[Federal Register Volume 70, Number 179 (Friday, September 16, 2005)]
[Notices]
[Pages 54711-54714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5090]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-801, A-428-801, A-475-801, A-588-804, A-559-801, A 412-801]


Ball Bearings and Parts Thereof from France, Germany, Italy, 
Japan, Singapore, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 13, 2005, the Department of Commerce published the 
preliminary results of the administrative reviews of the antidumping 
duty orders on ball bearings and parts thereof from France, Germany, 
Italy, Japan, Singapore and the United Kingdom. The reviews cover 19 
manufacturers/exporters. The period of review is May 1, 2003, through 
April 30, 2004.
    Based on our analysis of the comments received, we have made 
changes, including corrections of certain programming and other 
clerical errors, in the margin calculations. Therefore, the final 
results differ from the preliminary results. The final weighted-average 
dumping margins for the reviewed firms are listed below in the section 
entitled ``Final Results of the Reviews.''

EFFECTIVE DATE: September 16, 2005.

FOR FURTHER INFORMATION CONTACT:  Thomas Schauer or Kristin Case, AD/
CVD Operations, Office 5, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4733.

SUPPLEMENTARY INFORMATION:

Background

    On June 30, 2004, in accordance with 19 CFR 351.213(b), we 
published a notice of initiation of administrative reviews of these 
orders (68 FR 39055). The companies for which we are conducting 
administrative reviews are as follows:
France:
    [star30] SKF France S.A. or Sarma (SKF France)
    [star30] SNR Roulements or SNR Europe (SNR)
Germany:
    [star30] Gebr[uuml]der Reinfurt GmbH & Co., KG, Wurzberg, Germany 
(GRW)
    [star30] INA-Schaeffler KG; INA Vermogensverwaltungsgesellschaft 
GmbH; INA Holding Schaeffler KG; FAG Kugelfischer Georg-Schaefer AG; 
FAG Automobiltechnik AG; FAG OEM und Handel AG; FAG Komponenten AG; FAG 
Aircraft/ Super Precision Bearings GmbH; FAG Industrial Bearings AG; 
FAG Sales Europe GmbH; FAG International Sales and Service GmbH 
(collectively FAG/INA)
    [star30] SKF GmbH (SKF Germany)
Italy:
    [star30] FAG Italia S.p.A.; FAG Automobiltechnik AG; FAG OEM und 
Handel AG (collectively FAG Italy)
    [star30] SKF Industrie S.p.A.; SKF RIV-SKF Officine di Villas 
Perosa S.p.A.; RFT S.p.A.; OMVP S.p.A. (collectively SKF Italy)
Japan:
    [star30] Asahi Seiko Co., Ltd. (Asahi)
    [star30] Koyo Seiko Co., Ltd. (Koyo)
    [star30] NSK Ltd. (NSK)
    [star30] NTN Corporation (NTN)
    [star30] Nankai Seiko Co., Ltd. (SMT)
    [star30] Nippon Pillow Block Company, Ltd. (NPB)
    [star30] Osaka Pump Co., Ltd. (Osaka Pump)
    [star30] Sapporo Precision Inc., Kitanihon Seiko Co., Ltd., and 
Sanbi Co., Ltd. (collectively Sapporo)
    [star30] Takeshita Seiko Co., Ltd. (Takeshita)
Singapore:
    [star30] NMB Singapore Ltd.; Pelmec Industries (Pte.) Ltd.; NMB 
Technologies Corporation (collectively NMB/Pelmec)
United Kingdom:
    [star30] The Barden Corporation (UK) Limited; FAG (U.K.) Limited 
(collectively Barden/FAG)
    [star30] SKF Aeroengine Bearings UK (formerly known as Aeroengine 
Bearings UK or NSK Aerospace) (SKF UK)
    On May 13, 2005, the Department published the preliminary results 
of the administrative reviews of the antidumping duty orders on ball 
bearings and parts thereof from France, Germany, Italy, Japan, 
Singapore, and the United Kingdom (70 FR 25538). The period of review 
is May 1, 2003, through April 30, 2004. We invited interested parties 
to comment on the preliminary results. At the request of certain 
parties, we held hearings for general issues on June 28, 2005, and for 
Japan-specific issues on July 1, 2005. The Department has conducted 
these administrative reviews in accordance with section 751 of the 
Tariff Act of 1930, as amended (the Act).

Scope of Orders

    The products covered by these orders are ball bearings (other than 
tapered roller bearings) and parts thereof. These

[[Page 54712]]

products include all bearings that employ balls as the rolling element. 
Imports of these products are classified under the following 
categories: antifriction balls, ball bearings with integral shafts, 
ball bearings (including radial ball bearings) and parts thereof, and 
housed or mounted ball bearing units and parts thereof.
    Imports of these products are classified under the following 
Harmonized Tariff Schedules of the United States (HTSUS) subheadings: 
3926.90.45, 4016.93.00, 4016.93.10, 4016.93.50, 6909.19.5010, 
8431.20.00, 8431.39.0010, 8482.10.10, 8482.10.50, 8482.80.00, 
8482.91.00, 8482.99.05, 8482.99.2580, 8482.99.35, 8482.99.6595, 
8483.20.40, 8483.20.80, 8483.50.8040, 8483.50.90, 8483.90.20, 
8483.90.30, 8483.90.70, 8708.50.50, 8708.60.50, 8708.60.80, 
8708.70.6060, 8708.70.8050, 8708.93.30, 8708.93.5000, 8708.93.6000, 
8708.93.75, 8708.99.06, 8708.99.31, 8708.99.4960, 8708.99.50, 
8708.99.5800, 8708.99.8080, 8803.10.00, 8803.20.00, 8803.30.00, 
8803.90.30, and 8803.90.90.
    Although the HTSUS item numbers above are provided for convenience 
and customs purposes, written descriptions of the scope of these orders 
remain dispositive.
    The size or precision grade of a bearing does not influence whether 
the bearing is covered by one of the orders. These orders cover all the 
subject bearings and parts thereof (inner race, outer race, cage, 
rollers, balls, seals, shields, etc.) outlined above with certain 
limitations. With regard to finished parts, all such parts are included 
in the scope of the these orders. For unfinished parts, such parts are 
included if (1) they have been heat-treated, or (2) heat treatment is 
not required to be performed on the part. Thus, the only unfinished 
parts that are not covered by these orders are those that will be 
subject to heat treatment after importation. The ultimate application 
of a bearing also does not influence whether the bearing is covered by 
the orders. Bearings designed for highly specialized applications are 
not excluded. Any of the subject bearings, regardless of whether they 
may ultimately be utilized in aircraft, automobiles, or other 
equipment, are within the scope of these orders.
    For a listing of scope determinations which pertain to the orders, 
see the Scope Determination Memorandum (Scope Memorandum) from the 
Antifriction Bearings Team to Laurie Parkhill, dated April 15, 2005. 
The Scope Memorandum is on file in the Central Records Unit (CRU), main 
Commerce building, Room B-099, in the General Issues record (A-100-001) 
for the 03/04 reviews.

Analysis of the Comments Received

    All issues raised in the case and rebuttal briefs by parties to the 
concurrent administrative reviews of the orders on ball bearings and 
parts thereof are addressed in the ``Issues and Decision Memorandum'' 
(Decision Memo) from Barbara E. Tillman, Acting Deputy Assistant 
Secretary, to Joseph A. Spetrini, Acting Assistant Secretary, dated 
September 12, 2005, which is hereby adopted by this notice. A list of 
the issues which parties have raised and to which we have responded, 
all of which are in the Decision Memo, is attached to this notice as an 
Appendix. This Decision Memo, which is a public document, is on file in 
the CRU, main Commerce building, Room B-099, and is accessible on the 
Web at http://ia.ita.doc.gov/frn/index.html. The paper copy and 
electronic version of the Decision Memo are identical in content.

Sales Below Cost in the Home Market

    The Department disregarded home-market sales that failed the cost-
of-production test for the following firms for these final results of 
reviews:

------------------------------------------------------------------------
                       Country                              Company
------------------------------------------------------------------------
France..............................................            SKF, SNR
Germany.............................................   GRW, INA/FAG, SKF
                                                                 Germany
Italy...............................................      FAG Italy, SKF
                                                                   Italy
Japan...............................................        Asahi, Koyo,
                                                      Nankai Seiko, NPB,
                                                         NSK, NTN, Osaka
                                                         Pump, Takeshita
Singapore...........................................          NMB/Pelmec
United Kingdom......................................              Barden
------------------------------------------------------------------------

Use of Adverse Facts Available

    In accordance with section 776(a) of the Act, we determine that the 
use of facts available as the basis for the weighted-average dumping 
margin is appropriate for SKF UK. SKF UK did not submit a response to 
our antidumping duty questionnaire.\1\ Consequently, we find that it 
has withheld ``information that has been requested by the administering 
authority'' under section 776(a)(2)(A) of the Act and we must use facts 
otherwise available to calculate a margin for SKF UK.
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    \1\ See memorandum from analyst to Laurie Parkhill, ``The Use of 
Facts Available and Corroboration of Secondary Information for 
Aeroengine Bearings UK in the 2003/2004 Administrative Review of the 
Antidumping Duty Order on Ball Bearings and Parts Thereof from the 
United Kingdom,'' dated May 6, 2005 (Corroboration Memo).
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    In accordance with section 776(b) of the Act, we are making an 
adverse inference in our application of the facts available. This is 
appropriate because SKF UK has not provided a response to our request 
for information and has not provided any acceptable rationale for its 
failure to respond. Therefore, we find that SKF UK has not acted to the 
best of its ability in providing us with relevant information which is 
under its control. As adverse facts available for SKF UK, we have 
applied the highest rate which we have calculated for any company in 
any segment of the proceeding on ball bearings from the United Kingdom. 
We have selected this rate because it is sufficiently high as to 
reasonably assure that SKF UK does not obtain a more favorable result 
by failing to cooperate. We calculated this rate, 61.14 percent, for 
SKF UK in the original less-than-fair-value investigation. See 
Antidumping Duty Orders and Amendments to the Final Determinations of 
Sales at Less Than Fair Value: Ball Bearings and Parts Thereof From the 
United Kingdom, 54 FR 20910 (May 15, 1989).
    Section 776(c) of the Act provides that the Department shall, to 
the extent practicable, corroborate secondary information used for 
facts available using independent sources reasonably at its disposal. 
Information from a prior segment of the proceeding or from another 
company in the same proceeding constitutes secondary information. The 
Statement of Administrative Action accompanying the Uruguay Round 
Agreements Act, H.R. Doc. 103-316, at 870 (1994) (SAA), provides that 
the word ``corroborate'' means that the Department will satisfy itself 
that the secondary information to be used has probative value. As 
explained in Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, from Japan, and Tapered Roller Bearings Four Inches or Less 
in Outside Diameter, and Components Thereof, from Japan: Preliminary 
Results of Antidumping Duty Administrative Reviews and Partial 
Termination of Administrative Reviews, 61 FR 57391, 57392 (November 6, 
1996), in order to corroborate secondary information, the Department 
will examine, to the extent practicable, the reliability and relevance 
of the information used. Unlike other types of information, however, 
such as input costs or selling expenses, there are no independent 
sources for calculated dumping margins. The only source for margins is 
administrative determinations. Thus, with respect to an administrative 
review, if the Department

[[Page 54713]]

chooses as facts available a calculated dumping margin from a prior 
segment of the proceeding, it is not necessary to question the 
reliability of the margin for that time period.
    With respect to the relevance aspect of corroboration, however, the 
Department will consider information reasonably at its disposal as to 
whether there are circumstances that would render a margin not 
relevant. Where circumstances indicate that the selected margin is not 
appropriate as adverse facts available, the Department will disregard 
the margin and determine an appropriate margin. See Fresh Cut Flowers 
from Mexico; Final Results of Antidumping Duty Administrative Review, 
61 FR 6812, 6814 (February 22, 1996), where the Department disregarded 
the highest dumping margin as best information available because the 
margin was based on another company's uncharacteristic business expense 
resulting in an unusually high margin. Further, in accordance with 
F.LII De Cecco Di Filippo Fara S. Martino S.p.A. v. United States, 216 
F.3d 1027, 1034 (Fed. Cir. 2000), we also examine whether information 
on the record would support the selected rate as reasonable facts 
available. This rate is the current cash-deposit rate for a number of 
firms, was applied to SKF UK in the previous review, and there is no 
information reasonably at our disposal that would indicate that there 
are circumstances which would render the margin not relevant at this 
time. Therefore, we find that the rate which we are using for these 
final results has probative value. See Corroboration Memo.
    Furthermore, there is no information on the record that 
demonstrates that the rate we have selected is inappropriate for use as 
the total adverse facts-available rate for the company in question. 
Therefore, we consider the selected rate to have probative value with 
respect to the firm in question in this review and to reflect the 
appropriate adverse inferences.

Other Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made revisions 
that have changed the results for certain firms. We have corrected 
programming and clerical errors in the preliminary results, where 
applicable. Any alleged programming or clerical errors about which we 
or the parties do not agree are discussed in section 8 of the Decision 
Memo.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins 
on ball bearings and parts thereof exist for the period May 1, 2003, 
through April 30, 2004:

                                 FRANCE
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
SKF France..........................................                8.41
SNR.................................................               11.93
------------------------------------------------------------------------


                                 GERMANY
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
FAG/INA.............................................                5.65
GRW.................................................                4.58
SKF Germany.........................................               16.06
------------------------------------------------------------------------


                                  ITALY
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
FAG Italy...........................................                5.88
SKF Italy...........................................                2.59
------------------------------------------------------------------------


                                  JAPAN
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
Asahi...............................................                1.33
Koyo................................................               12.78
NSK.................................................                8.28
NTN.................................................                5.93
Nankai Seiko (SMT)..................................                7.15
NPB.................................................               15.83
Osaka Pump..........................................                6.14
Sapporo.............................................               13.01
Takeshita...........................................                7.38
------------------------------------------------------------------------


                                SINGAPORE
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
NMB/Pelmec..........................................                3.56
------------------------------------------------------------------------


                             UNITED KINGDOM
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
Barden/FAG..........................................                2.78
SKF UK..............................................               61.14
------------------------------------------------------------------------

Assessment Rates

    The Department will determine and CBP shall assess antidumping 
duties on all appropriate entries. We will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of these 
final results of reviews. In accordance with 19 CFR 351.212(b)(1), we 
have calculated, whenever possible, an importer/customer-specific 
assessment rate or value for subject merchandise.The Department 
clarified its ``automatic assessment'' regulation on May 6, 2003 (68 FR 
23954). This clarification will apply to entries of subject merchandise 
during the period of review produced by companies included in these 
final results of reviews for which the reviewed companies did not know 
their merchandise was destined for the United States. In such 
instances, we will instruct CBP to liquidate unreviewed entries at the 
all-others rate if there is no rate for the intermediate company(ies) 
involved in the transaction. For a full discussion of this 
clarification, see Notice of Policy Concerning Assessment of 
Antidumping Duties, 68 FR 23954 (May 6, 2003).

a. Export Price

    With respect to export-price (EP) sales, we divided the total 
dumping margins (calculated as the difference between normal value and 
the EP) for each exporter's importer or customer by the total number of 
units the exporter sold to that importer or customer. We will direct 
CBP to assess the resulting per-unit dollar amount against each unit of 
merchandise on each of that importer's or customer's entries under the 
relevant order during the review period.

b. Constructed Export Price

    For constructed export-price (CEP) sales (sampled and non-sampled), 
we divided the total dumping margins for the reviewed sales by the 
total entered value of those reviewed sales for each importer. We will 
direct CBP to assess the resulting percentage margin against the 
entered customs values for the subject merchandise on each of that 
importer's entries under the relevant order during the review period. 
See 19 CFR 351.212(b)(1).

Cash-Deposit Requirements

    To calculate the cash-deposit rate for each respondent (i.e., each 
exporter and/or manufacturer included in these reviews), we divided the 
total dumping margins for each company by the total net value of that 
company's sales of merchandise during the review period subject to each 
order.
    To derive a single deposit rate for each respondent, we weight-
averaged the EP and CEP deposit rates (using the EP and CEP, 
respectively, as the weighting factors). To accomplish this when we 
sampled CEP sales, we first calculated the total dumping margins for 
all CEP sales during the review period by multiplying the sample CEP 
margins by the ratio of total days in the review period to days in the 
sample weeks. We then calculated a total net

[[Page 54714]]

value for all CEP sales during the review period by multiplying the 
sample CEP total net value by the same ratio. Finally, we divided the 
combined total dumping margins for both EP and CEP sales by the 
combined total value for both EP and CEP sales to obtain the deposit 
rate.
    We will direct CBP to collect the resulting percentage deposit rate 
against the entered customs value of each of the exporter's entries of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice. Entries 
of parts incorporated into finished bearings before sales to an 
unaffiliated customer in the United States will receive the 
respondent's deposit rate applicable to the order.
    Furthermore, the following deposit requirements will be effective 
upon publication of this notice of final results of administrative 
reviews for all shipments of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication, as provided by section 751(a)(1) of the Act: (1) the cash-
deposit rates for the reviewed companies will be the rates shown above; 
(2) for previously reviewed or investigated companies not listed above, 
the cash-deposit rate will continue to be the company-specific rate 
published for the most recent period; (3) if the exporter is not a firm 
covered in this review, a prior review, or the original less-than-fair-
value (LTFV) investigation but the manufacturer is, the cash-deposit 
rate will be the rate established for the most recent period for the 
manufacturer of the merchandise; (4) the cash-deposit rate for all 
other manufacturers or exporters will continue to be the ``All Others'' 
rate for the relevant order made effective by the final results of 
review published on July 26, 1993. See Antifriction Bearings (Other 
Than Tapered Roller Bearings) and Parts Thereof from France, et al: 
Final Results of Antidumping Duty Administrative Reviews and Revocation 
in Part of an Antidumping Duty Order, 58 FR 39729 (July 26, 1993). For 
ball bearings from Italy, see Antifriction Bearings (Other Than Tapered 
Roller Bearings) and Parts Thereof from France, et al; Final Results of 
Antidumping Duty Administrative Reviews, Partial Termination of 
Administrative Reviews, and Revocation in Part of Antidumping Duty 
Orders, 61 FR 66472, 66521 (December 17, 1996). These rates are the 
``All Others'' rates from the relevant LTFV investigation.
    These deposits requirements shall remain in effect until 
publication of the final results of the next administrative reviews.
    This notice serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during these review periods. Failure to comply with 
this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of doubled antidumping duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO are sanctionable violations.
    We are issuing and publishing these results in accordance with 
sections 751(a)(1) and 777(i) of the Act.

    Dated: September 12, 2005.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix

Comments and Responses

1. Offsetting of Negative Margins
2. Model-Match Methodology
3. Acquisition Cost vs. Suppliers Cost
4. U.S. Repacking Costs
5. CEP Profit
6. Affiliation
7. Billing Adjustments
8. Clerical Errors
9. Miscellaneous Issues
A. NSK-U.S. Selling Expense: Treatment of Certain Japanese-Worker 
Expenses
B. Bearing-Design Types
C. Ordinary Course of Trade: High-Profit Sales
D. Sample Sales in the Home Market
E. Inventory Carrying Costs
F. U.S. Customs Duties
G. Packing Expense for Home-Market Sales
H. Indirect Selling Expenses Incurred in Japan
I. Indirect Selling Expenses Incurred in the United States
[FR Doc. E5-5090 Filed 9-15-05; 8:45 am]
BILLING CODE 3510-DS-S