[Federal Register Volume 82, Number 128 (Thursday, July 6, 2017)]
[Notices]
[Pages 31301-31304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14174]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-601]


Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Preliminary Results 
and Preliminary Rescission of New Shipper Review; 2015-2016

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review (AR) and a new shipper review (NSR) of the 
antidumping duty order on tapered roller bearings and parts thereof, 
finished and unfinished (TRBs), from the People's Republic of China 
(PRC). The AR covers six exporters, of which the Department selected 
two mandatory respondents for individual examination (i.e., Zhejiang 
Zhaofeng Mechanical & Electronic Co, Ltd. (Zhaofeng); and Zhejiang 
Zhengda Bearing Co., Ltd. (Zhengda)). The NSR covers Zhejiang Jingli 
Bearing Technology Co., Ltd. (Zhejiang Jingli). The period of review 
(POR) is June 1, 2015, through May 31, 2016.
    We preliminarily determine that sales of subject merchandise have 
been made below normal value (NV). In addition, we preliminarily 
determine that Zhejiang Jingli's sale to the United States is not bona 
fide. Therefore, we are

[[Page 31302]]

preliminarily rescinding this NSR. If these preliminary results are 
adopted in the final results of this review, we will instruct U.S. 
Customs and Border Protection (CBP) to assess antidumping duties on all 
appropriate entries. Interested parties are invited to comment on these 
preliminary results.

DATES: Effective July 6, 2017.

FOR FURTHER INFORMATION CONTACT: Andrew Medley or Whitley Herndon, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230; telephone: (202) 482-4987 or (202) 482-6274, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Order

    The merchandise covered by the order includes tapered roller 
bearings and parts thereof. The subject merchandise is currently 
classifiable under Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings: 8482.20.00, 8482.91.00.50, 8482.99.15, 8482.99.45, 
8483.20.40, 8483.20.80, 8483.30.80, 8483.90.20, 8483.90.30, 8483.90.80, 
8708.70.6060, 8708.99.2300, 8708.99.4850, 8708.99.6890, 8708.99.8115, 
and 8708.99.8180. The HTSUS subheadings are provided for convenience 
and customs purposes only; the written description of the scope of the 
order is dispositive.\1\
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    \1\ For a complete description of the scope of the order, see 
memorandum from Gary Taverman, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Ronald K. 
Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, entitled ``Decision Memorandum for the Preliminary 
Results of the 2015-2016 Antidumping Duty Administrative Review and 
New Shipper Review of Tapered Roller Bearings and Parts Thereof, 
Finished and Unfinished, from the People's Republic of China'' 
(Preliminary Decision Memorandum), issued concurrently with and 
hereby adopted by this notice.
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Preliminary Rescission of the NSR

    As discussed in the Bona Fides Analysis Memorandum,\2\ the 
Department preliminarily finds that the single sale made by Zhejiang 
Jingli to the United States during the POR is not a bona fide sale, as 
required by section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as 
amended (the Act).\3\ The Department reached this conclusion based on 
the totality of the circumstances surrounding the reported sale, 
including:
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    \2\ See Memorandum, ``New Shipper Review of Tapered Roller 
Bearings and Parts Thereof from the People's Republic of China: 
Analysis of Zhejiang Jingli Bearing Technology. Ltd.'s Bona Fides as 
a New Shipper,'' dated June 29, 2017.
    \3\ On February 24, 2016, the President of the United States 
signed into law the Trade Facilitation and Trade Enforcement Act of 
2015, Public Law 114-125 (February 24, 2016), which made amendments 
to section 751(a)(2)(B) of the Act. These amendments apply to this 
determination.

    (I) the prices of such sales; (II) whether such sales were made 
in commercial quantities; (III) the timing of such sales; (IV) the 
expenses arising from such sales; (V) whether the subject 
merchandise involved in such sales was resold in the United States 
at a profit; (VI) whether such sales were made on an arms-length 
basis; and (VII) any other factor {it{time}  determines to be 
relevant as to whether such sales are, or are not, likely to be 
typical of those the exporter or producer will make after completion 
of the review.\4\
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    \4\ See section 751(a)(2)(B)(iv) of the Act.

    Because the non-bona fide sale was the only reported sale of 
subject merchandise during the POR, and thus there are no reviewable 
transactions on this record, we are preliminarily rescinding the NSR. 
Because much of the factual information used in our analysis of 
Zhejiang Jingli's sale involves business proprietary information, a 
full discussion of the basis for our preliminary determination is set 
forth in the Bona Fides Analysis Memorandum.

Methodology

    The Department is conducting this review in accordance with section 
751(a)(1)(B) of the Act. As noted above, there are two mandatory 
respondents in this administrative review: Zhaofeng and Zhengda. For 
Zhaofeng, we calculated export prices in accordance with section 772 of 
the Act. In addition, we based the preliminary dumping margin for 
certain unreported sales discovered as a result of verification on 
adverse facts available (AFA).\5\ Because the PRC is a non-market 
economy (NME) within the meaning of section 771(18) of the Act, NV has 
been calculated in accordance with section 773(c) of the Act.
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    \5\ See Preliminary Decision Memorandum, at ``Application of 
Facts Available and use of Adverse Interferences.''
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    For Zhengda, we preliminarily find that this respondent is 
ineligible for a separate rate because it has failed to demonstrate an 
absence of de facto government control in this administrative review. 
Therefore, we did not calculate a separate margin for Zhengda.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and to all parties in the 
Central Records Unit, room B8024 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be found at http://enforcement.trade.gov/frn/. The 
signed Preliminary Decision Memorandum and the electronic version of 
the Preliminary Decision Memorandum are identical in content. A list of 
the topics discussed in the Preliminary Decision Memorandum is attached 
as the Appendix to this notice.

Rate for Non-Examined Companies Which Are Eligible for a Separate Rate

    As indicated in the ``Preliminary Results of Review'' section 
below, we preliminarily determine that a margin of 76.93 percent 
applies to the three firms not selected for individual review but 
determined to be eligible for a separate rate. For further information, 
see the Preliminary Decision Memorandum at ``Separate Rate Assigned to 
Non-Selected Companies.''

Preliminary Results of Review

    Two companies involved in the administrative review, Zhengda and 
Yantai CMC Bearing Co. Ltd./CMC Bearing Co. Ltd. (Yantai CMC) did not 
demonstrate that they were entitled to a separate rate.\6\ Therefore, 
the Department preliminarily finds Zhengda and Yantai CMC to be part of 
the PRC-wide entity.\7\ The rate previously established for the PRC-
wide entity is 92.84 percent.
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    \6\ With respect to Yantai CMC, we note that the Initiation 
Notice listed this company as ``Yantai CMC Bearing Co. Ltd./CMC 
Bearings Co. Ltd.'' However, the review request was for Yantai CMC 
Bearing Co. Ltd./CMC Bearing Co. Ltd. This notice corrects the 
Initiation Notice and clarifies that this review covers Yantai CMC 
Bearing Co. Ltd./CMC Bearing Co. Ltd. See Initiation of Antidumping 
and Countervailing Duty Administrative Reviews, 81 FR 53121 (August 
11, 2016) (Initiation Notice).
    \7\ See Preliminary Decision Memorandum, at 12-13. Pursuant to 
the Department's change in practice, the Department no longer 
considers the NME entity as an exporter conditionally subject to 
administrative reviews. See Antidumping Proceedings: Announcement of 
Change in Department Practice for Respondent Selection in 
Antidumping Duty Proceedings and Conditional Review of the Nonmarket 
Economy Entity in NME Antidumping Duty Proceedings, 78 FR 65963, 
65970 (November 4, 2013). Under this practice, the NME entity will 
not be under review unless a party specifically requests, or the 
Department self-initiates, a review of the entity. Because no party 
requested a review of the entity, the entity is not under review and 
the entity's rate is not subject to change.
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    The Department preliminarily determines that the following 
weighted-average dumping margins exist for the period June 1, 2015, 
through May 31, 2016:

[[Page 31303]]



------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                         Exporters                             percent
                                                               margins
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Zhejiang Zhaofeng Mechanical & Electronic Co, Ltd..........        76.93
GSP Automotive Group Wenzhou Co., Ltd.*....................        76.93
Hangzhou Yonggu Auto-Parts C., Ltd.*.......................        76.93
Zhejiang CTL Auto Parts Manufacturing Incorporated Co.,            76.93
 Ltd.*.....................................................
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* This company was not selected as a mandatory respondent but is subject
  to this administrative review and demonstrated that it qualified for a
  separate rate in this administrative review.

Disclosure and Public Comment

    The Department will disclose calculations performed for these 
preliminary results to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit case briefs no later than 30 days after 
the date of publication of these preliminary results of review.\8\ 
Rebuttals to case briefs may be filed no later than five days after 
case briefs are filed and all rebuttal briefs must be limited to 
comments raised in the case briefs.\9\ Parties who submit comments are 
requested to submit with the argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of 
authorities.\10\
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    \8\ See 19 CFR 351.309(c)(1)(ii).
    \9\ See 19 CFR 351.309(d).
    \10\ See 19 CFR 351.309(c)(2).
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    Any interested party may request a hearing within 30 days of 
publication of this notice.\11\ Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations will be limited to issues raised in 
the briefs.\12\ If a request for a hearing is made, parties will be 
notified of the time and date for the hearing to be held at the U.S. 
Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 
20230.\13\
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    \11\ See 19 CFR 351.310(c).
    \12\ Id.
    \13\ See 19 CFR 351.310(d).
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    All submissions, with limited exceptions, must be filed 
electronically using ACCESS. An electronically filed document must be 
received successfully in its entirety by 5 p.m. Eastern Time (ET) on 
the due date. Documents excepted from the electronic submission 
requirements must be filed manually (i.e., in paper form) with the APO/
Dockets Unit in Room 18022 and stamped with the date and time of 
receipt by 5 p.m. ET on the due date.
    Unless otherwise extended, the Department intends to issue the 
final results of this administrative review, which will include the 
results of its analysis of all issues raised in the case briefs, within 
120 days of publication of these preliminary results, pursuant to 
section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results of the administrative review, 
the Department will determine, and CBP shall assess, antidumping duties 
on all appropriate entries covered by this review.\14\ For Zhaofeng, 
which has a weighted-average dumping margin which is not zero or de 
minimis (i.e., less than 0.5 percent), we will calculate importer-
specific ad valorem duty assessment rates based on the ratio of the 
total amount of dumping calculated for the importer's examined sales to 
the total entered value of those sales, in accordance with 19 CFR 
351.212(b)(1). For entries that were not reported in the U.S. sales 
databases submitted by Zhaofeng, the Department will instruct CBP to 
liquidate such entries at either the AFA rate (related to sales 
discovered as a result of verification, which will be identified in the 
liquidation instructions by the applicable customer name) \15\ or the 
PRC-wide rate (for sales made by resellers).
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    \14\ See 19 CFR 351.212(b)(1).
    \15\ See Preliminary Decision Memorandum, at ``Application of 
Facts Available and use of Adverse Interferences.''
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    For the respondents which were not selected for individual 
examination in this administrative review and which qualified for a 
separate rate, the assessment rate will be equal to the weighted-
average dumping margin assigned to Zhaofeng in the final results of 
this administrative review. For the final results, if we continue to 
treat Yantai CMC and Zhengda as part of the PRC-wide entity, we will 
instruct CBP to apply an ad valorem assessment rate of 92.84 percent, 
the current rate established for the PRC-wide entity, to all entries of 
subject merchandise during the POR which were exported by Yantai CMC 
and Zhengda.
    If we proceed to a final rescission of the NSR, Zhejiang Jingli's 
entries will be assessed at the rate entered. If we do not proceed to a 
final rescission of the NSR, pursuant to 19 CFR 351.212(b)(1), we will 
calculate an importer-specific assessment rate for Zhejiang Jingli. We 
will instruct CBP to assess antidumping duties on all appropriate 
entries covered by this NSR if the importer-specific assessment rate 
calculated in the final results of this NSR is above de minimis.
    We intend to issue assessment instructions to CBP 15 days after the 
publication of the final results of these reviews.

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(2)(C) of the Act: (1) For the exporters 
listed above which have a separate rate, the cash deposit rate will be 
the rate established in the final results of this review (except, if 
the rate is zero or de minimis, then a cash deposit rate of zero will 
be established for that company); (2) for previously investigated or 
reviewed PRC and non-PRC exporters not listed above that have separate 
rates, the cash deposit rate will continue to be the exporter-specific 
rate published for the most recently completed segment of this 
proceeding; (3) for all PRC exporters of subject merchandise that have 
not been found to be entitled to a separate rate, the cash deposit rate 
will be the rate for the PRC-wide entity, 92.84 percent; and (4) for 
all non-PRC exporters of subject merchandise which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the PRC exporter(s) that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.
    If the Department proceeds to a final rescission of the NSR, the 
cash deposit rate will continue to be the PRC-wide rate for Zhejiang 
Jingli because the Department will not have determined an individual 
margin of dumping for this company. If the Department issues final 
results for the NSR, the Department will instruct CBP to collect a cash 
deposit, effective upon the publication of the final results, at the 
rate established therein.

Notification to Importers

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties

[[Page 31304]]

occurred and the subsequent assessment of double antidumping duties.
    We are issuing and publishing these preliminary results of review 
and preliminary rescission in accordance with sections 751(a)(l), 
751(a)(2)(B) and 777(i)(l) of the Act, and 19 CFR 351.221(b)(4).

    Dated: June 29, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Determination Not To Select GSP as a Voluntary Respondent
5. Bona Fides Analysis
6. Discussion of the Methodology
    a. Non-Market Economy Country Status
    b. Separate Rates
    c. Separate Rate Assigned to Non-Selected Companies
    d. The PRC-Wide Entity
    e. Application of Facts Available and use of Adverse 
Interferences
    f. Surrogate Country
    g. Date of Sale
    h. Normal Value Comparisons
    i. Determination of Comparison Method
    j. Export Price
    k. Irrecoverable Value-Added Tax (VAT)
    l. Normal Value
    m. Currency Conversion
7. Recommendation
[FR Doc. 2017-14174 Filed 7-5-17; 8:45 am]
 BILLING CODE 3510-DS-P