[Federal Register Volume 71, Number 56 (Thursday, March 23, 2006)]
[Notices]
[Pages 14679-14681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4224]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-588-804]


Ball Bearings and Parts Thereof from Japan: Initiation and 
Preliminary Results of Changed-Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In response to a petition for an expedited changed-
circumstances review from Koyo Seiko Co., Ltd., and Koyo Corporation of 
U.S.A., the Department of Commerce is initiating a changed-
circumstances review of the antidumping duty order on ball bearings and 
parts thereof from Japan. We have preliminarily concluded that JTEKT 
Corporation is the successor-in-interest to Koyo Seiko Co., Ltd., and, 
as a result, should be accorded the same treatment previously accorded 
to Koyo Seiko Co., Ltd., with regard to the antidumping duty order on 
ball bearings and parts thereof from Japan. Interested parties are 
invited to comment on these preliminary results.

EFFECTIVE DATE: March 23, 2006.

FOR FURTHER INFORMATION CONTACT: Edythe Artman at (202) 482-3931 or 
Richard Rimlinger at (202) 482-4477, AD/CVD Operations, Office 5, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    The Department of Commerce (the Department) published antidumping 
duty orders on ball bearings, cylindrical roller bearings, and 
spherical plain bearings and parts thereof from Japan on May 15, 1989. 
See Antidumping Duty Orders: Ball Bearings, Cylindrical Roller 
Bearings, and Spherical Plain Bearings, and Parts Thereof from Japan, 
54 FR 20904 (May 15, 1989). The orders on cylindrical roller bearings 
and spherical plain bearings and parts thereof from Japan were revoked, 
effective January 1, 2000. See Revocation of Antidumping Duty Orders on 
Certain Bearings From Hungary, Japan, Romania, Sweden, France, Germany, 
Italy, and the United Kingdom, 65 FR 42667 (July 11, 2000). Koyo Seiko 
Co., Ltd., and Koyo Corporation of U.S.A. (collectively Koyo) have 
participated in numerous administrative reviews of the order on ball 
bearings and parts thereof from Japan. On February 3, 2006, Koyo 
informed the Department that Koyo

[[Page 14680]]

Seiko Co., Ltd. (Koyo Seiko), had changed its name to JTEKT Corporation 
(JTEKT) and petitioned the Department to conduct a changed-
circumstances review to confirm that JTEKT is the successor-in-interest 
to Koyo Seiko for purposes of determining antidumping-duty liabilities 
subject to this order.\1\ Koyo also requested that the Department 
conduct a changed-circumstances review on an expedited basis, pursuant 
to 19 CFR 351.221(c)(3)(ii). We did not receive any other comments.
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    \1\ Koyo clarified in its February 3, 2006, submission that the 
name of Koyo Corporation of U.S.A. will remain unchanged at this 
time.
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Scope of the Order

    For a listing of scope determinations which pertain to the order on 
ball bearings and parts thereof, see the Scope Determination Memorandum 
(Scope Memorandum) from the Antifriction Bearings Team to Laurie 
Parkhill, dated March 2, 2006. 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 2004/2005 administrative 
reviews of the orders on antifriction bearings.

Initiation of Changed-Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216 (2005), the Department will conduct a 
changed-circumstances review upon receipt of information concerning, or 
a request from an interested party for a review of, an antidumping duty 
order which shows changed circumstances sufficient to warrant a review 
of the order. The information submitted by Koyo claiming that JTEKT is 
the successor-in-interest to Koyo Seiko demonstrates changed 
circumstances sufficient to warrant such a review. See 19 CFR 
351.216(d).
    In accordance with the above-referenced regulation, the Department 
is initiating a changed-circumstances review to determine whether JTEKT 
is the successor-in-interest to Koyo Seiko. In determining whether one 
company is the successor to another for purposes of applying the 
antidumping duty law, the Department examines a number of factors 
including, but not limited to, changes in management, production 
facilities, supplier relationships, and customer base. See Industrial 
Phosphoric Acid From Israel: Final Results of Antidumping Duty Changed 
Circumstances Review, 59 FR 6944 (February 14, 1994). Although no 
single or even several of these factors will necessarily provide a 
dispositive indication of succession, generally the Department will 
consider one company to be a successor to another company if its 
resulting operation is similar to that of its predecessor. See Brass 
Sheet and Strip from Canada; Notice of Final Results of Antidumping 
Duty Administrative Review, 57 FR 20460 (May 13, 1992), at Comment 1 
(``generally, in the case of an asset acquisition, the Department will 
consider the acquiring company to be a successor to the company covered 
by the antidumping duty order, and thus subject to its duty deposit 
rate, if the resulting operation is essentially similar to that 
existing before the acquisition''). Thus, if the evidence demonstrates 
that, with respect to the production and sale of the subject 
merchandise, the new company operates as the same business entity as 
the prior company, the Department will assign the new company the cash-
deposit rate of its predecessor. Id.; Notice of Final Results of 
Changed Circumstances Antidumping Administrative Review: 
Polychloroprene Rubber from Japan, 67 FR 58 (January 2, 2002); see also 
Circular Welded Non-Alloy Steel Pipe from Korea; Final Results of 
Antidumping Duty Changed Circumstances Review, 63 FR 20572 (April 27, 
1998), where the Department found successorship where the company only 
changed its name and did not change its operations.In its February 3, 
2006, submission, Koyo provided information to demonstrate that JTEKT 
is the successor-in-interest to Koyo Seiko. Koyo submitted a press 
release announcing the start of JTEKT due to the merger of Koyo Seiko 
and another company, Toyoda Machine Works, Ltd. (Toyoda), on January 1, 
2006. See exhibit A of Koyo's February 3, 2006, submission. Koyo also 
submitted the certification of JTEKT's history that is recorded in the 
registration book maintained by the local government authority and 
shows the merger between Koyo Seiko and Toyoda. See exhibit B of the 
February 3, 2006, submission.
    Additional information in Koyo's February 3, 2006, submission shows 
that JTEKT's management, production facilities, suppliers, and customer 
base are consistent with those of Koyo Seiko. With respect to 
management prior to and following the name change, the press release 
discloses that 21 of Koyo Seiko's 28 officers and directors have 
retained their positions in the new company. The press release also 
shows that Koyo Seiko's production facilities have been placed within a 
distinct bearings division of JTEKT and JTEKT's corporate guide, that 
appears in exhibit D of the February 3, 2006, submission, lists the 
four primary product lines of JTEKT, one of which is bearings. 
Furthermore, Koyo submitted information from JTEKT's website that shows 
that Koyo Seiko's production facilities are listed as domestic plants 
of JTEKT. See exhibit E of Koyo's February 3, 2006, submission. Thus, 
based on the documentation provided by Koyo, we find that the use of 
Koyo Seiko's production facilities has remained the same since the name 
change.
    Koyo stated in its February 3, 2006, submission that, because 
Toyoda had not produced or sold bearing products, production and sale 
of subject merchandise would continue under JTEKT in the same manner as 
performed by Koyo Seiko and Koyo did not anticipate any changes in 
supplier relationships or customer base from that of Koyo Seiko. In 
exhibit F of its submission, Koyo provided copies of the letters that 
it sent to its customers at the time of the merger in order to document 
JTEKT's intent to retain Koyo Seiko's customers. In addition, Koyo 
submitted photographs of JTEKT's packaging in order to show that Koyo's 
trademark will continue to figure prominently in sales of bearings 
formerly produced by Koyo Seiko because of the strong reputation and 
goodwill associated with the Koyo brand. See exhibit G of the February 
3, 2006, submission. Koyo observed that its trademark also appears in 
JTEKT's corporate guide, as can be seen in exhibit D. Thus, based on 
the information provided in Koyo's submission, we find that it is 
JTEKT's intent to maintain the suppliers and customer base of Koyo 
Seiko.
    Therefore, we conclude that Koyo's petition for a changed-
circumstances review demonstrates that no major changes have occurred 
with respect to Koyo Seiko's management, production facilities, 
suppliers, or customer base as a result of its merger with Toyoda and 
name change to JTEKT.
    When it concludes that expedited action is warranted, the 
Department may publish the notice of initiation and preliminary results 
for a changed-circumstances review concurrently. See 19 CFR 
351.221(c)(3)(ii). See also Canned Pineapple Fruit from Thailand; 
Initiation and Preliminary Results of Antidumping Duty Changed 
Circumstances Review, 69 FR 30878 (June 1, 2004). Based on the 
information on the record, we have determined that expedition of this 
changed-circumstances review is warranted. In this case, we 
preliminarily find that JTEKT is the successor-in-interest to Koyo 
Seiko and, as such, is entitled to

[[Page 14681]]

Koyo Seiko's cash-deposit rate with respect to entries of subject 
merchandise.
    Should our final results remain the same as these preliminary 
results, effective the date of publication of the final results we will 
instruct U.S. Customs and Border Protection to assign entries of 
merchandise produced or exported by JTEKT the antidumping duty cash-
deposit rate applicable to Koyo Seiko.

Public Comment

    Any interested party may request a hearing within 14 days of 
publication of this notice. See 19 CFR 351.310(c). Any hearing, if 
requested, will be held 28 days after the date of publication of this 
notice or the first working day thereafter. Interested parties may 
submit case briefs and/or written comments not later than 14 days after 
the date of publication of this notice. Rebuttal briefs and rebuttals 
to written comments, which must be limited to issues raised in such 
briefs or comments, may be filed not later than 21 days after the date 
of publication of this notice. Parties who submit case briefs or 
rebuttal briefs in this changed-circumstances review are requested to 
submit with each argument (1) a statement of the issue and (2) a brief 
summary of the argument with an electronic version included. Consistent 
with 19 CFR 351.216(e), we will issue the final results of this 
changed-circumstances review no later than 270 days after the date on 
which this review was initiated or within 45 days of publication of 
these preliminary results if all parties agree to our preliminary 
finding.
    We are issuing and publishing this initiation and preliminary 
results notice in accordance with sections 751(b)(1) and 777(i)(1) of 
the Act and 19 CFR 351.216 and 351.221(c)(3).

    Dated: March 16, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E6-4224 Filed 3-22-06; 8:45 am]
BILLING CODE 3510-DS-S