65875]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29306]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-881]


Notice of Amended Final Determination of Sales at Less Than Fair 
Value: Certain Malleable Iron Pipe Fittings From the People's Republic 
of China

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

ACTION: Notice of Amended Final Determination of Sales at Less Than 
Fair Value.

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EFFECTIVE DATE: November 24, 2003.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Ann Barnett-Dahl, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW, 
Washington, DC 20230; telephone: (202) 482-0405, or 482-3833, 
respectively.

SUPPLEMENTARY INFORMATION:

Scope of Investigation

    For purposes of this investigation, the products covered are 
certain malleable iron pipe fittings, cast, other than grooved 
fittings, from the People's Republic of China. The merchandise is 
classified under item numbers 7307.19.90.30, 7307.19.90.60 and 
7307.19.90.80 of the Harmonized Tariff Schedule (HTSUS). Excluded from 
the scope of this investigation are metal compression couplings, which 
are imported under HTSUS number 7307.19.90.80. A metal compression 
coupling consists of a coupling body, two gaskets, and two compression 
nuts. These products range in diameter from 1/2 inch to 2 inches and 
are carried only in galvanized finish. Although HTSUS subheadings are 
provided for convenience and Bureau of Customs and Border Protection 
(CBP) purposes, the Department's written description of the scope of 
this proceeding is dispositive.

Background

    On October 20, 2003, the Department of Commerce (``the 
Department'') determined that certain malleable iron pipe fittings from 
the People's Republic of China (``MPF'') are being, or are likely to 
be, sold in the United States at less than fair value, as provided in 
section 735(a) of the Act. See Final Determination of Sales at Less 
Than Fair Value: Certain Malleable Iron Pipe Fittings from the People's 
Republic of China, 68 FR 61395 (October 28, 2003). The Department 
released disclosure materials to respondents on October 22, 2003, and 
to the petitioners on October 23, 2003.
    On October 27, 2003, we received ministerial error allegations, 
timely filed pursuant to 19 CFR 351.224(c)(2), from mandatory 
respondents Jinan Meide Casting Co., Ltd. (``JMC'') and Beijing Sai Lin 
Ke Hardware Co., Ltd. (``SLK''). On October 28, 2003, the petitioners 
also submitted a timely letter to the Department alleging ministerial 
errors . On October 30, 2003, the petitioners submitted a response to 
SLK's comments.
    Section 351.224(f) of the Department's regulations defines a 
ministerial error as an error in addition, subtraction, or other 
arithmetic function, clerical error resulting from inaccurate copying, 
duplication, or the like, and any other similar type of unintentional 
error which the Secretary considers ministerial.

Ministerial Error Allegations From the Mandatory Respondents

Comment 1: Surrogate Values for Adhesive Tape and Steel Shavings

    JMC alleges that the Department utilized the incorrect values for 
the adhesive tape and steel shavings factors of production. JMC notes 
that the Department's Factors Valuation Memorandum calculates a 
surrogate value of $4.9585 per kg for adhesive tape, excluding 
aberrantly high-priced imports from Sweden, and a surrogate value of 
$0.1300 per kg for steel shavings, excluding aberrantly high-priced 
imports from the United Kingdom However, JMC notes that the Department 
used values of $4.9587 and $0.1329, respectively, in the calculation of 
the final margin and that the Department apparently failed to exclude 
the aberrant imports from the Excel spreadsheets. JMC requests that the 
Department correct these clerical errors.
    The petitioners did not comment on this issue.

Department's Position:

    We agree with JMC that we made clerical errors with respect to the 
surrogate values of adhesive tape and steel shavings as a result of 
inaccurate copying. Accordingly, we have corrected the Excel worksheets 
for adhesive tape and steel shavings used to

[[Page 65874]]

calculate surrogate values for JMC's factors of production (FOP). In 
addition, we corrected the surrogate value for adhesive tape in the 
worksheet used for SLK's packing, and the surrogate value for steel 
shavings in the worksheet used for one of SLK's suppliers.

Comment 2: Indirect Labor Calculation for an SLK Supplier

    SLK argues that the Department incorrectly recalculated indirect 
labor hours in the galvanizing workshop of one of its suppliers by 
allocating them to the total weight of galvanized fittings produced in 
the galvanizing workshop. SLK states that both black and galvanized 
fittings are cleaned in the galvanizing workshop, and argues that the 
indirect labor hours should be divided by the weight of both types of 
fittings.
    The petitioners argue that the selection of the basis over which to 
allocate indirect labor is not ministerial, but instead methodological, 
and urge the Department to deny SLK's request to revise the 
calculation.

Department's Position:

    We agree with SLK that the omission of the weight of the black 
fittings cleaned in the galvanizing workshop was a ministerial error. 
The error resulted from SLK's formatting of a worksheet, in which only 
the galvanized fittings are shown under the heading ``Galvanizing and 
Cleaning.'' As it was not an intentional choice of methodology, but 
resulted from an error in copying, we have made the requested 
correction. For a more detailed discussion, see the memorandum to 
Richard O. Weible from Helen M. Kramer entitled ``Allegations of 
Ministerial Errors; Final Determination in the Antidumping Duty 
Investigation of Certain Malleable Iron Pipe Fittings from the People's 
Republic of China (A-570-881),'' dated November xx, 2003 (``Ministerial 
Errors Memorandum'').

Comment 3: Application of Surrogate Freight in Facts Available Scrap 
Input Valuation

    SLK claims that the Department applied a freight factor to recycled 
scrap in the final determination, contrary to its stated position, 
because it applied the surrogate value for freight in its facts 
available steel scrap calculation. SLK argues that the Department 
applied a factor of 56.83% for recycled scrap as facts available, and 
applied the surrogate value for freight equally to scrap and recycled 
scrap.
    The petitioners rebut SLK, arguing that the alleged error involves 
a methodological decision regarding the application of facts available, 
and is not a ministerial error. The petitioners also argue that SLK's 
claim is not factually correct, because the Department applied the 
56.83 percent facts available factor to purchased scrap and pig iron, 
and not to recycled inputs, as noted in the final determination 
analysis memorandum for SLK. See Memorandum to the File from Helen 
Kramer, Case Analyst, entitled ``Antidumping Duty Investigation of 
Certain Malleable Iron Pipe Fittings from the People's Republic of 
China; Final Determination Analysis for LDR/SLK,'' (October 20, 2003) 
at 3. The petitioners conclude that the Department therefore properly 
applied the freight factor to the full cost of metallic inputs, which 
includes the cost of freight.

Department's Position:

    We agree with the petitioners that the Department's methodology of 
applying facts available is not a ministerial error within the meaning 
of 19 CFR 351.224(f) because the Department's decision to apply a 
surrogate freight value was intentional. We also agree with the 
petitioners that SLK's claim is not factually correct. We used a 
combination of petitioners' and two respondents' data to calculate the 
percentage by which purchased steel scrap and pig iron inputs should be 
increased to account for all metallic inputs. This calculation did not 
include freight. Inasmuch as we are applying facts available to 
purchased scrap steel which incurs freight expenses, and we did not use 
the respondents' data on recycled scrap, we do not agree with SLK that 
we applied surrogate freight to recycled scrap contrary to our stated 
intention.

Ministerial Error Allegations from the Petitioners

Comments 1 and 2: Deductions from U.S. Price

    The petitioners argue that the Department made ministerial errors 
in the calculation of SLK's net U.S. price by not deducting the 
variable ``OTHDIS1'' added after the preliminary determination for an 
additional discount, and the variable ``INLFPWU,'' representing the 
cost of trucking the subject merchandise from the Chicago rail station 
to LDR's warehouse for certain sales.
    SLK did not comment on this issue.

Department's Position:

    We agree with the petitioners that these were ministerial errors. 
The omission of these variables from the adjustments to U.S. price was 
not a methodological decision, but rather errors in copying. For this 
amended final determination, we have therefore recalculated net U.S. 
price by deducting these variables from the gross price. See 
Ministerial Errors Memorandum at 4.

Amended Final Determination

    In accordance with 19 CFR 351.224(e), we are amending the final 
determination of the antidumping duty investigation of MPF from the PRC 
to correct these ministerial errors. The revised final weighted-average 
dumping margins are as follows:

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                                                        Original weighted-average      Revised weighted-average
                Exporter/manufacturer                       margin (Percent)              margin (Percent)
----------------------------------------------------------------------------------------------------------------
Jinan Meide Casting Co., Ltd........................                         11.35                         11.31
Beijing Sai Lin Ke Hardware Co. Ltd.................                         14.32                         15.92
Langfang Pannext Pipe Fitting Co., Ltd..............                          7.35                          7.35
Chengde Malleable Iron General Factory..............                         10.96                         11.18
SCE Co., Ltd........................................                         10.96                         11.18
PRC-Wide............................................                        111.36                        111.36
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Act, we are 
directing the Bureau of Customs and Border Protection (CBP) to continue 
to suspend liquidation of all imports of MPF from the PRC. CBP shall 
require a cash deposit or the posting of a bond equal to the weighted-
average amount by which the normal value exceeds the export price, as 
indicated in the chart above. These suspension of liquidation 
instructions will remain in effect until further notice.

[[Page 65875]]

ITC Notification

    In accordance with section 735(d) of the Tariff Act, we have 
notified the International Trade Commission of our amended final 
determination.This determination is issued and published in accordance 
with sections 735(d), 735(e) and 777(i)(1) of the Act.

    Dated: November 17, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 03-29306 Filed 11-21-03; 8:45 am]
BILLING CODE 3510-DS-S