[Federal Register Volume 69, Number 133 (Tuesday, July 13, 2004)]
[Notices]
[Pages 42039-42041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15835]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-570-846)


Brake Rotors From the People's Republic of China: Final Results 
and Partial Rescission of the Sixth Antidumping Duty Administrative 
Review and Final Results of the Ninth New Shipper Review

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

ACTION: Notice of final results and partial rescission of the sixth 
antidumping duty administrative review and final results of the ninth 
new shipper review.

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SUMMARY: On March 5, 2004, the Department of Commerce published the 
preliminary results and preliminary partial rescission of the sixth 
antidumping duty administrative review, and the preliminary results and 
final rescission of the ninth new shipper review of the antidumping 
duty order on brake rotors from the People's Republic of China. See 
Brake Rotors from the People's Republic of China: Preliminary Results 
and Preliminary Partial Rescission of the Sixth Antidumping Duty 
Administrative Review and Preliminary Results and Final Rescission of 
the Ninth New Shipper Review, 69 FR 10402 (March 5, 2004) 
(``Preliminary Results''). These reviews examined 21 exporters\1\ 
(``the respondents''), five of which are exporters included in three 
exporter/producer combinations and one of which is a new shipper. The 
period of review is April 1, 2002, through March 31, 2003 (``POR''). We 
gave interested parties an opportunity to comment on our preliminary 
results.
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    \1\ The names of the respondents in the sixth administrative 
review are as follows: (1) China National Industrial Machinery 
Import & Export Corporation (``CNIM''); (2) Laizhou Automobile Brake 
Equipment Company, Ltd. (``LABEC''); (3) Longkou Haimeng Machinery 
Co., Ltd. (``Longkou Haimeng''); (4) Laizhou Hongda Auto Replacement 
Parts Co., Ltd. (``Hongda''); (5) Hongfa Machinery (Dalian) Co., 
Ltd. (``Hongfa''); (6) Qingdao Gren (Group) Co. (``GREN''); (7) 
Qingdao Meita Automotive Industry Company, Ltd. (``Meita''); (8) 
Shandong Huanri (Group) General Company (``Huanri General''); (9) 
Yantai Winhere Auto-Part Manufacturing Co., Ltd. (``Winhere''); (10) 
Zibo Luzhou Automobile Parts Co., Ltd. (``ZLAP''); (11) Longkou TLC 
Machinery Co., Ltd (``LKTLC''); (12) Zibo Golden Harvest Machinery 
Limited Company (``Golden Harvest''); (13) Shanxi Fengkun 
Metallurgical Limited Company Hengtai Brake System Co., Ltd. 
(``Hengtai''); (16) China National Machinery and Equipment Import & 
Export (Xianjiang) Corporation (``Xianjiang''); (17) China National 
Automotive Industry Import & Export Corporation (``CAIEC''); (18) 
Laizhou CAPCO Machinery Co., Ltd. (``Laizhou CAPCO''); (19) Laizhou 
Luyuan Automobile Fittings Co. (``Laizhou Luyuan''); and (20) 
Shenyang Honbase Machinery Co., Ltd. (``Shenyang Honbase''). The 
respondent in the new shipper review is (21) Laizhou City Luqi 
Machinery Co., Ltd. (``Luqi'').
    The excluded exporter/producer combinations are: (1) Xianjiang/
Zibo Botai Manufacturing Co., Ltd.; (2) CAIEC/Laizhou CAPCO; (3) 
Laizhou CAPCO/Laizhou CAPCO; (4) Laizhou Luyuan/Laizhou Luyuan or 
Shenyang Honbase; or (5) Shenyang Honbase/Laizhou Luyuan or Shenyang 
Honbase.
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    Based on the additional publicly available information placed on 
the record for these final results and the comments received from the 
interested parties, we have made changes in the margin calculations for 
the respondents in these reviews. The final weighted-average dumping 
margins for the reviewed firms are listed below in the section entitled 
``Final Results of Reviews.''

EFFECTIVE DATE: July 13, 2004.

FOR FURTHER INFORMATION CONTACT: Terre Keaton or Brian Smith, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230; telephone: (202) 482-1280, or (202) 482-1766, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 5, 2004, the Department published in the Federal Register 
the Preliminary Results (see 69 FR 10402).
    On March 25, 2004, and in accordance with 19 CFR 351.301(c)(3)(ii), 
the petitioner&\2\ submitted additional publicly available information 
for consideration in the final results.
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    \2\ The petitioner is the Coalition for the Preservation of 
American Brake Drum and Rotor Aftermarket Manufacturers.
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    On May 10, 2004, the petitioner submitted its case brief, and on 
May 17, 2004, the respondents submitted a rebuttal brief.

Scope of Order

    The products covered by this order are brake rotors made of gray 
cast iron, whether finished, semifinished, or unfinished, ranging in 
diameter from 8 to 16 inches (20.32 to 40.64 centimeters) and in weight 
from 8 to 45 pounds (3.63 to 20.41 kilograms). The size parameters 
(weight and dimension) of the brake rotors limit their use to the 
following types of motor vehicles: automobiles, all-terrain vehicles, 
vans and recreational vehicles under ``one ton and a half,'' and light 
trucks designated as ``one ton and a half.''
    Finished brake rotors are those that are ready for sale and 
installation without any further operations. Semi-finished rotors are 
those on which the surface is not entirely smooth, and have undergone 
some drilling. Unfinished rotors are those which have undergone some 
grinding or turning.
    These brake rotors are for motor vehicles, and do not contain in 
the casting a logo of an original equipment manufacturer (``OEM'') 
which produces vehicles sold in the United States (e.g., General 
Motors, Ford, Chrysler, Honda, Toyota, Volvo). Brake rotors covered in 
this order are not certified by OEM producers of vehicles sold in the 
United States. The scope also includes composite brake rotors that are 
made of gray cast iron, which contain a steel plate, but otherwise meet 
the above criteria. Excluded from the scope of this order are brake 
rotors made of gray cast iron, whether finished, semifinished, or 
unfinished, with a diameter less than 8 inches or greater than 16 
inches (less than 20.32 centimeters or greater than 40.64 centimeters) 
and a weight less than 8 pounds or greater than 45 pounds (less than 
3.63 kilograms or greater than 20.41 kilograms).
    Brake rotors are currently classifiable under subheading 
8708.39.5010 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). Although the HTSUS subheading is provided for convenience 
and customs purposes, our written description of the scope of this 
order is dispositive.

Partial Rescission of Administrative Review

    Pursuant to 19 CFR 351.213(d)(3), we continue to find that no 
shipments of subject merchandise were made to the United States during 
the POR by the exporters which are part of the three exporter/producer 
combinations (i.e., Xianjiang, CAIEC, Laizhou CAPCO, Laizhou Luyuan and 
Shenyang Honbase) which received zero rates in the less-than-fair-value 
(``LTFV'') investigation, or the four exporters (i.e., Shanxi Fengkun, 
Hengtai, Golden Harvest and Xumingyuan) which made no-shipment claims 
(see Preliminary Results at 69 FR 10404). Therefore, in accordance with 
19 CFR 351.213(d)(3), we are rescinding the administrative review with 
respect to all of the above-mentioned companies because we found no 
evidence that these companies made shipments of the subject merchandise 
during the POR.

[[Page 42040]]

Analysis of Comments Received

    All issues raised in the case brief are addressed in the Issues and 
Decision Memorandum (``Decision Memo''), which is hereby adopted by 
this notice. A list of the issues raised, all of which are in the 
Decision Memo, is attached to this notice as an Appendix. Parties can 
find a complete discussion of all issues raised in the briefs and the 
corresponding recommendations in this public memorandum which is on 
file in the Central Records Unit, room B-099 of the main Department 
building. In addition, a complete version of the Decision Memo can be 
accessed directly on the Web at http://ia.ita.doc.gov/. The paper copy 
and electronic version of the Decision Memo are identical in content.

Changes Since the Preliminary Results

    Based on the use of additional publicly available information and 
the comments received from the interested parties, we have made changes 
in the margin calculation for each respondent. For a discussion of 
these changes, see the ``Margin Calculations'' section of the Decision 
Memo.
    For the final results, we calculated average surrogate percentages 
for factory overhead, selling, general and administrative expenses, and 
profit using the 2002-2003 financial data of Kalyani Brakes Limited and 
Mando Brake Systems India Limited. See Decision Memo at Comments 1 and 
2.
    We corrected a missing data problem in ZLAP's factors of production 
database which we inadvertently did not do in the preliminary results.

Final Results of Reviews

    We determine that the following weighted-average margin percentages 
exist for the following companies during the period April 1, 2002, 
through March 31, 2003:

------------------------------------------------------------------------
           Manufacturer/producer/exporter               Margin Percent
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China National Industrial Machinery Import & Export    0.17 (de minimis)
 Corporation........................................
Hongfa Machinery (Dalian) Co., Ltd..................                0.00
Laizhou Automobile Brake Equipment Company, Ltd.....   0.01 (de minimis)
Laizhou City Luqi Machinery Co., Ltd................                0.00
Laizhou Hongda Auto Replacement Parts Co., Ltd......                0.00
Longkou Haimeng Machinery Co., Ltd..................   0.01 (de minimis)
Longkou TLC Machinery Co., Ltd......................   0.02 (de minimis)
Qingdao Gren (Group) Co.............................   0.04 (de minimis)
Qingdao Meita Automotive Industry Company, Ltd......   0.14 (de minimis)
Shandong Huanri (Group) General Company.............                0.00
Yantai Winhere Auto-Part Manufacturing Co., Ltd.....   0.02 (de minimis)
Zibo Luzhou Automobile Parts Co., Ltd...............                0.00
PRC NME entity......................................               43.32
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Assessment Rates

    The Department shall determine, and US Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries. Pursuant to 19 CFR 351.212(b)(1), we calculated 
importer- or customer-specific ad valorem duty assessment rates based 
on the ratio of the total amount of the dumping margins calculated for 
the examined sales to the total entered value of those same sales. 
Where the respondent did not report actual entered value, we calculated 
individual importer- or customer-specific assessment rates by 
aggregating the dumping margins calculated for all of the U.S. sales 
examined and dividing that amount by the total quantity of the sales 
examined. In accordance with 19 CFR 351.106(c)(2), we will instruct CBP 
to liquidate without regard to antidumping duties all entries of 
subject merchandise during the POR for which the importer-specific 
assessment rate is zero or de minimis (i.e., less than 0.50 percent). 
To determine whether the per-unit duty assessment rates are de minimis 
(i.e., less than 0.50 percent), in accordance with the requirement set 
forth in 19 CFR 351.106(c)(2), we calculated importer- or customer-
specific ad valorem ratios based on export prices. The Department will 
issue appropriate assessment instructions directly to CBP within 15 
days of publication of these final results of review. For entries of 
the subject merchandise during the POR from companies not subject to 
this review, we will instruct CBP to liquidate them at the cash deposit 
rate in effect at the time of entry.

Cash Deposit Requirements

    Bonding will no longer be permitted to fulfill security 
requirements for shipments of brake rotors from the PRC that are 
manufactured and exported by Luqi, and entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of the new shipper review.
    The following deposit rates shall be required for merchandise 
subject to the order, entered, or withdrawn from warehouse, for 
consumption on or after the publication date of these final results, as 
provided by section 751(a)(1) and (a)(2)(B) of the Act: (1) the cash 
deposit rate for CNIM, GREN, Haimeng, Hongda, Hongfa, Huanri General, 
LABEC, LKTLC, Luqi (i.e., for subject merchandise manufactured and 
exported by Luqi), Meita, Winhere and ZLAP, will be zero; (2) the cash 
deposit rate for PRC exporters who received a separate rate in a prior 
segment of the proceeding will continue to be the rate assigned in that 
segment of the proceeding; (3) the cash deposit rate for the PRC NME 
entity and for subject merchandise exported by Luqi but not 
manufactured by it will continue to be the PRC-wide rate (i.e., 43.32 
percent); and (4) the cash deposit rate for non-PRC exporters of 
subject merchandise from the PRC will be the rate applicable to the PRC 
exporter that supplied that exporter. These deposit requirements shall 
remain in effect until publication of the final results of the next 
administrative review.
    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 the only reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305. Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and terms of an APO is a violation which is 
subject to sanction.
    We are issuing and publishing these determinations and notice in 
accordance with sections 751(a)(1), 751(a)(2)(B), and 777(i) of the 
Act, and 19 CFR 351.213 and 351.214.


[[Page 42041]]


    Dated: July 6, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memo

Comments

1. Whether to revise the methodology used in the preliminary results to 
calculate the surrogate selling, general and administrative expense 
(SG&A) for Kalyani Brakes Limited (Kalyani)
2. Whether to continue to use data contained in Rico Auto Industries 
Limited's (Rico) 2000-2001 financial statement to calculate surrogate 
ratios for factory overhead, SG&A and profit
[FR Doc. 04-15835 Filed 7-12-04; 8:45 am]
BILLING CODE 3510-DS-S