[Federal Register Volume 75, Number 136 (Friday, July 16, 2010)]
[Notices]
[Pages 41435-41436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17427]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-801]


Ball Bearings and Parts Thereof From Germany: Notice of Court 
Decision Not in Harmony With Final Results of Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On July 7, 2010, the United States Court of International 
Trade sustained the Department of Commerce's results of redetermination 
on remand concerning the final results of the administrative review of 
the antidumping duty order on ball bearings and parts thereof from 
Germany. See SKF USA Inc., v. United States, Slip Op. 10-76 (CIT July 
7, 2010). The Department is now issuing this notice of court decision 
not in harmony with the Department of Commerce's determination.

DATES: Effective Date: July 16, 2010.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Richard Rimlinger, 
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-
3477 or (202) 482-4477.

SUPPLEMENTARY INFORMATION:

Background

    On September 11, 2008, the Department of Commerce (the Department) 
published the final results of the administrative reviews of the 
antidumping duty orders on ball bearings and parts thereof from France, 
Germany, Italy, Japan, and the United Kingdom for the period May 1, 
2006, through April 30, 2007. See Ball Bearings and Parts Thereof From 
France, Germany, Italy, Japan, and the United Kingdom: Final Results of 
Antidumping Duty Administrative Reviews and Rescission of Reviews in 
Part, 73 FR 52823 (September 11, 2008). SKF USA Inc., SKF France S.A., 
SKF Aerospace France S.A.S., SKF GmbH,\1\ and SKF Industrie S.p.A filed 
a lawsuit challenging certain aspects of the final results. On December 
21, 2009, the United States Court of International Trade (CIT) 
concluded that the Department acted within its authority and according 
to law in requesting cost-of-production (COP) data from SKF Germany's 
unaffiliated suppliers. See SKF USA Inc., v. United States, 675 F. 
Supp. 2d 1264 (CIT December 21, 2009) (SKF Germany). The CIT also 
upheld the Department's decision to reject the COP information 
submitted by SKF Germany's unaffiliated supplier as untimely and to 
resort to facts otherwise available. Specifically, the CIT stated that 
``the Department has broad authority to set, and extend, its deadlines 
for submission of requested information, but on the uncontested facts 
of this case it acted within its authority in deeming the COP data an 
untimely submission.'' See SKF Germany, 675 F. Supp. 2d at 1272-74. The 
CIT held, however, that ``{the Department{time}  acted contrary to law 
in drawing an inference adverse for SKF {Germany{time}  upon the 
failure of the unaffiliated supplier to make a timely submission of the 
requested COP data''

[[Page 41436]]

without a finding that SKF Germany had failed to act to the best of its 
ability. See SKF Germany, 675 F. Supp. 2d at 1268.
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    \1\ The CIT refers to the German company as ``SKF GmbH'' in its 
decision. The Department refers to the company as ``SKF Germany'' in 
its determination and in this notice.
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    In its remand order, the CIT directed the Department to 
``recalculate SKF {Germany's{time}  margin after redetermining the 
constructed value of the subject merchandise SKF {Germany{time}  
obtained from the unaffiliated supplier'' using information that is not 
adverse to SKF Germany. See SKF Germany, 675 F. Supp. 2d at 1278. In 
accordance with the CIT's remand order, the Department filed its 
redetermination on remand of the final results (remand results) on 
March 16, 2010, in which the Department recalculated the margin for SKF 
Germany without use of an adverse inference. On July 7, 2010, the CIT 
affirmed the Department's remand results. See SKF USA Inc., v. United 
States, Slip Op. 10-76 (CIT July 7, 2010).

Decision Not in Harmony

    In SKF Germany, the CIT ruled that the Department acted contrary to 
law in drawing an inference adverse for SKF Germany based upon the 
failure of an unaffiliated supplier to make a timely submission of the 
requested COP data without a finding that SKF Germany had failed to act 
to the best of its ability.
    As a result of changes to calculations in our remand results, the 
weighted-average margin for SKF Germany for the period May 1, 2006, 
through April 30, 2007, changed from 4.15 percent to 1.97 percent. 
Accordingly, absent an appeal or, if appealed, upon a ``conclusive'' 
court decision, we will amend our final results of this review to 
reflect the recalculation of the margin for SKF Germany.

Suspension of Liquidation

    The United States Court of Appeals for Federal Circuit (CAFC) has 
held that the Department must publish notice of a decision of the CIT 
or the CAFC which is not in harmony with the Department's 
determination. See The Timken Company v. United States, 893 F.2d 337, 
341 (Fed. Cir. 1990). Publication of this notice fulfills that 
obligation. The CAFC also held that, in such a case, the Department 
must suspend liquidation until there is a ``conclusive'' decision in 
the action. Id. Therefore, the Department must suspend liquidation 
pending the expiration of the period to appeal the CIT's July 7, 2010, 
decision or, if appealed, pending a final decision of the CAFC.
    Because entries of ball bearings and parts thereof from Germany 
produced by, exported to, or imported into the United States by SKF 
Germany are currently being suspended pursuant to the court's 
injunction order in effect, the Department does not need to order U.S. 
Customs and Border Protection to suspend liquidation of affected 
entries. The Department will not order the lifting of the suspension of 
liquidation on applicable entries of ball bearings and parts thereof 
from Germany made during the review period before a court decision in 
this lawsuit becomes final and conclusive.
    We are issuing and publishing this notice in accordance with 
section 516A(c)(1) of the Tariff Act of 1930, as amended.

    Dated: July 12, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-17427 Filed 7-15-10; 8:45 am]
BILLING CODE 3510-DS-P