[Federal Register Volume 69, Number 45 (Monday, March 8, 2004)]
[Notices]
[Pages 10657-10659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5139]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-810]


Preliminary Results of Antidumping Duty Administrative Review and 
Preliminary Determination Not to Revoke, in-Part: Mechanical Transfer 
Presses from Japan

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 Corporation (HZC) and its subsidiary Hitachi Zosen Fukui 
Corporation, doing business as H&F Corporation (H&F). This review 
covers entries of this merchandise to the United States during the 
period of February 1, 2002 through January 31, 2003. We preliminarily 
determine that U.S. sales were made at prices below normal value (NV). 
Because we have determined that U.S. sales were made at prices below 
NV, we also preliminarily determine that this order should not be 
revoked with respect to HZC/H&F. If these preliminary results are 
adopted in our final results of administrative review, we will instruct 
U.S. Customs and Border Protection (CBP) to assess antidumping duties 
based on the difference between export price (EP) and NV. Interested 
parties are invited to comment on these preliminary results. Parties 
who submit argument are requested to submit with each argument: (1) a 
statement of the issue and (2) a brief summary of the argument.

EFFECTIVE DATE: March 8, 2004.

FOR FURTHER INFORMATION CONTACT: Jacqueline Arrowsmith or Sally Gannon, 
Office of Antidumping/Countervailing Duty Enforcement VII, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington D.C. 
20230; telephone (202) 482-5255 or (202) 482-0162, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published an antidumping duty order on MTPs from 
Japan on February 16, 1990 (55 FR 5642). On February 24, 2003, 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 27, 2002, the Department received a timely request from the 
petitioner, IHI-Verson Press Technology, LLC, for an administrative 
review of HZC and H&F. On February 28, 2003, HZC/H&F properly filed a 
timely request that the Department revoke the order with respect to its 
sales of MTPs in accordance with section 351.222(e) of the Department's 
regulations. On March 25, 2003, we published a notice initiating an 
administrative review of MTPs (68 FR 14394). The review covers H&F, 
which manufactured MTPs during the period of review (POR), and HZC, the 
parent company and nominal reseller, which owns a controlling interest 
in H&F. For purposes of all prior administrative reviews in which HZC 
and H&F have participated, we have treated these companies as 
affiliated and collapsed them.
    Due to complicated issues in this case, on October 15, 2003, the 
Department extended the deadline for the preliminary results of this 
antidumping duty administrative review until no later than February 28, 
2004. See Mechanical Transfer Presses From Japan: Extension of Time 
Limit for Preliminary Results of Antidumping Administrative Review, 68 
FR 59365 (October 15, 2003).

Scope of the Antidumping Duty Order

    Imports covered by this antidumping duty order include mechanical 
transfer presses, currently classifiable under Harmonized Tariff 
Schedule of the United States (HTSUS) item numbers 8462.10.0035, 
8466.94.6540 and 8466.94.8540. The HTSUS subheadings are provided for 
convenience and CBP 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 
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 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 Act, we verified the sales and 
cost information provided by HZC and H&F using standard verification 
procedures, including on-site inspection of the manufacturer's 
facilities and the examination of relevant sales and financial records.

Affiliation and Collapsing of HZC and H&F

    Based on HZC's ownership interest in H&F (more than seventy 
percent), we continue to find as we have in past reviews that HZC and 
H&F are affiliated pursuant to sections 771(33)(E) and (G) of the Act. 
See Mechanical Transfer Presses from Japan: Preliminary Results of 
Antidumping Duty Administrative Review 68 FR 11039 (March 7, 2003) and 
Mechanical Transfer Presses from Japan: Final Results of Antidumping 
Duty Administrative Review 68 FR 39515 (July 2, 2003) (MTPs 2001/2002 
Review). See also Mechanical Transfer Presses from Japan: Preliminary 
Results of Antidumping Duty Administrative Review 67 10363 (March 7, 
2002) and Mechanical Transfer Presses from Japan: Final Results of 
Antidumping Duty Administrative Review and Revocation, in-Part 67 FR 
35958 (May 22, 2002) (MTPs 2000/2001 Review). Furthermore, for purposes 
of this analysis, we are collapsing HZC and H&F. There is no new 
information or evidence of changed circumstances in this review to 
warrant reconsideration of this determination. See MTPs 2001/2002 
Review. See also MTPs 2000/2001 Review.

Revocation Determination

    On February 28, 2003, HZC/H&F requested, pursuant to 19 CFR

[[Page 10658]]

351.222(e)(1), partial revocation of the order with respect to its 
sales of MTPs. HZC/H&F certified that: (1) it sold the subject 
merchandise in commercial quantities at not less than NV for a period 
of at least three consecutive years; (2) in the future, it will not 
sell the subject merchandise at less than NV; and, (3) it agreed to 
immediate reinstatement under the order if the Department determines 
that, subsequent to revocation, it has sold the subject merchandise at 
less than NV.
    Although HZC/H&F received zero margins in the two preceding 
reviews, based upon our finding that HZC/H&F sold subject merchandise 
at less than NV in this review, HZC/H&F has not demonstrated three 
consecutive years of sales in commercial quantities at not less than 
NV. Therefore, the Department preliminarily determines that partial 
revocation of the order with respect to HZC/H&F is not warranted.

Normal Value Comparisons

    To determine whether respondents' exports of the subject 
merchandise to the United States were made at less than NV, we compared 
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. Because HZC/H&F sold the subject 
merchandise to unaffiliated trading companies in Japan prior to 
importation into the United States, we have treated HZC/H&F's sales as 
EP sales for purposes of these preliminary results. 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 installation supervision 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 case, we have determined that constructed value (CV) is 
appropriate as the basis for NV. See Mechanical Transfer Presses from 
Japan: Preliminary Results of Antidumping Duty Administrative Review 68 
FR 11039 (March 7, 2003); Mechanical Transfer Presses from Japan: Final 
Results of Antidumping Duty Administrative Review 68 FR 39515 (July 2, 
2003); Mechanical Transfer Presses from Japan: Preliminary Results of 
Antidumping Duty Administrative Review 67 10363 (March 7, 2002); and 
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.

Preliminary Results of Review

    We preliminarily determine that the following dumping margin 
exists:

------------------------------------------------------------------------
                                                                Margin
         Manufacturer/Exporter               Time Period      (percent)
------------------------------------------------------------------------
Hitachi Zosen Corporation/.............   02/01/00-01/31/01         1.54
Hitachi Zosen Fukui Corporation........
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. For HZC/H&F the assessment rate will 
be based on the margin above. The Department will issue appropriate 
appraisement instructions directly to CBP within 15 days of publication 
of the final results of review. We will direct CBP to assess the 
resulting assessment rates against the entered customs values for the 
subject merchandise on each of the entries during the period of review.

Cash Deposit Requirements

    The following deposit rates will be effective with respect 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/H&F, the 
cash deposit rate will be the company-specific 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 exporters of this merchandise, the cash deposit 
rate shall be the ``all others'' rate established in the less than fair 
value investigation, which is 14.51 percent. See Final Determination of 
Sales at Less Than Fair Value: Mechanical Transfer Presses from Japan 
55 FR 335 (January 4, 1990). These deposit rates, when imposed, shall 
remain in effect until the publication of the next administrative 
review.

Public Comment

    Pursuant to section 351.224(b) of the Department's regulations, 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 section 
351.309 of the Department's regulations, interested parties may submit 
written comments in response to these preliminary results. 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 
section 351.303(f) of the Department's regulations. Also, pursuant to 
section 351.310 of the Department's regulations, within 30 days of the 
date of publication of this notice, interested parties may request a 
public hearing on arguments to be

[[Page 10659]]

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.

Notice to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under section 351.402(f) of the Department's regulations 
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: March 1, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-5139 Filed 3-5-04; 8:45 am]
BILLING CODE 3510-DS-S