[Federal Register Volume 76, Number 12 (Wednesday, January 19, 2011)]
[Notices]
[Pages 3086-3089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-1026]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-601]


Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Final Results of the 
2008-2009 Antidumping Duty Administrative Review

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

SUMMARY: On July 15, 2010, the Department of Commerce (``Department'') 
published the preliminary results of the 2008-2009 administrative 
review of tapered roller bearings (``TRBs'') from the People's Republic 
of China (``PRC''). See Tapered Roller Bearings and Parts Thereof, 
Finished or Unfinished, From the People's Republic of China: 
Preliminary Results of the 2008-2009 Administrative Review of the 
Antidumping Duty Order, 75 FR 41148 (July 15, 2010) (``Preliminary 
Results''). The period of review (``POR'') is June 1, 2008, through May 
31, 2009.
    This review covers three respondents: (1) The majority Spungen 
family-owned joint-venture Peer Bearing Company Ltd.--Changshan 
(``PBCD/CPZ,'' also referred to as ``PBCD''); (2) the wholly AB SKF-
owned Changshan Peer Bearing Company, Ltd. (``SKF/CPZ,'' also referred 
to as ``SKF''); and 3) Hubei New Torch Science & Technology Company 
Co., Ltd. (``New Torch'').
    We invited interested parties to comment on our Preliminary 
Results. Based on our analysis of the comments received, we made 
certain changes to our margin calculations for PBCD, SKF, and New 
Torch. The final dumping margins for this review are listed in the 
``Final Results Margins'' section below.

DATES: Effective Date: January 19, 2011.

FOR FURTHER INFORMATION CONTACT: Brendan Quinn or Trisha Tran, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
5848 and (202) 482-4852, respectively.

Background

    On July 15, 2010, the Department published its Preliminary Results 
in the antidumping duty administrative review of TRBs from the PRC. On 
July 26, 2010, New Torch submitted its response to the Department's 
supplemental questionnaire regarding its wheel hub units. On August 16, 
2010, the Timken Company (``Petitioner'') submitted a request for a 
public and closed hearings. On August 17, 2010, New Torch submitted its 
response to the Department's second supplemental questionnaire 
regarding its wheel hub units. Petitioner submitted comments regarding 
New Torch's response to the Department's second supplemental 
questionnaire on August 27, 2010. PBCD submitted post-preliminary 
surrogate value data on August 19, 2010. On August 30, 2010, Petitioner 
submitted surrogate value information to rebut PBCD's post-preliminary 
surrogate value data submission. The Department released U.S. Customs 
and Border Protection (``CBP'') information on September 9, 2010. On 
September 17, 2010, Petitioner submitted public information regarding 
the Department's release of the September 9, 2010, CBP data.
    Between October 1 and October 4, 2010, Petitioner, PBCD, and New 
Torch submitted their case briefs, and between October 12 and October 
13, 2010, Petitioner, PBCD, New Torch, and SKF submitted their rebuttal 
briefs. On October 14, 2010, Petitioner withdrew its request for a 
public and closed hearings. On October 18, 2010, PBCD commented on 
SKF's rebuttal brief, requesting that the Department strike new factual 
information contained in SKF's rebuttal brief. On October 19, 2010, SKF 
responded to PBCD's October 18, 2010, submission. On November 4, 2010, 
the Department requested that SKF strike new factual information 
contained in SKF's rebuttal brief. On November 8, 2010, SKF resubmitted 
its redacted rebuttal brief.
    The Department released industry-specific wage rate information on 
October 26, 2010, and solicited new factual information from parties, 
as well as comments on the Department's intended use of industry-
specific wage data. On November 1 and November 2, 2010, respectively, 
SKF and Petitioner submitted new factual information regarding the wage 
rate. Petitioner and SKF submitted addenda to their case briefs with 
respect to the wage rate on November 9, 2010, and addenda to their 
rebuttal briefs with respect to the wage rate on November 15, 2010.
    On September 21, 2010, the Department published an extension of 
time for the final results to December 12, 2010. See Tapered Roller 
Bearings and Parts Thereof, Finished and Unfinished, from the People's 
Republic of China; Extension of Time Limit for the Final Results of the 
2008-2009 Administrative Review of the Antidumping Duty Order, 75 FR 
57443 (September 21, 2010). On November 26, 2010, the Department 
extended the deadline for the final results of review to January 11, 
2011. See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Notice of Second 
Extension of Time Limit for the Final Results of the 2008-2009 
Administrative Review of the Antidumping Duty Order, 75 FR 72801 
(November 26, 2010).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs filed by parties 
in this review are addressed in the Memorandum from Christian Marsh, 
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, regarding, ``Tapered Roller Bearings from the 
People's Republic of China: Issues and Decision Memorandum for the 
Final Results of the 2008-2009 Administrative Review,'' dated 
concurrently with this notice (``Issues and Decision Memorandum''), 
which is hereby adopted by this notice. A list of the issues that 
parties raised and to which we responded in the Issues and Decision 
Memorandum follows as an appendix to this notice. The Issues and 
Decision Memorandum is a public document and is on file in the Central 
Records Unit (``CRU''), Main Commerce Building, Room 7046, and is also 
accessible on the Web at http://ia.ita.doc.gov/frn. The paper copy and 
electronic version of the Issues and Decision Memorandum are identical 
in content.

[[Page 3087]]

Period of Review

    The POR is June 1, 2008, through May 31, 2009.

Scope of the Order

    Imports covered by the order are shipments of tapered roller 
bearings and parts thereof, finished and unfinished, from the PRC; 
flange, take up cartridge, and hanger units incorporating tapered 
roller bearings; and tapered roller housings (except pillow blocks) 
incorporating tapered rollers, with or without spindles, whether or not 
for automotive use. These products are currently classifiable under 
Harmonized Tariff Schedule of the United States (``HTSUS'') item 
numbers 8482.20.00, 8482.91.00.50, 8482.99.15, 8482.99.45, 8483.20.40, 
8483.20.80, 8483.30.80, 8483.90.20, 8483.90.30, 8483.90.80, 
8708.99.80.15 \1\ and 8708.99.80.80.\2\ Although the HTSUS item numbers 
are provided for convenience and customs purposes, the written 
description of the scope of the order is dispositive.
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    \1\ Effective January 1, 2007, the HTSUS subheading 8708.99.8015 
is renumbered as 8708.99.8115. See United States International Trade 
Commission (``USITC'') publication entitled, ``Modifications to the 
Harmonized Tariff Schedule of the United States Under Section 1206 
of the Omnibus Trade and Competitiveness Act of 1988,'' USITC 
Publication 3898 (December 2006) found at www.usitc.gov.
    \2\ Effective January 1, 2007, the HTSUS subheading 8708.99.8080 
is renumbered as 8708.99.8180; see id.
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Scope Determination--New Torch's Wheel Hub Units

    In the Preliminary Results, the Department initiated a scope 
inquiry to determine whether New Torch's sales of wheel hub units were 
subject to the antidumping duty order on TRBs, and stated that we 
intended to seek additional information with respect to New Torch's 
merchandise. Based on New Torch's supplemental responses,\3\ we find 
that New Torch's wheel hub units do not contain TRBs and are, 
therefore, outside the scope of the order.
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    \3\ See New Torch's July 26, 2010, submission; see also New 
Torch's August 17, 2010, submission.
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Affiliation--SKF/CPZ and Company A \4\
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    \4\ The identity of ``Company A'' is proprietary. See the 
Department's letter to SKF entitled, ``2008-2009 Administrative 
Review of the Antidumping Duty Order on Tapered Roller Bearings from 
the People's Republic of China: Second Section A Supplemental 
Questionnaire,'' dated July 2, 2010.
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    In its questionnaire responses, SKF/CPZ indicated that it was 
affiliated with Company A. For purposes of the Preliminary Results, the 
Department determined not to conduct a collapsing analysis, pursuant to 
19 CFR 351.401(f)(1) and (2), with respect to SKF/CPZ and Company A due 
to insufficient information on the record. Immediately prior to the 
Preliminary Results, we solicited additional information from SKF with 
respect to the level of common ownership and management and the 
integration of sales and production operations between SKF/CPZ and 
Company A, as well as information regarding Company A's sales of 
subject merchandise during the POR.\5\ On July 12, 2010, we received 
SKF's response to the Department's request for information, which 
stated that: (a) CPZ/SKF has no direct ownership interest in Company A, 
or vice versa; (b) the companies do not share common managerial 
employees or board members; (c) the operations of the two companies are 
not intertwined; and (d) Company A provided quantity and value 
information for the products it exported and sold domestically during 
the POR.\6\ We received no further comments on the collapsing issue for 
these final results and, based on the information provided in SKF's 
July 12, 2010, letter, we have found that: (a) There is no significant 
potential for price or production manipulation between SKF/CPZ and 
Company A; and (b) Company A did not produce subject merchandise for 
export to the United States. Thus, we have determined that Company A 
should not be collapsed with SKF for the purposes of the instant 
review, in accordance with 19 CFR 351.401(f)(2).
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    \5\ See id.
    \6\ See SKF's Letter to the Department entitled, ``SKF's 
Response to the Department's Second Section A Supplemental 
Questionnaire,'' dated July 12, 2010.
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Successor in Interest--SKF/CPZ

    On September 11, 2008, approximately three and a half months into 
the POR, PBCD/CPZ and its Illinois-based U.S. sales affiliate, Spungen-
owned Peer Bearing Company (``PBCD/Peer''), were each acquired by AB 
SKF, a Swedish conglomerate, and henceforth known as SKF/CPZ and SKF-
owned Peer Bearing Company (``SKF/Peer''), respectively. In addition, 
on August 28, 2009, SKF submitted a request for a changed circumstance 
review (``CCR'') to determine that SKF/CPZ is not the successor-in-
interest to PBCD/CPZ. On September 30, 2009, the Department informed 
parties that the information provided in SKF's August 28, 2009, 
submission was sufficient to warrant a successor-in-interest analysis 
regarding SKF's acquisition of PBCD/CPZ, and that this determination 
would be performed within the context of the instant administrative 
review. For the Preliminary Results, the Department determined that the 
totality of the circumstances demonstrated that SKF/CPZ is not the 
successor-in-interest to PBCD/CPZ.\7\ Since the publication of the 
Preliminary Results, no party has challenged the Department's 
preliminary successor-in-interest determination and no new information 
was submitted with respect to the Department's preliminary successor-
in-interest determination. As such, we continue to find that SKF/CPZ is 
not the successor-in-interest to the pre-acquisition PBCD/CPZ.
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    \7\  See Preliminary Results, 75 FR at 41151-52. See also 
Memorandum to Wendy Frankel, Director, AD/CVD Operations, Office 8, 
Import Administration, through Erin Begnal, Program Manager, AD/CVD 
Operations, Office 8, from Brendan Quinn, International Trade 
Analyst, AD/CVD Operations, Office 8, entitled ``Tapered Roller 
Bearings from the People's Republic of China: Preliminary Successor-
In-Interest Determination,'' dated July 7, 2010.
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Changes Since the Preliminary Results

    Based on an analysis of the comments received, the Department has 
made certain changes to the margin calculations. For the final results, 
the Department has made the following changes:
    Changes to New Torch's Margin Calculation:
     We deducted domestic inland freight from New Torch's U.S. 
gross unit price because New Torch explained that it incurred domestic 
inland freight expenses for the transport of subject merchandise by 
truck from its factory to the port of export.\8\
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    \8\  See Issues and Decision Memorandum at Comment 2.
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     We have deducted domestic brokerage and handling charges 
from New Torch's reported U.S. prices because New Torch would have 
incurred some charges for loading the subject merchandise onto vessels 
for export to the United States based on New Torch's reported terms of 
delivery.\9\
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    \9\ See Issues and Decision Memorandum at Comment 3.
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     We have revised New Torch's entered value calculation to 
be consistent with the Department's normal practice.\10\
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    \10\  See Issues and Decision Memorandum at Comment 4. See also 
2008-2009 Administrative Review of the Antidumping Duty Order on 
Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, 
from the People's Republic of China: Analysis of the Final Results 
Margin Calculation for Hubei New Torch Science & Technology Co., 
Ltd., dated concurrently with this notice.
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    Changes to SKF's and PBCD's Margin Calculations:
     We have used the PBCD-specific and SKF-specific U.S. sales 
databases, and not the combined joint U.S. sales database used in the 
Preliminary Results, in order to properly calculate

[[Page 3088]]

each company's net U.S. prices for use in each company's margin 
calculation.\11\
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    \11\ See Issues and Decision Memorandum at Comment 9.
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     We are including the international freight expense 
associated with sending the unfinished bearings to the third country 
for further processing, as reported, in the further manufacturing 
direct materials cost (FURMAT) component of total third-country further 
manufacturing (TOTFMG or FURMANU) calculation.\12\
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    \12\  See Issues and Decision Memorandum at Comment 10.
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     We have calculated SKF's assessment rates based on its 
reported entered values for the final results, based on SKF's December 
8, 2010 submission of entered value information not previously on the 
record.\13\
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    \13\ See Issues and Decision Memorandum at Comment 11.
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     The Department has adjusted SKF's net U.S. price 
calculation for the amount of duty owed, based on SKF's December 8, 
2010, submission of information regarding duty owed.\14\
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    \14\ See Issues and Decision Memorandum at Comment 12.
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     We have used PBCD's steel consumption as reported.\15\
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    \15\ See Issues and Decision Memorandum at Comment 13.
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Changes to Surrogate Values

     We have calculated a revised hourly wage rate to use in 
valuing reported labor. The revised wage rate is calculated by 
averaging earnings and/or wages for ISIC Rev. 3 Sub-Classification 29 
(Manufacture of machinery and equipment) in countries that are 
economically comparable to the PRC that are also significant producers 
of comparable merchandise.\16\
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    \16\ See Issues and Decision Memorandum at Comment 17.
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     We have revised the steel bar surrogate value to exclude 
imports from certain countries under the relevant Indian HTS 
category.\17\
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    \17\ See Issues and Decision Memorandum at Comment 14. See also 
Factors Valuations for the Final Results of the 2008-2009 
Administrative Review of the Antidumping Duty Order on Tapered 
Roller Bearings and Parts Thereof, Finished or Unfinished, from the 
People's Republic of China, dated concurrently with this notice.
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Final Results Margins

    We determine that the following weighted-average dumping margins 
exist for the period June 1, 2008, through May 31, 2009:

                            TRBs From the PRC
------------------------------------------------------------------------
                                                              Weighted-
                          Exporter                             average
                                                                margin
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Peer Bearing Company--Changshan (Spungen-Owned, ``PBCD'')..       38.39%
Changshan Peer Bearing Co., Ltd. (SKF-Owned, ``SKF'')......       14.13%
Hubei New Torch Science & Technology Co., Ltd..............        0.00%
------------------------------------------------------------------------

Assessment Rates

    Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b), 
the Department will determine, and CBP shall assess, antidumping duties 
on all appropriate entries of subject merchandise in accordance with 
the final results of this review. For assessment purposes, we 
calculated importer- (or customer-) specific assessment rates for 
merchandise subject to this review. Where appropriate, we calculated an 
ad valorem rate for each importer (or customer) by dividing the total 
dumping margins for reviewed sales to that party by the total entered 
values associated with those transactions. For duty-assessment rates 
calculated on this basis, we will direct CBP to assess the resulting ad 
valorem rate against the entered customs values for the subject 
merchandise. Where appropriate, we calculated a per-unit rate for each 
importer (or customer) by dividing the total dumping margins for 
reviewed sales to that party by the total sales quantity associated 
with those transactions. For duty-assessment rates calculated on this 
basis, we will direct CBP to assess the resulting per-unit rate against 
the entered quantity of the subject merchandise. Where an importer- (or 
customer-) specific assessment rate is de minimis (i.e., less than 0.50 
percent), the Department will instruct CBP to assess that importer's 
(or customer's) entries of subject merchandise without regard to 
antidumping duties, in accordance with 19 CFR 351.106(c)(2). We intend 
to instruct CBP to liquidate entries containing subject merchandise 
exported by the PRC-wide entity at the PRC-wide rate of 92.84 percent. 
The Department intends to issue assessment instructions to CBP 15 days 
after the date of publication of these final results of review.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For PBCD, SKF, and 
New Torch, the cash deposit rate will be the margins listed above; (2) 
for previously investigated or reviewed PRC and non-PRC exporters not 
listed above that have separate rates, the cash deposit rate will 
continue to be the exporter-specific rate published for the most recent 
period; (3) for all PRC exporters of subject merchandise which have not 
been found to be entitled to a separate rate, the cash deposit rate 
will be the PRC-wide rate of 92.84 percent; and (4) for all non-PRC 
exporters of subject merchandise which have not received their own 
rate, 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.

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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 the antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under the APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. 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 terms of an APO 
is a violation which is subject to sanction.

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).
    We are issuing and publishing the final results and notice in 
accordance

[[Page 3089]]

with sections 751(a)(1) and 777(i)(1) of the Tariff Act of 1930, as 
amended.

    Dated: January 11, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I

Comment 1: Whether To Apply Partial Facts Available to New Torch's 
Sales of Wheel Hub Units
Comment 2: Treatment of Domestic Inland Freight
Comment 3: Treatment of Brokerage and Handling
Comment 4: Entered Value Calculation
Comment 5: Correcting for Alleged Distortions Associated With a 
Three-Month Production Period
Comment 6: Country of Origin
Comment 7: Importer-Specific Assessment Rates
Comment 8: Valuation of Acquired Inventory
Comment 9: Which U.S. Sales Database To Use
Comment 10: Calculation of Further Processing Costs
Comment 11: Corrections to Entered Value
Comment 12: Correction of Duty Amount
Comment 13: Treatment of Certain Steel Inputs in PBCD/CPZ's Normal 
Value
Comment 14: Valuation of Steel Bar
    Comment 14A: Market Economy Inputs
    Comment 14B: Surrogate Value
Comment 15: Surrogate Value for Steel Rod
Comment 16: Adjustments to Financial Ratio
Comment 17: Wages

[FR Doc. 2011-1026 Filed 1-18-11; 8:45 am]
BILLING CODE 3510-P