[Federal Register Volume 75, Number 189 (Thursday, September 30, 2010)]
[Notices]
[Pages 60409-60411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24602]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-900]


Diamond Sawblades and Parts Thereof From the People's Republic of 
China: Initiation of Antidumping Duty Changed Circumstances Review

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

DATES: Effective Date: September 30, 2010.
SUMMARY: The Department of Commerce (``Department'') has received 
information sufficient to warrant the initiation of a changed 
circumstances review ``CCR'' of the antidumping duty order on diamond 
sawblades and parts thereof from the People's Republic of China 
(``PRC''). Specifically, based on requests filed by the Diamond 
Sawblade Manufacturers Coalition (``DSMC'') and Hebei Jikai,\1\ the 
Department is initiating a CCR to determine whether Hebei Husqvarna-
Jikai Diamond Tools Co., Ltd. is the successor-in-interest to (1) Hebei 
Jikai Industrial Group Co., Ltd. or (2) Electrolux Construction 
Products (Xiamen) Co., Ltd. (``Electrolux Xiamen'').
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    \1\ Husqvarna Construction Products North America, Inc., Hebei 
Husqvarna-Jikai Diamond Tools Co., Ltd., and Hebei Jikai Industrial 
Group Co., Ltd. (collectively ``Hebei Jikai'').

FOR FURTHER INFORMATION CONTACT: Alan Ray, AD/CVD Operations, Office 9, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
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Washington, DC 20230; telephone: (202) 482-5403.

SUPPLEMENTARY INFORMATION:

Background

    On November 4, 2009, the Department published antidumping duty 
orders on diamond sawblades and parts thereof from the PRC and the 
Republic of Korea,\2\ as a result of the United States International 
Trade Commission reversing its initial negative determination on remand 
from the United States Court of International Trade. As part of those 
orders, in the investigation, Hebei Jikai Industrial Group Co., Ltd. 
received a calculated rate of 48.5 percent while Electrolux Xiamen 
received the PRC-wide rate of 164.09 percent.\3\ On August 13, 2010, 
DSMC filed a submission with the Department requesting that it conduct 
a CCR of the antidumping duty order on diamond sawblades and parts 
thereof from the PRC to determine whether Hebei Husqvarna-Jikai Diamond 
Tools Co., Ltd. is a successor-in-interest to Electrolux Xiamen.\4\ On 
August 20, 2010, DSMC submitted further information supporting its 
claim that Hebei Husqvarna-Jikai Diamond Tools Co., Ltd. should be 
found to be the successor-in-interest to Electrolux Xiamen. DSMC 
provided a narrative and supporting documentation accounting for 
changes in the name, ownership, production location, management, and

[[Page 60410]]

product line involving the entities at issue.\5\
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    \2\ Diamond Sawblades and Parts Thereof From the People's 
Republic of China and the Republic of Korea: Antidumping Duty 
Orders, 74 FR 57145 (November 4, 2009) (``Order'').
    \3\ Final Determination of Sales at Less Than Fair Value and 
Final Partial Affirmative Determination of Critical Circumstances: 
Diamond Sawblades and Parts Thereof from the People's Republic of 
China, 71 FR 29303 (May 22, 2006).
    \4\ See Letter from DSMC to the Department regarding Diamond 
Sawblades and Parts Thereof from the People's Republic of China--
Request for Initiation of Changed Circumstances Review, dated August 
13, 2010.
    \5\ See Letter from DSMC to the Department regarding Diamond 
Sawblades and Parts Thereof from the People's Republic of China--
Supplementary Information on Request for Initiation of Changed 
Circumstances Review, dated August 20, 2010.
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    On September 13, 2010, Hebei Jikai filed a submission with the 
Department requesting that it CCR review and, at the time of 
initiation, find that Hebei Husqvarna-Jikai Diamond Tools Co., Ltd. is 
the successor-in-interest to Hebei Jikai Industrial Group Co., Ltd. 
Hebei Jikai provided a narrative description and supporting 
documentation addressing changes in: (1) Production facilities; (2) 
supplier relationships; (3) management; and (4) customer base.\6\
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    \6\ See Letter from Hebei Jikai to the Department regarding 
Diamond Sawblades and Parts Thereof from the People's Republic of 
China--Request for Initiation of a Changed Circumstances Review.
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    On September 20, 2010, DSMC submitted a request that at the time of 
initiation that the Department should also issue its preliminary 
determination that all subject merchandise exported by Hebei Jikai 
should be subject to the PRC-wide rate of 164.09 percent.\7\
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    \7\ See Letter from DSMC to the Department regarding Diamond 
Sawblades and Parts Thereof from the People's Republic of China--
Request for Simultaneous Initiation of Changed Circumstances Review 
and Issuance of Preliminary Determination, dated September 20, 2010.
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Scope of the Order

    The products covered by this order are all finished circular 
sawblades, whether slotted or not, with a working part that is 
comprised of a diamond segment or segments, and parts thereof, 
regardless of specification or size, except as specifically excluded 
below. Within the scope of these orders are semifinished diamond 
sawblades, including diamond sawblade cores and diamond sawblade 
segments. Diamond sawblade cores are circular steel plates, whether or 
not attached to non-steel plates, with slots. Diamond sawblade cores 
are manufactured principally, but not exclusively, from alloy steel. A 
diamond sawblade segment consists of a mixture of diamonds (whether 
natural or synthetic, and regardless of the quantity of diamonds) and 
metal powders (including, but not limited to, iron, cobalt, nickel, 
tungsten carbide) that are formed together into a solid shape (from 
generally, but not limited to, a heating and pressing process).
    Sawblades with diamonds directly attached to the core with a resin 
or electroplated bond, which thereby do not contain a diamond segment, 
are not included within the scope of these orders. Diamond sawblades 
and/or sawblade cores with a thickness of less than 0.025 inches, or 
with a thickness greater than 1.1 inches, are excluded from the scope 
of these orders. Circular steel plates that have a cutting edge of non-
diamond material, such as external teeth that protrude from the outer 
diameter of the plate, whether or not finished, are excluded from the 
scope of these orders. Diamond sawblade cores with a Rockwell C 
hardness of less than 25 are excluded from the scope of these orders. 
Diamond sawblades and/or diamond segment(s) with diamonds that 
predominantly have a mesh size number greater than 240 (such as 250 or 
260) are excluded from the scope of these orders. Merchandise subject 
to these orders is typically imported under heading 8202.39.00.00 of 
the Harmonized Tariff Schedule of the United States (``HTSUS''). When 
packaged together as a set for retail sale with an item that is 
separately classified under headings 8202 to 8205 of the HTSUS, diamond 
sawblades or parts thereof may be imported under heading 8206.00.00.00 
of the HTSUS. The tariff classification is provided for convenience and 
customs purposes; however, the written description of the scope of 
these orders is dispositive.

Initiation of CCR

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(``Act''), the Department will conduct a CCR 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.
    In accordance with 19 CFR 351.216(d), the Department has determined 
that the information submitted by DSMC and Hebei Jikai constitutes 
sufficient evidence to initiate a CCR. In an antidumping duty changed 
circumstances review involving a successor-in-interest determination, 
the Department typically examines several factors including, but not 
limited to, changes in: (1) Management; (2) production facilities; (3) 
supplier relationships; and (4) customer base.\8\ Although no single 
factor will necessarily provide a dispositive indication that the 
requestor is the successor-in-interest to the predecessor company, 
generally, the Department will consider one company to be a successor-
in-interest to another company if its resulting operation is 
essentially similar to that of its predecessor.\9\ Therefore, if the 
record demonstrates that, with respect to the production and sale of 
the subject merchandise, the new company operates as the same business 
entity as the predecessor company, the Department may assign the new 
company the cash deposit rate of its predecessor.\10\
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    \8\ See, e.g., Pure Magnesium In Granular Form from the People's 
Republic of China: Initiation of Changed Circumstances Review, 75 FR 
51002 (August 18, 2010).
    \9\ See, e.g., Notice of Initiation of Antidumping Duty Changed 
Circumstances Review: Certain Forged Stainless Steel Flanges from 
India, 71 FR 327 (January 4, 2006).
    \10\ See Notice of Final Results of Changed Circumstances 
Antidumping Duty Administrative Review: Polychloroprene Rubber from 
Japan, 67 FR 58 (January 2, 2002); see also Fresh and Chilled 
Atlantic Salmon from Norway; Final Results of Changed Circumstances 
Antidumping Duty Administrative Review, 64 FR 9979 (March 1, 1999).
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    Based on the information provided in their submissions, DSMC and 
Hebei Jikai have provided sufficient evidence to initiate a review to 
determine whether Hebei Husqvarna-Jikai Diamond Tools Co., Ltd. is the 
successor-in-interest to Electrolux Xiamen or Hebei Jikai Industrial 
Group Co., Ltd. Therefore, pursuant to section 751(b)(1) of the Act and 
19 CFR 351.216(d), we are initiating a CCR. Although Hebei Jikai 
submitted documentation regarding changes in management, suppliers, 
customer base, and production facilities that the Department considers 
in its successor-in-interest analysis, we will need additional time to 
explore Electrolux Xiamen's involvement in Hebei Husqvarna-Jikai 
Diamond Tools Co., Ltd. prior to reaching a preliminary determination. 
Accordingly, the Department has determined that it is not expediting 
this action by combining the preliminary results of review with this 
notice of initiation.\11\
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    \11\ See 19 CFR 351.221(c)(3)(ii); see also Notice of Initiation 
of Antidumping Duty Changed Circumstances Review: Certain Pasta From 
Turkey, 74 FR 681 (January 7, 2009).
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    The Department intends to issue questionnaires requesting 
additional information for the review and will publish in the Federal 
Register a notice of the preliminary results of the antidumping duty 
CCR, in accordance with 19 CFR 351.221(b)(2) and 351.221(c)(3)(i). That 
notice will set forth the factual and legal conclusions upon which our 
preliminary results are based and a description of any action proposed. 
Pursuant to 19 CFR 351.221(b)(4)(ii), interested parties will have an 
opportunity to comment on the preliminary results of review. In 
accordance with 19 CFR 351.216(e), the Department will issue the final 
results of its antidumping duty CCR not later than 270 days after the 
date on which the review is initiated.

[[Page 60411]]

    This notice is published in accordance with sections 751(b)(1) and 
777(i)(1) of the Act and 19 CFR 351.216.

    Dated: September 24, 2010.
Susan H. Kuhbach,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2010-24602 Filed 9-29-10; 8:45 am]
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