98-485. Porcelain-on-Steel Cookware From Mexico: Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 63, Number 6 (Friday, January 9, 1998)]
    [Notices]
    [Pages 1430-1434]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-485]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-201-504]
    
    
    Porcelain-on-Steel Cookware From Mexico: Preliminary Results of 
    Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of antidumping duty 
    administrative review.
    
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    SUMMARY: In response to a request by the petitioner, General Housewares 
    Corporation, the Department of Commerce is conducting an administrative 
    review of the antidumping duty order on porcelain-on-steel cookware 
    from Mexico. This review covers Cinsa, S.A. de C.V. and Esmaltaciones 
    de Norte America, S.A. de C.V., manufacturers/exporters of the subject 
    merchandise to the United States. The period of review is December 1, 
    1995, through November 30, 1996.
        We preliminarily determine that sales have been made below normal 
    value. If these preliminary results are adopted in our final results of 
    administrative review, we will instruct the Customs Service to assess 
    antidumping duties on all appropriate entries.
        Interested parties are invited to comment on these preliminary 
    results. Parties who submit arguments in this proceeding should also 
    submit with the argument: (1) a statement of the issue, and (2) a brief 
    summary of the argument.
    
    EFFECTIVE DATE: January 9, 1998.
    
    FOR FURTHER INFORMATION CONTACT:
    Kate Johnson/Dorlores Peck or Mary Jenkins, Office 5, AD/CVD 
    Enforcement Group II, Import Administration--Room B099, International 
    Trade Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
    4929 or 482-1756, respectively.
    
    SUPPLEMENTARY INFORMATION: 
    
    The Applicable Statute
    
        Unless otherwise indicated, all citations to the statute are 
    references to the provisions effective January 1, 1995, the effective 
    date of the amendments made to the Tariff Act of 1930, as amended (the 
    Act), by the Uruguay Round Agreements Act (URAA). In addition, unless 
    otherwise indicated, all citations to the Department of Commerce's (the 
    Department's) regulations are to the provisions codified at 19 CFR part 
    353 (April 1997). Where we cite to the Department's new regulations (19 
    CFR part 351, 62 FR 27926 (May 19, 1997) (New Regulations)) as an 
    indication of current Department practice, we have so stated.
    
    Background
    
        On October 10, 1986, the Department published in the Federal 
    Register (51 FR 36435) the final affirmative antidumping duty 
    determination on certain porcelain-on-steel cookware from Mexico. We 
    published an antidumping duty order on December 2, 1986 (51 FR 43415).
        On December 3, 1996, the Department published in the Federal 
    Register a notice advising of the opportunity to request an 
    administrative review of this order for the period December 1, 1995, 
    through November 30, 1996 (the POR) (61 FR 64050). The Department 
    received a request for an administrative review of Cinsa, S.A. de C.V. 
    (Cinsa) and Esmaltaciones de Norte America, S.A. de C.V. (ENASA) from 
    General Housewares Corporation, the petitioner. We published a notice 
    of initiation of the review on January 17, 1997 (62 FR 2647). On June 
    10, 1997, the petitioner made an allegation that Cinsa and ENASA were 
    reimbursing the affiliated U.S. importer, Cinsa International 
    Corporation (CIC), for antidumping deposits and assessment liabilities 
    during the POR.
        During the period June 23 through June 27, 1997, we conducted 
    verifications of Cinsa and ENASA, as well as CIC.
        On August 19, 1997, the Department extended the time limit for the 
    preliminary results in this case until December 31, 1997. See Extension 
    of Time Limit for Antidumping Duty Administrative Review, 62 FR 44108, 
    August 17, 1997.
        The Department is conducting this review in accordance with section 
    751(a) of the Act.
    
    Scope of the Review
    
        The products covered by this review are porcelain-on-steel 
    cookware, including tea kettles, which do not have self-contained 
    electric heating elements. All of the foregoing are constructed of 
    steel and are enameled or glazed with vitreous glasses. This 
    merchandise is currently classifiable under Harmonized Tariff Schedule 
    of the United States (HTSUS) subheading 7323.94.00. Kitchenware 
    currently classifiable under HTSUS subheading 7323.94.00.30 is not 
    subject to the order. Although the HTSUS subheadings are provided for 
    convenience and customs purposes, the written description of the scope 
    of this proceeding is dispositive.
    
    Verification
    
        As provided in Section 782(i) of the Act, we conducted 
    verifications of Cinsa, ENASA and CIC from June 23 through June 27, 
    1997. We conducted the verifications using standard verification 
    procedures including on-site inspection of the manufacturers' 
    facilities, the examination of relevant accounting, sales, and other 
    financial records, and selection of original documentation containing 
    relevant information. Our verification results are outlined in the 
    public version of the verification report which is on file in the 
    Central Records Unit (CRU) in room B-099 of the Main Commerce Building.
        Based on verification, we made certain changes to data in the sales 
    listing submitted by Cinsa and ENASA used to calculate the preliminary 
    margins (See Memorandum to the File dated December 30, 1997).
    
    Affiliated Parties
    
        Cinsa and ENASA are both wholly-owned subsidiaries of ISLO S.A. de 
    C.V., which in turn is wholly-owned by the Grupo Saltillo, S.A. de C.V. 
    Because Cinsa and ENASA are controlled by the same parent, they are 
    affiliated within the meaning of section 771(3)(F) of the Act.
        Since Cinsa and ENASA are affiliated producers of subject 
    merchandise, we analyzed whether the two producers should be treated as 
    a single entity for the purpose of assigning an antidumping margin 
    using the Department's standard ``collapsing`` test. See reference to 
    19 CFR 351.401(f) on page two. During the course of this review, we 
    verified that the manufacturing facilities of ENASA are separate from 
    those of Cinsa, and that the machinery Cinsa used to produce ``ranch 
    style'' cookware cannot be used to make the ENASA ``euro-style'' 
    cookware, and vice versa, without fundamental and expensive retooling. 
    Accordingly, because we have determined that the production facilities 
    of Cinsa and ENASA would require substantial retooling in order to 
    produce similar or identical products, as in prior reviews, we are not 
    treating these firms
    
    [[Page 1431]]
    
    as a single entity for the purposes of assigning and antidumping 
    margin.
    
    Product Comparisons
    
        In accordance with section 771(16) of the Act, we considered all 
    products produced by Cinsa and ENASA covered by the description in the 
    ``Scope of the Review'' section, above, and sold in the home market 
    during the POR to be foreign like products for purposes of determining 
    appropriate product comparisons to U.S. sales. Where there were no 
    sales of identical merchandise in the home market to compare to U.S. 
    sales, we compared U.S. sales to the most similar foreign like product. 
    In making the product comparisons, we matched foreign like products 
    based on the physical characteristics reported by the respondents in 
    the following order: quality, gauge, cookware category, model, shape, 
    wall shape, diameter, width, capacity, weight, interior coating, 
    exterior coating, grade of frit (a material component of enamel), 
    color, decoration, and cover, if any. With regard to sets, where there 
    were no sales of identical merchandise in the home market to compare to 
    U.S. sales of subject merchandise sold in sets, we compared U.S. sales 
    of sets to the constructed value (CV) of the set.
        Cinsa did not report all of the required physical characteristic 
    data for one U.S. product. Accordingly, we were unable to identify the 
    most similar home market sales to that product. As facts available, we 
    compare U.S. sales of this product to CV.
        In addition, Cinsa and ENASA did not report cost information for 
    all sales made during the POR. Accordingly, we must apply facts 
    available to these sales. However, given the level of cooperation of 
    the two respondents, we have no basis to apply adverse facts available 
    in this instance. Therefore, we have used the average of all positive 
    margins for those sales without reported costs.
        As in our final results of review for the period December 1, 1994, 
    through November 30, 1995, (Porcelain-on-Steel Cookware from Mexico: 
    Final Results of Antidumping Duty Administrative Review, 62 FR 42496, 
    August 7, 1997 (POS9 Final)), we have rejected Cinsa's argument that 
    heavy gauge (HG) and medium gauge (MG) euro-style cookware manufactured 
    by ENASA and light gauge (LG) ranch-style cookware manufactured by 
    Cinsa constitute distinct ``classes or kinds'' of merchandise and, 
    therefore, require the Department to calculate one margin for HG and MG 
    cookware and a separate margin for LG cookware. The scope of the order 
    constitutes a single class or kind of merchandise, i.e. the ``subject 
    merchandise.''
        Consistent with our practice (see, e.g., Final Results of 
    Antidumping Duty Administrative Review: Cold-rolled Carbon Steel Flat 
    Products from the Netherlands, 61 FR 48465, (September 13, 1996)), we 
    compared prime quality models sold in the United States to identical 
    prime quality models sold in the home market. Where no home market 
    sales of identical prime quality models existed, we compared the U.S. 
    sales of prime quality models to the most similar home market prime 
    quality model. There were no U.S. sales of second quality models.
    
    Allegation of Reimbursement
    
        The Department examined at verification the issue of whether, as 
    the petitioner alleged, CIC was reimbursed for antidumping duties. With 
    respect to capital contributions made by GISSA Holding USA to CIC 
    during the POR, we found that since its inception in early January of 
    1995, the affiliated importer, CIC, has received two cash transfers in 
    the form of capital contributions. The first transfer constituted 
    start-up funds and was not tied to antidumping duty deposits or 
    assessments. In a public submission on the record of the tenth review 
    (1995-1996), the respondents Cinsa and ENASA specifically stated that a 
    second capital contribution made in April 1997 by CIC's affiliate, 
    GISSA Holding USA, was provided to ensure that CIC would have enough 
    funds to cover anticipated antidumping duties and assessment liability 
    subsequent to the liquidation of fifth (1990-1991) and seventh (1992-
    1993) POR entries during the tenth (1995-1996) POR. Because GISSA 
    Holding, USA is not a producer or exporter of the subject merchandise, 
    we cannot, ipso facto, conclude that a producer or exporter paid for, 
    or reimbursed to, the importer antidumping duties. Thus, we preliminary 
    do not find reimbursement within the meaning of 19 CFR 353.26(a). 
    However, we will continue to examine this issue in light of comments by 
    the parties and may, if warranted, seek additional information.
    
    Comparisons
    
        To determine whether sales of porcelain-on-steel cookware by Cinsa 
    and ENASA to the United States were made at less than normal value 
    (NV), we compared export price (EP) or constructed export price (CEP) 
    to the NV, as described in the ``Export Price and Constructed Export 
    Price'' and ``Normal Value'' sections of this notice.
        Mexico experienced significant inflation during the POR, as 
    measured by the producer price index issued by the Bank of Mexico. 
    Accordingly, to avoid the distortions caused by the effects of this 
    level of inflation on prices, we limited our comparisons to sales in 
    the same month and did not apply the Department's 90/60 rule, whereby 
    the Department may use as NV comparison market prices from the three 
    months prior to and the two months after the month in which the U.S. 
    sale was made. See e.g., Porcelain-on-Steel Cookware from Mexico: Final 
    Results of Antidumping Duty Administrative Review, 62 FR 42496 (August 
    7, 1997).
    
    Export Price and Constructed Export Price
    
        For certain sales made by Cinsa and ENASA, we calculated EP in 
    accordance with section 772(a) of the Act, because the subject 
    merchandise was sold directly to the first unaffiliated purchaser in 
    the United States prior to importation and because CEP methodology was 
    not otherwise indicated. We based EP on packed prices to unaffiliated 
    purchasers in the United States. We made deductions from the starting 
    price, where appropriate, for U.S. and foreign inland freight, U.S. and 
    Mexican brokerage and handling expenses, U.S. duty and rebates.
        For the remaining sales made by Cinsa and ENASA during the POR, we 
    calculated CEP in accordance with section 772(b) of the Act, because 
    the subject merchandise was sold by CIC after having been imported into 
    the United States. We based CEP on packed prices to unaffiliated 
    purchasers in the United States. We made deductions from the starting 
    price, where appropriate, for U.S. and foreign inland freight, U.S. and 
    Mexican brokerage and handling expenses, U.S. duty and rebates.
        We made further deductions, where appropriate, for credit, 
    commissions, and indirect selling expenses that were associated with 
    economic activities occurring in the United States. Finally, we made an 
    adjustment for profit in accordance with section 772(d)(3) of the Act.
    
    Normal Value
    
        Based on a comparison of the aggregate quantity of home market and 
    U.S. sales, we determined that the quantity of the foreign like product 
    sold in the exporting country was sufficient to permit a proper 
    comparison with the sales of the subject merchandise to the United 
    States, pursuant to section 773(a) of the Act. Therefore, we based NV 
    on either (1) the price (exclusive of value-added tax) at which the 
    foreign like
    
    [[Page 1432]]
    
    product was first sold for consumption in the home market, in 
    accordance with section 773(a)(1)(B)(i) of the Act or (2) CV, in 
    accordance with section 773(a)(4) of the Act, as noted in the ``Price 
    to Price Comparisons'' and ``Price to CV Comparisons'' sections of this 
    notice.
    
    Level of Trade
    
        In accordance with section 773(a)(1)(B) of the Act, to the extent 
    practicable, we determine NV based on sales in the comparison market at 
    the same level of trade (``LOT'') as the EP or CEP transaction. The NV 
    LOT is that of the starting-price sales in the comparison market or, 
    when NV is based on constructed value (``CV''), that of the sales from 
    which we derive selling, general and administrative (``SG&A'') expenses 
    and profit. For EP, the U.S. LOT is also the level of the starting-
    price sale, which is usually from exporter to importer. For CEP, it is 
    the level of the constructed sale from the exporter to the importer. To 
    determine whether NV sales are at a different LOT than EP or CEP, we 
    examine stages in the marketing process and selling functions along the 
    chain of distribution between the producer and the unaffiliated 
    customer. If the comparison-market sales are at a different LOT, and 
    the difference affects price comparability, as manifested in a pattern 
    of consistent price differences between the sales on which NV is based 
    and comparison-market sales at the LOT of the export transaction, we 
    make an LOT adjustment under section 773(a)(7)(A) of the Act. Finally, 
    for CEP sales, if the NV level is more remote from the factory than the 
    CEP level and there is no basis for determining whether the difference 
    in the levels between NV and CEP affects price comparability, we adjust 
    NV under section 773(a)(7)(B) of the Act (the CEP offset provision). 
    See Notice of Final Determination of Sales at Less Than Fair Value: 
    Certain Cut-to-Length Carbon Steel Plate from South Africa, 62 FR 61731 
    (November 19, 1997).
        In this review, Cinsa and ENASA reported three channels of 
    distribution in the home market: (1) direct sales to customers from the 
    Saltillo plant, (2) sales shipped from their Mexico city warehouse, and 
    (3) sales shipped from their Guadalajara warehouse. In analyzing the 
    data in the home market sales listing by distribution channel and sales 
    function, we found that the three home market channels did not differ 
    significantly with respect to selling activities. Similar services, 
    such as freight and delivery services and inventory maintenance, were 
    offered to all or some portion of customers in each channel. Based on 
    this analysis, we find that the three home market channels of 
    distribution comprise a single level of trade.
        Cinsa and ENASA reported both EP and CEP sales in the U.S. market. 
    The EP sales were made by the exporter to the unaffiliated customer, 
    who received the merchandise at the border between Mexico and the 
    United States (FOB Laredo, Texas). We noted that EP sales involved 
    basically the same selling functions associated with the home market 
    level of trade described above. Therefore, based upon this information, 
    we have determined that the level of trade for all EP sales is the same 
    as that in the home market.
        The CEP sales were based on sales made by the exporter to CIC, the 
    U.S. affiliated reseller, who then sold the merchandise directly to 
    unaffiliated purchasers in the United States from its San Antonio 
    warehouse. Based on our analysis, after the section 772(d) deductions, 
    there are two selling activities associated with Cinsa's and ENASA's 
    sales to CIC reflected in the CEP: (1) freight and other movement 
    expenses from the plant to the affiliated reseller's San Antonio 
    warehouse, and (2) freight and delivery services (excluding actual 
    freight charges), and inventory maintenance, and other support services 
    (such as sales personnel, order processing personnel, and billing 
    personnel), which are the same functions found in the home market. 
    Therefore, we determine that Cinsa's and ENASA's CEP sales and their 
    home market sales are made at the same level of trade. Accordingly, 
    because we find the U.S. sales and home market sales to be at the same 
    level of trade, no level of trade adjustments under section 
    773(a)(7)(A) of the Act are warranted.
    
    CEP Offset
    
        Section 773(a)(7)(B) of the Act provides for an adjustment to NV 
    when NV is based on a level of trade different from that of the CEP if 
    the NV level is more remote from the factory than the CEP and if we are 
    unable to determine whether the difference in levels of trade between 
    CEP and NV affects the comparability of their prices. This latter 
    situation can occur where there is no home market level of trade 
    equivalent to the U.S. sales level or where there is a different home 
    market level of trade but the data are insufficient to support a 
    conclusion on price effect. This adjustment, the CEP offset, is 
    identified in section 773(a)(7)(B) and is the lesser of the following:
        The indirect selling expenses on the home market sale, or
        The indirect selling expenses from the starting price in 
    calculating CEP.
        The CEP offset is not automatic each time we use CEP.
        In their questionnaire responses, Cinsa and ENASA claimed that the 
    sales support activities (such as freight and delivery services, 
    excluding actual freight charges, and inventory maintenance), and other 
    support services (such as sales personnel, order processing personnel, 
    and billing personnel) provided to home market and to U.S. customers 
    are generally the same. The respondents nevertheless requested an 
    adjustment to NV when NV is compared to U.S. CEP sales because they 
    claim that home market sales are made at a more advanced level of trade 
    than CEP sales because the NV sales price includes indirect selling 
    expenses attributable to sales support activities and other support 
    services noted above, while the CEP sales price is exclusive of all 
    indirect selling expenses and the selling functions attributable 
    thereto.
        However, as discussed above, we find that the selling functions 
    performed at the CEP level are essentially the same as those performed 
    in the home market. Accordingly, we consider the home market and CEP 
    levels of trade comparable. We disagree with respondents' assertion 
    that differences in indirect selling expenses reflect a difference in 
    level of trade. Because we find the CEP and home market levels of trade 
    are the same, an adjustment to NV is not warranted.
    
    Cost of Production Analysis
    
        The Department disregarded certain sales made by Cinsa for the 
    period December 1, 1994, through November 30, 1995, (the most recently 
    completed review of Cinsa) pursuant to a finding in that review that 
    sales were made below cost. Thus, in accordance with section 
    773(b)(2)(A)(ii) of the Act, there are reasonable grounds to believe or 
    suspect that the respondent Cinsa made sales in the home market at 
    prices below the cost of producing the merchandise in the current 
    review period. As a result, the Department initiated an investigation 
    to determine whether the respondent made home market sales during the 
    POR at prices below its cost of production (COP) within the meaning of 
    section 773(b) of the Act.
        The petitioner alleged that there are reasonable grounds to believe 
    or suspect that ENASA made home market sales during the POR at prices 
    that were less than its COP. On May 15, 1997, the Department initiated 
    a sales below cost investigation to determine whether ENASA made home 
    market sales during
    
    [[Page 1433]]
    
    the POR at prices below its COP within the meaning of section 773(b) of 
    the Act.
    
    A. Calculation of COP
    
        We calculated the COP based on the sum of Cinsa's and ENASA's cost 
    of materials and fabrication costs for the foreign like product, plus 
    amounts for home market SG&A and packing costs in accordance with 
    section 773(b)(3) of the Act.
        As noted above in the ``Product Comparisons'' section, the Mexican 
    economy experienced significant inflation during the POR. Therefore, in 
    order to avoid the distortive effect of inflation on our comparisons of 
    costs and prices, we requested that the respondents submit monthly, 
    model-specific production costs for each month of the POR. We 
    calculated a model-specific total and variable cost of manufacturing 
    (COM) during the POR. Using the producer price index for Mexico 
    maintained by the Bank of Mexico, we indexed the total and variable POR 
    model-specific costs to a common point, i.e., November 1996, the month 
    of the POR. We then divided the sum of the total POR model-specific 
    costs by the total model-specific production quantity to obtain a 
    model-specific POR weighted-average cost corresponding to the November 
    1996 reference point. The weighted-average COM was then restated based 
    on the currency value in each respective month and used to calculate a 
    month COP for each product.
        We relied on COP information submitted by Cinsa and ENASA, except 
    in the following instances where it was not appropriately quantified or 
    valued: (1) frit prices from an affiliated supplier did not approximate 
    fair market value prices; therefore, we increased direct materials by 
    the percentage required to adjust the reported cost of frit to reflect 
    fair market prices; (2) we added profit sharing expenses to the 
    variable cost of manufacture because they relate to the compensation of 
    direct labor; and (3) we revised Cinsa's submitted interest costs to 
    exclude the calculation of negative interest expense.
    
    B. Test of Home Market Prices
    
        We compared the monthly weight-averaged per unit COP figures, 
    indexed to account for the effects of inflation as noted above, to home 
    market sales of the foreign like product as required under section 
    773(b) of the Act, in order to determine whether these sales were made 
    at prices below the COP. In determining whether to disregard home 
    market sales made at prices below the COP, we examined whether: (1) 
    within an extended period of time, such sales were made in substantial 
    quantities; and (2) such sales were made a prices which permitted the 
    recovery of all costs within a reasonable period of time. On a product-
    specific basis, we compared the COP to the home market prices, less any 
    applicable movement charges, rebates, discounts, and direct and 
    indirect selling expenses.
    
    C. Results of COP Test
    
        Pursuant to section 773(b)(2)(C), where less than 20 percent of the 
    respondent's sales of a given product were at prices less than the COP, 
    we did not disregard any below-cost sales of that product because we 
    determined that the below-cost sales were not made in ``substantial 
    quantities.'' Where 20 percent or more of a respondent's sales of a 
    given product during the POR were at prices less than the COP, we 
    disregarded the below-cost sales were such sales were found to be made 
    at prices which would not permit the recovery of all costs within a 
    reasonable period of time (in accordance with section 773(b)(2)(D) of 
    the Act). Where all comparison sales of a specific product were 
    disregarded based on the COP test, we calculated NV based on CV, in 
    accordance with section 773(b)(1) of the act.
    
    D. Calculation of CV
    
        In accordance with section 773(e)(1) of the Act, we calculated a CV 
    based on the sum of the respondents' cost of materials, fabrication, 
    SG&A, and U.S. Packing costs as reported in the U.S. sales listing. We 
    calculated CV based on the methodology described in the calculation of 
    COP above.
        In accordance with section 773(e)(2)A), we based SG&A and profit on 
    the actual amounts incurred and realized by Cinsa and ENASA in 
    connection with the production and sale of the foreign like product in 
    the ordinary course of trade, for consumption in the foreign country. 
    For selling expenses, we used the weighted-average home market selling 
    expense. Where we compared EP to CV, we deducted from CV the weighted-
    average home market direct selling expenses and added the U.S. direct 
    selling expenses, in accordance with section 773(a)(8) of the Act and 
    section 353.56(a)(2) of the Department's regulations.
    
    E. Price to Price Comparisons
    
        For those comparison products for which there were sales at prices 
    above the COP, we based the respondents' NV on home market prices. For 
    both of the respondents, we calculated NV based on the VA-exclusive 
    gross unit price and deducted, where appropriate, inland freight, 
    rebates, and early payment discounts.
        For comparisons in Cinsa and ENASA's EP sales, we made a 
    circumstance-of-sale adjustment, where appropriate, for differences in 
    credit expenses. For comparisons to Cinsa's and ENASA's CEP sales, we 
    also deducted credit expenses and commissions from NV (no commissions 
    were incurred on EP sales). We made adjustments for differences in 
    packing expenses for both Cinsa and ENASA. We also made adjustments to 
    NV, where appropriate, for differences in costs attributable to 
    differences in physical characteristics of the merchandise, pursuant to 
    section 773(a)(6)(C)(ii) of the Act.
        In order to make appropriate adjustment for physical differences 
    between the products compared, and to account for the effects of 
    inflation, all costs were expressed in currency values corresponding to 
    November 1996, the last month of the POR. Using these November-based 
    costs, we then calculated a per-unit model-specific weighted-average 
    variable and total COM. These weighted-average costs were then indexed 
    to the currency value of the month of the comparison U.S. sale. The 
    adjusted monthly variable costs of manufacturing for U.S. and home 
    market products were then compared to arrive at the difference in 
    merchandise adjustment.
    
    F. Price to CV
    
        Where we compared EP or CEP to CV, we made circumstance-of-sale 
    adjustments by deducting from CV the weighted-average home market 
    direct selling expenses and adding the United States direct selling 
    expenses.
    
    Currency Conversion
    
        We made currency conversions based on the official exchange rates 
    in effect on the dates of the U.S. sales as certified by the Federal 
    Reserve Bank of New York. Section 773A(a) of the Act directs the 
    Department to use a daily exchange rate in order to convert foreign 
    currencies into U.S. dollars, unless the daily rate involves a 
    ``fluctuation.'' In accordance with the Department's practice, we have 
    determined as a general matter that a fluctuation exists when the daily 
    exchange rate differs from a benchmark by 2.25 percent. The benchmark 
    is defined as the rolling average of rates for the past 40 business 
    days. When we determine a fluctuation existed, we substitute the 
    benchmark for the daily rate.
    
    [[Page 1434]]
    
    Preliminary Results of the Review
    
        As a result of this review, we preliminarily determine that the 
    following weighted-average dumping margins exist:
    
    ------------------------------------------------------------------------
                Manufacturer/ exporter                  Period        Margin
    ------------------------------------------------------------------------
    Cinsa........................................  12/1/95-11/30/96    15.94
    ENASA........................................  12/1/95-11/30/96    63.76
    ------------------------------------------------------------------------
    
        Parties to the proceeding may request disclosure within five days 
    of the date of publication of this notice. Any interested party may 
    request a hearing within 10 days of publication. Any hearing, if 
    requested, will be held 44 days after the date of publication or the 
    first business day thereafter.
        Issues raised in hearings will be limited to those raised in the 
    respective case briefs and rebuttal briefs. Case briefs from interested 
    parties and rebuttal briefs, limited to the issues raised in the 
    respective case briefs, may be submitted not later than 30 days and 37 
    days, respectively, from the date of publication of these preliminary 
    results. Parties who submit case briefs or rebuttal briefs in this 
    proceeding are requested to submit with each argument (1) a statement 
    of the issue and (2) a brief summary of the argument.
        The Department will subsequently issue the final results of this 
    administrative review, including the results of its analysis of issues 
    raised in any such written briefs or at the hearing, if held, not later 
    than 120 days after the date of publication of this notice.
        The Department shall determine and the Customs Service shall assess 
    antidumping duties on all appropriate entries. The Department will 
    issue appropriate appraisement instructions directly to the Customs 
    Service upon completion of this review.
        Furthermore, the following deposit requirements will be effective 
    upon publication of the final results of this antidumping duty review 
    for all shipments of porcelain-on-steel cookware from Mexico, entered, 
    or withdrawn from warehouse, for consumption on or after the 
    publication date, as provided by section 751(a) of the Tariff Act: (1) 
    the cash deposit rates for the reviewed companies will be those 
    established in the final results of review; (2) for exporters not 
    covered in this review, but covered in the LTFV investigation or prior 
    reviews, the cash deposit rate will continue to be the company-specific 
    rate from the LTFV investigation or the prior review; (3) if the 
    exporter is not a firm covered in this review, a prior review, or the 
    original LTFV investigation, but the manufacturer is, the cash deposit 
    rate will be the rate established for the most recent period for the 
    manufacturer of the merchandise; (4) the cash deposit rate for all 
    other manufactures or exporters will continue to be 29.52 percent, the 
    ``All Others'' rate made effective by the LTFV investigation. These 
    requirements, when imposed, shall remain in effect until publication of 
    the final results of the next administrative review.
        This notice serves as a preliminary reminder to importers of their 
    responsibility under 19 CFR 353.26 to file a certificate regarding the 
    reimbursement of antidumping duties prior to liquidation of the 
    relevant entries during this review period. Failure to comply with this 
    requirement could result in the secretary's presumption that 
    reimbursement of antidumping duties occurred and the subsequent 
    assessment of double antidumping duties.
        This administrative review and notice are published in accordance 
    with section 751(a)(1) of the Act and 19 CFR 353.22.
    
        Dated: December 31, 1997.
    Richard W. Moreland,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 98-485 Filed 1-8-98; 8:45 am]
    BILLING CODE 3510-DS-M
    
    
    

Document Information

Effective Date:
1/9/1998
Published:
01/09/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of antidumping duty administrative review.
Document Number:
98-485
Dates:
January 9, 1998.
Pages:
1430-1434 (5 pages)
Docket Numbers:
A-201-504
PDF File:
98-485.pdf