[Federal Register Volume 72, Number 175 (Tuesday, September 11, 2007)]
[Notices]
[Pages 51787-51791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17857]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-803]


Heavy Forged Hand Tools, Finished or Unfinished, With or Without 
Handles, from the People's Republic of China: Final Results and 
Rescissions of the 2005-2006 Administrative Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On March 8, 2007, the Department published the preliminary 
results of the 2005-2006 administrative reviews of the antidumping duty 
orders on heavy forged hand tools, finished or unfinished, with or 
without handles, from the People's Republic of China (PRC). See Heavy 
Forged Hand Tools, Finished or Unfinished, With or Without Handles, 
From the People's Republic of China: Preliminary Results and Partial

[[Page 51788]]

Rescission of the 2005-2006 Administrative Reviews, 72 FR 10492 (March 
8, 2007) (Preliminary Results). This review covers four classes or 
kinds: (1) Axes/Adzes; (2) Bars/Wedges; (3) Hammers/Sledges; and (4) 
Picks/Mattocks. This review covers nine exporters or producer/
exporters: (1) Iron Bull Industrial Co., Ltd. (Iron Bull); (2) Jafsam 
Metal Products (Jafsam); (3) Shanghai Machinery Import & Export Corp. 
(Shanghai Machinery); (4) Shanghai Xinike Trading Company (Xinike); (5) 
Shandong Huarong Machinery Co., Ltd. (Huarong); (6) Shandong Jinma 
Industrial Group Co., Ltd. (Jinma); (7) Shandong Machinery Import and 
Export Corporation (SMC); (8) Tianjin Machinery Import and Export 
Corporation (TMC); and (9) Truper Herramientas S.A. de C.V. (Truper). 
The period of review (POR) is February 1, 2005, through January 31, 
2006. Based on our analysis of the record, including factual 
information obtained since the Preliminary Results, we have reversed 
the decision to rescind the administrative review of the antidumping 
duty order on the class or kind Axes/Adzes covering SMC and have 
applied adverse facts available (AFA). Therefore, the final results 
differ from the Preliminary Results. See ``Final Results of Review'' 
section below.

EFFECTIVE DATE: September 11, 2007.

FOR FURTHER INFORMATION CONTACT: Mark Flessner or Robert James at (202) 
482-6312 or (202) 482-0649, respectively; Antidumping and 
Countervailing Duty Enforcement Office 7, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14\th\ 
Street and Constitution Avenue, N.W., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    Since the Preliminary Results, we received a case brief from 
respondent SMC on April 9, 2007. Separate rebuttal briefs were received 
from both petitioners, Ames True Temper (Ames) and Council Tool Company 
(Council Tools), on April 16, 2007. On April 24, 2007, the Department's 
Customs Liaison Unit forwarded certain U.S. Customs and Border 
Protection (CBP) documents to the team. These were placed on the record 
of this review on April 24, 2007. See the Memorandum to the File from 
Mark Flessner, Case Analyst, entitled ``Heavy Forged Hand Tools, 
Finished or Unfinished, With or Without Handles, From the People's 
Republic of China (A-570-803): U.S. Entry Documents and Opportunity to 
Comment'' (April 24, 2007). SMC, Ames, and Council Tools all filed 
comments concerning these documents on May 9, 2007. SMC requested and 
was granted time to file a rebuttal to Ames' and Council Tools' 
comments; SMC filed its rebuttal comments on May 16, 2007. On July 6, 
2007, the Department published in the Federal Register an extension of 
the time limit for the final results until August 6, 2007. See Notice 
of Extension of Time Limit for Final Results and Partial Rescission of 
the 2005-2006 Antidumping Duty Administrative Review of Heavy Forged 
Hand Tools, Finished or Unfinished, With or Without Handles, from the 
People's Republic of China, 72 FR 36959 (July 6, 2007). On August 8, 
2007, the Department published in the Federal Register a further 
extension of the time limit for the final results until September 4, 
2007. See Heavy Forged Hand Tools, Finished or Unfinished, With or 
Without Handles, from the People's Republic of China: Notice of 
Extension of Time Limit for Final Results of the 2005-2006 Antidumping 
Duty Administrative Review, 72 FR 44495 (August 8, 2007).

Scope of the Antidumping Duty Order

    The products covered by these orders are heavy forged hand tools 
from the PRC, comprising the following classes or kinds of merchandise: 
(1) Hammers and sledges with heads over 1.5 kg (3.33 pounds); (2) bars 
over 18 inches in length, track tools and wedges; (3) picks and 
mattocks; and (4) axes, adzes and similar hewing tools. Heavy forged 
hand tools include heads for drilling hammers, sledges, axes, mauls, 
picks and mattocks, which may or may not be painted, which may or may 
not be finished, or which may or may not be imported with handles; 
assorted bar products and track tools including wrecking bars, digging 
bars and tampers; and steel wood splitting wedges. Heavy forged hand 
tools are manufactured through a hot forge operation in which steel is 
sheared to required length, heated to forging temperature, and formed 
to final shape on forging equipment using dies specific to the desired 
product shape and size. Depending on the product, finishing operations 
may include shot blasting, grinding, polishing and painting, and the 
insertion of handles for handled products. Heavy forged hand tools are 
currently provided for under the following Harmonized Tariff System of 
the United States (HTSUS) subheadings: 8205.20.60, 8205.59.30, 
8201.30.00 and 8201.40.60. Specifically excluded from these orders are 
hammers and sledges with heads 1.5 kg. (3.33 pounds) in weight and 
under, hoes and rakes, and bars 18 inches in length and under. The 
HTSUS subheadings are provided for convenience and Customs purposes. 
The written description remains dispositive.

Analysis of Comments Received

    All issues raised in the briefs are addressed in the accompanying 
Issues and Decision Memorandum, which is hereby adopted by this notice. 
A list of the issues raised, all of which are in the Issues and 
Decision Memorandum, is as follows: (1) whether SMC demonstrated a lack 
of de jure and de facto government control to warrant receiving a 
separate rate; (2) whether the Department was correct in applying AFA 
to SMC's sales of Bars/Wedges and Hammers/Sledges; (3) whether the AFA 
rates applied to SMC's sales of Bars/Wedges, Hammers/Sledges, and Axes/
Adzes were properly corroborated and reasonable; (4) whether the 
Department ought to reverse its preliminary rescission of the review 
for Axes/Adzes; (5) whether the Department ought to apply facts 
available for Axes/Adzes; and (6) whether the Department ought to apply 
AFA for Axes/Adzes. 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 
(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 the internet 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 upon our analysis of the record (including factual 
information obtained since the Preliminary Results) and upon comments 
received from the interested parties, we are reversing our preliminary 
rescission of the administrative review covering the class or kind 
Axes/Adzes with respect to SMC. We are also basing our margin for SMC 
for Axes/Adzes on AFA. For a discussion of these changes, see the 
accompanying Issues and Decision Memorandum.

The PRC-wide Rate and Application of Facts Otherwise Available

    The Department did not receive comments specifically pertaining to 
its Preliminary Results regarding the application of AFA to the PRC-
wide entity for any of the four classes or kinds. (SMC did submit 
comments with regard to the rates it received as part of the PRC-wide 
entity for all classes or

[[Page 51789]]

kinds except Picks/Mattocks; for details and a full discussion, see the 
accompanying Issues and Decision Memorandum.) As a result, we have not 
altered our decision to apply total AFA to the PRC-wide entity for all 
four classes or kinds for these final results, in accordance with 
sections 776(a)(2)(A) and (B), as well as section 776(b), of the Tariff 
Act of 1930, as amended (the Tariff Act). See ``Final Results of 
Review'' section below.
    As stated in the Preliminary Results, by failing to adequately 
respond to the Department's requests for information, SMC (with respect 
to Axes/Adzes, Bars/Wedges, and Hammers/Sledges), TMC (with respect to 
Picks/Mattocks), Huarong (with respect to Hammers/Sledges and Picks/
Mattocks), and Jafsam (with respect to all four classes or kinds) have 
not demonstrated they are free of government control, and are therefore 
not eligible to receive a separate rate. See, e.g., Natural Bristle 
Paint Brushes and Brush Heads From the People's Republic of China; 
Final Results of Antidumping Duty Administrative Review, 62 FR 11823 
(March 13, 1997); Final Determination of Sales at Less than Fair Value: 
Certain Helical Spring Lock Washers From the People's Republic of 
China, 58 FR 48833 (September 20, 1993); and Final Determination of 
Sales at Less Than Fair Value: Certain Compact Ductile Iron Waterworks 
Fittings and Accessories Thereof From the People's Republic of China, 
58 FR 37908 (July 14, 1993). Consequently, consistent with the 
Preliminary Results, we continue to find that, because these companies 
did not qualify for separate rates, they are deemed to be part of the 
PRC-entity. See Preliminary Results at 10494.
    As stated above, the PRC-wide entity did not respond to our 
requests for information. Because the PRC-wide entity did not respond 
to our request for information, we find it necessary, under sections 
776(a)(2) and 776(b) of the Tariff Act, to use AFA as the basis for 
these final results of review for the PRC-wide entity.
    In accordance with the Department's practice, we have assigned to 
the PRC-wide entity (including Jafsam and SMC) the rate of 189.37 
percent as AFA for Axes/Adzes. This is the highest calculated rate of 
any segment in this proceeding, which was calculated in the 2004-2005 
administrative review. See Heavy Forged Hand Tools, Finished or 
Unfinished, With or Without Handles, From the People's Republic of 
China: Final Results of Antidumping Duty Administrative Reviews and 
Final Rescission and Partial Rescission of Antidumping Duty 
Administrative Reviews, 71 FR 54269 (September 14, 2006) (Final Results 
of 14\th\ Review). We have assigned to the PRC-wide entity (including 
Jafsam and SMC) the rate of 139.31 percent as AFA for Bars/Wedges. This 
rate is the highest dumping margin from any segment of this proceeding 
and was calculated during the 1998-1999 administrative review. See the 
accompanying Issues and Decision Memorandum at Comment 3; see also 
Notice of Final Results and Partial Recission of Antidumping Duty 
Administrative Reviews: Heavy Forged Hand Tools From the People's 
Republic of China, 65 FR 43290 (July 13, 2000); Heavy Forged Hand Tools 
From the People's Republic of China; Amended Final Results of 
Antidumping Duty Administrative Reviews, 65 FR 50499 (August 18, 2000). 
We have assigned to the PRC-wide entity (including Huarong, Jafsam, and 
SMC) the rate of 45.42 percent as AFA for Hammers/Sledges. This rate is 
the highest dumping margin from any segment of this proceeding and was 
applied as ``best information available'' (the predecessor to AFA) 
during the less-than-fair-value (LTFV) investigation for the sole 
respondent China National Machinery Import & Export Corporation, and 
was again corroborated and used as the PRC-wide and AFA rate in the 
2004-2005 review. See Final Results of 14\th\ Review. We have assigned 
to the PRC-wide entity (including TMC, Huarong, and Jafsam) the rate of 
98.77 percent as AFA for Picks/Mattocks. This rate is the highest 
dumping margin from any segment of this proceeding; it was calculated 
in the fifth review, became the PRC-wide and AFA rate in the seventh 
review, and has been used since. Id. This is consistent with our 
practice in, e.g., Freshwater Crawfish Tail Meat from the People's 
Republic of China; Notice of Final Results of Antidumping Duty 
Administrative Review, 68 FR 19504 (April 21, 2003); see also Stainless 
Steel Plate in Coils From Taiwan: Final Results and Rescission in Part 
of Antidumping Duty Administrative Review, 67 FR 40914 (June 14, 2002). 
The U.S. Court of International Trade (CIT) and the Court of Appeals 
for the Federal Circuit have consistently upheld the Department's 
practice to assign AFA to non-cooperative respondents in several cases. 
See Rhone Poulenc, Inc. v. United States, 899 F.2d 1185, 1190 (Fed. 
Cir. 1990); see also Shanghai Taoen International Trading Co., Ltd. v. 
United States, Slip Op. 05-22, at 16 (CIT 2005) (upholding a 223.01 
percent total AFA rate, the highest available dumping margin from a 
different respondent in a previous administrative review); NSK Ltd. v. 
United States, 346 F.Supp.2d 1312, 1335 (CIT 2004) (upholding a 73.55 
percent total AFA rate, the highest available dumping margin from a 
different respondent in a LTFV investigation); Kompass Food Trading 
Int'l v. United States, 24 CIT 678, 689 (2000) (upholding a 51.16 
percent total AFA rate, the highest available dumping margin from a 
different, fully cooperative respondent).

Corroboration of Secondary Information Applied as AFA

    Section 776(c) of the Act requires that the Department corroborate, 
to the extent practicable, secondary information used as facts 
available. Secondary information has been interpreted as ``information 
derived from the petition that gave rise to the investigation or 
review, the final determination concerning the subject merchandise, or 
any previous review under section 751 concerning the subject 
merchandise.'' See Statement of Administrative Action accompanying the 
Uruguay Round Agreements Act, H.R. Doc 103-316, Vol. 1, 103d Cong. 
(1994) (SAA) at 870. Under section 776(c) of the Act, the Department is 
granted a wide discretion in its selection of secondary information, 
i.e., the AFA rate, as long as the Department can determine, to the 
extent practicable, that the AFA rate has probative value. See 
generally SAA at 870.
    The term ``corroborate'' has been interpreted to mean that the 
Department will satisfy itself that the secondary information to be 
used has probative value. See SAA at 870. Thus, to corroborate 
secondary information, the Department will, to the extent practicable, 
examine the reliability and relevance of the information used. However, 
unlike other types of information, such as input costs or selling 
expenses, there are no independent sources for calculated dumping 
margins per se other than are administrative determinations. These 
rates are applied to the PRC-wide entity, i.e., those companies not 
eligible for a separate rate with regard to the individual class or 
kind of merchandise. No information has been presented in the current 
review that calls into question the reliability of the information used 
for these AFA rates. Thus, the Department finds that the information is 
reliable. See the accompanying Issues and Decision Memorandum at 
Comment 3.

Reversal of Preliminary Rescission

    Based upon CBP information received subsequent to the publication 
of the

[[Page 51790]]

Preliminary Results (see the Memorandum to the File from Mark Flessner, 
Case Analyst, entitled ``Heavy Forged Hand Tools, Finished or 
Unfinished, With or Without Handles, From the People's Republic of 
China (A-580-803): U.S. Entry Documents and Opportunity to Comment,'' 
dated April 24, 2007), we have determined that the review for Axes/
Adzes with respect to SMC should not be rescinded. We based our margin 
for Axes/Adzes with respect to SMC on AFA because of SMC's failure to 
report sales and factor information for this class or kind, which 
prevented the Department from being able to calculate a margin. See the 
accompanying Issues and Decision Memorandum at Comments 4, 5, and 6.

Final Rescissions

    In accordance with 19 CFR 351.213(d)(3) and consistent with the 
Department's practice, we finally rescind the following administrative 
reviews: (a) with respect to SMC for Picks/Mattocks; (b) with respect 
to Iron Bull for Axes/Adzes, Hammers/Sledges, and Picks/Mattocks; and 
(c) with respect to Xinike in all four classes or kinds. For rescission 
of these reviews with respect to Jinma (all four classes or kinds), 
Shanghai Machinery (all four classes or kinds), Truper (all four 
classes or kinds), TMC (Axes/Adzes, Hammers/Sledges, and Bars/Wedges), 
Huarong (Axes/Adzes and Bars/Wedges), and Iron Bull (Bars/Wedges), see 
Administrative Review (02/01/2005 01/31/2006) of Heavy Forged Hand 
Tools, Finished or Unfinished, With or Without Handles, from the 
People's Republic of China: Notice of Rescission of Antidumping Duty 
Administrative Reviews, 71 FR 53403 (September 11, 2006).

Final Results of Review

    As a result of our reviews, we determine that the following 
antidumping margins exist for the period February 1, 2005, through 
January 31, 2006:

------------------------------------------------------------------------
       Manufacturer/exporter          Weighted-average margin (percent)
------------------------------------------------------------------------
Heavy Forged Hand Tools from the
 PRC: Axes/Adzes...................
PRC-Wide Rate......................                            189.37\1\
Heavy Forged Hand Tools from the
 PRC: Bars/Wedges..................
PRC-Wide Rate......................                            139.31\2\
Heavy Forged Hand Tools from the
 PRC: Hammers/Sledges..............
PRC-Wide Rate......................                             45.42\3\
Heavy Forged Hand Tools from the
 PRC: Picks/Mattocks...............
PRC-Wide Rate......................                             98.77\4\
------------------------------------------------------------------------
\1\ The PRC-wide entity for Axes/Adzes includes SMC and Jafsam.
\2\ The PRC-wide entity for Bars/Wedges includes SMC and Jafsam.
\3\ The PRC-wide entity for Hammers/Sledges includes SMC, Jafsam, and
  Huarong.
\4\ The PRC-wide entity for Picks/Mattocks includes Jafsam, TMC, and
  Huarong.

Cash Deposit Requirements

    The following deposit requirements will be effective upon 
publication of these final results for this administrative review for 
all shipments of heavy forged hand tools, finished or unfinished, with 
or without handles, from the PRC, entered, or withdrawn from warehouse, 
for consumption on or after the date of publication, as provided by 
section 751(a)(2)(c) of the Tariff Act: (1) for SMC, Jafsam, Huarong, 
and TMC, the cash deposit rate will be the rates listed above under the 
``Final Results of Review'' section for each class or kind and for each 
company as set forth in Footnotes 1-4; (2) for previously-reviewed PRC 
and non-PRC exporters with separate rates, the cash deposit rate will 
be the company-specific rate established for the most recent period; 
(3) for all other PRC exporters (including the exporters named as part 
of the PRC-wide entity above), the cash deposit rates will be the PRC-
wide rates established in the final results of this review; and (4) for 
all other non-PRC exporters of the subject merchandise, the cash 
deposit rate will be the rate applicable to the PRC exporter that 
supplied that non-PRC exporter. These deposit requirements shall remain 
in effect until further notice.

Assessment of Antidumping Duties

    The Department will determine, and CBP will assess, antidumping 
duties on all appropriate entries. We will direct CBP to assess the 
resulting assessment rates against the CBP values for the subject 
merchandise on each of the exporter's entries during the POR. In 
accordance with 19 CFR 351.106(c)(2), we will instruct CBP to liquidate 
any entries without regard to antidumping duties for which the 
assessment rate is de minimis. The Department will issue appropriate 
assessment instructions directly to CBP within 15 days of publication 
of the final results of review.

Notification to Importers

    This notice 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 review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and subsequent assessment 
of double 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 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 the terms of an APO is a sanctionable 
violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Tariff Act.

    Dated: September 4, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix--Issues in Decision Memorandum

1: SMC and de facto and de jure government control
2: Use of adverse facts available (AFA) for Bars/Wedges and Hammers/
Sledges
3: Corroboration of AFA rates for Bars/Wedges, Hammers/Sledges, and 
Axes/Adzes
4: Preliminary rescission of review for Axes/Adzes
5: Use of facts available if Preliminary rescission of review for Axes/
Adzes is reversed

[[Page 51791]]

6: Use of adverse facts available if Preliminary rescission of review 
for Axes/Adzes is reversed
[FR Doc. E7-17857 Filed 9-10-07; 8:45 am]
BILLING CODE 3510-DS-S