[Federal Register Volume 69, Number 210 (Monday, November 1, 2004)]
[Notices]
[Pages 63361-63362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2957]


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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: Notice of Final Rescission of Antidumping Duty 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 (Department) 
initiated a new shipper review of Shanghai R&R Import/Export Co., Ltd. 
(Shanghai R&R), under 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, 2003) (Initiation Notice). On August 3, 2004, the 
Department issued its preliminary intent to rescind the new shipper 
review. See 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., 
69 FR 46508 (August 3, 2004) (Preliminary Rescission Notice). The 
Department is now rescinding this new shipper review. See ``Rescission 
of Review'' section below.

EFFECTIVE DATE: November 1, 2004.

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

SUPPLEMENTARY INFORMATION:

Background

    Since the Department published its preliminary determination to 
rescind this new shipper review, the following events have occurred. On 
September 7, 2004, Shanghai R&R filed a case brief. On September 9, 
2004, the Department issued its verification report on the factors of 
production from Zhejiang Linan Maxiao Brush Factory. See Memorandum For 
the File: Antidumping New Shipper Review of Natural Bristle 
Paintbrushes and Brush Heads from the People's Republic of China (PRC) 
(A-570-501): Factors Verification Report for Shanghai R&R Import/Export 
Co., Ltd at Zhejiang Linan Maxiao Brush Factory. On September 17, 2004, 
Shanghai R&R filed comments on the Department's producer verification 
report. No other briefs were filed. A public hearing was held on 
September 28, 2004.

Scope of the Antidumping Duty Order

    The products covered by this order are natural bristle paint 
brushes and brush heads from the PRC. Excluded from the scope are paint 
brushes and brush heads with a blend of 40% natural bristles and 60% 
synthetic filaments. The merchandise under review is currently 
classifiable under item 9603.40.40.40 of the Harmonized Tariff Schedule 
of the United States (HTSUS). Although the HTSUS subheading is provided 
for convenience and customs purposes, the Department's written 
description of the merchandise is dispositive.

Rescission of Review

    Pursuant to sections 351.214(b)(2)(iv)(B-C) of the Department's 
regulations, a request for a new shipper review must contain 
documentation which establishes the volume of the exporter's first and 
subsequent shipments of subject merchandise to the United States and 
the date of the exporter's first sale of subject merchandise to an 
unaffiliated customer in the United States. At the time Shanghai R&R 
requested this new shipper review, it appeared that the regulatory 
requirements were met and we initiated the new shipper review. See 
Initiation Notice. 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 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 undermined 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. Therefore, we have 
determined that we cannot rely on the commercial documents submitted to 
the Department in Shanghai R&R's request for new shipper review, and 
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. We have considered the 
arguments made by Shanghai R&R, based on the information in the record; 
however, Shanghai R&R's arguments do not overcome our intent to 
rescind. Accordingly, we are rescinding this new shipper review 
pursuant to section 351.214(b)(2)(iv)(C) of the Department's 
regulations.
    All issues raised in the case briefs by parties to this proceeding 
and to which we have responded are listed in the Appendix to this 
notice and are addressed in the Issues and Decision Memorandum for the 
Final Rescission of the New Shipper Review of Natural Bristle 
Paintbrushes and Brush Heads from The People's Republic of China, dated 
October 25, 2004, which is adopted by this notice. Parties can find a 
complete discussion of the issues raised in this new shipper review and 
the corresponding recommendations in this public memorandum, which is 
on file in the Central Records Unit, room B-099 of the main Commerce 
Building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Web at http://ia.ita.doc.gov/frn/index.html. The paper copy and electronic version of the Decision 
Memorandum are identical in content. Since the Department is rescinding 
the new shipper review, we are not calculating a company-specific rate 
for Shanghai R&R.

Cash Deposit Requirements

    The Department will notify Customs and Border Protection (CBP) that 
bonding is no longer permitted to fulfill security requirements for 
shipments from Shanghai R&R of natural bristle paintbrushes and brush 
heads from the

[[Page 63362]]

PRC entered, or withdrawn from warehouse, for consumption in the United 
States on or after the publication of this notice of rescission of 
antidumping duty new shipper review in the Federal Register. Further, 
effective upon publication of this notice for all shipments of the 
subject merchandise exported by Shanghai R&R, and entered, or withdrawn 
from warehouse, for consumption, the cash deposit rate will be the PRC-
wide rate of 351.92 percent ad valorem.

Assessment of Antidumping Duties

    The Department will instruct CBP to assess antidumping duties on 
all appropriate entries. Since we are rescinding this antidumping duty 
new shipper review with respect to Shanghai R&R, the PRC-wide rate of 
351.92 percent in effect at the time of entry applies to all exports of 
natural bristle paintbrushes and brush heads from the PRC by Shanghai 
R&R entered, or withdrawn from warehouse for consumption during the 
period of review (February 1, 2003, through July 31, 2003). The 
Department will issue appropriate assessment instructions directly to 
CBP within 15 days of publication of this notice of rescission of 
antidumping duty new shipper review.

Notification to Importers

    This notice also serves as a 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 notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with section 351.305(a)(3) of the Department's 
regulations. Timely written notification of the return/destruction of 
APO material 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 sanctions.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i)(1) of the Tariff Act 
of 1930, as amended.

    Dated: October 25, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix Issues in the Decision Memorandum

Comments

1. Whether Shanghai R&R met the requirements for a new shipper review;
2. The bona fides of Shanghai R&R's sale and the use of adverse facts 
available.
[FR Doc. E4-2957 Filed 10-29-04; 8:45 am]
BILLING CODE 3510-DS-S