[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Pages 38357-38359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16498]


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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: Preliminary Results and Preliminary Intent To Terminate, in 
Part, Antidumping Duty Changed Circumstances Review and Extension of 
Time Limit for Final Results

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') is conducting a 
changed circumstances review (``CCR'') of the antidumping duty order on 
diamond sawblades and parts thereof from the People's Republic of China 
(``PRC'') pursuant to section 751(b) of the Tariff Act of 1930, as 
amended (``Act''), and 19 CFR 351.216(d). We preliminarily determine 
that Hebei Husqvarna-Jikai Diamond Tools Co., Ltd. (``Hebei 
Husqvarna'') is not the successor-in-interest to Hebei Jikai Industrial 
Group Co., Ltd. (``Hebei Jikai''), but is instead a new entity.

DATES: Effective Date: June 30, 2011.

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., 
Washington, DC 20230; telephone: (202) 482-5403.

SUPPLEMENTARY INFORMATION:

Case History

    On August 13, 2010, the Diamond Sawblades Manufacturers Coalition 
(``DSMC'') filed a submission to the Department requesting that it 
conduct a CCR of the antidumping duty order on diamond sawblades and 
parts thereof from the People's Republic of China (``PRC'') to 
determine whether Hebei Husqvarna is the successor-in-interest to 
Electrolux Construction Products (Xiamen) Co. Ltd. (``Electrolux''), 
Husqvarna Holding AB, or is an altogether new entity that would 
therefore be subject the PRC-wide rate. On August 20, 2010, the DSMC 
submitted further information supporting its claim that Hebei Husqvarna 
should be found to be the successor-in-interest to Electrolux, 
Husqvarna Holding AB, or found to be a new entity. On September 13, 
2010, Respondent \1\ submitted to the Department a request for a CCR, 
contending that Hebei Husqvarna should be considered the successor-in-
interest to Hebei Jikai. On September 30, 2010, the Department 
initiated a CCR based on these two requests but did not expedite the 
review, as requested by Respondent, because the Department required 
additional information to perform the successor-in-interest 
analysis.\2\
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    \1\ The second request for initiation of a changed circumstances 
review was submitted on behalf of Husqvarna Construction Products 
North America, Inc., Hebei Jikai, and Hebei Husqvarna, collectively 
(``Respondent''). However, because the Department requested and 
received information from individual companies that compose 
Respondent, in certain instances the Department will refer to 
specific companies.
    \2\ See Diamond Sawblades and Parts Thereof From the People's 
Republic of China: Initiation of Antidumping Duty Changed 
Circumstances Review, 75 FR 60409 (September 30, 2010) 
(``Initiation'').
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    Between October 13, 2010, and April 12, 2011, Hebei Husqvarna and 
the DSMC submitted questionnaire responses and comments regarding the 
successor-in-interest factors that the Department considers in making a 
determination. In its April 12, 2011, submission, the DSMC argued that 
the Department should apply adverse facts available (``AFA'') to Hebei 
Husqvarna and terminate the review because Hebei Husqvarna failed to 
provide complete information for two of the four criteria (described 
below) that the Department typically examines in a successor-in-
interest analysis.

Scope of the Order

    The products covered by the order are all finished circular 
sawblades, whether slotted or not, with a working part that

[[Page 38358]]

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 the order 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 the order. 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 the 
order. 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 
the order. Diamond sawblade cores with a Rockwell C hardness of less 
than 25 are excluded from the scope of the order. 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 the order. Merchandise subject to the order 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 the order is 
dispositive.

Preliminary Termination of CCR Based Upon DSMC's Request

    In its August 13, 2010, and August 20, 2010, submissions, the DSMC 
requested that the Department initiate a CCR and find that Hebei 
Husqvarna is a successor-in-interest to Electrolux, Husqvarna Holding 
AB, or is an altogether new entity. Operationally, a finding that Hebei 
Husqvarna is the successor-in-interest to Electrolux, Husqvarna Holding 
AB, or an altogether new entity, would result in a continuation of the 
status quo in terms of cash deposit requirements. Unless the Department 
concludes that Hebei Husqvarna is the successor-in-interest to Hebei 
Jikai, all exports to the United States should be subject to the PRC-
wide antidumping duty rate of 164.09 percent. Therefore, the Department 
is preliminarily terminating this review under the request submitted by 
the DSMC, as the completion of the review based upon its request would 
not result in any possible change with respect to Hebei Husqvarna's 
appropriate antidumping duty cash deposit rate.

Successor-in-Interest Determination Based Upon Respondent's Request

    In making a successor-in-interest determination, the Department 
typically examines several factors including, but not limited to: (1) 
Management; (2) production facilities; (3) supplier relationships; and 
(4) customer base.\3\ While no single factor or combination of these 
factors will necessarily be dispositive, the Department will generally 
consider the new company to be the successor to the previous company if 
its resulting operation is not materially dissimilar to that of its 
predecessor.\4\ Respondent provided complete information with respect 
to management, production facilities, and Hebei Husqvarna's and 
Electrolux's suppliers and customers. The Department requested 
information regarding Hebei Jikai. Specifically, the Department 
requested the quantity and value of subject merchandise that it had 
sold to its largest customers, as well as the percentage of inputs 
accounted for by Hebei Jikai's largest suppliers. Hebei Husqvarna did 
not provide this information to the Department.\5\
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    \3\ See Certain Frozen Fish Fillets From the Socialist Republic 
of Vietnam: Final Results of the Antidumping Duty Administrative 
Review and New Shipper Reviews, 75 FR 12726 (March 17, 2010) and 
accompanying Issues and Decision Memorandum at Comment 7.
    \4\ See Fresh and Chilled Atlantic Salmon From Norway: Final 
Results of Changed Circumstances Antidumping Duty Administrative 
Review, 64 FR 9979, 9980 (March 1, 1999).
    \5\ See Respondent's April 4, 2011, submission.
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Preliminary Results

    On September 14, 2006, Husqvarna Holding AB and Hebei Jikai agreed 
to form a joint venture company, Hebei Husqvarna, in China to produce 
and sell diamond tools, including diamond sawblades.\6\ Based on the 
facts surrounding the formation of the joint venture and the subsequent 
restructuring described in the accompanying memorandum, and in 
accordance with 19 CFR 351.221(c)(3)(i), we preliminarily determine 
that Hebei Husqvarna is not the successor-in-interest to Hebei Jikai 
but is instead a new entity.\7\ The Department disagreed with the DSMC 
in its request to terminate the review, given Respondent's failure to 
provide the Department with information regarding Hebei Jikai's 
customers and suppliers. The Department finds that Hebei Husqvarna's 
and Hebei Jikai's omission does not provide a sufficient basis to 
terminate the review, as the Department could continue to perform the 
successor-in-interest analysis. With respect to the four factors that 
the Department typically examines, we preliminarily find that, first, 
the management and board of directors that had been in place at Hebei 
Jikai have significantly changed. Second, we find that production 
facilities of Hebei Husqvarna are substantially the same as those of 
Hebei Jikai. Finally, because Respondent provided incomplete 
information regarding changes in customers and suppliers, we cannot 
conclude that for those two factors Hebei Husqvarna is materially the 
same as Hebei Jikai. We note that even with the limited information 
regarding Hebei Jikai's customers and suppliers on the record, there 
appears to have been a significant change in customer base. Therefore, 
in considering the totality of the information we have on the record, 
the Department preliminarily determines that Hebei Husqvarna is not the 
successor-in-interest to Hebei Jikai. Furthermore, the Department finds 
the application of AFA, as argued by the DSMC, is unnecessary.
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    \6\ See Respondent's September 13, 2010, submission at page 7.
    \7\ For a complete discussion involving the business proprietary 
information involving the four criteria noted above, see Memorandum 
to James C. Doyle, Office Director, Through Matthew Renkey, Acting 
Program Manager, From Alan Ray, Case Analyst, Diamond Sawblades and 
Parts Thereof from the People's Republic of China: Successor-in-
Interest Analysis, dated concurrently with the signature of this 
notice.
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    In conclusion, as a result of this determination, we preliminarily 
find that Hebei Husqvarna remains subject to the PRC-wide antidumping 
duty cash deposit rate of 164.09 percent with respect to the subject 
merchandise. If the above preliminary results are affirmed in the 
Department's final results, the cash deposit rate resulting from this 
changed circumstances review will apply to all entries of the subject

[[Page 38359]]

merchandise from Hebei Husqvarna, entered or withdrawn from warehouse, 
for consumption on or after the date of publication of the final 
results of this changed circumstances review.\8\ Finally, we note that 
the 48.5 percent rate that Hebei Jikai received in the investigation 
continues to apply only to subject merchandise that was both produced 
and exported by Hebei Jikai and would not be applicable to merchandise 
produced by Hebei Husqvarna and exported by Hebei Jikai.
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    \8\ See Pressure Sensitive Plastic Tape from Italy: Final 
Results of Antidumping Duty Changed Circumstances Review, 75 FR 
27706 (May 18, 2010).
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Public Comment

    Interested parties are invited to comment on these preliminary 
results. Written comments may be submitted no later than seven days 
after the publication of these preliminary results.\9\ Rebuttals to 
written comments, limited to issues raised in such comments, may be 
filed no later than 12 days after the publication of these preliminary 
results.\10\ All written comments shall be submitted in accordance with 
19 CFR 351.303. Any interested party may request a hearing within 14 
days of publication of this notice.\11\ Any hearing, if requested, will 
be held no later than 30 days after the date of publication of this 
notice, or the first workday thereafter.\12\ Persons interested in 
attending the hearing, if one is requested, should contact the 
Department for the date and time of hearing.
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    \9\ See 19 CFR 351.309(c)(ii).
    \10\ See 19 CFR 351.309(d).
    \11\ See 19 CFR 351.309(d)(i).
    \12\ See 19 CFR 351.310(d)(1).
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Extension of Time Limit for the Final Results

    In the Initiation, the Department stated that it would issue the 
final results of the review within 270 days after the date on which the 
changed circumstances review was initiated. However, it is not 
practicable to complete the review within this time period. 
Accordingly, pursuant to 19 CFR 351.302(b), we are extending the time 
limit by 55 days.
    The Department finds that it is not practicable to complete this 
review within the original time frame as it is granting interested 
parties seven days from the date of publication of this notice to 
submit comments, five additional days to submit rebuttal comments. 
Furthermore, the Department is providing parties the opportunity to 
request a hearing pertaining to these preliminary results. 
Consequently, in accordance with 19 CFR 351.302(b), the Department is 
extending the time period for issuing the final results in this review 
by 55 days. Therefore, the final results will be due no later than 
August 18, 2011.
    We are issuing and publishing these preliminary results and notice 
in accordance with sections 751(b)(1) and 777(i)(1) and (2) of the Act 
and 19 CFR 351.216 and 351.221(c)(3).

    Dated: June 24, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-16498 Filed 6-29-11; 8:45 am]
BILLING CODE 3510-DS-P