[Federal Register Volume 71, Number 16 (Wednesday, January 25, 2006)]
[Notices]
[Pages 4112-4114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-928]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-846]


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

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 28, 2005, the Department of Commerce (the 
``Department'') published in the Federal Register the preliminary 
results of the 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 
Twelfth New Shipper Review, 70 FR 56634 (September 28, 2005) 
(``Preliminary Results''). We gave interested parties an opportunity to 
comment on the Preliminary Results. We made one change to the dumping 
margin calculations for the final results. See Analysis for the Final 
Results of Brake Rotors from the People's Republic of China: Dixion 
Brake System (Longkou) Ltd., dated January 18, 2006, (``Dixion Final 
Analysis Memo''); see also Analysis for the Final Results of Brake 
Rotors from the People's Republic of China: Laizhou Wally Automobile 
Co., Ltd., dated January 18, 2006, (``Wally Final Analysis Memo'')

EFFECTIVE DATE: January 25, 2006.

FOR FURTHER INFORMATION CONTACT: Nicole Bankhead (for Respondent 
Dixion) or Kit Rudd (for Respondent Wally) AD/CVD Operations, Office 9, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington,

[[Page 4113]]

DC 20230; telephone: (202) 482-9068 or (202) 482-1385, respectively.

SUPPLEMENTARY INFORMATION:

Case History

    The Preliminary Results for this new shipper review were published 
on September 28, 2005. Since the Preliminary Results, the following 
events have occurred:
    On October 28, 2005, both the Coalition for the Preservation of 
American Brake Drum and Rotor Aftermarket Manufacturers 
(``Petitioner'') and Laizhou Wally Automobile Co., Ltd. (``Wally'') and 
Dixion Brake System (Longkou) Ltd. (``Dixion''), collectively 
``Respondents,'' submitted publicly available information to be used in 
valuing surrogate values for the final results. On November 1, 2005, 
Respondents submitted additional surrogate value information to rebut 
the information provided by Petitioner.
    On November 8, 2005, we received case briefs from both Petitioner 
and Respondents. On November 14, 2005, Petitioner and Respondents 
submitted their rebuttal briefs. On December 13, 2005, the Department 
extended the final results by 30 days. See Brake Rotors From the 
People's Republic of China: Extension of Time Limit for Final Results 
of the Twelfth New Shipper Review, 70 FR 75449 (December 20, 2005).

Scope of the 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 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, the written description of the scope of this 
order is dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding and to which we have responded are listed in the 
Appendix to this notice and addressed in the Issues and Decision 
Memorandum, which is hereby 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 (``CRU''), room B-099 of the main 
Department building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly on our Web site at http://ia.ita.doc.gov. The paper copy and electronic version of the Issues and 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on a review of the record since the Preliminary Results, the 
surrogate values for brokerage and handling and labor changed slightly. 
See Decision Memorandum at 2; see also Memorandum from Nicole Bankhead, 
Case Analyst, through Alex Villanueva, Program Manager, Office 9 and 
James C. Doyle, Office Director, Office 9, to The File, 12th New 
Shipper Review of Brake Rotors from the People's Republic of China 
(``PRC''): Surrogate Values for the Final Results, dated January 18, 
2006 (``Final Factors Memo'').

Partial Adverse Facts Available

    In the Preliminary Results, the Department determined that the use 
of partial facts available was warranted for the selection of certain 
surrogate values pursuant to sections 776(a) and 776(b) of the Tariff 
Act of 1930, as amended (the ``Act''). See Preliminary Results. 
However, for the final results, the Department is applying an adverse 
inference, as provided under section 776(b) of the Act, to value 
certain factors of production used by both Respondents. Specifically, 
Respondents were unable to provide period of review (``POR'') 
documentation to support their claims regarding the chemical content 
and material specificity of the inputs pig iron, ferrosilicon, and 
ferromanganese. Therefore, the Department finds that Respondents did 
not act to the best of their ability to comply with the Department's 
request for information, and for the final results, will apply partial 
adverse facts available to value these inputs. However, the values used 
to value pig iron, ferrosilicon, and ferromanganese have not changed 
since the Preliminary Results and therefore the application of partial 
adverse facts available did not cause a change in the margin. See 
Decision Memorandum at Comment 1.

Final Results of Review

    The weighted-average dumping margins for the POR are as follows:

                        Brake Rotors from the PRC
------------------------------------------------------------------------
                                                            Weighted-
                 Manufacturer/Exporter                    Average Margin
                                                            (Percent)
------------------------------------------------------------------------
Laizhou Wally Automobile Co., Ltd. (``Wally'').........           0.00
Dixion Brake System (Longkou) Ltd. (``Dixion'')........           8.15
------------------------------------------------------------------------

Assessment

    The Department will determine, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries, pursuant to 19 CFR 351.212(b). We have calculated 
importer-specific duty assessment rates on the basis of the ratio of 
the total amount of antidumping duties calculated for the examined 
sales to the total entered value of the examined sales for each 
importer. 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). 
To determine whether the per-unit 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 calculated importer or customer-
specific ad valorem ratios

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based on export prices. We will direct CBP to apply the resulting 
assessment rates to the entered customs values for the subject 
merchandise on each of the importer's entries during the review period. 
The Department will issue appropriate assessment instructions directly 
to the CBP within 15 days of publication of these final results of 
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 Wally and Dixion, and entered, or 
withdrawn from warehouse, for consumption on or after the publication 
date of the final results of the new shipper review.
    The following cash 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 these final results, as 
provided by section 751(a)(1) and (a)(2)(C) of the Act: (1) The cash 
deposit rate for Wally (i.e., for subject merchandise manufactured and 
exported by Wally), will be zero; (2) the cash deposit rate for Dixion 
(i.e., for subject merchandise manufactured and exported by (Dixion) 
will be the rate indicated above; (3) the cash deposit rate for PRC 
exporters who received a separate rate in a prior segment of the 
proceeding will continue to be the rate assigned in that segment of the 
proceeding; (4) the cash deposit rate for the PRC NME entity and for 
subject merchandise exported by Wally and Dixion but not manufactured 
by themselves will continue to be the PRC-wide rate (i.e., 43.32 
percent); and (5) the cash deposit rate for non-PRC exporters of 
subject merchandise from the PRC will be the rate applicable to the PRC 
exporter that supplied the exporter.
    These deposit requirements shall remain in effect until publication 
of the final results of the next administrative review.

Reimbursement of Duties

    This notice also serves as a final 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 this POR. 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.

Administrative Protective Orders

    This notice also serves as a 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, which continues 
to govern business proprietary information in this segment of the 
proceeding. 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 new shipper review and notice in 
accordance with sections 751(a)(2)(B) and 777(i) of the Act.

    Dated: January 18, 2006.
David Spooner,
Assistant Secretary for Import Administration.

Appendix I Decision Memorandum

General Issues:
Comment 1: Valuation of Material Factors of Production
Comment 2: Valuation of Brokerage and Handling
Comment 3: Scrap Offset in Surrogate Financial Ratios
Wally-Specific Issues:
Comment 4: Wally's Bona Fide Sales
[FR Doc. E6-928 Filed 1-24-06; 8:45 am]
BILLING CODE 3510-DS-S