[Federal Register Volume 76, Number 202 (Wednesday, October 19, 2011)]
[Notices]
[Pages 64898-64899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27087]


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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: Final Results and Termination, in Part, of the Antidumping Duty 
Changed Circumstances Review

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

SUMMARY: On June 30, 2011, the Department of Commerce (``Department'') 
published the Preliminary Results \1\ 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'') pursuant to 
section 751(b) of the Tariff Act of 1930, as amended (``Act''), and 19 
CFR 351.216(d). We gave interested parties an opportunity to comment on 
the Preliminary Results and, based upon our analysis of the comments 
and information received, we affirm our successor-in-interest finding 
from the Preliminary Results.
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    \1\ See 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, 76 FR 38357 (June 30, 
2011).

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DATES: Effective Date: October 19, 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 July 12 and 19, 2011, interested parties submitted case and 
rebuttal briefs, respectively. On July 20, 2011, Respondents' \2\ 
counsel submitted a letter in which they stated that they no longer 
represent Hebei Jikai Industrial Group Co., Ltd. (``Hebei Jikai'') in 
this review. On July 25, 2011, the Department held a.
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    \2\ Hebei Husqvarna-Jikai Diamond Tools Co., Ltd. (``Hebei 
Husqvarna JV''), Husqvarna Construction Products North America 
(``HCPNA''), and Husqvarna Holding AB (collectively 
``Respondents''), which also included, until July 20, 2011, Hebei 
Jikai Industrial Group Co., Ltd. (``Hebei Jikai''). On July 20, 
2011, counsel for Respondents submitted a letter stating that they 
no longer were representing Hebei Jikai in this review.
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Scope of the Order

    The products covered by the 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 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.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties are 
addressed in Memorandum to Ronald K. Lorentzen from Christian Marsh, 
Diamond Sawblades and Parts Thereof From the People's Republic of 
China: Issues and Decision Memorandum for the Final Results of the 
Changed Circumstances Review, dated October 4, 2011 (``I & D Memo''). A 
list of the issues which parties raised, and to which we responded in 
the I & D Memo, is attached to this notice as an Appendix. The I & D 
Memo is a public document and is on file in the Central Records Unit 
(``CRU''), Main Commerce Building, Room 7046, and is accessible on the 
Department's Web site at http://www.trade.gov/ia. The paper copy and 
electronic version of the memorandum are identical in content.

Termination of CCR Based Upon Petitioner's 3 Request
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    \3\ The Diamond Sawblade Manufacturers Coalition (``DSMC'' or 
``Petitioner'').
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    In its August 13, 2010, and August 20, 2010, submissions, 
Petitioner requested that the Department initiate a CCR and find that 
Hebei Husqvarna JV is a successor-in-interest to Electrolux 
Construction Products (Xiamen) Co. Ltd. (``Electrolux''), Husqvarna 
Holding AB, or is an altogether new entity. In the Preliminary Results, 
we stated our preliminary intent to terminate the review based on 
Petitioner's request because a finding that Hebei Husqvarna JV 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. Furthermore, no company other 
than Hebei Jikai is entitled to use Hebei Jikai's rate unless the 
Department finds that entity to be Hebei Jikai's successor-in-interest. 
Therefore, the Department is terminating this review under the request 
submitted by Petitioner, as the completion of the review based upon its 
request would not result in any possible change with respect to Hebei 
Husqvarna JV's appropriate antidumping duty cash deposit rate.\4\
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    \4\ See I & D Memo at page 2.
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Successor-in-Interest Determination Based Upon Respondents' Request

    In making a successor-in-interest determination, the Department 
typically examines several factors including, but

[[Page 64899]]

not limited to: (1) Management, (2) production facilities, (3) supplier 
relationships, and (4) customer base.\5\ 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.\6\ Respondents responded to the 
Department's request for information with respect to management, 
production facilities, and Hebei Husqvarna JV's suppliers and 
customers. The Department requested information regarding Hebei Jikai's 
quantity and value of subject merchandise that it had sold to its 
largest customers, as well as the percentage of inputs accounted for by 
its largest suppliers. Respondents did not provide this information to 
the Department.\7\ The Department's analysis is summarized below; a 
complete discussion of the information received and the Department's 
analysis is included in the I & D Memo.
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    \5\ 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.
    \6\ See Fresh and Chilled Atlantic Salmon From Norway: Final 
Results of Changed Circumstances Antidumping Duty Administrative 
Review, 64 FR 9979, 9980 (March 1, 1999).
    \7\ See Respondent's April 4, 2011, submission.
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Final Results

    On September 14, 2006, Husqvarna Holding AB and Hebei Jikai agreed 
to form a joint venture company, Hebei Husqvarna JV, in China to 
produce and sell diamond tools, including diamond sawblades.\8\ Based 
on the totality of the evidence on the record surrounding the formation 
of the joint venture and the subsequent restructuring described in the 
memorandum accompanying the Preliminary Results, and in accordance with 
19 CFR 351.221(c)(3)(i), we continue to determine that Hebei Husqvarna 
JV is not the successor-in-interest to Hebei Jikai, but is instead a 
new entity.\9\
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    \8\ See Respondent's September 13, 2010, submission at page 7.
    \9\ 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 June 24, 2011.
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    With respect to the factors that the Department typically examines, 
we find that the management and board of directors that had been in 
place at Hebei Jikai have significantly changed, though this change 
occurred about four years after the formation of the joint venture \10\ 
As for production facilities of Hebei Husqvarna JV, they are 
substantially the same as those of Hebei Jikai.\11\ With respect to 
supplier relationships and customer base, because Respondent provided 
incomplete information regarding changes in customers and suppliers, we 
cannot conclude that for those two factors Hebei Husqvarna JV is 
materially the same as Hebei Jikai.We note that even with the limited 
information regarding Hebei Jikai's customers on the record, there 
appears to have been a significant change in the customer base.\12\
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    \10\ See id. at pages 3-4 and 6-7.
    \11\ See id. at page 6.
    \12\ See id. at pages 6-7.
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    The Department disagrees with Petitioner's request to apply adverse 
facts available (``AFA''), given Respondents' inability to provide the 
Department with information regarding Hebei Jikai's customers and 
suppliers.\13\ Specifically, the Department finds that Respondents' 
omission does not provide a sufficient basis to apply AFA.\14\
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    \13\ See I & D Memo at pages 6 and 7.
    \14\ See id. at pages 6-7.
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    We further determine that the Department was correct in the time 
period it examined when considering changes in management.\15\ Also, 
the Department agrees with Respondents that Hebei Husqvarna JV should 
not be assigned the PRC-wide rate of 164.09 percent solely under the 
assumption that the Department has policy concerns regarding large 
companies acquiring smaller companies for purposes of lowering a cash 
deposit rate. Petitioner has submitted no evidence to support its claim 
that Respondents created the JV so as to buy a lower cash deposit 
rate.\16\ Finally, we find that the Court's holding in Marine Harvest 
\17\ does not preclude the Department from finding that Hebei Husqvarna 
JV is not the successor-in-interest to Hebei Jikai. These issues are 
discussed in detail in the I & D Memo accompanying this notice.
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    \15\ See id. at pages 3 and 6-7.
    \16\ See id. at pages 4-5.
    \17\ See Marine Harvest (Chile) S.A. v. United States, 244 
F.Supp.2d 1364, 1379 (CIT 2002).
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    Therefore, in considering the totality of the evidence on the 
record, the Department determines that Hebei Husqvarna JV is not the 
successor-in-interest to Hebei Jikai. Based on our determination, Hebei 
Husqvarna JV remains subject to the PRC-wide antidumping duty cash 
deposit rate of 164.09 percent with respect to the subject merchandise. 
Finally, we note that the 48.5 percent rate that Hebei Jikai received 
in the less-than-fair-value 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 
JV and exported by Hebei Jikai.

Instruction to U.S. Customs and Border Protection

    The Department will instruct U.S. Customs and Border Protection to 
collect cash deposits on entries of subject merchandise produced or 
exported by Hebei Husqvarna JV at the PRC-wide rate of 164.09 percent.

Notification

    This notice also serves as a reminder to parties subject to 
administrative protective orders (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.306. 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 sanctionable violation.
    We are issuing and publishing these final 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: October 12, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I--Issues & Decision Memorandum

General Issues

COMMENT I: TERMINATION OF PETITIONER'S REVIEW REQUEST
COMMENT II: WHETHER TO AFFIRM THE PRELIMINARY RESULT
    A. Appropriate Time Period To Examine
    B. Policy Concerns Regarding Large Companies Acquiring Smaller 
Companies
    C. Analysis of the Four Factors
    D. Hebei Husqvarna JV Must Be the Successor-in-Interest to Hebei 
Jikai

[FR Doc. 2011-27087 Filed 10-18-11; 8:45 am]
BILLING CODE 3510-DS-P