[Federal Register Volume 76, Number 209 (Friday, October 28, 2011)]
[Notices]
[Pages 66903-66912]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27976]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-918]


Steel Wire Garment Hangers From the People's Republic of China: 
Preliminary Results and Preliminary Rescission, in Part, of the Second 
Antidumping Duty Administrative Review

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

SUMMARY: The Department of Commerce (``Department'') is conducting the 
second administrative review of steel wire garment hangers from the 
People's Republic of China (``PRC'') for the period October 1, 2009, 
through September 30, 2010. The Department has preliminarily determined 
that sales have been made below normal value (``NV'') by the 
respondent. If these preliminary results are adopted in our final 
results of this review, the Department will instruct U.S. Customs and 
Border Protection (``CBP'') to assess antidumping duties on all 
appropriate entries of subject merchandise during the period of review 
(``POR''). Interested parties are invited to comment on these 
preliminary results.

DATES: Effective Date: October 28, 2011.

FOR FURTHER INFORMATION CONTACT: Bob Palmer, AD/CVD Operations, Office 
9, Import Administration, International Trade Administration, 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-9068.

SUPPLEMENTARY INFORMATION:

Background

    The Department received a timely request from Petitioner \1\ in 
accordance with 19 CFR 351.213(b), during the anniversary month of 
October, to conduct a review of steel wire garment hanger exporters 
from the PRC. On November 29, 2010, the Department initiated this 
review with respect to 102 producers/exporters of subject merchandise 
from the PRC.\2\
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    \1\ M&B Metal Products Co., Inc.
    \2\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 75 FR 73036 (November 29, 2010) 
(``Initiation Notice'').
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    On December 23, 2010, Petitioner withdrew its request for an 
administrative review of 87 companies out of the 102 companies under 
review. On March 18, 2011, the Department published a notice of 
rescission in the Federal Register for those 87 companies for which the 
request for review was withdrawn.\3\ Fifteen companies remain subject 
to this review.\4\ Between January 28, 2011, and May 26, 2011, the 
Department received no-shipment certifications from eight of these 
companies. For a detailed discussion of the companies that certified 
they had no shipments during the POR, see the ``Preliminary Partial 
Rescission of Administrative Review'' section below. For a detailed 
discussion of the remaining seven companies subject to this review, see 
the ``Respondent Selection'' and ``Separate Rates'' sections below.
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    \3\ See Steel Wire Garment Hangers From the People's Republic of 
China: Partial Rescission of Antidumping Duty Administrative Review, 
76 FR 14918 (March 18, 2011).
    \4\ These companies are: Jiaxing Boyi Medical Device Co., Ningbo 
Dasheng Hanger Ind. Co., Ltd., Pu Jiang County Command Metal 
Products Co., Ltd., Shanghai Wells Hanger Co., Ltd., Shangyu 
Baoxiang Metal Manufactured Co., Ltd., Shaoxing Andrew Metal 
Manufactured, Shaoxing Gangyuan Metal Manufacture, Shaoxing Guochao 
Metallic Products Co., Ltd., Shaoxing Liangbao Metal Manufactured 
Co., Ltd., Shaoxing Meideli Metal Hanger Co., Ltd., Shaoxing Shunji 
Metal Clotheshorse Co., Ltd., Shaoxing Tongzhou Metal Manufactured 
Co., Ltd., Shaoxing Zhongbao Metal Manufactured Co., Ltd., Yiwu Ao-
si Metal Products Co., Ltd., Zhejiang Lucky Cloud Hanger Co., Ltd.
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    On May 19, 2011, the Department published a notice in the Federal 
Register extending the deadline for issuing the preliminary results by 
120 days to October 31, 2011.\5\
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    \5\ See Steel Wire Hangers From the People's Republic of China: 
Extension of Time Limits for the Preliminary Results of the Second 
Antidumping Duty Administrative Review, 76 FR 28953 (May 19, 2011).
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Respondent Selection

    Section 777A(c)(1) of the Tariff Act of 1930, as amended (``the 
Act''), directs the Department to calculate individual dumping margins 
for each known exporter or producer of the subject merchandise.\6\ 
However, section 777A(c)(2) of the Act gives the Department the 
discretion to limit its examination to a reasonable number of exporters 
or producers if it is not practicable to examine all exporters or 
producers involved in an administrative review.
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    \6\ See also 19 CFR 351.204(c) regarding respondent selection, 
in general.
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    On December 6, 2010, the Department released CBP data for entries 
of subject merchandise during the POR under administrative protective 
order (``APO'') to all interested parties having an APO as of five days 
after publication of the Initiation Notice, and invited comments 
regarding the CBP data and respondent selection. On December 20, 2010, 
the Department received comments from Petitioner regarding respondent 
selection for this review. No other

[[Page 66904]]

interested parties submitted comments for respondent selection and no 
interested parties rebutted Petitioner's respondent selection comments.
    On January 21, 2011, the Department issued the respondent selection 
memorandum after assessing its resources and determining that it could 
only reasonably examine two exporters subject to this review. Pursuant 
to section 777A(c)(2)(B) of the Act, the Department selected Shanghai 
Wells Hanger Co., Ltd. (``Shanghai Wells) and Jiaxing Boyi Medical 
Device Co. (``Jiaxing Boyi'') as mandatory respondents.\7\ The 
Department sent the non-market economy (``NME'') antidumping 
questionnaire to Shanghai Wells and Jiaxing Boyi on January 24, 2011. 
As stated in the cover letter of our questionnaire, the deadlines for 
Section A was February 10, 2011, and for Sections C & D were February 
26, 2011.\8\ Jiaxing Boyi did not respond to the Department's Section A 
questionnaire by the stated deadline and did not request an extension.
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    \7\ See ``Memorandum to James Doyle, Director, AD/CVD 
Operations, Office 9, from Irene Gorelik, Senior International Trade 
Analyst, Office 9; Second Administrative Review of Steel Wire 
Garment Hangers from the People's Republic of China: Selection of 
Respondents for Individual Review,'' dated January 21, 2011.
    \8\ See Letters to Shanghai Wells and Jiaxing Boyi from 
Catherine Bertrand, Program Manager, Office 9, Import 
Administration; regarding the Antidumping Duty Administrative Review 
of Steel Garment Wire Hangers from the People's Republic of China: 
Non-Market Economy Questionnaire (January 21, 2011).
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    On February 24, 2011, we selected an additional mandatory 
respondent, Shaoxing Liangbao Metal Manufactured Co., Ltd. (``Shaoxing 
Liangbao'') as a replacement for Jiaxing Boyi.\9\ Shaoxing Liangbao's 
response to Section A was due on March 26, 2011.\10\ However, Shaoxing 
Liangbao did not submit a response by the stated deadline or request an 
extension.
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    \9\ See Memorandum to Jim Doyle, Director, Office 9, Import 
Administration, from Jamie Blair-Walker, International Trade 
Analyst, Office 9, regarding the Second Administrative Review of 
Steel Wire Garment Hangers from the People's Republic of China: 
Selection of Additional Mandatory Respondent (February 24, 2011).
    \10\ See Letter to Shaoxing Liangbao from Catherine Bertrand, 
Program Manager, Office 9, Import Administration; regarding the 
Antidumping Duty Administrative Review of Steel Garment Wire Hangers 
from the People's Republic of China: Non-Market Economy 
Questionnaire (February 24, 2011).
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    On March 28, 2011, as a replacement for Shaoxing Liangbao, we 
selected another additional mandatory respondent, Pu Jiang County 
Command Metal Products Co., Ltd. (``Command Metal Products'').\11\ 
However, Command Metal Products did not submit a response, or request 
an extension, to the Department's Section A questionnaire by the 
deadline, April 18, 2011.\12\
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    \11\ See Memorandum to Jim Doyle, Director, Office 9, Import 
Administration, from Jamie Blair-Walker, International Trade 
Analyst, Office 9, regarding the Second Administrative Review of 
Steel Wire Garment Hangers from the People's Republic of China: 
Selection of Additional Mandatory Respondent (March 28, 2011).
    \12\ See Letter to Command Metal Products from Catherine 
Bertrand, Program Manager, Office 9, Import Administration re: 
Antidumping Duty Administrative Review of Steel Garment Wire Hangers 
from the People's Republic of China: Non-Market Economy 
Questionnaire (March 28, 2011).
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    On April 29, 2011, we selected an additional two mandatory 
respondents, Shaoxing Guochao Metal Products Co., Ltd. (``Guochao Metal 
Products'') and Yiwu Ao-Si Metal Products Co., Ltd. (``Yiwu'') as 
replacements for Command Metal Products.\13\ On May 23, 2011, Guochao 
Metal Products and Yiwu filed a letter with the Department stating that 
they would not participate as mandatory respondents in this 
administrative review.\14\
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    \13\ See Memorandum to Jim Doyle, Director, Office 9, Import 
Administration, from Jamie Blair-Walker, International Trade 
Analyst, Office 9, regarding the Second Administrative Review of 
Steel Wire Garment Hangers from the People's Republic of China: 
Selection of Additional Mandatory Respondent (April 29, 2011).
    \14\ See Letter to from Guochao Metal Products and Yiwu, re: 
Steel Wire Garment Hangers from the People's Republic of China: 
Participation of Yiwu Ao-si Metal Products Co., Ltd. and Shaoxing 
Guochao Metallic Products Co., Ltd., dated May 23, 2011.
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    On June 13, 2011, we selected Shaoxing Meideli Metal Hanger Co., 
Ltd. (``Meideli''), the sole remaining company in the CBP entry data 
that had not been selected by the Department for individual 
examination.\15\ However, Meideli did not submit a response, or request 
an extension, to the Department's Section A questionnaire by the 
deadline, July 5, 2011.\16\
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    \15\ See Memorandum to Jim Doyle, Director, Office 9, Import 
Administration, from Jamie Blair-Walker, International Trade 
Analyst, Office 9, re: Second Administrative Review of Steel Wire 
Garment Hangers from the People's Republic of China: Selection of 
Additional Mandatory Respondent (June 13, 2011).
    \16\ See Letter to Meideli from Catherine Bertrand, Program 
Manager, Office 9, Import Administration, re: Antidumping Duty 
Administrative Review of Steel Garment Wire Hangers from the 
People's Republic of China: Non-Market Economy Questionnaire (June 
13, 2011).
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Period of Review

    The POR is October 1, 2009, to September 30, 2010.

Scope of the Order

    The merchandise that is subject to the order is steel wire garment 
hangers, fabricated from carbon steel wire, whether or not galvanized 
or painted, whether or not coated with latex or epoxy or similar 
gripping materials, and/or whether or not fashioned with paper covers 
or capes (with or without printing) and/or nonslip features such as 
saddles or tubes. These products may also be referred to by a 
commercial designation, such as shirt, suit, strut, caped, or latex 
(industrial) hangers. Specifically excluded from the scope of the order 
are wooden, plastic, and other garment hangers that are not made of 
steel wire. Also excluded from the scope of the order are chrome-plated 
steel wire garment hangers with a diameter of 3.4 mm or greater. The 
products subject to the order are currently classified under U.S. 
Harmonized Tariff Schedule (``HTSUS'') subheadings 7326.20.0020, 
7323.99.9060, and 7323.99.9080.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the merchandise is 
dispositive.

Preliminary Partial Rescission of Administrative Review

Shaoxing Zhongbao Metal Manufactured Co., Ltd. (``Zhongbao'')

    On January 28 2011, the Department received a separate rate 
certification from Zhongbao indicating that it had made one U.S. sale 
during the POR.\17\ On April 6, 2011, the Department issued a 
supplemental questionnaire to Zhongbao regarding its claim.\18\ On 
April 18, 2011, Zhongbao provided its sales documentation upon which it 
based its claim of a U.S. sale during the POR.\19\ In the same 
response, Zhongbao stated that the importer was responsible for the CBP 
paperwork and did not respond to Zhongbao's requests for the entry 
documentation.\20\ On May 19, 2011, the Department issued a letter to 
Zhongbao requesting entry documentation and disclosing that we may 
rescind the review with respect to Zhongbao should it be found to have 
no entries during the POR.\21\ On May 26, 2011, Zhongbao submitted a no 
shipment certification.\22\ On June15,

[[Page 66905]]

2011, Petitioner submitted comments regarding Zhongbao's no shipment 
certification. On June 22, 2011, Zhongbao responded to Petitioner's 
comments.
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    \17\ See Letter from Zhongbao, re: Steel Wire Garment Hangers 
from the People's Republic of China: Separate Rate Certification, 
dated January 28, 2011.
    \18\ See Letter from the Department to Zhongbao, re: Steel Wire 
Garment Hangers from the People's Republic of China: Separate Rate 
Certification of Shaoxing Zhongbao Metal Manufactured Co., Ltd., 
dated April 6, 2011.
    \19\ See Letter from Zhongbao, re: Steel Wire Garment Hangers 
from the People's Republic of China: First Supplemental Response, 
dated April 18, 2011 at 1 and Exhibit 1.
    \20\ Id.
    \21\ See Letter to Zhongbao, re; Steel Wire Garment Hangers from 
the People's Republic of China: Request for Proof of Suspended 
Entry, dated May 19, 2011.
    \22\ See Letter from Zhongbao, re; Steel Wire Garment Hangers 
from the People's Republic of China: Shaoxing Zhongbao Response to 
the Department's Letter of May 19, 2011.
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    The Department has considered Petitioner's comments and Zhongbao's 
submissions and determined to accept Zhongbao's no shipment 
certification. Zhongbao's no shipment certification, although untimely, 
relates to its timely separate rate certification and to its inability 
to obtain entry documentation from its unaffiliated importer for the 
sale and entry Zhongbao believed was made during the POR. In addition, 
the CBP data on the record does not contradict Zhongbao's claims. 
Further, the record indicates that Zhongbao has attempted to cooperate 
with the Department's requests for information to the best of its 
abilities. Additionally, we intend to refer this matter to CBP to 
investigate whether this entry was entered properly.

Shaoxing Shunji Metal Clotheshorse Co., Ltd. (``Shunji'')

    On January 28 2011, the Department received a separate rate 
certification from Shunji which indicated that it had made one U.S. 
sale during the POR.\23\ On April 6, 2011, the Department issued a 
supplemental questionnaire to Shunji regarding its claim that it made a 
sale to the United States during the POR.\24\ On April 15, 2011, Shunji 
responded to the Department's questionnaire and stated that it did not 
have sales or exports to the United States during the POR. 
Consequently, Shunji now certifies that it made no shipments of subject 
merchandise to the United States during the POR.\25\ Shunji clarifies, 
and provides supporting documentation, that its administrative staff 
mistakenly identified the U.S. consignee as the destination of the 
sale, when in fact the destination of this sale was Canada.\26\
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    \23\ See Letter from Shunji, re: Steel Wire Garment Hangers from 
the People's Republic of China: Separate Rate Certification, dated 
January 28, 2011.
    \24\ See Letter from the Department to Shunji, re: Steel Wire 
Garment Hangers from the People's Republic of China: Separate Rate 
Certification of Shaoxing Shunji Metal Clotheshorse Co., Ltd., dated 
April 6, 2011.
    \25\ See Letter from Shunji, re: Steel Wire Garment Hangers from 
the People's Republic of China: Separate Rate Certification, dated 
April 15, 2011 at Exhibit 3.
    \26\ See Letter from Shunji, re: Steel Wire Garment Hangers from 
the People's Republic of China: Separate Rate Certification, dated 
April 15, 2011 at 1 and Exhibit 1-2.
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    Additionally, between January 28, 2011, and May 26, 2011, the 
following companies filed no shipment certifications indicating that 
they did not export subject merchandise to the United States during the 
POR: Ningbo Dasheng Hanger Ind. Co., Ltd.; Shangyu Baoxiang Metal 
Manufactured Co., Ltd.; Shaoxing Andrew Metal Manufactured; Shaoxing 
Gangyuan Metal Manufacture; Shaoxing Tongzhou Metal Manufactured Co., 
Ltd.; and Zhejiang Lucky Cloud Hanger Co., Ltd. In order to examine 
these claims, we sent an inquiry to CBP requesting that if any CBP 
office had any information contrary to the no shipments claims, to 
alert the Department within ten days of receiving our inquiry. CBP 
received our inquiries on February 23, 2011, and April 29, 2011. We 
have not received a response from CBP with regard to our inquiries 
which indicates that CBP did not have information that was contrary to 
the claims.
    Therefore, pursuant to 19 CFR 351.213(d)(3), we preliminarily 
determine that the above companies made no shipments of subject 
merchandise during the POR. Consequently, we preliminary determine that 
none of the above-named companies had shipments of subject merchandise 
to the United States during the POR, and we are preliminarily 
rescinding the review with respect to the above-named companies.\27\
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    \27\ See, e.g., Fourth Administrative Review of Certain Frozen 
Warmwater Shrimp From the People's Republic of China: Preliminary 
Results, Preliminary Partial Rescission of Antidumping Duty 
Administrative Review and Intent Not To Revoke, In Part, 75 FR 
11855, 11856-57 (March 12, 2010), unchanged in Administrative Review 
of Certain Frozen Warmwater Shrimp From the People's Republic of 
China: Final Results and Partial Rescission of Antidumping Duty 
Administrative Review, 75 FR 49460, 49462 (August 13, 2010).
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Surrogate Country and Surrogate Value Data

    On February 25, 2011, the Department sent interested parties a 
letter inviting comments on surrogate country selection and information 
regarding valuing factors of production (``FOPs''). On April 4, 2011, 
Petitioner filed comments on surrogate country selection, stating India 
and Thailand may be appropriate surrogates if their data is publicly 
available, reliable and contemporaneous. On May 4, 2010, the Department 
received information to value FOPs from Petitioner. Petitioner provided 
surrogate values (``SV'') from sources in India and Thailand.

Surrogate Country

    When the Department investigates imports from an NME country and 
available information does not permit the Department to determine NV 
pursuant to section 773(a) of the Act, then, pursuant to sections 
773(c)(1) and 773(c)(4) of the Act, the Department bases NV on an NME 
producer's FOPs, to the extent possible, in one or more market-economy 
countries that (1) Are at a level of economic development comparable to 
that of the NME country, and (2) are significant producers of 
comparable merchandise. Regarding the ``level of economic 
development,'' the Department relied on per capita gross national 
income (``GNI'') data to measure economic comparability.\28\ Using per 
capita GNI, the Department determined that India, Indonesia, 
Philippines, Peru, Ukraine and Thailand are countries comparable to the 
PRC in terms of economic development.\29\ Once we have identified the 
countries that are economically comparable to the PRC, we select an 
appropriate surrogate country by determining whether an economically 
comparable country is a significant producer of comparable merchandise 
and whether the data for valuing FOPs are both available and reliable.
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    \28\ Although 19 CFR 351.408(b) instructs the Department to rely 
on gross domestic product (``GDP'') data in such comparisons, it is 
Departmental practice to use ``per capita GNI, rather than per 
capita GDP, because while the two measures are very similar, per 
capita GNI is reported across almost all countries by an 
authoritative source (the World Bank), and because the Department 
finds that the per capita GNI represents the single best measure of 
a country's level of total income and thus level of economic 
development.'' See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716 (October 19, 2006).
    \29\ The Department notes that these six countries are part of a 
non-exhaustive list of countries that are at a level of economic 
development comparable to the PRC. See the Department's letter to 
``All Interested Parties; First Administrative Review of Steel Wire 
Garment Hangers from the People's Republic of China: Deadlines for 
Surrogate Country and Surrogate Value Comments,'' dated February 25, 
2011 at 1 and Attachment I.
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    The Department has determined that India is the appropriate 
surrogate country for use in this review. The Department based its 
decision on the following facts: (1) India is at a level of economic 
development comparable to that of the PRC; (2) India is a significant 
producer of comparable merchandise; and (3) India provides the best 
opportunity to use quality, publicly available data to value the FOPs. 
Although Petitioner provided SV data for both Thailand and India, 
India's data is the best available data on the record for selection as 
the primary surrogate country, because the record contains Indian SV 
data for all FOPs used by Shanghai Wells. Therefore, we have selected 
India as the surrogate country and, accordingly, have calculated NV 
using Indian prices to value the respondent's FOPs, when available and

[[Page 66906]]

appropriate. We have obtained and relied upon publicly available 
information wherever possible.

Non-Market Economy Country Status

    In every proceeding conducted by the Department involving the PRC, 
we have treated it as an NME country. In accordance with section 
771(18)(C)(i) of the Act, any determination that a country is an NME 
shall remain in effect until revoked by the Department. None of the 
parties to this proceeding have contested such treatment. Accordingly, 
the Department calculated NV in accordance with section 773(c) of the 
Act, which applies to NME countries.

Separate Rates

    In NME countries, the Department begins with a rebuttable 
presumption that all companies within the country are subject to 
government control and thus should be assessed a single antidumping 
duty rate.\30\ However, a company in the NME applying for separate rate 
status may rebut that presumption by demonstrating an absence of both 
de jure and de facto government control over its export activities.\31\
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    \30\ See Separate Rates and Combination Rates in Antidumping 
Investigations involving Non-Market Economy Countries, 70 FR 17233, 
17233 (April 5, 2005) (``Policy Bulletin 05.1''), also available at: 
http://ia.ita.doc.gov/policy/index.html; see also Notice of Final 
Determination of Sales at Less Than Fair Value, and Affirmative 
Critical Circumstances, In Part: Certain Lined Paper Products From 
the People's Republic of China, 71 FR 53079, 53082 (September 8, 
2006); and 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, 29307 (May 22, 2006).
    \31\ See Policy Bulletin 05.1.
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    The Department analyzes each entity's export independence under a 
test first articulated in Sparklers and as further developed in Silicon 
Carbide.\32\ Importantly, if the Department determines that a company 
is wholly foreign-owned or located in a market economy (``ME'') 
country, then the Department need not conduct a separate rate analysis 
to determine whether the company is independent from government 
control.\33\
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    \32\ Notice of Final Determination of Sales at Less Than Fair 
Value: Sparklers from the People's Republic of China, 56 FR 20588, 
20589 (May 6, 1991) (``Sparklers''); see also Notice of Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585, 22586-87 (May 2, 1994) 
(``Silicon Carbide'').
    \33\ See, e.g., Final Results of Antidumping Duty Administrative 
Review: Petroleum Wax Candles from the People's Republic of China, 
72 FR 52355, 52356 (September 13, 2007).
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    The Department received a complete response to the Section A 
portion of the NME questionnaire from Shanghai Wells, which contained 
information pertaining to the companies' eligibility for a separate 
rate. As noted above, Jiaxing Boyi, Shaoxing Liangbao, Command Metal 
Products, Guochao Metal Products, Yiwu, and Meideli, have terminated 
participation in this administrative review. Therefore, these six 
companies have failed to demonstrate their eligibility for a separate 
rate.

Separate Rate Recipients

Wholly Foreign-Owned

    Shanghai Wells reported that it is a wholly foreign-owned 
entity.\34\ Additionally, there is no evidence that the Wells Group 
\35\ is under the control of the PRC government, and we have determined 
that further separate rate analysis is not necessary to determine 
whether this entity is independent from government control.\36\ Thus, 
we have preliminarily granted separate rate status to Shanghai Wells 
and/or HK Wells.
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    \34\ See Shanghai Wells' Section A Questionnaire Response, dated 
February 17, 2011, at 2.
    \35\ In AR1 Hangers, the Department found that Shanghai Wells, 
Hong Kong Wells Limited (``HK Wells'') and Hong Kong Wells Limited 
(USA) (``USA Wells'') (collectively, ``Wells Group'') are affiliated 
and that Shanghai Wells and HK Wells comprise a single entity. 
Because there were no changes from the previous review, we continue 
to find Shanghai Wells, HK Wells, and USA Wells are affiliated and 
that Shanghai Wells and HK Wells comprise a single entity. See Steel 
Wire Garment Hangers From the People's Republic of China: 
Preliminary Results and Preliminary Rescission, in Part, of the 
First Antidumping Duty Administrative Review, 75 FR 68758, 68761 
(November 9, 2010), unchanged in First Administrative Review of 
Steel Wire Garment Hangers From the People's Republic of China: 
Final Results and Final Partial Rescission of Antidumping Duty 
Administrative Review, 76 FR 27994, 27996 (May 13, 2011) (``AR 1 
Hangers'').
    \36\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value: Creatine Monohydrate from the People's Republic of 
China, 64 FR 71104, 71104-05 (December 20, 1999) (where the 
respondent was wholly foreign-owned and, thus, qualified for a 
separate rate).
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Facts Available

    Sections 776(a)(1) and 776(a)(2) of the Act provide that, if 
necessary information is not available on the record, or if an 
interested party (A) Withholds information that has been requested by 
the Department; (B) fails to provide such information in a timely 
manner or in the form or manner requested subject to sections 782(c)(1) 
and (e) of the Act; (C) significantly impedes a proceeding under the 
antidumping statute; or (D) provides such information but the 
information cannot be verified, then the Department shall, subject to 
subsection 782(d) of the Act, use facts otherwise available in reaching 
the applicable determination.
    Section 782(c)(1) of the Act provides that if an interested party 
``promptly after receiving a request from {the Department{time}  * * * 
for information, notifies {the Department{time}  * * * that such party 
is unable to submit the information requested in the requested form and 
manner, together with a full explanation and suggested alternative 
forms in which such party is able to submit the information,'' the 
Department may modify the requirements to avoid imposing an 
unreasonable burden on that party.
    Section 782(d) of the Act provides that, if the Department 
determines that a response to a request for information does not comply 
with the request, the Department will inform the person submitting the 
response of the nature of the deficiency and shall, to the extent 
practicable, provide that person the opportunity to remedy or explain 
the deficiency. If that person submits further information that 
continues to be unsatisfactory, or this information is not submitted 
within the applicable time limits, then the Department may, subject to 
section 782(e) of the Act, disregard all or part of the original and 
subsequent responses, as appropriate.
    Section 782(e) of the Act states that the Department shall not 
decline to consider information deemed ``deficient'' under section 
782(d) if (1) The information is submitted by the established deadline; 
(2) the information can be verified; (3) the information is not so 
incomplete that it cannot serve as a reliable basis for reaching the 
applicable determination; (4) the interested party has demonstrated 
that it acted to the best of its ability in providing the information 
and meeting the requirements established by the Department; and (5) the 
information can be used without undue difficulties.
    However, section 776(b) of the Act states that if the Department 
finds that an interested party has failed to cooperate by not acting to 
the best of its ability to comply with a request for information, the 
Department ``in reaching the applicable determination under this title, 
may use an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available.'' \37\ Adverse 
inferences are appropriate ``to ensure that the party does not obtain a 
more favorable result by failing to cooperate than if it had cooperated 
fully.'' \38\ An adverse inference may include reliance

[[Page 66907]]

on information derived from the petition, the final determination in 
the investigation, any previous review, or any other information placed 
on the record.\39\
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    \37\ See also Uruguay Round Agreements Act Statement of 
Administrative Action, H.R. Rep. No. 103-316, Vol. 1, at 870 (1994), 
reprinted in 1994 U.S.C.C.A.N. 4040, 4198-99 (``SAA'').
    \38\ Id. at 870, 1994 U.S.C.C.A.N. at 4198-99.
    \39\ See section 776(b) of the Act; see also 19 CFR 351.308(c).
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Non-Responsive Companies

    As stated in the ``Respondent Selection'' section above, the 
Department issued the NME questionnaire to Jiaxing Boyi, Shaoxing 
Liangbao, Command Metal Products, and Meideli and did not receive a 
request for an extension of time or a response to Sections A, C or D of 
the Department's questionnaire on the established deadlines. 
Additionally, as stated above, counsel to Guochao Metal Products and 
Yiwu filed a letter stating that they would not participate as 
mandatory respondents in this administrative review. Therefore, the 
Department finds it appropriate to rely on the facts otherwise 
available in order to determine a margin for Jiaxing Boyi, Shaoxing 
Liangbao, Command Metal Products, Meideli, Guochao Metal Products and 
Yiwu for purposes of these preliminary results, pursuant to section 
776(a)(2) of the Act.\40\
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    \40\ See, e.g., Certain Preserved Mushrooms from the People's 
Republic of China: Partial Rescission and Preliminary Results of the 
Sixth Administrative Review, 71 FR 11183, 11185-86 (March 6, 2006) 
(unchanged in final results); Stainless Steel Sheet and Strip in 
Coils From Japan: Preliminary Results of Antidumping Duty 
Administrative Review, 70 FR 18369, 18371 (April 11, 2005) 
(unchanged in final results).
---------------------------------------------------------------------------

    As stated above, section 776(b) of the Act provides that, if the 
Department finds that an interested party fails to cooperate by not 
acting to the best of its ability to comply with requests for 
information, the Department may use an inference that is adverse to the 
interests of that party in selecting from the facts otherwise 
available. As a result of these six companies' decision to terminate 
participation in this review, the Department will not grant these six 
companies a separate rate and considers them part of the PRC-wide 
entity. See ``PRC-Wide Entity and Selection of Adverse Facts Available 
Rate'' section below. See also the ``Corroboration'' section below for 
a discussion of the probative value of the PRC-wide rate of 187.25 
percent rate.

PRC-Wide Entity and Selection of Adverse Facts Available (``AFA'') Rate

    The Department finds that the PRC-wide entity, including Jiaxing 
Boyi, Shaoxing Liangbao, Command Metal Products, Meideli, Guochao Metal 
Products, and Yiwu withheld requested information, failed to provide 
information in a timely manner and in the form requested, and 
significantly impeded this proceeding. Moreover, by refusing to answer 
the Department's questionnaire, these six companies failed to cooperate 
to the best of their ability. Therefore, the Department must rely on 
adverse facts otherwise available in order to determine a margin for 
the PRC-wide entity, pursuant to sections 776(a)(2)(A), (B), (C) and 
776(b) of the Act.\41\ By so doing, the Department avoids the concern 
that the PRC-wide entity might obtain a more favorable result by 
failing to cooperate than had they cooperated fully in this review.
---------------------------------------------------------------------------

    \41\ See, e.g., Non-Malleable Cast Iron Pipe Fittings from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review, 71 FR 69546, 69548 (December 1, 2006) and 
accompanying Issues and Decision Memorandum at Comment 1; see also 
Certain Frozen Warmwater Shrimp from the Socialist Republic of 
Vietnam: Preliminary Results of the First Administrative Review and 
New Shipper Review, 72 FR 10689, 10692 (March 9, 2007) (decision to 
apply total AFA to the NME-wide entity), unchanged in Certain Frozen 
Warmwater Shrimp From the Socialist Republic of Vietnam: Final 
Results of the First Antidumping Duty Administrative Review and 
First New Shipper Review, 72 FR 52052 (September 12, 2007).
---------------------------------------------------------------------------

    As previously stated, the Department may rely on information 
derived from any of the following sources in deciding which facts to 
use as AFA: (1) The petition, (2) a final determination in the 
investigation, (3) any previous review or determination, or (4) any 
information placed on the record. The Department's practice when 
selecting an adverse rate from among the possible sources of 
information is to ensure that the margin is sufficiently adverse ``as 
to effectuate the purpose of the facts available role to induce 
respondents to provide the Department with complete and accurate 
information in a timely manner.'' \42\ In reviews, the Department 
normally selects as AFA the highest rate on the record of any segment 
of the proceeding.\43\ The U.S. Court of International Trade (``CIT'') 
and the U.S. Court of Appeals for the Federal Circuit (``Federal 
Circuit'') consistently have upheld the Department's practice in this 
regard.\44\ In choosing the appropriate balance between providing 
respondents with an incentive to respond accurately and imposing a rate 
that is reasonably related to the respondent's prior commercial 
activity, selecting the highest prior margin ``reflects a common sense 
inference that the highest prior margin is the most probative evidence 
of current margins because, if it were not so, the importer, knowing of 
the rule, would have produced current information showing the margin to 
be less.'' \45\ Therefore, consistent with the statute, court 
precedent, and its normal agency practice, the Department will use AFA 
to assign the rate of 187.25 percent, the highest rate on the record of 
any segment of the proceeding, to the PRC-wide entity (including 
Jiaxing Boyi, Shaoxing Liangbao, Command Metal Products, Guochao Metal 
Products, Yiwu, and Meideli).\46\ See ``Corroboration of Information'' 
section below.
---------------------------------------------------------------------------

    \42\ See Notice of Final Determination of Sales at Less Than 
Fair Value: Static Random Access Memory Semiconductors from Taiwan, 
63 FR 8909, 8932 (February 23, 1998).
    \43\ See, e.g., Tapered Roller Bearings and Parts Thereof, 
Finished and Unfinished, From the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review, 74 FR 3987, 3989 
(January 22, 2009).
    \44\ See Rhone Poulenc, Inc. v. United States, 899 F.2d 1185, 
1190-91 (Fed. Circ. 1990) (``Rhone Poulenc''); see also, Shanghai 
Taoen Int'l Trading Co. v. United States, 360 F. Supp. 2d 1339, 
1346-48 (CIT 2005) (upholding a 223.01 percent total AFA rate, the 
highest available dumping margin from a different respondent in a 
previous administrative review); NSK Ltd. v. United States, 346 F. 
Supp. 2d 1312, 1335-36 (CIT 2004) (upholding a 73.55 percent total 
AFA rate, the highest available dumping margin from a different 
respondent in a LTFV investigation); Kompass Food Trading Int'l v. 
United States, 24 CIT 678, 683 (2000) (upholding a 51.16 percent 
total AFA rate, the highest available dumping margin from a 
different, fully cooperative respondent).
    \45\ Rhone Poulenc, 899 F.2d at 1190 (emphasis omitted).
    \46\ See, e.g., Certain Frozen Warmwater Shrimp from the 
People's Republic of China: Notice of Final Results and Rescission, 
In Part, of 2004/2006 Antidumping Duty Administrative and New 
Shipper Reviews, 72 FR 52049, 52051 (September 12, 2007).
---------------------------------------------------------------------------

Corroboration of Information

    Section 776(c) of the Act requires that the Department corroborate, 
to the extent practicable, secondary information on which it relies as 
facts available. The SAA defines secondary information as ``information 
derived from the petition that gave rise to the investigation or 
review, the final determination concerning subject merchandise, or any 
previous review under section 751 concerning the subject merchandise.'' 
\47\ The SAA also explains that the Department sufficiently 
corroborates secondary information when it determines that such 
information has probative value.\48\ The Department previously has 
reasoned that ``corroborated information'' amounts to information it 
finds both reliable and relevant.\49\
---------------------------------------------------------------------------

    \47\ See SAA at 870, 1994 U.S.C.C.A.N. at 4199.
    \48\ Id.
    \49\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or 
Less in Outside Diameter, and Components Thereof, From Japan; 
Preliminary Results of Antidumping Duty Administrative Reviews and 
Partial Termination of Administrative Reviews, 61 FR 57391, 57392 
(November 6, 1996) unchanged in Tapered Roller Bearings and Parts 
Thereof, Finished and Unfinished, From Japan, and Tapered Roller 
Bearings, Four Inches or Less in Outside Diameter, and Components 
Thereof, From Japan; Final Results of Antidumping Duty 
Administrative Reviews and Termination in Part, 62 FR 11825 (March 
13, 1997).

---------------------------------------------------------------------------

[[Page 66908]]

    In this case, the Department selected the highest rate assigned in 
any segment of this proceeding (i.e., 187.25 percent) as the AFA rate 
for the current review. For purposes of corroboration, the Department 
will consider whether that margin is both reliable and relevant. The 
Department continues to find the information reliable, given that it 
corroborated the AFA rate used in the current review during the LTFV 
investigation.\50\ No information has been presented in the current 
review that calls into question the reliability of this information. 
The Department considers information reasonably at its disposal to 
determine whether a margin continues to have relevance.\51\ A selected 
margin remains relevant when it accurately reflects commercial 
practices in the industry.\52\ For example, in Flowers, because the 
highest margin in that case was based on another company's 
uncharacteristic business expense resulting in an unusually high 
margin, the Department disregarded the margin as irrelevant.\53\ 
Turning to the present case, the Department relied on credible 
information within the realm of actual selling practices to calculate 
the AFA rate during the LTFV investigation. In that proceeding, the 
Department took a simple average of the following: (1) The weighted-
average of the calculated rates for the two mandatory respondents, and 
(2) a simple average of petition rates based on U.S. prices and normal 
values within the range of U.S. prices and normal values calculated for 
the two mandatory respondents.\54\ Furthermore, the calculation of this 
margin in the investigation was subject to comment from interested 
parties in the proceeding.\55\ Therefore, because the record does not 
contain information on the record of this review that demonstrates that 
this rate is not appropriate to use as AFA, the Department determines 
that this rate has relevance.
---------------------------------------------------------------------------

    \50\ See Steel Wire Garment Hangers From the People's Republic 
of China: Final Determination of Sales at Less Than Fair Value, 73 
FR 47587, 47591 (August 14, 2008), as amended, Steel Wire Garment 
Hangers From the People's Republic of China: Amended Final 
Determination of Sales at Less Than Fair Value, 73 FR 53188, 53189 
(September 15, 2008) (``Hangers LTFV'').
    \51\ See section 776(c) of the Act.
    \52\ See Universal Polybag Co. v. United States, 577 F. Supp. 2d 
1284, 1300 (CIT 2008).
    \53\ See Fresh Cut Flowers from Mexico; Final Results of 
Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February 
22, 1996) (``Flowers'').
    \54\ See Hangers LTFV, 73 FR at 53189; Steel Wire Garment 
Hangers From the People's Republic of China: Final Determination of 
Sales at Less Than Fair Value, 73 FR at 47591.
    \55\ Steel Wire Garment Hangers From the People's Republic of 
China: Final Determination of Sales at Less Than Fair Value, 73 FR 
at 47588.
---------------------------------------------------------------------------

    As the 187.25 percent rate is both reliable and relevant, the 
Department determines that it has probative value. Accordingly, the 
Department determines that the calculated rate of 187.25 percent, which 
is the current PRC-wide rate, is in accord with the requirement of 
section 776(c) of the Act that secondary information be corroborated to 
the extent practicable (i.e., that it have probative value). The 
Department has assigned this AFA rate to exports of the subject 
merchandise by the PRC-wide entity, which includes Jiaxing Boyi, 
Shaoxing Liangbao, Command Metal Products, Guochao Metal Products, 
Yiwu, and Meideli.

Date of Sale

    The Wells Group reported the invoice date as the date of sale 
because they claim that, for their U.S. sales of subject merchandise 
made during the POR, the material terms of sale were established based 
on the invoice date. The Department preliminarily determines that the 
invoice date is the most appropriate date to use as the Wells Group 
date of sale in accordance with 19 CFR 351.401(i) and the Department's 
long-standing practice of determining the date of sale.\56\
---------------------------------------------------------------------------

    \56\ See, e.g., Notice of Final Determination of Sales at Less 
Than Fair Value and Negative Final Determination of Critical 
Circumstances: Certain Frozen and Canned Warmwater Shrimp From 
Thailand, 69 FR 76918 (December 23, 2004), and accompanying Issues 
and Decision Memorandum at Comment 10.
---------------------------------------------------------------------------

Fair Value Comparisons

    To determine whether sales of steel wire garment hangers to the 
United States by the Wells Group were made at less than NV, the 
Department compared either export price (``EP'') or constructed export 
price (``CEP'') to NV, as described in the ``U.S. Price'' and ``Normal 
Value'' sections below.

U.S. Price

Export Price

    In accordance with section 772(a) of the Act, the Department 
calculated EP for a portion of sales to the United States for the Wells 
Group because the first sale to an unaffiliated party was made before 
the date of importation and the use of CEP was not otherwise warranted. 
The Department calculated EP based on the sales price to unaffiliated 
purchasers in the United States. In accordance with section 
772(c)(2)(A) of the Act, as appropriate, the Department deducted from 
the sales price certain foreign inland freight, brokerage and handling 
(``B&H''), and international movement costs. Because the inland freight 
and B&H services were either provided by a NME vendor or paid for using 
a NME currency, the Department based the deduction of these charges on 
surrogate values. See ``Memorandum to the File from Bob Palmer, 
Analyst, through Catherine Bertrand, Program Manager; Second 
Administrative Review of Steel Wire Garment Hangers from the People's 
Republic of China: Surrogate Values for the Preliminary Results,'' 
dated concurrently with these preliminary results, (``Prelim Surrogate 
Value Memo'') for details regarding the SVs for movement expenses. For 
international freight provided by a ME provider and paid in U.S. 
dollars, the Department used the actual cost per kilogram (``kg'') of 
the freight.

Constructed Export Price

    For some of the Wells Group's sales, the Department based U.S. 
price on CEP in accordance with section 772(b) of the Act, because 
sales were made on behalf of the Chinese-based company by a U.S. 
affiliate to unaffiliated purchasers in the United States. For these 
sales, the Department based CEP on prices to the first unaffiliated 
purchaser in the United States. Where appropriate, the Department made 
deductions from the starting price (gross unit price) for foreign 
movement expenses, international movement expenses, U.S. movement 
expenses, and appropriate selling adjustments, in accordance with 
section 772(c)(2)(A) of the Act.
    In accordance with section 772(d)(1) of the Act, the Department 
also deducted those selling expenses associated with economic 
activities occurring in the United States. The Department deducted, 
where appropriate, commissions, inventory carrying costs, interest 
revenue, credit expenses, warranty expenses, and indirect selling 
expenses. Where foreign movement expenses, international movement 
expenses, or U.S. movement expenses were provided by PRC service 
providers or paid for in renminbi, the Department valued these services 
using SVs (see ``Factor Valuations'' section below for further 
discussion). For those expenses that were provided by an ME provider 
and paid for in an ME currency, the Department used the reported 
expense. Due to the proprietary

[[Page 66909]]

nature of certain adjustments to U.S. price, for a detailed description 
of all adjustments made to U.S. price for each company, see the company 
specific analysis memoranda, dated concurrently with these preliminary 
results.

Normal Value

    Section 773(c)(1) of the Act provides that the Department shall 
determine the NV using an FOP methodology if the merchandise is 
exported from an NME and the information does not permit the 
calculation of NV using home-market prices, third-country prices, or 
constructed value under section 773(a) of the Act. Further, pursuant to 
section 773(c)(1) of the Act, the valuation of an NME respondent's FOPs 
shall be based on the best available information regarding the value of 
such factors in an ME country or countries considered to be appropriate 
by the Department. The Department bases NV on the FOPs because the 
presence of government controls on various aspects of NMEs renders 
price comparisons and the calculation of production costs invalid under 
the Department's normal methodologies.
    The Department used Indian import statistics to value the raw 
material and packing material inputs that the Wells Group used to 
produce the subject merchandise during the POR, except where listed 
below. With respect to the SVs based on Indian import statistics, in 
according with the Omnibus Trade and Competitiveness Act of 1988 
(``OTCA'') and long-standing agency practice, the Department has 
disregarded prices that the Department has reason to believe or suspect 
may be subsidized.\57\ The Department has previously found that it is 
appropriate to disregard such prices from Indonesia, South Korea, and 
Thailand because we have determined that these countries maintain 
broadly available, non-industry specific, export subsidies.\58\ Based 
on the existence of these subsidy programs that were generally 
available to all exporters and producers in these countries at the time 
of the POR, the Department finds that it has reason to believe or 
suspect that all exporters from Indonesia, South Korea, and Thailand 
may have benefitted from these subsidies and that we should therefore 
disregard any data from these countries contained in the Indian import 
statistics used to calculate SVs. The Department similarly disregarded 
prices from NME countries. Finally, imports that were labeled as 
originating from an ``unspecified'' country were excluded from the 
average value, since the Department could not be certain that they were 
not from either an NME country or a country with generally available 
export subsidies.\59\ For further discussion regarding all SV 
calculations using Indian Import Statistics, see Prelim Surrogate Value 
Memo.
---------------------------------------------------------------------------

    \57\ See Omnibus Trade and Competitiveness Act of 1988, Conf. 
Report to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd 
Sess. (1988) at 590.
    \58\ See, e.g., Carbazole Violet Pigment 23 from India: Final 
Results of the Expedited Five-year (Sunset) Review of the 
Countervailing Duty Order, 75 FR 13257 (March 19, 2010) and 
accompanying Issues and Decision Memorandum at 4-5; Certain Cut-to-
Length Carbon-Quality Steel Plate from Indonesia: Final Results of 
Expedited Sunset Review, 70 FR 45692 (August 8, 2005) and 
accompanying Issues and Decision Memorandum at 4; See Corrosion-
Resistant Carbon Steel Flat Products from the Republic of Korea: 
Final Results of Countervailing Duty Administrative Review, 74 FR 
2512 (January 15, 2009) and accompanying Issues and Decision 
Memorandum at 17, 19-20; See Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products From 
Thailand, 66 FR 50410 (October 3, 2001) and accompanying Issues and 
Decision Memorandum at 23.
    \59\ See, e.g., Polyethylene Terephthalate Film, Sheet, and 
Strip from the People's Republic of China: Preliminary Determination 
of Sales at Less Than Fair Value, 73 FR 24552, 24559 (May 5, 2008), 
unchanged in Polyethylene Terephthalate Film, Sheet, and Strip from 
the People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 73 FR 55039 (September 24, 2008) (``PET Film'').
---------------------------------------------------------------------------

Factor Valuations

    In accordance with section 773(c)(1) of the Act, for subject 
merchandise produced by the Wells Group, the Department calculated NV 
based on the FOPs reported by the Wells Group for the POR. The 
Department used data from the Indian import statistics and other 
publicly available Indian sources in order to calculate SVs for the 
Wells Group's FOPs (direct materials, energy, and packing materials) 
and certain movement expenses. To calculate NV, the Department 
multiplied the reported per-unit factor quantities by publicly 
available Indian SVs (except as noted below). Because the statute is 
silent concerning what constitutes the ``best available information'' 
for a particular SV, the courts have recognized that on this topic the 
Department enjoys ``broad discretion to determine the best available 
information for an antidumping review.'' \60\ The Department's practice 
when selecting the best available information for valuing FOPs is to 
select, to the extent practicable, SVs which are product-specific, 
representative of a broad market average, publicly available, 
contemporaneous with the POR, and exclusive of taxes and duties.\61\
---------------------------------------------------------------------------

    \60\ See Ad Hoc Shrimp Trade Action Comm. v. United States, 618 
F.3d 1316, 1322 (Fed. Cir. 2010).
    \61\ See, e.g., Electrolytic Manganese Dioxide From the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 73 FR 48195 (August 18, 2008) and accompanying Issues and 
Decision Memorandum at Comment 2.
---------------------------------------------------------------------------

    In this case, the Department adjusted the SVs as necessary to 
ensure a fair calculation of the production costs. First, the 
Department made adjustments to the SVs for exchange rates and taxes, 
and converted all applicable items to measurement on a per kg basis. 
Second, the Department adjusted input prices by including freight costs 
to render them delivered prices. Specifically, to accord with the 
decision of the Federal Circuit in Sigma Corp. v. United States, 117 
F.3d 1401, 1408 (Fed. Cir. 1997), the Department added to the Indian 
import SVs a surrogate freight cost using the shorter of the reported 
distance between (1) The domestic supplier and the factory or (2) the 
nearest seaport and the factory. For a detailed description of all SVs 
used for the Wells Group, see Prelim Surrogate Value Memo.
    The Department valued electricity using the updated electricity 
price data for small, medium, and large industries, as published by the 
Central Electricity Authority, an administrative body of the Government 
of India, in its publication titled Electricity Tariff & Duty and 
Average Rates of Electricity Supply in India, dated March 2008. These 
electricity rates represent actual country-wide, publicly available 
information on tax-exclusive electricity rates charged to small, 
medium, and large industries in India. We did not inflate or otherwise 
alter this value because utility rates remain contemporaneous with the 
POR, as indicated by the effective dates listed for each of the rates 
provided. See Prelim Surrogate Value Memo.
    The Department valued water using publicly available data from the 
Maharashtra Industrial Development Corporation (http://www.midcindia.org) because these data include a wide range of 
industrial water tariffs. This source provides industrial water rates 
within the Maharashtra province for ``inside industrial areas'' and 
``outside industrial areas'' from October 2009 through August 2010. 
Because the average of these values is contemporaneous with the POR, we 
did not adjust it for inflation. See Prelim Surrogate Value Memo.
    As previously stated, the Department values FOPs in NME cases using 
the best available information for such factors in a ME country or 
countries considered appropriate by the administering authority. In so 
doing, the

[[Page 66910]]

Department utilizes, to the extent possible, the prices or costs of 
factors of production in one or more ME countries that are (1) at a 
comparable level of economic development and (2) significant producers 
of comparable merchandise. See section 773(c)(4) of the Act.
    Previously, to value the respondent's cost of labor, the Department 
used regression-based wages that captured the worldwide relationship 
between per capita Gross National Income (``GNI'') and hourly 
manufacturing wages, pursuant to 19 CFR 351.408(c)(3). However, on May 
14, 2010, the Federal Circuit in Dorbest Ltd. v. United States, 604 
F.3d 1363, 1372-73 (Fed. Cir. 2010) (``Dorbest''), invalidated 19 CFR 
351.408(c)(3). As a consequence of the Federal Circuit's ruling in 
Dorbest, the Department no longer relies on the regression-based wage 
rate methodology described in its regulations. On February 18, 2011, 
the Department published in the Federal Register a request for public 
comment on the interim methodology and the data sources.\62\ On June 
21, 2011, the Department revised its methodology for valuing the labor 
input in NME antidumping proceedings.\63\ In Labor Methodologies, the 
Department determined that the best methodology to value the labor 
input is to use industry-specific labor rates from the primary 
surrogate country. Additionally, the Department determined that the 
best data source for industry-specific labor rates is Chapter 6A: Labor 
Cost in Manufacturing, from the International Labor Organization (ILO) 
Yearbook of Labor Statistics (``Yearbook'').
---------------------------------------------------------------------------

    \62\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor; Request 
for Comment, 76 FR 9544, 9544-47 (February 18, 2011).
    \63\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor, 76 FR 
36092, 36093-94 (June 21, 2011) (``Labor Methodologies'').
---------------------------------------------------------------------------

    In these preliminary results, the Department calculated the labor 
input using the Labor method described in Labor Methodologies. To value 
the Wells Group's labor input, the Department relied on data reported 
by India to the ILO in Chapter 6A of the Yearbook. The Department 
further finds the two-digit description under Division 28 (Manufacture 
of Fabricated Metal Products, Except Machinery and Equipment) of the 
ISIC-Revision 3 to be the best available information on the record 
because it is specific to the industry being examined, and is therefore 
derived from industries that produce comparable merchandise. 
Accordingly, relying on Chapter 6A of the Yearbook, the Department 
calculated the labor input using labor data reported by India to the 
ILO under Division 28 of ISIC-Revision 3 standard, in accordance with 
Section 773(c)(4) of the Act. A more detailed description of the labor 
rate calculation methodology is provided in the Prelim Surrogate Value 
Memo.
    As stated above, the Department used Indian ILO data reported under 
Chapter 6A of Yearbook, which reflects all costs related to labor, 
including wages, benefits, housing, training, etc. Because the 
financial statements used to calculate the surrogate financial ratios 
include itemized detail of indirect labor costs, the Department made 
adjustments to the surrogate financial ratios. See Labor Methodologies, 
76 FR at 36093. For further information on the calculation of the labor 
rate, see Prelim Surrogate Values Memo.
    The Department valued truck freight expenses using an Indian per-
unit average rate calculated from publicly available data on the 
following Web site: http://www.infobanc.com/logistics/logtruck.htm. The 
logistics section of this Web site contains inland freight truck rates 
between many large Indian cities. We did not inflate this rate since it 
is contemporaneous with the POR. See Prelim Surrogate Value Memo.
    To value B&H, the Department used a price list of export procedures 
necessary to export a standardized cargo of goods in India. The price 
list is publicly available and compiled based on a survey case study of 
the procedural requirements for trading a standard shipment of goods by 
ocean transport in India as published in Doing Business 2011: India 
(published by the World Bank). See Prelim Surrogate Value Memo.
    To value factory overhead, selling, general, and administrative 
(``SG&A'') expenses, and profit, the Department is using the 2009-2010 
audited financial statement of Sterling Tools Ltd. (``Sterling''), 
which is an Indian fastener manufacturer.
    Petitioner placed on the record five financial statements for 
consideration: Three financial statements from Indian companies, 
Lakshmi Precision Screws Ltd. (``Lakshmi''), Sterling, and Usha Martin 
Ltd. (``Usha Martin''), and two from Thai companies, Kato Spring 
(Thailand) Co. Ltd. (``Kato''), and Capital Engineering Network Public 
Company Limited (``Capital Engineering'').\64\ With respect to the 
financial statements of Lakshmi and Usha Martin, these companies may 
have benefitted from subsidies found to be countervailable by the 
Department, namely the DEPB subsidy program,\65\ which we have found 
actionable in the past.\66\ With regard to the two Thai financial 
statements, we note that these financial statements are not from the 
primary surrogate country and that we have a financial statement from 
the primary surrogate country which we find to be the best available 
information as discussed below. Further, we note our preference is to 
value all FOPs utilizing data from the primary surrogate country and to 
consider alternative sources only when a suitable value from the 
primary surrogate country does not exist on the record.\67\
---------------------------------------------------------------------------

    \64\ See Letter from Petitioner, re: SV submission, dated May 4, 
2011, at Exhibit 3, 4, 5, 7, and 8 respectively.
    \65\ See Letter from Petitioner, re: SV submission, dated May 4, 
2011, at Exhibit 3, page 42 and Exhibit 5, page 71.
    \66\ See First Administrative Review of Steel Wire Garment 
Hangers From the People's Republic of China: Final Results and Final 
Partial Rescission of Antidumping Duty Administrative Review, 76 FR 
27994 (May 13, 2011) and accompany Issues and Decisions Memorandum 
at Comment 2.
    \67\ See Certain Frozen Fish Fillets From the Socialist Republic 
of Vietnam: Final Results of the Sixth Antidumping Duty 
Administrative Review and Sixth New Shipper Review, 76 FR 15941 
(March 22, 2011) (``Fish Fillets AR6'') and accompanying Issues and 
Decisions Memorandum at Comment IV.I.i; see also, Final 
Determination of Sales at Less Than Fair Value: Wooden Bedroom 
Furniture From the People's Republic of China, 69 FR 67313 (November 
17, 2004) (``Bedroom Furniture LTFV'') and accompanying Issues and 
Decisions Memorandum at Comment 3.
---------------------------------------------------------------------------

    With regard to Sterling, we note that we have previously 
disregarded Sterling's financial statement because it apparently 
indicated a raw material consumption quantity and value which did not 
include steel wire rod.\68\ However, the Department has further 
examined Sterling's financial statement and concluded that Sterling's 
description of its raw materials, ``Cold Head Quality Steel/Wire Rods 
Straight Length Bar,'' does not definitively exclude the consumption of 
steel wire rod.\69\ Therefore, for these preliminary results, the 
Department will include the statement from Sterling for use in 
calculating the surrogate financial ratios. See Prelim Surrogate Value 
Memo.
---------------------------------------------------------------------------

    \68\ See First Administrative Review of Steel Wire Garment 
Hangers From the People's Republic of China: Final Results and Final 
Partial Rescission of Antidumping Duty Administrative Review, 76 FR 
27994 (May 13, 2011) and accompany Issues and Decisions Memorandum 
at Comment 2.
    \69\ See Letter from Petitioner, re: SV submission, dated May 4, 
2011, at Exhibit 4, page 54.
---------------------------------------------------------------------------

    Therefore, the Department has used Sterling's 2009-2010 financial 
statement

[[Page 66911]]

to value factory overhead, SG&A, and profit, for these preliminary 
results. For a detailed discussion regarding our selection of 
Sterling's 2009-2010 financial statement to calculate the surrogate 
financial ratios, see Prelim Surrogate Value Memo.

Company Specific Issues

The Wells Group

    In its questionnaire responses and sales databases, the Wells Group 
reported certain expenses incurred, and corresponding revenues earned, 
related to the transportation or movement of the subject merchandise 
sales during the POR. For a full discussion of the adjustments to the 
gross unit price, see ``Memorandum to the File from Bob Palmer, 
Analyst: Program Analysis for the Preliminary Results of Antidumping 
Duty Administrative Review of Steel Wire Garment Hangers from the 
People's Republic of China: Shanghai Wells Hanger Co., Ltd.,'' dated 
concurrently with these preliminary results.

Currency Conversion

    The Department made currency conversions into U.S. dollars, in 
accordance with section 773A(a) of the Act, based on the exchange rates 
in effect on the dates of the U.S. sales, as certified by the Federal 
Reserve Bank.

Preliminary Results of Review

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:

 
------------------------------------------------------------------------
                                                               Weighted
                                                               average
                          Exporter                              margin
                                                              (percent)
------------------------------------------------------------------------
Shanghai Wells Hanger Co., Ltd.............................        16.64
PRC-Wide Entity\70\........................................       187.25
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Disclosure and Public Hearing
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    \70\ The PRC-Wide entity includes Jiaxing Boyi, Shaoxing 
Liangbao, Command Metal Products, Guochao Metal Products, Yiwu, and 
Meideli.
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    The Department will disclose to parties the calculations performed 
in connection with these preliminary results within five days of the 
date of publication of this notice. See 19 CFR 351.224(b). Interested 
parties may submit case briefs and/or written comments no later than 30 
days after the date of publication of these preliminary results of 
review.\71\ Rebuttal briefs and rebuttals to written comments, limited 
to issues raised in such briefs or comments, may be filed no later than 
five days after the deadline for filing case briefs.\72\ Parties who 
submit case briefs or rebuttal briefs in this proceeding are requested 
to submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.\73\
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    \71\ See 19 CFR 351.309(c)(ii).
    \72\ See 19 CFR 351.309(d).
    \73\ See 19 CFR 351.309(c)(2), (d).
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    In accordance with 19 CFR 351.301(c)(3)(ii), for the final results 
of this administrative review, interested parties may submit publicly 
available information to value FOPs within 20 days after the date of 
publication of these preliminary results. Interested parties must 
provide the Department with supporting documentation for the publicly 
available information to value each FOP. Additionally, in accordance 
with 19 CFR 351.301(c)(1), for the final results of this administrative 
review, interested parties may submit factual information to rebut, 
clarify, or correct factual information submitted by an interested 
party less than ten days before, on, or after, the applicable deadline 
for submission of such factual information. However, the Department 
notes that 19 CFR 351.301(c)(1) permits new information only insofar as 
it rebuts, clarifies, or corrects information recently placed on the 
record. The Department generally cannot accept the submission of 
additional, previously absent-from-the-record alternative surrogate 
value information pursuant to 19 CFR 351.301(c)(1).\74\
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    \74\ See Glycine From the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review and Final 
Rescission, in Part, 72 FR 58809 (October 17, 2007) and accompanying 
Issues and Decision Memorandum at Comment 2.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, or to participate if one is requested, must submit a 
written request within 30 days of the date of publication of this 
notice. Requests should contain: (1) The party's name, address and 
telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. Id. Issues raised in the hearing will be 
limited to those raised in the respective case briefs. The Department 
will issue the final results of this administrative review, including 
the results of its analysis of the issues raised in any written briefs, 
not later than 120 days after the date of publication of this notice, 
pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and CBP shall assess, antidumping duties on all appropriate entries 
covered by this review. The Department intends to issue assessment 
instructions to CBP 15 days after the publication date of the final 
results of this review. In accordance with 19 CFR 351.212(b)(1), we 
calculated exporter/importer (or customer)-specific assessment rates 
for the merchandise subject to this review. Where the respondent has 
reported reliable entered values, we calculated importer (or customer)-
specific ad valorem rates by aggregating the dumping margins calculated 
for all U.S. sales to each importer (or customer) and dividing this 
amount by the total entered value of the sales to each importer (or 
customer). Where an importer (or customer)-specific ad valorem rate is 
greater than de minimis, we will apply the assessment rate to the 
entered value of the importers'/customers' entries during the POR. See 
19 CFR 351.212(b)(1).
    Where we do not have entered values for all U.S. sales, we 
calculated a per-unit assessment rate by aggregating the antidumping 
duties due for all U.S. sales to each importer (or customer) and 
dividing this amount by the total quantity sold to that importer (or 
customer). See 19 CFR 351.212(b)(1). To determine whether the duty 
assessment rates are de minimis, in accordance with the requirement set 
forth in 19 CFR 351.106(c)(2), we calculated importer (or customer)-
specific ad valorem ratios based on the estimated entered value. Where 
an importer (or customer)-specific ad valorem rate is zero or de 
minimis, we will instruct CBP to liquidate appropriate entries without 
regard to antidumping duties. See 19 CFR 351.106(c)(2).

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 the exporters 
listed above, the cash deposit rate will be established in the final 
results of this review (except, if the rate is zero or de minimis, 
i.e., less than 0.5 percent, no cash deposit will be required for that 
company); (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

[[Page 66912]]

have not been found to be entitled to a separate rate, the cash deposit 
rate will be the PRC-wide rate of 187.25 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 
exporters that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification to Importers

    This notice also serves as a preliminary 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 antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This determination is issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4).

    Dated: October 21, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-27976 Filed 10-27-11; 8:45 am]
BILLING CODE 3510-DS-P