[Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)]
[Notices]
[Pages 67703-67715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28413]
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DEPARTMENT OF COMMERCE
International Trade Administration
[(A-570-973)]
Certain Steel Wheels From the People's Republic of China: Notice
of Preliminary Determination of Sales at Less Than Fair Value, Partial
Affirmative Preliminary Determination of Critical Circumstances, and
Postponement of Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice.
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DATES: Effective Date: November 2, 2011.
SUMMARY: The Department of Commerce (``Department'') preliminarily
determines that certain steel wheels (``steel wheels'') from the
People's Republic of China (``PRC'') are being, or are likely to be,
sold in the United States at less than fair value (``LTFV''), as
provided in section 733 of the Tariff Act of 1930, as amended (``the
Act''). The estimated margins of sales at LTFV are shown in the
``Preliminary Determination'' section of this notice. Pursuant to
requests from interested parties, we are postponing the final
determination and extending the provisional measures from a four-month
period to not more than six months. Accordingly, we will make our final
determination not later than 135 days after publication of the
preliminary determination.
FOR FURTHER INFORMATION CONTACT: Brendan Quinn or Raquel Silva, AD/CVD
Operations, Office 8, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
5848 or (202) 482-6475, respectively.
SUPPLEMENTARY INFORMATION:
Initiation
On March 30, 2011, the Department received an antidumping duty
(``AD'') petition concerning imports of steel wheels from the PRC filed
in proper form by Accuride Corporation and Hayes Lemmerz International,
Inc. (collectively, ``Petitioners'').\1\ Based on the Department's
request, Petitioners filed supplements to the Petition on April 11, 14
and 15, 2011.
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\1\ See the Petition for the Imposition of Antidumping and
Countervailing Duties Pursuant to Sections 701 and 731 of the Tariff
Act of 1930, as amended (``Petition''), filed on March 30, 2011.
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The Department initiated this investigation on April 19, 2011.\2\
In the Initiation Notice, the Department notified parties of the
application process by which exporters and producers may obtain
separate rate status in non-market economy (``NME'') investigations.
The process requires exporters and producers to submit a separate rate
application (``SRA'') \3\ and to demonstrate an absence of both de jure
and de facto government control over their respective export
activities. The SRA for this investigation was posted on the
Department's Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on April 20, 2011. The due date for filing an SRA was June
27, 2011.
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\2\ See Certain Steel Wheels From the People's Republic of
China: Initiation of Antidumping Duty Investigation, 76 FR 23294
(April 26, 2011) (``Initiation Notice'').
\3\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigations
involving Non-Market Economy Countries (April 5, 2005) (``Policy
Bulletin 05.1''), available at http://ia.ita.doc.gov/policy/bull05-1.pdf.
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On May 16, 2011, the International Trade Commission (``ITC'')
determined
[[Page 67704]]
that there is a reasonable indication that an industry in the United
States is materially injured or threatened with material injury by
reason of imports of steel wheels from the PRC.\4\
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\4\ See Investigation Nos. 701-TA-478 and 731-TA-1182
(Preliminary): Certain Steel Wheels from China, 76 FR 29265 (May 20,
2011) (``ITC Preliminary Determination'').
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Period of Investigation
The period of investigation (``POI'') is July 1, 2010, through
December 31, 2010. This period corresponds to the two most recent
fiscal quarters prior to the month of the filing of the petition, which
was March 30, 2011. See 19 CFR 351.204(b)(1).
Postponement of Preliminary Determination
On August 5, 2011, Petitioners made a timely request, pursuant to
section 733(c)(1)(A) of the Act and 19 CFR 351.205(b)(2) and (e) for a
50-day postponement of the preliminary determination. On August 17,
2011, the Department published a postponement of the preliminary AD
determination on steel wheels from the PRC.\5\
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\5\ See Certain Steel Wheels from the People's Republic of
China: Postponement of Preliminary Determination of Antidumping Duty
Investigation, 76 FR 50995 (August 17, 2011).
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Scope Comments
As discussed in the preamble to the regulations, we set aside a
period for interested parties to raise issues regarding product
coverage. See Antidumping Duties; Countervailing Duties; Final Rule, 62
FR 27296, 27323 (May 19, 1997). The Department requested all interested
parties to submit such comments within 20 calendar days of signature of
the Initiation Notice. See Initiation Notice. As we stated in Certain
Steel Wheels From the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Countervailing Duty Determination With Final Antidumping Duty
Determination, 76 FR 55012 (September 6, 2011) (``CVD Prelim''), the
Department received scope comments on May 9, 2011,\6\ from Blackstone/
OTR LLC and OTR Wheel Engineering, Inc. (collectively, ``Blackstone/
OTR''), U.S. importers of the subject merchandise. On May 18, 2011,
Petitioners submitted their response to Blackstone/OTR's comments. The
CVD Prelim states that the Department would be making a preliminary
determination regarding the aforementioned scope comments with the
issuance of the AD preliminary determination, and that the
determination would be applied to the countervailing duty (``CVD'') and
AD investigations moving forward. However, the Department intends to
address Blackstone/OTR's scope comments and Petitioners' response after
the AD preliminary determination is issued. In doing so, we intend to
issue a questionnaire to Petitioners regarding whether they produce
steel wheels suitable for use for particular applications. We also
intend to request information with respect to whether there are any
specifications that may differentiate the type of steel wheels
Petitioners produce from other types of steel wheels that may be of the
same diameters currently covered by the scope.
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\6\ See Letter from Blackstone/OTR entitled ``Comments on Scope
of Investigation: Certain Steel Wheels from the People's Republic of
China,'' dated May 9, 2011.
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On June 7, 2011, the Department released a memorandum to the file
requesting comment on additional HTSUS categories and language to
include in the scope of the AD and CVD investigations, as proposed by
U.S. Customs and Border Protection (``CBP'').\7\ CBP's suggestion
involved clarifying the scope's coverage by either adding HTSUS
categories that cover steel wheels for non-vehicle applications (e.g.,
elevators, manufacturing and agricultural machinery) or adding language
that states the scope only covers steel wheels for vehicles.
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\7\ See Memorandum to the File entitled ``Suggested Additional
Harmonized Tariff Schedule Categories,'' dated June 7, 2011(``HTSUS
Memorandum'').
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On June 14 \8\ and 21,\9\ 2011, Petitioners submitted comments and
rebuttal comments agreeing with CBP's suggestion to include the
additional HTSUS numbers to the scope language. In addition,
Petitioners state that adding ``use'' (e.g., ``for vehicles'') language
to the scope is inappropriate, as the scope is intended to cover all
steel wheels with a wheel diameter of 18 to 24.5 inches, regardless of
use. Petitioners further state that specifying use in the scope
language could present CBP classification problems, as well as enable
steel wheels of the sizes covered by the scope to evade coverage by
being entered as wheels for machinery and then used as wheels for
vehicles.
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\8\ See Letter from Petitioners entitled ``Certain Steel Wheels
from the People's Republic of China: Response to Request to Add HTS
Categories to Scope Definition,'' dated June 14, 2011.
\9\ See Letter from Petitioners entitled ``Certain Steel Wheels
from the People's Republic of China: Rebuttal to Comments from the
Government of China Regarding the Addition of HTS Categories to the
Scope Definition,'' dated June 21, 2011.
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On June 14 \10\ and 21,\11\ 2011, we received comments and rebuttal
comments from the government of the PRC (``GOC'') on the HTSUS
Memorandum. The GOC supported CBP's proposal to clarify the scope
language by stating that the scope is only intended to include steel
wheels for vehicles. The GOC added that it would be inappropriate for
the Department to include the Harmonized Tariff Schedule of the United
States (``HTSUS'') numbers covering steel wheels for non-vehicle uses
because those HTSUS numbers cover products beyond the scope of the
investigation.
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\10\ See Letter from the GOC entitled ``Certain Steel Wheels
from China: Comments on CBP Proposal for Additional HTS
Categories,'' dated June 14, 2011.
\11\ See Letter from the GOC entitled ``Certain Steel Wheels
from China: Rebuttal Comments on CBP Proposal for Additional HTS
Categories,'' dated June 21, 2011.
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Because the language of the scope currently covers steel wheels
ranging from 18 to 24.5 inches in diameter regardless of use, the
Department has preliminarily determined to add all of the HTS
categories suggested by CBP to the scope.
Scope of the Investigation
The products covered by this investigation are steel wheels with a
wheel diameter of 18 to 24.5 inches. Rims and discs for such wheels are
included, whether imported as an assembly or separately. These products
are used with both tubed and tubeless tires. Steel wheels, whether or
not attached to tires or axles, are included. However, if the steel
wheels are imported as an assembly attached to tires or axles, the tire
or axle is not covered by the scope. The scope includes steel wheels,
discs, and rims of carbon and/or alloy composition and clad wheels,
discs, and rims when carbon or alloy steel represents more than fifty
percent of the product by weight. The scope includes wheels, rims, and
discs, whether coated or uncoated, regardless of the type of coating.
Imports of the subject merchandise are provided for under the
following categories of the HTSUS: 8708.70.05.00, 8708.70.25.00,
8708.70.45.30, and 8708.70.60.30. Imports of the subject merchandise
may also enter under the following categories of the HTSUS:
8406.90.4580, 8406.90.7500, 8420.99.9000, 8422.90.1100, 8422.90.2100,
8422.90.9120, 8422.90.9130, 8422.90.9160, 8422.90.9195, 8431.10.0010,
8431.10.0090, 8431.20.0000, 8431.31.0020, 8431.31.0040, 8431.31.0060,
8431.39.0010,
[[Page 67705]]
8431.39.0050, 8431.39.0070, 8431.39.0080, 8431.43.8060, 8431.49.1010,
8431.49.1060, 8431.49.1090, 8431.49.9030, 8431.49.9040, 8431.49.9085,
8432.90.0005, 8432.90.0015, 8432.90.0030, 8432.90.0080, 8433.90.1000,
8433.90.5020, 8433.90.5040, 8436.99.0020, 8436.99.0090, 8479.90.9440,
8479.90.9450, 8479.90.9496, 8487.90.0080, 8607.19.1200, 8607.19.1500,
8708.70.1500, 8708.70.3500, 8708.70.4560, 8708.70.6060, 8709.90.0000,
8710.00.0090, 8714.19.0030, 8714.19.0060, 8716.90.1000, 8716.90.5030,
8716.90.5060, 8803.20.0015, 8803.20.0030, and 8803.20.0060. These HTSUS
numbers are provided for convenience and customs purposes only; the
written description of the scope is dispositive.
Non-Market Economy Country
For purposes of initiation, Petitioners submitted an LTFV analysis
for the PRC as an NME.\12\ The Department's most recent examination of
the PRC's market status determined that NME status should continue for
the PRC.\13\ Additionally, in two recent investigations, the Department
also determined that the PRC is an NME country.\14\ In accordance with
section 771(18)(C)(i) of the Act, the NME status remains in effect
until revoked by the Department. The Department has not revoked the
PRC's status as an NME country, and we have therefore treated the PRC
as an NME in this preliminary determination and applied our NME
methodology.
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\12\ See Initiation Notice.
\13\ See the Department's memorandum entitled, ``Antidumping
Duty Investigation of Certain Lined Paper Products from the People's
Republic of China (``China'')--China's status as a non-market
economy (``NME''),'' dated August 30, 2006. This document is
available online at: http://ia.ita.doc.gov/download/prc-nme-status/prc-lined-paper-memo-08302006.pdf.
\14\ See, e.g., Certain Kitchen Appliance Shelving and Racks
From the People's Republic of China: Preliminary Determination of
Sales at Less Than Fair Value and Postponement of Final
Determination, 74 FR 9591 (March 5, 2009) (``Kitchen Racks
Prelim''), unchanged in Certain Kitchen Appliance Shelving and Racks
From the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 74 FR 36656 (July 24, 2009) (``Kitchen Racks
Final''); and Certain Tow Behind Lawn Groomers and Certain Parts
Thereof from the People's Republic of China: Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination, 74 FR 4929 (January 28, 2009), unchanged in
Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the
People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 74 FR 29167 (June 19, 2009).
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Selection of Respondents
In accordance with section 777A(c)(2) of the Act, the Department
selected the three largest exporters of steel wheels (i.e., Jining
Centurion Wheels Manufacturing (``Centurion''), Shanghai Yata Industry
Company Limited (``Shanghai Yata'') and Zhejiang Jingu Company Limited
(``Zhejiang Jingu'')), by volume, as the individually examined
respondents in this investigation. The Department used volume data from
the quantity and value (``Q&V'') information submitted by exporters/
producers that were identified in the Petition, of which 11 firms filed
timely Q&V questionnaire responses.\15\ Of the 11 Q&V questionnaire
responses, four companies (Zhejiang Jingu, Shanghai Yata, Xiamen
Sunrise Wheel Group Co., Ltd. (``Xiamen Sunrise'') and Xiamen Topu
Import & Export Co., Ltd. (``Xiamen Topu'')) filed timely documentation
in support of their requests that the Department treat them as two
single entities (i.e., 1) Zhejiang Jingu/Shanghai Yata and (2) Xiamen
Sunrise/Xiamen Topu) for purposes of respondent selection. Three
companies (Centurion, Shandong Xingmin Wheel Co., Ltd. (``Xingmin
Wheel''), and Xiamen Sunrise) requested to be treated as voluntary
respondents.
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\15\ See the Department's memorandum entitled, ``Antidumping
Duty Investigation of Certain Steel Wheels From the People's
Republic of China: Respondent Selection,'' dated June 9, 2011
(``Respondent Selection Memo'').
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The Department issued its antidumping questionnaire to Centurion,
Shanghai Yata, and Zhejiang Jingu on June 13, 2011. The Department
requested that the respondents provide a response to section A of the
Department's questionnaire by July 5, 2011, and a response to sections
C and D of the questionnaire by July 20, 2011. From June 30, 2011,
until October 6, 2011, the Department granted all respondents several
extensions for their submissions.
Centurion submitted its responses to the section A, C and D
questionnaires on July 5, July 27, and August 3, 2011, respectively.
Centurion submitted responses to the supplemental section A, C and D
questionnaires on August 9, September 9, and September 22, 2011,
respectively. On September 28, 2011, the Department received
Centurion's second supplemental section D questionnaire response.
Finally, Centurion submitted its response to the Department's
supplemental questionnaire regarding sections A, C, D and surrogate
values in two parts: the first part on October 12 and the second on
October 14, 2011.
Zhejiang Jingu and Shanghai Yata submitted their section A and C
questionnaire responses on July 15, 2011 and July 27, 2011,
respectively. Zhejiang Jingu and its wholly-owned subsidiary, Chengdu
Jingu Wheel Co., Ltd., submitted responses to section D of the
questionnaire on August 4, 2011. The Department received Zhejiang Jingu
and Shanghai Yata's supplemental section A and C questionnaire
responses on August 19 and August 29, 2011, respectively. Zhejiang
Jingu submitted its supplemental section D questionnaire response in
two parts: the first part on September 20 and second part on September
27, 2011. On October 11, 2011, Zhejiang Jingu submitted its response to
the Department's supplemental questionnaire regarding surrogate value
and factors of production (``FOP'') information. Last, on October 17,
2011, Zhejiang Jingu submitted its second supplemental section D
questionnaire response.
On July 5, 2011, Xiamen Sunrise, Xiamen Topu, as well as Xingmin
Wheel, entities that requested that we select them as voluntary
respondents, submitted their responses to section A of the
questionnaire. On July 20, 2011, Xiamen Sunrise, Xiamen Topu, as well
as Xingmin Wheel submitted their responses to sections C and D of the
questionnaire.
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to section 735(a)(2) of the Act, on October 3 and October
7, 2011, respectively, Zhejiang Jingu, Shanghai Yata and Centurion
requested that, in the event of an affirmative preliminary
determination in this investigation, the Department postpone the final
determination by 60 days. Zhejiang Jingu, Shanghai Yata, and Centurion
also requested that the Department extend the application of the
provisional measures prescribed under 19 CFR 351.210(e)(2) from a four-
month period to a six-month period. In accordance with section 733(d)
of the Act and 19 CFR 351.210(b), because (1) our preliminary
determination is affirmative, (2) the requesting exporters account for
a significant proportion of exports of the subject merchandise, and (3)
no compelling reasons for denial exist, we are granting the request and
are postponing the final determination until no later than 135 days
after the publication of this notice in the Federal Register.
Suspension of liquidation will be extended accordingly.
[[Page 67706]]
Critical Circumstances
On August 22, 2011, Petitioners alleged that there is a reasonable
basis to believe or suspect critical circumstances exist with respect
to the antidumping investigation of steel wheels from the PRC.\16\ On
September 26, 2011, Zhejiang Jingu, Shanghai Yata, and Centurion \17\
submitted information on their shipments of steel wheels from December
2010 through July 2011, as requested by the Department.\18\ In
accordance with 19 CFR 351.206(c)(2)(i), because Petitioners submitted
critical circumstances allegations more than 20 days before the
scheduled date of the preliminary determination, the Department must
issue preliminary critical circumstances determinations not later than
the date of the preliminary determination.
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\16\ See Letter from Petitioners entitled ``Certain Steel Wheels
from the People's Republic of China,'' dated August 22, 2011
(``Critical Circumstances Allegation'').
\17\ Though we did not request data from Xiamen Sunrise, it also
submitted its monthly shipment data on September 26, 2011.
\18\ See Letter from Zhejiang Jingu and Shanghai Yata entitled
``AD Investigation of Steel Wheels from China: Critical
Circumstances Shipment Data,'' dated September 26, 2011 (``Zhejiang
Jingu's and Shanghai Yata's Monthly Shipment Data'') at Exhibit I.
See also Letter from Centurion, ``Antidumping Duty Investigation of
Certain Steel Wheels from China: Response to Request for Monthly
Shipment Information Questionnaire,'' dated September 26, 2011
(``Centurion's Monthly Shipment Data'').
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Section 733(e)(1) of the Act provides that the Department will
preliminarily determine that critical circumstances exist if there is a
reasonable basis to believe or suspect that: (A)(i) There is a history
of dumping and material injury by reason of dumped imports in the
United States or elsewhere of the subject merchandise; or (ii) the
person by whom, or for whose account, the merchandise was imported knew
or should have known that the exporter was selling the subject
merchandise at less than its fair value and that there was likely to be
material injury by reason of such sales; and (B) there have been
massive imports of the subject merchandise over a relatively short
period. Section 351.206(h)(1) of the Department's regulations provides
that, in determining whether imports of the subject merchandise have
been ``massive,'' the Department normally will examine: (i) The volume
and value of the imports; (ii) seasonal trends; and (iii) the share of
domestic consumption accounted for by the imports. In addition, section
351.206(h)(2) of the Department's regulations provides that an increase
in imports of 15 percent during the ``relatively short period'' of time
may be considered ``massive.'' Section 351.206(i) of the Department's
regulations defines ``relatively short period'' as normally being the
period beginning on the date the proceeding begins (i.e., the date the
petition is filed) and ending at least three months later (i.e., the
comparison period). The comparison period is normally compared to a
corresponding period prior to the filing of the petition (i.e., the
base period).
In determining whether the above statutory criteria have been
satisfied, we examined: (1) The evidence presented in Petitioners'
August 22, 2011, Critical Circumstances Allegation, and (2) additional
information obtained from Zhejiang Jingu, Shanghai Yata, Centurion, and
the ITC.\19\
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\19\ See Critical Circumstances Allegation. See also Zhejiang
Jingu's and Shanghai Yata's Monthly Shipment Data and Centurion's
Monthly Shipment Data. See also Memorandum to the File,
``Antidumping Duty Investigation of Certain Steel Wheels from the
People's Republic of China, Critical Circumstances Data and
Calculations for the Preliminary Determination,'' dated October 26,
2011 (``Critical Circumstances Calculation Memorandum''). See also
U.S. ITC Publication 4233, Certain Steel Wheels from China:
Investigation Nos. 701-TA-478 and 731-TA-1182(Preliminary), May 2011
(``ITC Preliminary Report'').
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In accordance with section 733(e)(1)(A)(i) of the Act, to determine
whether there is a history of dumping and material injury by reason of
dumped imports in the United States or elsewhere of the subject
merchandise, the Department generally considers current or previous
antidumping duty orders on subject merchandise from the country in
question in the United States and current orders in any other country
with regard to imports of subject merchandise. Petitioners noted that
in 2007, India imposed antidumping duties on steel wheels from the PRC
that are of a size subsumed within the scope of this petition.\20\ The
ITC Preliminary Report notes that in March 2007, ``India made final
determinations and imposed antidumping duties on commercial steel
wheels from China in sizes from 16 to 20 inches in nominal diameter.''
\21\ We have reviewed these findings and found that the product
coverage overlaps the product coverage of the Department's AD
investigation of steel wheels from the PRC. We are not aware of the
existence of any additional active antidumping orders or investigations
on steel wheels from the PRC in other countries. As a result of the
Indian order cited above, the Department finds there is a history of
injurious dumping of steel wheels from the PRC pursuant to section
733(e)(1)(A)(i) of the Act.
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\20\ See Volume I of the Petition at 12 and Exhibit I-9.
\21\ See ITC Preliminary Report at 24 and VII-6.
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In accordance with Section 733(e)(1)(A)(ii) of the Act, to
determine whether importers of steel wheels from the PRC knew or should
have known that the exporter was selling the subject merchandise at
less than its fair value and that there was likely to be material
injury by reason of such sales, the Department must rely on the facts
before it at the time the determination is made. The Department
generally bases its decision with respect to knowledge on the margins
calculated in the preliminary antidumping duty determination and the
ITC preliminary injury determination.\22\
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\22\ See, e.g., Carbon and Alloy Steel Wire Rod From Germany,
Mexico, Moldova, Trinidad and Tobago, and Ukraine: Notice of
Preliminary Determination of Critical Circumstances, 67 FR 6224,
6225 (February 11, 2002).
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The Department normally considers margins of 25 percent or more for
export price (``EP'') sales and 15 percent or more for constructed
export price (``CEP'') sales sufficient to impute importer knowledge of
sales at LTFV.\23\ In this preliminary determination, Centurion has a
combined margin of 110.58 percent for its EP and CEP sales.\24\
Zhejiang Jingu and Shanghai Yata have a combined margin of 141.38
percent for their sales, all of which were EP transactions.\25\
Consistent with Department practice, we based the margin for the
separate rate respondents on the average of the margins calculated for
the individually examined respondents, excluding any rates that are
zero, de minimis, or based entirely on AFA.\26\ Accordingly, we have
preliminarily applied to the separate rate companies a margin of 125.98
percent. The PRC entity has a margin of 193.54 percent.\27\
Accordingly, we find that the preliminary margins for Centurion,
Zhejiang Jingu/Shanghai Yata, the separate rate companies, and
[[Page 67707]]
the PRC entity are sufficient to impute such knowledge.
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\23\ See id.
\24\ See Critical Circumstances Calculation Memorandum at
Attachments II and III.
\25\ See id. See also the Affiliation section of this notice,
below.
\26\ See, e.g., Preliminary Determination of Sales at Less Than
Fair Value and Partial Affirmative Determination of Critical
Circumstances: Certain Polyester Staple Fiber from the People's
Republic of China, 71 FR 77373, 77377 (December 26, 2006) (``PSF''),
unchanged in Final Determination of Sales at Less Than Fair Value
and Partial Affirmative Determination of Critical Circumstances:
Certain Polyester Staple Fiber from the People's Republic of China,
72 FR 19690 (April 19, 2007), see also the ``Separate Rates''
section.
\27\ See Critical Circumstances Calculation Memorandum at
Attachments II and III. See also, the The PRC-Wide Entity and PRC-
Wide Rate section, below.
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In determining whether there is a reasonable basis to believe or
suspect that an importer knew or should have known that there was
likely to be material injury by reason of dumped imports, consistent
with section 733(e)(1)(A)(ii) of the Act, the Department normally will
look to the preliminary injury determination of the ITC.\28\ On May 16,
2011, the ITC issued its preliminary affirmative determination for
steel wheels from the PRC.\29\ Accordingly, based on the above
analysis, the Department finds that there is a reasonable basis to
believe or suspect that the importers knew or should have known that
there was likely to be material injury by reason of sales at LTFV of
steel wheels from the PRC from Centurion, Zhejiang Jingu/Shanghai Yata,
the separate rate companies, and the PRC entity.
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\28\ See, e.g., Lemon Juice from Argentina: Preliminary
Determination of Sales at Less than Fair Value and Affirmative
Preliminary Determination of Critical Circumstances, 72 FR 20820,
20828 (April 26, 2007).
\29\ See ITC Preliminary Determination.
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In accordance with section 733(e)(1)(B) of the Act, the Department
must determine whether there have been massive imports of the subject
merchandise over a relatively short period. Pursuant to 19 CFR
351.206(h), we will not consider imports to be massive unless imports
in the comparison period have increased by at least 15 percent over
imports in the base period. As discussed above, the Department normally
determines the comparison period for massive imports based on the
filing date of the petition. Based on the March 30, 2011, filing date,
we have determined that April 2011 is the month in which importers,
exporters or producers knew or should have known an antidumping duty
investigation was likely. Additionally, we have used a period of four
months (i.e., April through July 2011) as the period for comparison in
preliminarily determining whether imports of the subject merchandise
have been massive. We believe that a four-month period is most
appropriate as the basis for analysis because using four months
captures all data available at this time, based on April 2011 as the
beginning of the comparison period. Additionally, a four-month period
properly reflects the ``relatively short period'' set forth in the
statute for determining whether imports have been massive.\30\ It is
our practice to base the critical circumstances analysis on all
available data, using base and comparison periods of no less than three
months.\31\
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\30\ See section 733(e)(1)(B) of the Act.
\31\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value, Postponement of Final Determination, and
Affirmative Preliminary Determination of Critical Circumstances:
Certain Frozen and Canned Warmwater Shrimp from India, 69 FR 47111
(August 4, 2004), unchanged in the final determination, (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 India, 69 FR 76916 (December 23,
2004)); and Notice of Final Determination of Sales at Less Than Fair
Value and Negative Final Determination of Critical Circumstances:
Certain Color Television Receivers From the People's Republic of
China, 69 FR 20594 (Apr. 16, 2004), and accompanying Issues and
Decision Memorandum (``IDM'') at Comment 3.
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Therefore, we have used all available data in our critical-
circumstances analysis for the preliminary determination. In applying
the four-month period, we used a base period of December 2010 through
March 2011, and a comparison period of April 2011 through July 2011.
Individually Examined Respondents
The Department used the shipment data of the three individually
examined respondents, Zhejiang Jingu and Shanghai Yata (collapsed) \32\
and Centurion, to examine the relevant base and comparison periods as
identified above. When we compared Zhejiang Jingu and Shanghai Yata's
shipment data during the comparison period with the base period, we
found that imports of Zhejiang Jingu and Shanghai Yata's subject
merchandise in the comparison period have not increased by at least 15
percent over imports in the base period, and we do not consider them to
be massive, pursuant to section 351.206(h) of the Department's
regulations.\33\ When we compared Centurion's shipment data during the
comparison period with the base period, we found that imports of
Centurion's subject merchandise in the comparison period have increased
by more than 15 percent over imports in the base period; hence we
consider imports of Centurion's subject merchandise to be massive,
pursuant to section 351.206(h) of the Department's regulations.\34\
---------------------------------------------------------------------------
\32\ See the Department's Memorandum, ``Antidumping Duty
Investigation of Certain Steel Wheels from the People's Republic of
China: Affiliation and Collapsing of Zhejiang Jingu Company Limited
and Shanghai Yata Industry Company Limited'' dated concurrently with
this notice (``Affiliation and Collapsing Memorandum'') and the
``Affiliation'' section below.
\33\ See Critical Circumstances Calculation Memorandum at
Attachment I.
\34\ See, id.
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Separate Rate Applicants
For the separate rate applicants, we did not request the monthly
shipment information necessary to determine if there were massive
imports. As the basis to measure whether massive imports existed for
purposes of critical circumstances, we relied on the experience of the
individually examined respondents receiving a separate rate.\35\ We
calculated the weighted-average percent change in imports in the
comparison period over the base period for the individually examined
respondents, and we do not find the imports of the separate rate
applicants to be massive pursuant to section 351.206(h) of the
Department's regulations.\36\
---------------------------------------------------------------------------
\35\ See, Certain Oil Country Tubular Goods From the People's
Republic of China: Notice of Preliminary Determination of Sales at
Less Than Fair Value, Affirmative Preliminary Determination of
Critical Circumstances and Postponement of Final Determination, 74
FR 59117, 59121 (November 17, 2009), unchanged in Certain Oil
Country Tubular Goods from the People's Republic of China: Final
Determination of Sales at Less Than Fair Value, Affirmative Final
Determination of Critical Circumstances and Final Determination of
Targeted Dumping, 75 FR 20335 (April 19, 2010) (``OCTG
Investigation'').
\36\ See id.
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The PRC Entity
With respect to imports from the PRC entity, the Department's
general approach is to examine U.S. import data from the ITC's DataWeb,
adjusted to remove shipments by the respondents participating in the
investigation.\37\ By examining overall imports from the country in
question, the Department tries to ascertain whether a massive increase
in shipments occurred within a relatively short period following the
point at which importers had reason to believe that a proceeding was
likely. In this case, according to the Petitioners, the HTSUS numbers
listed in the scope of the investigation include both subject
merchandise and non-subject merchandise.\38\ Thus, we cannot rely on
these data in making our ``massive imports'' determination.\39\ Lacking
information on whether there was a massive import surge for the PRC
entity, we are unable to determine whether there have been massive
imports of steel
[[Page 67708]]
wheels from the producers included in the PRC entity.\40\
---------------------------------------------------------------------------
\37\ See, e.g., Laminated Woven Sacks From the People's Republic
of China: Preliminary Determination of Sales at Less Than Fair
Value, Partial Affirmative Determination of Critical Circumstances,
and Postponement of Final Determination, 73 FR 5801 (January 31,
2008); and Drill Pipe from the People's Republic of China: Notice of
Preliminary Affirmative Determination of Critical Circumstances, 75
FR 49891 (August 16, 2010).
\38\ See Petition at Exhibit I-4. The Department's subsequent
preliminary determination to add HTS numbers to the scope of the
investigation does not affect the Petitioners' assertion or our
resulting analysis.
\39\ See OCTG Investigation.
\40\ See, e.g., Notice of Preliminary Affirmative Countervailing
Duty Determination and Preliminary Negative Critical Circumstances
Determination: Certain Lined Paper Products from India, 71 FR 7916
(February 15, 2006) (making a preliminary negative critical
circumstances determination for lack of a sufficient factual basis).
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Critical Circumstances Findings
Based on the above analysis, we preliminarily determine that
critical circumstances do not exist for Zhejiang Jingu and Shanghai
Yata (collapsed), the separate rate respondents, or the PRC entity.
However, we preliminarily determine that critical circumstances do
exist with respect to imports from Centurion. After issuance of the
preliminary determination, we intend to request updated monthly
shipment data from the mandatory respondents, and we will reevaluate
our critical circumstances determination after the preliminary
determination based on the updated data we receive.
Surrogate Country
Section 773(c)(1) of the Act directs the Department to base normal
value (``NV'') on the NME producer's FOPs, valued in a surrogate market
economy (``ME'') country or countries considered to be appropriate by
the Department. In accordance with section 773(c)(4) of the Act, in
valuing the FOPs, the Department shall use, to the extent possible, the
prices or costs of the FOPs in one or more ME countries that are: (1)
At a level of economic development comparable to that of the NME
country; and (2) significant producers of comparable merchandise. The
sources of the surrogate factor values are discussed under the ``Factor
Valuations'' section below.\41\
---------------------------------------------------------------------------
\41\ See the Department's Memorandum, ``Antidumping Duty
Investigation of Certain Steel Wheels from the People's Republic of
China (``PRC''): Preliminary Determination Surrogate Value
Memorandum,'' dated concurrently with this notice (``Surrogate Value
Memorandum'').
---------------------------------------------------------------------------
The Department determined that Colombia, Indonesia, the
Philippines, South Africa, Thailand and Ukraine are countries
comparable to the PRC in terms of economic development.\42\ 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.
---------------------------------------------------------------------------
\42\ See the Department's Memorandum, ``Antidumping Duty
Investigation of Certain Steel Wheels from the People's Republic of
China: List of Surrogate Countries,'' dated June 24, 2011
(``Surrogate Country Memorandum'').
---------------------------------------------------------------------------
Petitioners, in their August 8, 2011 comments on surrogate country,
recommend that the Department select Indonesia as the primary surrogate
country, as Indonesia is economically comparable to the PRC and a
significant producer of steel and aluminum wheels. Zhejiang Jingu and
Shanghai Yata, in their August 8, 2011 comments on surrogate country,
state that based on the surrogate value and other information included
in the petition, India appears to be a significant producer of
identical merchandise and is a reliable source for deriving surrogate
country data. Centurion, in its August 8, 2011 comments on surrogate
country, recommends that the Department select India as the primary
surrogate country. Centurion argues that India is a significant
producer of comparable merchandise and represents the best choice in
terms of the quality of data available. Centurion also argues that if
the Department decides not to choose India as the primary surrogate
country, Indonesia should be selected, as it is economically comparable
and a significant producer of comparable merchandise. Additionally,
Petitioners, Zhejiang Jingu and Shanghai Yata, and Centurion each put
import data from Indonesia on the record of this proceeding.
Economic Comparability
As explained in the Surrogate Country Memorandum, the Department
considers Colombia, Indonesia, the Philippines, South Africa, Thailand
and Ukraine equally comparable to the PRC in terms of economic
development.\43\ Therefore, we consider all six countries as having
satisfied this prong of the surrogate country selection criteria.
Accordingly, unless we find that all of the countries determined to be
equally economically comparable are not significant producers of
comparable merchandise, do not provide a reliable source of publicly
available surrogate data or are unsuitable for use for other reasons,
we will rely on data from one of these countries.
---------------------------------------------------------------------------
\43\ See Surrogate Country Memorandum.
---------------------------------------------------------------------------
Producers of Identical or Comparable Merchandise
Section 773(c)(4)(B) of the Act requires the Department to value
FOPs in a surrogate country that is a significant producer of
comparable merchandise. Neither the statute nor the Department's
regulations provide further guidance on what may be considered
comparable merchandise. Given the absence of any definition in the
statute or regulations, the Department looks to other sources such as
Policy Bulletin 04.1 \44\ for guidance on defining comparable
merchandise. Policy Bulletin 04.1 states that ``the terms `comparable
level of economic development,' `comparable merchandise,' and
`significant producer' are not defined in the statute.'' \45\ Policy
Bulletin 04.1 further states that ``in all cases, if identical
merchandise is produced, the country qualifies as a producer of
comparable merchandise.'' \46\ Conversely, if identical merchandise is
not produced, then a country producing comparable merchandise is
sufficient in selecting a surrogate country.\47\ Further, when
selecting a surrogate country, the statute requires the Department to
consider the comparability of the merchandise, not the comparability of
the industry.\48\ ``In cases where the identical merchandise is not
produced, the Department must determine if other merchandise that is
comparable is produced.'' \49\ In this regard, the Department
recognizes that any analysis of comparable merchandise must be done on
a case-by-case basis:
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\44\ See the Department's Policy Bulletin No. 04.1, regarding,
``Non-Market Economy Surrogate Country Selection Process,'' (March
1, 2004) (``Policy Bulletin 04.1''), available on the Department's
Web site at http://ia.ita.doc.gov/policy/bull04-.html.
\45\ See Policy Bulletin 04.1.
\46\ See id.
\47\ Policy Bulletin 04.1 also states that ``if considering a
producer of identical merchandise leads to data difficulties, the
operations team may consider countries that produce a broader
category of reasonably comparable merchandise.'' See id., at note 6.
\48\ See Sebacic Acid from the People's Republic of China; Final
Results of Antidumping Duty Administrative Review, 62 FR 65674
(December 15, 1997) and accompanying IDM at Comment 1 (to impose a
requirement that merchandise must be produced by the same process
and share the same end uses to be considered comparable would be
contrary to the intent of the statute).
\49\ See Policy Bulletin 04.1, at 2.
In other cases, however, where there are major inputs, i.e., inputs
that are specialized or dedicated or used intensively, in the
production of the subject merchandise, e.g., processed agricultural,
aquatic and mineral products, comparable merchandise should be
identified narrowly, on the basis of a comparison of the major
inputs, including energy, where appropriate.\50\
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\50\ See id, at 3.
In evaluating which of the six countries are exporters or producers
\51\ of identical
[[Page 67709]]
or comparable merchandise, the Department looked to export data
obtained from Global Trade Atlas (``GTA'') for HTSUS 8708.70: Wheels
Including Parts And Accessories For Motor Vehicles, which covers the
merchandise under investigation. The GTA data for the comparable
merchandise demonstrates that all the countries in the Surrogate
Country Memorandum are producers of comparable merchandise.
---------------------------------------------------------------------------
\51\ The Department has previously relied on production data for
selecting the primary surrogate country. See, e.g., Wooden Bedroom
Furniture from the People's Republic of China: Preliminary Results
of Antidumping Duty New Shipper Review, 75 FR 9581, 9584 (March 3,
2010), unchanged in Wooden Bedroom Furniture from the People's
Republic of China: Final Results of Antidumping Duty New Shipper
Review, 75 FR 44764 (July 29, 2010).
---------------------------------------------------------------------------
Significant Producers of Identical or Comparable Merchandise
As noted above, Colombia, Indonesia, the Philippines, South Africa,
Thailand and Ukraine were exporters of comparable merchandise in 2010.
We find that the GTA data demonstrates that these countries were also
significant producers of comparable merchandise.\52\ Since all
countries on the surrogate country list remain qualified, the
Department looks to the availability of surrogate value data to
determine the most appropriate surrogate country of the two remaining
countries.
---------------------------------------------------------------------------
\52\ See Surrogate Value Memorandum.
---------------------------------------------------------------------------
Data Availability
When evaluating surrogate value data, the Department considers
several factors including whether the surrogate value is publicly
available, contemporaneous with the POI, represents a broad market
average, from an approved surrogate country, tax and duty-exclusive,
and specific to the input. There is no hierarchy among these criteria;
it is the Department's practice to carefully consider the available
evidence in light of the particular facts of each industry when
undertaking its analysis.\53\ While the record does not contain
appropriate surrogate value data from Colombia, the Philippines, South
Africa, Thailand or Ukraine, in this case, the record does contain data
and a surrogate financial statement for Indonesia. Accordingly, for
purposes of the preliminary determination, there is no need for the
Department to consider countries not as economically comparable as
those identified in the Surrogate Country Memorandum, given the facts
of this case. Therefore, we have selected Indonesia as the surrogate
country to use in this investigation, and, accordingly, have calculated
NV using Indonesian prices to value the respondent's FOPs, when
available and appropriate. See Surrogate Value Memorandum. We have
obtained and relied upon publicly available information wherever
possible.
---------------------------------------------------------------------------
\53\ See Policy Bulletin 04.1.
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Surrogate Value Comments
Timely surrogate value submissions were filed on August 19, 2011,
by Centurion, Zhejiang Jingu, Shanghai Yata, and Petitioners. Centurion
filed rebuttal surrogate values comments on August 26, 2011. For a
detailed discussion of the surrogate values used in this LTFV
proceeding, see the ``Factor Valuation'' section below and the
Surrogate Value Memorandum.
Affiliation
Based on the evidence presented in Zhejiang Jingu and Shanghai
Yata's questionnaire responses, we preliminarily find that they are
affiliated, pursuant to section 771(33)(E) of the Act. In addition,
based on the evidence presented in their respective questionnaire
responses, we preliminarily find that Zhejiang Jingu and Shanghai Yata
should be treated as a single entity for the purposes of this
investigation. This finding is based on the determination that Shanghai
Yata, an exporter of subject merchandise, is a wholly-owned subsidiary
of Zhejiang Jingu whose operations are fully integrated with those of
Shanghai Yata. Further, we find that there is significant potential for
manipulation of price or production between the parties pursuant to 19
CFR 351.401(f). For further discussion of the Department's affiliation
and collapsing decision, see the Affiliation and Collapsing Memorandum.
Separate Rates
In the Initiation Notice, the Department notified parties of the
application process by which exporters and producers may obtain
separate rate status in NME investigations.\54\ The process requires
exporters and producers to submit an SRA.\55\ The standard for
eligibility for a separate rate is whether a firm can demonstrate an
absence of both de jure and de facto government control over its export
activities. In this instant investigation, the Department received
timely-filed SRAs from eight separate rate applicants.\56\ The three
individually examined respondents (i.e., Zhejiang Jingu, Shanghai Yata,
and Centurion), and the separate rate applicants provided company-
specific information, and each stated that it meets the criteria for
the assignment of a separate rate.
---------------------------------------------------------------------------
\54\ See Initiation Notice.
\55\ See Policy Bulletin 05.1, which states: ``while continuing
the practice of assigning separate rates only to exporters, all
separate rates that the Department will now assign in its NME
investigations will be specific to those producers that supplied the
exporter during the period of investigation. Note, however, that one
rate is calculated for the exporter and all of the producers which
supplied subject merchandise to it during the period of
investigation. This practice applied both to mandatory respondents
receiving an individually calculated separate rate as well as the
pool of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The
cash-deposit rate assigned to an exporter will apply only to
merchandise both exported by the firm in question and produced by a
firm that supplied the exporter during the period of
investigation.'' See Policy Bulletin 05.1 at 6.
\56\ The separate rate applicants are: (1) Shandong Land Star
Import & Export Co., Ltd (``Shandong Land Star''), (2) Shandong
Jining Wheel Factory (``Shandong Jining''); (3) Wuxi Superior Wheel
Co., Ltd. (``Wuxi Superior''), (4) Xingmin Wheel, (5) Xiamen
Sunrise, (6) Jiaxing Stone Wheel Co., Ltd. (``Jiaxing Stone''), (7)
Xiamen Topu, and (8) China Dongfeng Motor Industry Imp. & Exp. Co.,
Ltd. (``Dongfeng Motor'').
---------------------------------------------------------------------------
In proceedings involving NME countries, the Department has a
rebuttable presumption that all companies within the country are
subject to government control and thus should be assessed a single
antidumping duty rate.\57\ It is the Department's policy to assign all
exporters of merchandise subject to investigation in an NME country
this single rate unless an exporter can demonstrate that it is
sufficiently independent so as to be entitled to a separate rate.
Exporters can demonstrate this independence through the absence of both
de jure and de facto governmental control over export activities. The
Department analyzes each entity exporting the subject merchandise under
a test arising from Final Determination of Sales at Less Than Fair
Value: Sparklers from the People's Republic of China, 56 FR 20588 (May
6, 1991) (``Sparklers''), as further developed in Final Determination
of Sales at Less Than Fair Value: Silicon Carbide from the People's
Republic of China, 59 FR 22585 (May 2, 1994) (``Silicon Carbide''). As
information on the record demonstrates that Wuxi Superior is wholly
foreign-owned,\58\ consistent with our practice, we have not conducted
a separate rate analysis of Wuxi Superior.
---------------------------------------------------------------------------
\57\ See, e.g., 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 (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 (May 22, 2006).
\58\ See Wuxi Superior's SRA dated June 27, 2011.
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a. Absence of De Jure Control
The Department considers the following de jure criteria in
determining
[[Page 67710]]
whether an individual company may be granted a separate rate: (1) An
absence of restrictive stipulations associated with an individual
exporter's business and export licenses; (2) any legislative enactments
decentralizing control of companies; and (3) other formal measures by
the government decentralizing control of companies. See Sparklers, 56
FR at 20589.
The evidence provided by all separate rate applicants supports a
preliminary finding of de jure absence of government control based on
the following: (1) an absence of restrictive stipulations associated
with the individual exporter's business and export licenses; (2)
applicable legislative enactments that decentralize control of the
companies; and (3) formal measures by the government decentralizing
control of companies. See Shandong Land Star's SRA submissions, dated
June 24, 2011 and July 15, 2011; Shandong Jining's SRA submission dated
July 6, 2011; Xingmin Wheel's SRA submissions, dated June 27, 2011 and
July 21, 2011; Xiamen Sunrise's SRA submissions, dated June 24, 2011
and July 21, 2011; Jiaxing Stone's SRA submissions, dated June 28, 2011
and July 21, 2011; Xiamen Topu's SRA submissions, dated June 24, 2011
and July 21, 2011; and Dongfeng Motor's SRA submissions, dated June 24,
2011 and July 27, 2011; as well as Zhejiang Jingu and Shanghai Yata's
SRA and section A questionnaire submissions, dated June 27, 2011, July
15, 2011 and August 19, 2011, respectively; and Centurion's section A
questionnaire submissions, dated July 5, 2011 and August 8, 2011, where
the individually examined respondents and separate rate applicants
certified that they had no relationship with any level of the PRC
government with respect to ownership, internal management, and business
operations.
b. Absence of De Facto Control
Typically, the Department considers four factors in evaluating
whether each respondent is subject to de facto government control of
its export functions: (1) Whether the export prices are set by or are
subject to the approval of a government agency; (2) whether the
respondent has authority to negotiate and sign contracts and other
agreements; (3) whether the respondent has autonomy from the government
in making decisions regarding the selection of management; and (4)
whether the respondent retains the proceeds of its export sales and
makes independent decisions regarding disposition of profits or
financing of losses. See Silicon Carbide, 59 FR at 22586-87; see also
Notice of Final Determination of Sales at Less Than Fair Value:
Furfuryl Alcohol From the People's Republic of China, 60 FR 22544,
22545 (May 8, 1995). The Department has determined that an analysis of
de facto control is critical in determining whether respondents are, in
fact, subject to a degree of government control which would preclude
the Department from assigning separate rates.
In this investigation, each individually examined respondent and
separate rate applicant asserted the following: (1) That the export
prices are not set by, and are not subject to, the approval of a
governmental agency; (2) they have authority to negotiate and sign
contracts and other agreements; (3) they have autonomy from the
government in making decisions regarding the selection of management;
and (4) they retain the proceeds of their export sales and make
independent decisions regarding disposition of profits or financing of
losses. Additionally, each of these companies' SRA responses indicates
that its pricing during the POI does not involve coordination among
exporters.\59\
---------------------------------------------------------------------------
\59\ See Shandong Land Star's SRA submissions dated June, 24,
2011 and July 15, 2011; Shandong Jining's SRA submission dated July
6, 2011; Xingmin Wheel's SRA submissions dated June 27, 2011 and
July 21, 2011; Xiamen Sunrise's SRA submissions, dated June 24, 2011
and July 21, 2011; Jiaxing Stone's SRA submissions, dated June 28,
2011 and July 21, 2011; Xiamen Topu's SRA submissions dated June 24,
2011 and July 21, 2011; and Dongfeng Motor's SRA submissions, dated
June 24, 2011 and July 27, 2011; as well as Zhejiang Jingu and
Shanghai Yata's SRA and section A questionnaire submissions, dated
June 27, 2011, July 15, 2011 and August 19, 2011, respectively; and
Centurion's section A questionnaire submissions, dated July 5, 2011
and August 8, 2011.
---------------------------------------------------------------------------
Evidence placed on the record of this investigation by Zhejiang
Jingu, Shanghai Yata, Centurion, and the separate rate applicants
demonstrate an absence of de jure and de facto government control with
respect to their respective exports of the merchandise under
investigation, in accordance with the criteria identified in Sparklers
and Silicon Carbide. Therefore, we are preliminarily granting a
separate rate to these entities.
Margin for Separate Rate Companies
As discussed above, the Department received timely and complete
separate rate applications from (1) Shandong Land Star, (2) Shandong
Jining, (3) Wuxi Superior, (4) Xingmin Wheel, (5) Xiamen Sunrise, (6)
Jiaxing Stone, (7) Xiamen Topu and (8) Dongfeng Motor, all of which
were exporters of steel wheels from the PRC during the POI and were not
selected as individually examined respondents in this investigation.
Through the evidence in their respective SRAs, these companies have
demonstrated their eligibility for a separate rate. Consistent with the
Department's practice, we have established a margin for the separate
rate applicants based on the average of the rates we calculated for the
individually examined respondents, Centurion and Zhejiang Jingu/
Shanghai Yata, excluding any rates that were zero, de minimis, or based
entirely on AFA.\60\
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\60\ See, e.g., Preliminary Determination of Sales at Less Than
Fair Value and Partial Affirmative Determination of Critical
Circumstances: Certain Polyester Staple Fiber from the People's
Republic of China, 71 FR 77373, 77377 (December 26, 2006), unchanged
in Final Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances: Certain
Polyester Staple Fiber from the People's Republic of China, 72 FR
19690 (April 19, 2007).
---------------------------------------------------------------------------
Application of Facts Otherwise Available and Adverse Facts Available
The PRC-Wide Entity and PRC-Wide Rate
We issued our request for Q&V information to 19 potential Chinese
exporters of the subject merchandise, in addition to posting the Q&V
questionnaire on the Department's Web site. See Respondent Selection
Memo. While information on the record of this investigation indicates
that there are numerous producers/exporters of steel wheels in the PRC,
we received only eleven timely filed Q&V responses. Although all
exporters were given an opportunity to provide Q&V information, not all
exporters provided a response to the Department's Q&V letter.
Therefore, the Department has preliminarily determined that there were
exporters/producers of the subject merchandise during the POI from the
PRC that did not respond to the Department's request for information.
We have treated these PRC producers/exporters as part of the PRC-wide
entity because they did not apply for a separate rate.\61\
---------------------------------------------------------------------------
\61\ See, e.g., Kitchen Racks Prelim, unchanged in Kitchen Racks
Final.
---------------------------------------------------------------------------
Section 776(a)(2) of the Act provides that, 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 subsections 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, the Department shall, subject to subsection 782(d) of the
Act, use facts otherwise
[[Page 67711]]
available in reaching the applicable determination.
Information on the record of this investigation indicates that the
PRC-wide entity was non-responsive. Certain companies did not respond
to our questionnaire requesting Q&V information. As a result, pursuant
to section 776(a)(2)(A) of the Act, we find that the use of facts
available (``FA'') is appropriate to determine the PRC-wide rate.\62\
---------------------------------------------------------------------------
\62\ See Preliminary Determination of Sales at Less Than Fair
Value, Affirmative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain
Frozen Fish Fillets from the Socialist Republic of Vietnam, 68 FR
4986 (January 31, 2003), unchanged in Final Determination of Sales
at Less Than Fair Value and Affirmative Critical Circumstances:
Certain Frozen Fish Fillets from the Socialist Republic of Vietnam,
68 FR 37116 (June 23, 2003).
---------------------------------------------------------------------------
Section 776(b) of the Act provides that, in selecting from among
the facts otherwise available, the Department may employ an adverse
inference if an interested party fails to cooperate by not acting to
the best of its ability to comply with requests for information.\63\ We
find that, because the PRC-wide entity did not respond to our requests
for information, it has failed to cooperate to the best of its ability.
Furthermore, the PRC-wide entity's refusal to provide the requested
information constitutes circumstances under which it is reasonable to
conclude that less than full cooperation has been shown.\64\ Therefore,
the Department preliminarily finds that, in selecting from among the
facts available, an adverse inference is appropriate.
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\63\ See Statement of Administrative Action, accompanying the
Uruguay Round Agreements Act (``URAA''), H.R. Rep. No. 103-316, 870
(1994) (``SAA''); see also Notice of Final Determination of Sales at
Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon-Quality
Steel Products from the Russian Federation, 65 FR 5510, 5518
(February 4, 2000).
\64\ See Nippon Steel Corporation v. United States, 337 F.3d
1373, 1383 (Fed. Cir. 2003) (``Nippon Steel'') (providing an
explanation of the ``failure to act to the best of its ability''
standard and noting that the Department need not show intentional
conduct existed on the part of the respondent, but merely that a
``failure to cooperate to the best of a respondent's ability''
existed (i.e., information was not provided ``under circumstances in
which it is reasonable to conclude that less than full cooperation
has been shown'')).
---------------------------------------------------------------------------
When employing an adverse inference, section 776 of the Act
indicates that the Department may rely upon information derived from
the petition, the final determination from the LTFV investigation, a
previous administrative review, or any other information placed on the
record. In selecting a rate for adverse facts available (``AFA''), the
Department selects a rate that is sufficiently adverse to ensure that
the uncooperative party does not obtain a more favorable result by
failing to cooperate than if it had fully cooperated. It is the
Department's practice to select, as AFA, the higher of the (a) highest
margin alleged in the petition, or (b) the highest calculated rate of
any respondent in the investigation.\65\ As AFA, we have preliminarily
assigned to the PRC-wide entity a rate of 193.54 percent, the highest
calculated rate from the Initiation Notice.\66\ The Department
preliminarily determines that this information is the most appropriate
from the available sources to effectuate the purposes of AFA. The
Department's reliance on the petition rate to determine an AFA rate is
subject to the requirement to corroborate secondary information,
discussed in the Corroboration section below.
---------------------------------------------------------------------------
\65\ See Final Determination of Sales at Less Than Fair Value:
Certain Cold-Rolled Carbon Quality Steel Products from the People's
Republic of China, 65 FR 34660 (May 31, 2000), and accompanying IDM,
at ``Facts Available.''
\66\ See Initiation Notice, 76 FR 23297.
---------------------------------------------------------------------------
Corroboration
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation as facts available, it must, to the extent
practicable, corroborate that information from independent sources
reasonably at its disposal. Secondary information is described as
``information derived from the petition that gave rise to the
investigation or review, the final determination concerning merchandise
subject to this investigation, or any previous review under section 751
concerning the merchandise subject to this investigation.'' \67\ To
``corroborate'' means that the Department will satisfy itself that the
secondary information to be used has probative value. Independent
sources used to corroborate may include, for example, published price
lists, official import statistics and customs data, and information
obtained from interested parties during the particular investigation.
To corroborate secondary information, the Department will, to the
extent practicable, examine the reliability and relevance of the
information used.\68\
---------------------------------------------------------------------------
\67\ See Final Determination of Sales at Less Than Fair Value:
Sodium Hexametaphosphate From the People's Republic of China, 73 FR
6479, 6481 (February 4, 2008), quoting SAA at 870.
\68\ 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).
---------------------------------------------------------------------------
The AFA rate that the Department used is from the Initiation
Notice. To corroborate the AFA margin that we have selected, we
compared this margin to the margin we found for the individually
examined respondents. We calculated that the margin of 193.54 percent
has probative value because it is in the range of the control number
(CONNUM)-specific margins that we found for the Centurion and Zhejiang
Jingu/Shanghai Yata during the period of investigation.\69\ Given that
numerous PRC-wide entities did not respond to the Department's requests
for information, the Department concludes that the petition rate of
193.54 percent, as total AFA for the PRC-wide entity, is sufficiently
adverse to prevent the PRC-wide entity from benefitting from its lack
of cooperation.\70\ Accordingly, we find that the rate of 193.54
percent is corroborated to the extent practicable within the meaning of
section 776(c) of the Act.
---------------------------------------------------------------------------
\69\ See Memorandum from the Department entitled ``Investigation
of Certain Steel Wheels from the People's Republic of China:
Analysis of the Preliminary Determination Margin Calculation for
Zhejiang Jingu Company Limited (``Jingu'') and Shanghai Yata
Industry Company Limited (``Yata''),'' dated October 26, 2011; see
also Memorandum from the Department entitled ``Investigation of
Certain Steel Wheels from the People's Republic of China: Analysis
of the Preliminary Determination Margin Calculation for Jining
Centurion Wheels Manufacturing Co., Ltd. and Centurion Wheel
Manufacturing Company,'' dated October 26, 2011.
\70\ See SAA at 870.
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Date of Sale
19 CFR 351.401(i) states that, ``in identifying the date of sale of
the merchandise under consideration or foreign like product, the
Secretary normally will use the date of invoice, as recorded in the
exporter or producer's records kept in the normal course of business.''
In Allied Tube, the CIT noted that a ``party seeking to establish a
date of sale other than invoice date bears the burden of producing
sufficient evidence to `satisf{y{time} ' the Department that `a
different date better reflects the date on which the exporter or
producer establishes the material terms of sale.''' Allied Tube &
Conduit Corp. v. United States, 132 F. Supp. 2d 1087, 1090 (CIT 2001)
(quoting 19 CFR 351.401(i)) (``Allied Tube''). Additionally, the
Secretary may use a date other than the date of invoice if the
Secretary is satisfied that a different date better reflects the date
on which the exporter
[[Page 67712]]
or producer establishes the material terms of sale.\71\ The date of
sale is generally the date on which the parties agree upon all
substantive terms of the sale. This normally includes the price,
quantity, delivery terms and payment terms.\72\
---------------------------------------------------------------------------
\71\ See 19 CFR 351.401(i); see also Allied Tube, 132 F. Supp.
2d 1087, 1090-1092.
\72\ See Carbon and Alloy Steel Wire Rod from Trinidad and
Tobago: Final Results of Antidumping Duty Administrative Review, 72
FR 62824 (November 7, 2007), and accompanying IDM at 5; Notice of
Final Determination of Sales at Less Than Fair Value: Certain Cold-
Rolled Flat-Rolled Carbon Quality Steel Products from Turkey, 65 FR
15123 (March 21, 2000), and accompanying IDM at Comment 2.1.
---------------------------------------------------------------------------
For sales by all three respondents, consistent with 19 CFR
351.401(i), we used the commercial invoice date as the sale date
because record evidence indicates that the terms of sale were set
atuntil the time when the commercial invoice was issued.\73\
---------------------------------------------------------------------------
\73\ See, e.g., Zhejiang Jingu's section A response at 24-25 and
Exhibit 6; see also Shanghai Yata's section A response at 22 and
Exhibit 4; see also Centurion's section A response at A-22--A-23 and
Exhibit A-2.
---------------------------------------------------------------------------
Fair Value Comparisons
To determine whether sales of steel wheels to the United States by
the respondents were made at LTFV, we compared EP and CEP to NV, as
described in the ``Constructed Export Price,'' ``Export Price,'' and
``Normal Value'' sections of this notice.
U.S. Price
Constructed Export Price
In accordance with section 772(a) of the Act, CEP is the price at
which the subject merchandise is first sold (or agreed to be sold) in
the United States before or after the date of importation by or for the
account of the producer or exporter of such merchandise or by a seller
affiliated with the producer or exporter, to a purchaser not affiliated
with the producer or exporter, as adjusted under subsections (c) and
(d). In accordance with section 772(a) of the Act, we used CEP for a
portion of Centurion's U.S. sales because the merchandise subject to
this investigation was sold directly to an affiliated purchaser located
in the United States.
We calculated CEP for Centurion based on delivered prices to
unaffiliated purchasers in the United States. We made deductions from
the U.S. sales price, where applicable, for movement expenses in
accordance with section 772(c)(2)(A) of the Act. These included such
expenses as foreign inland freight from the plant to the port of
exportation, international freight, marine insurance, other U.S.
transportation, U.S. customs duty, U.S. inland freight from port to the
warehouse, and U.S. inland freight from the warehouse to the customer.
In accordance with section 772(d)(1) of the Act, the Department
deducted credit expenses, inventory carrying costs and indirect selling
expenses from the U.S. price, all of which relate to commercial
activity in the United States. Finally, we deducted CEP profit, in
accordance with sections 772(d)(3) and 772(f) of the Act.\74\
---------------------------------------------------------------------------
\74\ See Surrogate Value Memorandum.
---------------------------------------------------------------------------
Export Price
In accordance with section 772(a) of the Act, we used EP for
Zhejiang Jingu's, Shanghai Yata's, and Centurion's U.S. sales, where
applicable. We calculated EP based on the packed prices to unaffiliated
purchasers in, or for exportation to, the United States. We made
deductions, as appropriate, for any movement expenses (e.g., foreign
inland freight from the plant to the port of exportation, domestic
brokerage, etc.) in accordance with section 772(c)(2)(A) of the Act.
Where foreign inland freight or foreign brokerage and handling fees
were provided by PRC service providers or paid for in renminbi, we
based those charges on surrogate value rates from Indonesia. Where U.S.
inland freight or U.S. brokerage and handling fees were provided by PRC
service providers or paid for in renminbi, we based those charges on
surrogate value rates for those U.S. services. See ``Factor Valuation''
section below for further discussion of surrogate value rates.
In determining the most appropriate surrogate values to use in a
given case, the Department's stated practice is to use period-wide
price averages, prices specific to the input in question, prices that
are net of taxes and import duties, prices that are contemporaneous
with the POI, and publicly available data.\75\ We valued foreign
brokerage and handling using a price list of export procedures
necessary to export a standardized cargo of goods from Indonesia where
foreign brokerage and handling were provided by PRC service providers
or paid for in renminbi. The price list is compiled based on a survey
case study of the procedural requirements for trading a standard
shipment of goods by truck in Indonesia as reported in ``Doing Business
2011: Indonesia'' published by the World Bank.\76\ We used a similar
price list from ``Doing Business 2011: United States'' to value
brokerage and handling fees incurred in the United States. To value
truck freight, the Department used a price list for domestic shipments
from the Indonesian shipping company, PT Mantap Abiah Abadi. We
determined the average cost for shipment from 12 cities to Jakarta by
truck, using Google maps to determine overland distance. To value
domestic water freight, the Department also used PT Mantap Abiah
Abadi's price list. We determined the average price of shipment from 11
cities to Jakarta by boat, using http://www.sea-distances.com, to
calculate the port-to-port sailing distance.
---------------------------------------------------------------------------
\75\ See, e.g., Certain Cased Pencils from the People's Republic
of China; Final Results and Partial Rescission of Antidumping Duty
Administrative Review, 71 FR 38366 (July 6, 2006), and accompanying
IDM at Comment 1.
\76\ See Surrogate Value Memorandum.
---------------------------------------------------------------------------
To value international ocean freight and U.S. inland freight, the
Department used quotes from China Container Line Ltd. (a Hong Kong
company) for the shipment of various consumer products, as obtained on
the Descartes Carrier Rate Retrieval Database (``Descartes''). For
international ocean freight, the Department used departure and
destination ports, container size and gross shipment weight of three
reported shipments of subject merchandise by respondents. For U.S.
inland freight, the Department used ports of import and customer city
locations, container size, and gross shipment weight of three reported
shipments of subject merchandise by respondents. The data obtained from
Descartes can be accessed via http://www.descartes.com/. The Descartes
database is a Web-based service, which publishes the ocean freight
rates of numerous carriers. In prior proceedings, we rejected the
Descartes database as an ocean freight surrogate value source because
the data did not appear to be publicly available.\77\ Upon
reexamination, however, we found that this database is accessible to
government agencies without charge, in compliance with Federal Maritime
Commission regulations and, thus, we now find that this is a publicly-
available source. In addition to being publicly available, the
Descartes data reflect rates for multiple carriers, report rates on a
daily basis, additionally, the price data obtained are based on routes
that closely correspond to those used by respondents, and are specific
to the merchandise subject to this investigation. Therefore, the
Descartes data is product-specific, publicly available, a broad-market
average, and contemporaneous with the period of the segment.
Accordingly, the
[[Page 67713]]
Descartes data is the best available source for valuing international
freight on the record because it provides rates that are representative
of the entire period of the investigation and a broad representation of
product-specificity.
---------------------------------------------------------------------------
\77\ See, e.g., Fresh Garlic from the People's Republic of
China: Final Results and Partial Rescission of Antidumping Duty
Administrative Review and Final Results of New Shipper Reviews, 71
FR 26329 (May 4, 2006) and accompanying IDM at Comment 7.
---------------------------------------------------------------------------
However, while the Department finds that the Descartes data is the
most superior source for valuing international freight on the record,
to make the source less impractical, we had to define certain
parameters in our selection of data. The Department has calculated the
period-average international freight rate by obtaining rates from
multiple carriers for a single day in each quarter of the period of the
segment. For any rate that the Department determined was from a non-
market economy carrier, the Department has not included that rate in
the period-average international freight calculation. Additionally, any
charges included in the rate that are covered by brokerage and handling
charges that the respondent incurred or are included in the reported
market economy purchase or the appropriate surrogate value, the
Department has not included these charges in the calculation.\78\
---------------------------------------------------------------------------
\78\ See Surrogate Value Memorandum.
---------------------------------------------------------------------------
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. 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.
See, e.g., Kitchen Racks Prelim, 71 FR at 19703 (unchanged in Kitchen
Racks Final).
In accordance with 19 CFR 351.408(c)(1), the Department normally
will use publicly available information to find an appropriate
surrogate value to value FOPs, but when a producer sources an input
from an ME and pays for it in an ME currency, the Department may value
the factor using the actual price paid for the input. See 19 CFR
351.408(c)(1); see also Shakeproof Assembly Components Div of Ill v.
United States, 268 F.3d 1376, 1382-1383 (Fed. Cir. 2001) (affirming the
Department's use of market-based prices to value certain FOPs).
Factor Valuations
In accordance with section 773(c) of the Act, we calculated NV
based on FOP data reported by respondents during the POI. To calculate
NV, we multiplied the reported per-unit factor-consumption rates by
publicly available surrogate values (except as discussed below). In
selecting the surrogate values, we considered the quality, specificity,
and contemporaneity of the data.\79\ As appropriate, we adjusted input
prices by including freight costs to make them delivered prices.
Specifically, we added to Indonesian import surrogate values a
surrogate freight cost using the shorter of the reported distance from
the domestic supplier to the factory or the distance from the nearest
seaport to the factory where appropriate. This adjustment is in
accordance with the Court of Appeals for the Federal Circuit's decision
in Sigma Corp. v. United States, 117 F.3d 1401, 1407-08 (Fed. Cir.
1997). A detailed description of all surrogate values used for
Centurion and Zhejiang Jingu/Shanghai Yata can be found in the
Surrogate Value Memorandum.
---------------------------------------------------------------------------
\79\ See, e.g., Fresh Garlic From the People's Republic of
China: Final Results of Antidumping Duty New Shipper Review, 67 FR
72139 (December 4, 2002), and accompanying IDM at Comment 6; and
Final Results of First New Shipper Review and First Antidumping Duty
Administrative Review: Certain Preserved Mushrooms From the People's
Republic of China, 66 FR 31204 (June 11, 2001), and accompanying IDM
at Comment 5.
---------------------------------------------------------------------------
For the preliminary determination, in accordance with the
Department's practice, we used data from the Indonesian Import
Statistics and other publicly available Indonesian sources in order to
calculate surrogate values for Centurion's and Zhejiang Jingu's FOPs
(direct materials, energy, and packing materials) and certain movement
expenses. In selecting the best available information for valuing FOPs
in accordance with section 773(c)(1) of the Act, the Department's
practice is to select, to the extent practicable, surrogate values
which are non-export average values, most contemporaneous with the POI,
product-specific, and tax-exclusive.\80\ The record shows that data in
the Indonesian import statistics, as well as those from the other
Indonesian sources, are contemporaneous with the POI, product-specific,
and tax-exclusive.\81\ In those instances where we could not obtain
publicly available information contemporaneous to the POI with which to
value factors, we adjusted the surrogate values using, where
appropriate, the Indonesian WPI as published in the Organization for
Economic Co-operation and Development's StatExtracts database library,
accessed via http://www.stats.oecd.org/Index.aspx.\82\
---------------------------------------------------------------------------
\80\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value, Negative Preliminary Determination of Critical
Circumstances and Postponement of Final Determination: Certain
Frozen and Canned Warmwater Shrimp From the Socialist Republic of
Vietnam, 69 FR 42672, 42682 (July 16, 2004), unchanged in Final
Determination of Sales at Less Than Fair Value: Certain Frozen and
Canned Warmwater Shrimp from the Socialist Republic of Vietnam, 69
FR 71005 (December 8, 2004).
\81\ See Surrogate Value Memorandum.
\82\ See, e.g., Kitchen Racks Prelim, 74 FR at 9600, unchanged
in Kitchen Racks Final.
---------------------------------------------------------------------------
Furthermore, with regard to the Indonesian import-based surrogate
values, we have disregarded import prices that we have reason to
believe or suspect may be subsidized. We have reason to believe or
suspect that prices of inputs from India, South Korea, and Thailand may
have been subsidized. We have found in other proceedings that these
countries maintain broadly available, non-industry-specific export
subsidies and, therefore, it is reasonable to infer that all exports to
all markets from these countries may be subsidized.\83\
---------------------------------------------------------------------------
\83\ 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 IDM at 4-5; 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 IDM at 17, 19-20; and Final Affirmative Countervailing
Duty Determination: Certain Hot-Rolled Carbon Steel Flat Products
from Thailand, 66 FR 50410 (October 3, 2001), and accompanying IDM
at 23.
---------------------------------------------------------------------------
Further, guided by the legislative history, it is the Department's
practice not to conduct a formal investigation to ensure that such
prices are not subsidized.\84\ Rather, the Department bases its
decision on information that is available to it at the time it makes
its determination.\85\ In addition, there exists no record evidence in
this case to suggest that these prices are not subsidized. Therefore,
we have not used prices from these countries in calculating the
Indonesian import-based surrogate values. Additionally, we disregarded
prices from NME countries. Finally, imports that were labeled as
originating from an ``unspecified'' country were excluded from the
average value, because the Department could
[[Page 67714]]
not be certain that they were not from either an NME country or a
country with general export subsidies.\86\
---------------------------------------------------------------------------
\84\ See Omnibus Trade and Competitiveness Act of 1988,
Conference Report to accompany H.R. Rep. 100-576 at 590 (1988)
reprinted in 1988 U.S.C.C.A.N. 1547, 1623-24; see also Preliminary
Determination of Sales at Less Than Fair Value: Coated Free Sheet
Paper from the People's Republic of China, 72 FR 30758 (June 4,
2007), unchanged in Final Determination of Sales at Less Than Fair
Value: Coated Free Sheet Paper from the People's Republic of China,
72 FR 60632 (October 25, 2007).
\85\ See 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).
\86\ See id.
---------------------------------------------------------------------------
Previously, the Department used regression-based wages that
captured the worldwide relationship between per capita GNI and hourly
manufacturing wages, pursuant to 19 CFR 351.408(c)(3), to value the
respondent's cost of labor in NME cases. However, on May 14, 2010, the
Court of Appeals for the Federal Circuit (``CAFC''), in Dorbest Ltd. v.
United States, 604 F.3d 1363, 1372 (Fed. Cir. 2010) (``Dorbest''),
invalidated 19 CFR 351.408(c)(3). As a consequence of the CAFC's ruling
in Dorbest, the Department no longer relies on the regression-based
wage rate methodology described in its regulations.
On June 21, 2011, the Department revised its methodology for
valuing the labor input in NME antidumping proceedings.\87\ 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'').
---------------------------------------------------------------------------
\87\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor, 76 FR
36092 (June 21, 2011) (``Labor Methodologies'').
---------------------------------------------------------------------------
In this preliminary determination, the Department calculated
direct, indirect, and packing labor inputs using the wage method
described in Labor Methodologies. To value respondents' labor inputs,
the Department relied on data reported by Indonesia to the ILO in
Chapter 5B of the Yearbook because Indonesia's 6A data is not
available. The Department further finds the two-digit description under
ISIC-Revision 3 (``34--Manufacture of motor vehicles, trailers, and
semi-trailers'') to be the best available information on the record, as
it includes a four-digit description (``3430--Manufacture of parts and
accessories for motor vehicles and their engines''), which is specific
to the industry being examined, and is therefore derived from
industries that produce comparable merchandise. Accordingly, relying on
Chapter 5B of the Yearbook, the Department calculated the labor input
using labor data reported by Indonesia to the ILO under Sub-
Classification 34 of the ISIC-Revision 3 standard, in accordance with
Section 773(c)(4) of the Act. For this preliminary determination, the
calculated industry-specific wage rate is 9,830.98 Rupiah per hour.
Because this wage rate does not separate the labor rates into different
skill levels or types of labor, the Department has applied the same
wage rate to all skill levels and types of labor reported by
respondents.\88\ A more detailed description of the wage rate
calculation methodology is provided in the Surrogate Value Memorandum.
---------------------------------------------------------------------------
\88\ See Surrogate Value Memorandum.
---------------------------------------------------------------------------
We valued electricity using the average electricity rate for
industry in 2009, obtained from the Indonesia Ministry of Energy and
Mineral Resources' ``2010 Handbook of Energy & Economic Statistics of
Indonesia.''
The Department valued natural gas using data obtained from
EnergyBiz Magazine's January/February 2006 edition, in which the
American Chemistry Council's data for Indonesian natural gas prices of
January 2006 are cited. To value steam, the Department calculated 14.52
percent of the value of natural gas (obtained as described above), by
volume.\89\
---------------------------------------------------------------------------
\89\ See, e.g., Certain Preserved Mushrooms from the People's
Republic of China: Preliminary Results of Antidumping Duty New
Shipper Reviews, 74 FR 14772 (April 1, 2009), unchanged in Certain
Preserved Mushrooms From the People's Republic of China: Final
Results of Antidumping Duty New Shipper Review, 74 FR 65520
(December 10, 2009).
---------------------------------------------------------------------------
To value factory overhead, selling, general, and administrative
expenses, and profit, we used the audited financial statement of PT
Prima Alloy Steel Universal Tbk, a producer of comparable merchandise,
covering the fiscal period January 1, 2010, through December 31, 2010.
The Department may consider other publicly available financial
statements for the final determination, as appropriate.
Currency Conversion
Where necessary, we 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.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information from Zhejiang Jingu, Shanghai Yata, and Centurion, upon
which we will rely in making our final determination.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for certain respondents that are eligible
for a separate rate in this investigation.\90\ This practice is
described in Policy Bulletin 05.1.
---------------------------------------------------------------------------
\90\ See Initiation Notice.
---------------------------------------------------------------------------
Preliminary Determination
The weighted-average dumping margin percentages are as follows:
------------------------------------------------------------------------
Percent
Exporter Producer margin
------------------------------------------------------------------------
Zhejiang Jingu Company Limited. Zhejiang Jingu Company 141.38
Limited.
Shanghai Yata Industry Company Zhejiang Jingu Company 141.38
Limited. Limited.
Jining Centurion Wheels Jining Centurion Wheels 110.58
Manufacturing Co., Ltd. Manufacturing Co., Ltd.
Shandong Land Star Import & Shandong Shengtai Wheel 125.98
Export Co., Ltd. Co., Ltd.
Shandong Jining Wheel Factory.. Shandong Jining Wheel 125.98
Factory.
Wuxi Superior Wheel Co., Ltd... Wuxi Superior Wheel 125.98
Co., Ltd.
Shandong Xingmin Wheel Co. Ltd. Shandong Xingmin Wheel 125.98
Co. Ltd.
Xiamen Sunrise Wheel Group Co., Jining Centurion Wheels 125.98
Ltd. Manufacturing Co., Ltd.
Jiaxing Stone Wheel Co., Ltd... Jiaxing Stone Wheel 125.98
Co., Ltd.
Xiamen Topu Import & Export Xiamen Sunrise Wheel 125.98
Co., Ltd. Group Co., Ltd.
Xiamen Topu Import & Export Jining Centurion Wheels 125.98
Co., Ltd. Manufacturing Co., Ltd.
China Dongfeng Motor Industry Dongfeng Automotive 125.98
Imp. & Exp. Co., Ltd. Wheel Co., Ltd.
PRC-Wide Entity................ ....................... 193.54
------------------------------------------------------------------------
[[Page 67715]]
Disclosure
We will disclose the calculations performed to parties in this
proceeding within five days of the date of publication of this notice
in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d) of the Act, we will instruct U.S.
Customs and Border Protection (``CBP'') to suspend liquidation of all
entries of steel wheels from the PRC as described in the ``Scope of
Investigation'' section, entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register with the exception of those exported by Centurion.
Because we have preliminarily found that critical circumstances exist
with regard to exports by Centurion, we will instruct CBP to suspend
liquidation of covered entries entered, or withdrawn from warehouse,
for consumption up to 90 days prior to the date of publication of this
notice in the Federal Register. We will instruct CBP to require a cash
deposit or the posting of a bond equal to the weighted-average amount
by which the normal value exceeds U.S. price, as follows: (1) The rate
for the exporter/producer combinations listed in the chart above will
be the rate we have determined in this preliminary determination; (2)
for all PRC exporters of subject merchandise which have not received
their own rate, the cash-deposit rate will be the PRC-wide rate; and
(3) for all non-PRC exporters of subject merchandise which have not
received their own rate, the cash-deposit rate will be the rate
applicable to the PRC exporter/producer combination that supplied that
non-PRC exporter. These suspension of liquidation instructions will
remain in effect until further notice.
Additionally, as the Department has determined in its Certain Steel
Wheels From the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Countervailing
Duty Determination With Final Antidumping Duty Determination, 76 FR
55012 (September 6, 2011) (``CVD Prelim'') that the merchandise under
investigation exported by Zhejiang Jingu and Shanghai Yata benefitted
from export subsidies, we will instruct CBP to require an antidumping
cash deposit or posting of a bond equal to the amount by which the NV
exceeds the U.S. price for Zhejiang Jingu and Shanghai Yata, as
indicated above, minus the amount determined to constitute an export
subsidy. See, e.g., Notice of Final Determination of Sales at Less Than
Fair Value: Carbazole Violet Pigment 23 From India, 69 FR 67306, 67307
(November 17, 2007).
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our preliminary affirmative determination of sales at LTFV and
our partial affirmative decision of critical circumstances. Section
735(b)(2) of the Act requires the ITC to make its final determination
as to whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
coated paper, or sales (or the likelihood of sales) for importation, of
the merchandise under consideration within 45 days of our final
determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Import Administration no later than seven days
after the date on which the final verification report is issued in this
proceeding and rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs. See 19 CFR 351.309. A table of contents, list of
authorities used and an executive summary of issues should accompany
any briefs submitted to the Department. This summary should be limited
to five pages total, including footnotes.
In accordance with section 774 of the Act, we will hold a public
hearing, if requested, to afford interested parties an opportunity to
comment on arguments raised in case or rebuttal briefs. Interested
parties, who wish to request a hearing, or to participate if one is
requested, must submit a written request to the Assistant Secretary for
Import Administration, U.S. Department of Commerce, filed
electronically using Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (``IA
ACCESS''). An electronically filed document must be received
successfully in its entirety by the Department's electronic records
system, IA ACCESS, by 5 p.m. Eastern Time (ET) within 30 days after the
date of publication of this notice. See 19 CFR 351.310(c). Requests
should contain the party's name, address, and telephone number, the
number of participants, and a list of the issues to be discussed. If a
request for a hearing is made, we will inform parties of the scheduled
date for the hearing which will be held at the U.S. Department of
Commerce, 14th Street and Constitution Ave., NW., Washington, DC 20230,
at a time and location to be determined. See 19 CFR 351.310. Parties
should confirm by telephone the date, time, and location of the
hearing.
We will make our final determination no later than 135 days after
the date of publication of this preliminary determination, pursuant to
section 735(a)(2) of the Act.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act.
Dated: October 26, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2011-28413 Filed 11-1-11; 8:45 am]
BILLING CODE 3510-DS-P