[Federal Register Volume 69, Number 243 (Monday, December 20, 2004)]
[Notices]
[Pages 75913-75915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3743]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-868]


Folding Metal Tables and Chairs From the People's Republic of 
China: Final Results and Partial Rescission of First Antidumping Duty 
Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 6, 2004, the Department of Commerce (``the 
Department'') published the preliminary results of the first 
antidumping duty administrative review of the antidumping duty order on 
folding metal tables and chairs from the People's Republic of China 
(``PRC''). This administrative review covers two exporters (see 
``Background'' section below for further discussion). The period of 
review is December 3, 2001, through May 30, 2003. We gave interested 
parties an opportunity to comment on our preliminary results.
    Based on the additional publicly available information used in 
these final results and the comments received from the interested 
parties, we have made changes in the margin calculation for Dongguan 
Shichang Metals Factory Co., Ltd. (``Shichang'') (i.e., the respondent 
which fully cooperated in this review). The final weighted-average 
dumping margins for the reviewed firms are listed below in the section 
entitled ``Final Results of Review.''

EFFECTIVE DATE: December 20, 2004.

FOR FURTHER INFORMATION CONTACT: Amber Musser at (202) 482-1777 or 
Brian C. Smith at (202) 482-1766, AD/CVD Operations, Office 9, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    While the Department initiated an administrative review of four 
companies, based on a request by the petitioner\1\ and certain 
exporters, this administrative review now covers only two exporters: 
Shichang and Wok & Pan Industry, Inc. (``Wok and Pan'') (see ``Partial 
Rescission of Administrative Review'' section of this notice for 
further discussion).
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    \1\ The petitioner is Meco Corporation.
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    On July 6, 2004, the Department published in the Federal Register 
the preliminary results of the first administrative review of the 
antidumping duty order on folding metal tables and chairs from the PRC 
(see Folding Metal Tables and Chairs From the People's Republic of 
China: Preliminary Results of First Antidumping Duty Administrative 
Review, 69 FR 40602 (July 6, 2004) (``Preliminary Results'')).
    On July 26, 2004, the petitioner submitted publicly available 
information to value the factors of production in this review.
    On August 17, 2004, the Department published in the Federal 
Register a notice of postponement of the final results until no later 
than December 13, 2004 (69 FR 51061).
    Shichang submitted its case brief on September 10, 2004. The 
petitioner and Wok and Pan did not submit case or rebuttal briefs.
    Neither the petitioner nor the respondents in this review requested 
a hearing.
    On October 20, 2004, the Department received a request from U.S. 
Customs and Border Protection (``CBP'') to add Harmonized Tariff 
Schedule of the United States (``HTSUS'') subheadings 9403708010, 
9403708020, 9403708030 to the AD/CVD module. We have updated the module 
and amended the scope accordingly (see October 20, 2004, memorandum to 
the file titled Request for AD/CVD Module Update with the Addition of 
HTSUS Numbers for Folding Metal Tables and Chairs from the People's 
Republic of China (A-577-868); and the ``Scope of the Order'' section 
of this notice).
    The Department has conducted this administrative review in 
accordance with section 751 of the Tariff Act of 1930, as amended 
(``the Act'').

Scope of the Order

    The products covered by this order consist of assembled and 
unassembled folding tables and folding chairs made primarily or 
exclusively from steel or other metal, as described below:
    1) Assembled and unassembled folding tables made primarily or 
exclusively from steel or other metal (``folding metal tables''). 
Folding metal tables include square, round, rectangular, and any other 
shapes with legs affixed with rivets, welds, or any other type of 
fastener, and which are made most commonly, but not exclusively, with a 
hardboard top covered with vinyl or fabric. Folding metal tables have 
legs that mechanically fold independently of one another, and not as a 
set. The subject merchandise is commonly, but not exclusively, packed 
singly, in multiple packs of the same item, or in five piece sets 
consisting of four chairs and one table. Specifically excluded from the 
scope of folding metal tables are the following:
    a. Lawn furniture;
    b. Trays commonly referred to as ``TV trays'';
    c. Side tables;
    d. Child-sized tables;
    e. Portable counter sets consisting of rectangular tables 36'' high 
and matching stools; and
    f. Banquet tables. A banquet table is a rectangular table with a 
plastic or laminated wood table top approximately 28'' to 36'' wide by 
48'' to 96'' long and with a set of folding legs at each end of the 
table. One set of legs is composed of two individual legs that are 
affixed together by one or more cross-braces using welds or fastening 
hardware. In contrast, folding metal tables have legs that mechanically 
fold independently of one another, and not as a set.
    2) Assembled and unassembled folding chairs made primarily or 
exclusively from steel or other metal (``folding metal chairs''). 
Folding metal chairs include chairs with one or more cross-braces, 
regardless of shape or size, affixed to the front and/or rear legs with 
rivets, welds or any other type of fastener. Folding metal chairs 
include: those that are made solely of steel or other metal; those that 
have a back pad, a seat pad, or both a back pad and a seat pad; and 
those that have seats or backs made of plastic or other materials. The 
subject merchandise is commonly, but not exclusively, packed singly,

[[Page 75914]]

in multiple packs of the same item, or in five piece sets consisting of 
four chairs and one table. Specifically excluded from the scope of 
folding metal chairs are the following:
    a. Folding metal chairs with a wooden back or seat, or both;
    b. Lawn furniture;
    c. Stools;
    d. Chairs with arms; and
    e. Child-sized chairs.
    The subject merchandise is currently classifiable under subheadings 
9401710010, 9401710030, 9401790045, 9401790050, 9403200010, 9403200030, 
9403708010, 9403708020, and 9403708030 of the HTSUS. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
Department's written description of the merchandise is dispositive.

Period of Review

    The period of review (``POR'') is December 3, 2001, through May 31, 
2003.

Partial Rescission of Administrative Review

    We rescinded this administrative review with respect to Feili 
Furniture Development Co., Ltd. and Feili (Fujian) Co., Ltd. 
(``collectively Feili'') and New-Tec Integration Co., Ltd. (``New-
Tec'') pursuant to 19 CFR 351.213(d)(1), because the petitioner 
withdrew its request for review and these companies did not properly 
file their request for review in accordance with section 751(a)(1) of 
the Act. See Folding Metal Tables and Chairs from the People's Republic 
of China: Notice of Partial Rescission of First Antidumping Duty 
Administrative Review, 68 FR 66397 (November 26, 2003) (``Rescission 
Notice'').

Facts Available - Wok and Pan

    In the Preliminary Results, 69 FR at 40602, the Department 
determined that the use of adverse facts available (``AFA'') was 
warranted in accordance with sections 776(a) and 776(b) of the Act, 
with respect to Wok and Pan. Section 776(a)(2) of the Act states that 
the Department may use ``facts available'' if an interested party (A) 
withholds information that has been requested by the Department, (B) 
fails to provide information in the time and manner requested, (C) 
significantly impedes a proceeding under this title or (D) provides 
such information but the information cannot be verified. Furthermore, 
pursuant to section 776(b) of the Act, the Department may apply an 
adverse inference if it finds a respondent has not acted to the best of 
its ability in the conduct of the administrative review. Because Wok 
and Pan improperly filed its response to the Department's antidumping 
duty questionnaire and did not comply with our requests for information 
regarding separate rates, we determined that Wok and Pan did not 
cooperate to the best of its ability (see also 69 FR at 40602). Since 
the preliminary results, nothing has changed to reverse our preliminary 
decision regarding Wok and Pan and Wok and Pan has filed no comments on 
the record addressing the Department's preliminary results. Therefore, 
pursuant to sections 776(a) and 776(b) of the Act, we have continued to 
make an adverse inference with respect to Wok and Pan by assigning to 
its exports of the subject merchandise a rate of 70.71 percent, which 
is the PRC-wide rate.

Corroboration of Facts Available

    Section 776(c) of the Act requires that the Department corroborate, 
to the extent practicable, a figure based on secondary information 
which it applies as AFA. To be considered corroborated, the information 
must be found to be both reliable and relevant, and thus determined to 
have probative value. For the reasons explained above, we are applying 
as AFA the highest rate from any segment of this proceeding, 70.71 
percent, which is the current PRC-wide rate originally calculated in 
the less-than-fair-value (``LTFV'') investigation. (See Notice of Final 
Determination of Sales at Less Than Fair Value: Folding Metal Tables 
and Chairs from the People's Republic of China, 67 FR 20090, 20091 
(April 24, 2002).) For the reasons stated in the Preliminary Results, 
69 FR 40602, the Department finds this rate to be both reliable and 
relevant, and, therefore, to have probative value in accordance with 
the Statement of Administrative Action, H.R. Doc. 103-316 (``SAA''). 
See SAA at 870. No party has challenged the Department's preliminary 
corroboration analysis for purposes of the final results. Therefore, we 
have continued to assign to exports of the subject merchandise by Wok 
and Pan the rate of 70.71 percent.

Analysis of Comments Received

    All issues raised in the case briefs are addressed in the Issues 
and Decision Memorandum for the Final Results of the Antidumping Duty 
Administrative Review on Folding Metal Tables and Chairs from the 
People's Republic of China December 3, 2001, through May 31, 2003, from 
Barbara E. Tillman, Acting Deputy Assistant Secretary for Import 
Administration, to James Jochum, Assistant Secretary for Import 
Administration, dated December 13, 1994 (``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/frn. The paper copy and electronic version of the 
Decision Memo are identical in content.

Changes Since the Preliminary Results

    Based on the decision made by the Department in the Notice of 
Amended Final Determination of Sales at Less Than Fair Value: Floor-
Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the 
People's Republic of China, 69 FR 47868 (August 6, 2004) (``Ironing 
Tables''), in which the Department used the same data as in this 
administrative review to derive surrogate financial ratios, we have 
made changes to the surrogate financial ratios as discussed below. 
First, in the preliminary results of this review, we inadvertently 
failed to remove the line item ``Purchase of Traded Goods'' from the 
``Value of Raw Materials Consumed'' when deriving surrogate financial 
ratios based on the data contained in the financial report for the 
Indian producer Godrej & Boyce Manufacturing Co., Ltd. (``Godrej''). 
Because it is the Department's practice to apply the surrogate 
financial ratios to the build-up of the respondent's cost of 
manufacture (``COM''), the denominator of these ratios must include 
only the manufacturing costs incurred by Godrej (i.e., the Indian 
producer of comparable merchandise whose financial data the Department 
used to derive surrogate financial ratios in both Ironing Tables and in 
this administrative review) so that we are applying the financial 
ratios on an apples-to-apples basis. See section 773(c) of the Act; 19 
CFR 351.408(c)(4). As the ``Purchase of Traded Goods'' does not reflect 
Godrej's manufacturing costs, we are excluding this value from the 
calculation of Godrej's COM and have recalculated the surrogate 
financial ratios accordingly. For a further discussion of these 
changes, see also the December 13, 2004, memorandum to the file, titled 
Factors Valuation for the Final Results.
    In addition, we inadvertently erred in calculating the surrogate 
financial ratios by failing to properly value selling, general, and 
administrative (``SG&A'')

[[Page 75915]]

expenses. Specifically, we improperly valued SG&A expenses by 
inaccurately transcribing the data contained in the line items for 
``Bad Debts/Advances Written Off'' and ``Provision for Service Contract 
Expenses'' as reflected in Godrej's financial report. For a further 
discussion of these changes, see also the December 13, 2004, memorandum 
to the file, titled Factors Valuation for the Final Results.

Final Results of Review

    We determine that the following weighted-average margin percentages 
exist for the period December 3, 2001, through May 31, 2003:

------------------------------------------------------------------------
                                                           Final Margin
                        Exporter                             (percent)
------------------------------------------------------------------------
Dongguan Shichang Metals Factory Co., Ltd...............            4.27
Wok & Pan Industry, Inc.................................           70.71
PRC-Wide Rate...........................................           70.71
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries. The Department will issue 
appropriate appraisement instructions for the companies subject to 
these reviews directly to CBP within 15 days of publication of the 
final results of these reviews. For assessment purposes, we do not have 
the actual entered value for the respondent for which we calculated a 
margin because it is not the importer of record for the subject 
merchandise. Therefore, we have 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. To determine whether the 
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 
have calculated importer- or customer-specific ad valorem ratios based 
on export prices. We will instruct CBP to assess antidumping duties on 
all appropriate entries covered by this review if any importer or 
customer-specific assessment rate calculated in the final results of 
this review is above de minimis. 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 in effect at the 
time of entry.

Cash Deposit Requirements

    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 this final results, as 
provided by section 751(a)(1) and 751(a)(2)(B) of the Act: (1) The cash 
deposit rates for Dongguan Shichang Metals Factory Co., Ltd. and Wok & 
Pan will be the rates indicated above; (2) the cash deposit rate for 
PRC exporters for whom the Department has rescinded the review or for 
whom a review was not requested (e.g., Feili and New-Tec) will continue 
to be the rate assigned in an earlier segment of the proceeding or the 
PRC-wide rate of 70.71 percent, whichever applicable; (3) the cash 
deposit rate for the PRC NME entity (including Wok & Pan) will continue 
to be the PRC-wide rate of 70.71 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 supplier of 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(a). 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)(1), 751(a)(2)(B), and 777(i) of the Act 
and 19 CFR 351.213 and 351.214.

    Dated: December 13, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memo

Comments

Issue 1: Use of the Actual Market Economy Prices Paid to Hong Kong 
Suppliers To Value Shichang's Cold Rolled Steel Input
Issue 2: Correcting Certain Errors in the Draft Instructions of Cash 
Deposit Rates And Liquidation to the U.S. Customs and Border Protection
[FR Doc. E4-3743 Filed 12-17-04; 8:45 am]
BILLING CODE: 3510-DS-S