[Federal Register Volume 69, Number 164 (Wednesday, August 25, 2004)]
[Notices]
[Pages 52228-52229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-1924]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

(A-570-846)


Brake Rotors From the People's Republic of China: Final Results 
of the Tenth New Shipper Review

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

ACTION: Notice of final results of the tenth new shipper review.

-----------------------------------------------------------------------

SUMMARY: On June 1, 2004, the Department of Commerce published the 
preliminary results of the tenth new shipper review of the antidumping 
duty order on brake rotors from the People's Republic of China (PRC). 
See Brake Rotors from the People's Republic of China: Preliminary 
Results of the Tenth New Shipper Review, 69 FR 30875 (June 1, 2004) 
(Preliminary Results). This review examined one exporter Shenyang 
Yinghao Machinery Co., Ltd (Shenyang Yinghao). The period of review is 
April 1, 2003, through September 30, 2003 (POR). We gave interested 
parties the opportunity to comment on our preliminary results. However, 
no interested party filed such comments.
    Since the preliminary results, we have made certain changes in the 
margin calculation for the respondent in this review (see section 
entitled ``Changes Since the Preliminary Results'' below for details). 
However, these changes did not impact the overall weighted-average 
margin calculated in the preliminary results. The final weighted-
average dumping margin for the reviewed firm is listed below in the 
section entitled ``Final Results of Review.''

EFFECTIVE DATE: August 25, 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, NW., Washington, DC 
20230; telephone: (202) 482-1280, or (202) 482-1766, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2004, the Department published in the Federal Register 
the Preliminary Results (see 69 FR 30875). On June 8, 2004, Shenyang 
Yinghao, the respondent, submitted a copy of its 2003 audited financial 
statement.\1\ Neither the respondent nor the petitioner filed a case 
brief in this review.\2\
---------------------------------------------------------------------------

    \1\ Department officials at verification requested that the 
audited financial statement be placed on the record of this review 
at the time of its completion (see the April 14, 2004, verification 
report).
    \2\ The petitioner is the Coalition for the Preservation of 
American Brake Drum and Rotor Aftermarket Manufactures.
---------------------------------------------------------------------------

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

[[Page 52229]]

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.

Changes Since the Preliminary Results

    For the final results, we made adjustments to our calculation of 
the surrogate ratios for factory overhead, selling, general and 
administrative expenses (SG&A), and profit for Kalyani Brakes Limited 
(Kalyani). Specifically, we offset Kalyani's cost of manufacturing 
(COM) by its sales of scrap, which impacted the surrogate factory 
overhead, SG&A and profit calculations (see August 18, 2004, Final 
Results Valuation Memorandum). Furthermore, we note that in the 
Preliminary Results Valuation Memorandum (PRVM), we misstated our 
reasons for removing certain line items from Kalyani's SG&A surrogate 
calculation. Specifically, in the PRVM we incorrectly stated that we 
did not make a deduction for scrap sales revenue and cash discounts in 
the SG&A calculation because the respondent in this review did not have 
sales of scrap nor did it have cash discounts. However, as noted in 
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, 69 FR 42039 (July 
13, 2004) and its accompanying Issues and Decision Memorandum at 
Comment 1, it is not the Department's practice to tailor surrogate 
financial ratios to match the circumstances of the PRC producers; 
however, it is the Department's practice to offset sales of scrap from 
the COM and to treat cash discounts as a reduction to sales revenue 
rather than to treat these items as selling expenses.

Final Results of Review

    We determine that the following weighted-average margin percentage 
exists for the following company during the period April 1, 2003, 
through September 30, 2003:

------------------------------------------------------------------------
                                                                 Margin
                Manufacturer/producer/exporter                   Percent
------------------------------------------------------------------------
Shenyang Yinghao Machinery Co., Ltd...........................      0.00
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and U.S. 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. 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). The Department will issue 
appropriate assessment instructions directly to CBP within 15 days of 
publication of the final results of this review.

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 Shenyang Yinghao Machinery Co., Ltd. 
(Shenyang Yinghao) and entered, or withdrawn from warehouse, for 
consumption on or after the publication date of the final results of 
this new shipper review.
    The following cash deposit requirements will be effective upon 
publication of the final results of this review for all shipments of 
subject merchandise from Shenyang Yinghao entered, or withdrawn from 
warehouse, for consumption on or after the publication date of this 
final results, as provided by section 751(a)(2)(B) and (C) of the Act: 
(1) the cash deposit rate for for subject merchandise manufactured and 
exported by Shenyang Yinghao will be zero; (2) the cash deposit rate 
for subject merchandise exported by Shenyang Yinghao but not 
manufactured by it will continue to be the PRC-wide rate (i.e., 43.32 
percent).
    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 this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act and 19 CFR 
351.214.

    Dated: August 18, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. E4-1924 Filed 8-24-04; 8:45 am]
BILLING CODE 3510-DS-S