[Federal Register Volume 73, Number 226 (Friday, November 21, 2008)]
[Notices]
[Pages 70618-70619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27874]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-846]


Brake Rotors From the People's Republic of China: Notice of Court 
Decision Not In Harmony With Final Results of Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On November 5, 2008, the United States Court of International 
Trade (``CIT'') sustained the remand redetermination issued by the 
Department of Commerce (the ``Department'') pursuant to the CIT's 
remand order in the final results of the administrative review of the 
antidumping duty order on brake rotors from the People's Republic of 
China (``PRC''). See Laizhou Auto Brake Equipment Co., et al. v. United 
States, Court No. 06-00430, Slip Op. 08-120 (CIT November 5, 2008) 
(``Laizhou II''). This case arises out of the Department's Final 
Results for the period of review (``POR'') April 1, 2005 through May 
31, 2006. See Brake Rotors from the People's Republic of China: Final 
Results and Partial Rescission of the 2004/2005 Administrative Review 
and Notice of Rescission of 2004/2005 New Shipper Review, 71 FR 66304 
(November 14, 2006) (``Final Results''). Consistent with the decision 
of the United States Court of Appeals for the Federal Circuit 
(``CAFC'') in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (``Timken''), the Department is notifying the public that Laizhou 
II is not in harmony with the Department's Final Results.

DATES: Effective Date: November 21, 2008.

FOR FURTHER INFORMATION CONTACT: Paul Walker, AD/CVD Operations, Office 
9, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Ave., NW., 
Washington, DC 20230; telephone: (202) 482-0413.

SUPPLEMENTARY INFORMATION: On June 26, 2008 the CIT directed the 
Department to: (1) Explain whether the rejected rotors, casting 
strands/handles, etc., reintroduced into the production process should 
be properly accounted for in the factor of production ``STLSCRAP''; (2) 
address the issue of the composition of the predominant scrap used in 
the production process; (3) address respondents' argument that the 
Department should be solely focusing on the type of scrap the 
respondents reported in the factor field ``STLSCRAP''; and (4) explain 
whether the Department has in fact reassessed its position in 
subsequent reviews as to the proper HTS classification of the 
respondents' scrap. See Laizhou Auto Brake Equipment Company, et al. v. 
United States, Court No. 06-00430, Slip Op. 08-71 (CIT June 26, 2008) 
(``Laizhou I''), at 17-18. Pursuant to the CIT's remand instructions, 
we reexamined the record and determined that the best available 
information on the record with which to value steel scrap is HTS 
7204.49.00 (other ferrous waste and scrap (``ferrous scrap'')), rather 
than HTS 7204.10.00 (waste and scrap of cast iron (``cast iron 
scrap'')) which was used in the Final Results.
    The Department released the Draft Results of Redetermination 
Pursuant to Court Remand to interested parties. No party submitted 
comments. On September 24, 2008, the Department filed its final results 
of redetermination pursuant to Laizhou I with the CIT. See Final 
Results of Redetermination Pursuant to Court Remand, Court No. 06-00430 
(September 24, 2008) (``Final Redetermination''). In responding to the 
CIT's questions and reassessing the record evidence, we have determined 
it appropriate to value steel scrap using HTS 7204.49.00 (ferrous 
scrap), instead of the previously selected value, HTS 7204.10.00 (cast 
iron scrap). We note that respondents reported purchasing steel scrap 
that is captured under HTS 7204.49.00, and there is no record evidence 
which contradicts this assertion. The Department valued HTS 7204.49.00 
using publicly available Indian import statistics for the POR from the 
World Trade Atlas (``WTA'').\1\ Thus, the Department revised, as 
appropriate, the remanded steel scrap surrogate value selection 
components of the margin calculations of Longkou Haimeng Machinery Co., 
Ltd. and Hongfa Machinery (Dalian) Co., Ltd. The Department also 
revised the ``sample rate'' applicable to the non-mandatory respondents 
separate from the PRC-wide entity who are parties to this litigation: 
Laizhou Auto Brake Equipment Co., Ltd.; Laizhou City Luqi Machinery 
Co., Ltd.; Laizhou Hongda Auto Replacement Parts Co., Ltd.; and Qingdao 
Gren (Group) Co. On November 5, 2008, the CIT sustained all aspects of 
the remand redetermination made by the Department pursuant to the CIT's 
remand of the Final Results.
    In Timken, 893 F.2d at 341, the CAFC held that, pursuant to section 
516A(e) of the Tariff Act of 1930, as amended (the ``Act''), the 
Department must publish a notice of a court decision that is not ``in 
harmony'' with a Department determination, and must suspend liquidation 
of entries pending a ``conclusive'' court decision. The CIT's decision 
in Laizhou II on November 5, 2008, constitutes a final decision of the 
court that is not in harmony with the Department's Final Results. This 
notice is published in fulfillment of the publication requirements of 
Timken. Accordingly, the Department will continue the suspension of 
liquidation of the subject merchandise pending the expiration of the 
period of appeal or, if appealed, pending a final and conclusive court 
decision. In the event the CIT's ruling is not appealed or, if 
appealed, upheld by the CAFC, the Department will instruct U.S. Customs

[[Page 70619]]

and Border Protection to revise the cash deposit rates covering the 
subject merchandise and to assess antidumping duties on entries of the 
subject merchandise during the POR based on the revised assessment 
rates calculated by the Department.
    This notice is issued and published in accordance with section 
516A(c)(1) of the Act.

    Dated: November 18, 2008.
Stephen J. Claeys,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
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    \1\ WTA is published by Global Trade Information Services, Inc., 
which is a secondary electronic source based upon the publication, 
Monthly Statistics of the Foreign Trade of India, Volume II: 
Imports. See http://www.gtis.com/wta.htm.
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 [FR Doc. E8-27874 Filed 11-20-08; 8:45 am]
BILLING CODE 3510-DS-P