[Federal Register Volume 69, Number 148 (Tuesday, August 3, 2004)]
[Notices]
[Pages 46508-46509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17563]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-570-501)


Natural Bristle Paintbrushes and Brush Heads From the People's 
Republic of China: Preliminary Determination To Rescind the Antidumping 
New Shipper Review of Shanghai R&R Import/Export Co., Ltd.

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 30, 2003 the Department of Commerce (the 
Department) initiated new shipper reviews of the antidumping duty order 
on natural bristle paintbrushes and brush heads from the People's 
Republic of China (PRC) covering the period February 1, 2003, through 
July 31, 2003. See Natural Bristle Paintbrushes and Brush Heads from 
the People's Republic of China: Initiation of Antidumping Duty New 
Shipper Reviews, 68 FR 57875 (October 7, 2004) (Initiation Notice). 
These new shipper reviews covered two exporters: Shanghai R&R Imp./Exp. 
Co., Ltd. (Shanghai R&R) and Changshan Import/Export Co., Ltd 
(Changshan). For the reasons discussed below, we preliminarily intend 
to rescind the new shipper review of Shanghai R&R. The Department is 
addressing the preliminary determination for Changshan in a separate 
notice.

EFFECTIVE DATE: August 3, 2004.

FOR FURTHER INFORMATION CONTACT: Scott Lindsay or Dana Mermelstein at 
(202) 482-0780 and (202) 482-1391, respectively; Office of AD/CVD 
Enforcement 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On February 14, 1986, the Department issued an antidumping duty 
order on natural bristle paintbrushes and brush heads from the PRC. See 
Amended Antidumping Duty Order: Natural Bristle Paint Brushes and Brush 
Heads From the People's Republic of China, 51 FR 8342 (February 14, 
1986). On August 14, 2003, the Department received from Shanghai R&R, 
an exporter of subject merchandise to the United States, a timely 
request for a new shipper review under this order. Pursuant to section 
351.214(b)(2)(iv) of the Department's regulations, this request 
included documentation establishing the volume of Shanghai R&R's first 
shipment to the United States and the date of the first sale to an 
unaffiliated customer in the United States. On September 30, 2003, the 
Department initiated this new shipper review covering the period 
February 1, 2003, through July 31, 2003. See Initiation Notice. On 
January 8, 2004, we received Shanghai R&R's response to the 
Department's initial questionnaire. On April 29, 2004, the Department 
received Shanghai R&R's response to the Department's supplemental 
questionnaire. On June 10, 2004, we received Shanghai R&R's response to 
the Department's second supplemental questionnaire.
    On March 18, 2004, the Department extended the time limit for the 
completion of the preliminary results to July 26, 2004, in accordance 
with section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as amended 
(the Act), and section 351.214(i)(2) of the Department's regulations. 
See Notice of Extension of Time Limit for Preliminary Results of 
Antidumping Duty New Shipper Reviews: Natural Bristle Paintbrushes from 
the People's Republic of China, 69 FR 12831 (March 18, 2004).

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the questionnaire responses of Shanghai R&R. We used standard 
verification procedures, including on-site inspection of the production 
and sales facilities, and an examination of relevant sales and 
financial records. Our verification results are outlined in the New 
Shipper Review of Natural Bristle Paintbrushes from the People's 
Republic of China: Sales Verification Report for Shanghai R&R Import/
Export Co., Ltd., dated July 21, 2004. A public version of this report 
is on file in the Central Records Unit located in room B-099 of the 
Main Commerce Building.

Intent to Rescind Review

    With every new shipper review request, the Department has an 
obligation to analyze the documentation and certifications to establish 
that they meet the conditions of section 351.214(b)(2)(iv) of the 
Department's regulations. At the time Shanghai R&R requested this new 
shipper review, we determined that the regulatory requirements were met 
and we initiated the new shipper review. At verification, the 
Department found documentation which brings into question that this 
sale was in fact made to the importer identified in Shanghai R&R's 
initial request for review and in all subsequent questionnaire 
responses. Shanghai R&R's explanation, that mistakes were made in 
identifying the importer in

[[Page 46509]]

certain sales and accounting records, do not persuade us to find that 
the importer documented in the initial request was correctly 
identified. Moreover, the discrepancies between Shanghai R&R's 
submissions and the documents reviewed at verification undermine the 
accuracy and completeness of Shanghai R&R's claim that it made an entry 
and a sale to an unaffiliated customer in the United States. As such, 
we find that our initiation of this new shipper review was based on 
documents that failed to establish the date of the first sale to an 
unaffiliated customer in the United States. Therefore, pursuant to 
section 351.214(b)(2)(iv)(C) of the Department's regulations, the 
requirements for initiation have not been satisfied.
    Accordingly, The Department intends to rescind this new shipper 
review. Because much of the information pertinent to our preliminary 
decision to rescind this review is business proprietary, we have set 
forth our complete analysis in a separate memorandum. See Memorandum 
from Scott Lindsay, Case Analyst, through Barbara E. Tillman, Director 
of Office of AD/CVD Enforcement VII, to Gary Taverman, Acting Deputy 
Assistant Secretary for Import Administration, Group I, ``Natural 
Bristle Paintbrushes and Brush Heads from the People's Republic of 
China (PRC): Intent to Rescind the New Shipper Review for Shanghai R&R 
Import/Export Co., Ltd. (2/1/03 - 7/31/03),'' dated July 23, 2004. A 
public version of this report is on file in the Central Records Unit 
located in room B-099 of the Main Commerce Building.

Notification

    At the completion of this new shipper review, either with a final 
rescission or a notice of final results, the Department will notify 
U.S. of Customs and Border Protection that bonding is no longer 
permitted to fulfill security requirements of shipments with the 
exporter/producer combination of Shanghai R&R/Zhejiang Linan Maxiao 
Brush Factory of natural bristle paintbrushes and brush heads from the 
PRC entered, or withdrawn from warehouse, for consumption in the United 
States on or after the publication of the final rescission or results 
notice in the Federal Register. After the publication of the final 
rescission notice, a cash deposit of 351.92 percent ad valorem shall be 
collected for any entries exported by Shanghai R&R. Should the 
Department reach a final result other than a rescission, an appropriate 
antidumping duty rate will be calculated for both assessment and cash 
deposit purposes.

Schedule for Final Results of Review

    Pursuant to section 351.309 of the Department's regulations, 
interested parties may submit written comments in response to this 
preliminary determination to rescind the review. 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 
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 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 issue the final results of this new 
shipper review, which will include the results of its analysis of 
issues raised in the briefs, within 90 days from the date of the 
preliminary results, unless the time limit is extended.
    We are issuing and publishing this determination is accordance with 
sections 751(a)(2)(B) and 777(i) of the Act.

    Dated: July 26, 2004.
Jeffrey A. May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 04-17563 Filed 8-2-04; 8:45 am]
BILLING CODE 3510-DS-S