99-27686. Preliminary Results of Full Sunset Review: Tapered Roller Bearings From the People's Republic of China  

  • [Federal Register Volume 64, Number 204 (Friday, October 22, 1999)]
    [Notices]
    [Pages 57034-57038]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-27686]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-570-601]
    
    
    Preliminary Results of Full Sunset Review: Tapered Roller 
    Bearings From the People's Republic of China
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of full sunset review: tapered 
    roller bearings from the People's Republic of China.
    
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    SUMMARY: On April 1, 1999, the Department of Commerce (``the 
    Department'') initiated a sunset review of the antidumping duty order 
    on tapered roller bearings (64 FR 15727) pursuant to section 751(c) of 
    the Tariff Act of 1930, as amended (``the Act''). On the basis of a 
    notice of intent to participate and adequate substantive comments filed 
    on behalf of domestic and respondent interested parties, the Department 
    determined to conduct a full (240-day) review. As a result of this 
    review, the Department preliminarily finds that revocation of the 
    antidumping duty order would be likely to lead to continuation or 
    recurrence of dumping at the levels indicated in the Preliminary 
    Results of Review section of this notice.
    
    FOR FURTHER INFORMATION CONTACT: Kathryn B. McCormick or Melissa G. 
    Skinner, Office of Policy for Import Administration, International 
    Trade Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
    1698 or (202) 482-1560, respectively.
    
    EFFECTIVE DATE: October 22, 1999.
    
    Statute and Regulations
    
        This review is being conducted pursuant to sections 751(c) and 752 
    of the Act. The Department's procedures for the conduct of sunset 
    reviews are set forth in Procedures for Conducting Five-year 
    (``Sunset'') Reviews of Antidumping and Countervailing Duty Orders, 63 
    FR 13516 (March 20, 1998) (``Sunset Regulations'') and in CFR part 351 
    (1999) in general. Guidance on methodological or analytical issues 
    relevant to the Department's conduct of sunset reviews is set forth in 
    the Department's Policy Bulletin 98.3--Policies Regarding the Conduct 
    of Five-year (``Sunset'') Reviews of Antidumping and Countervailing 
    Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 1998) (``Sunset 
    Policy Bulletin'').
    
    Scope
    
        The merchandise covered by this antidumping duty order (52 FR 
    22667, June 15, 1987) includes tapered roller bearings (``TRBs'') and 
    parts thereof, finished and unfinished, from the People's Republic of 
    China (``PRC''); flange, take up cartridge, and hanger units 
    incorporating tapered roller bearings; and tapered roller housings 
    (except pillow blocks) incorporating tapered rollers, with or without 
    spindles, whether or not for automotive use. The subject merchandise 
    was originally classified under item numbers 680.30, 680.39, 681.10, 
    692.32 of the Tariff Schedules of the United States Annotated 
    (``TSUSA''); currently, according to the U.S. Customs Service, they are 
    classifiable under item numbers 8482.20.00.10, 8482.20.00.20, 
    8482.20.00.30, 8482.20.00.40, 8482.20.00.50, 8482.20.00.60, 
    8482.20.00.70, 8482.20.00.80, 8482.91.00.50, 8482.99.15.00, 
    8482.99.15.40, 8482.99.15.80, 8483.20.40.80, 8483.20.80.80, 
    8483.30.80.20, 8708.99.80.15 and 8708.99.80.80 of the Harmonized Tariff 
    Schedule of the United States (``HTSUS'') (see June 8, 1999, Memorandum 
    to File: HTSUS Numbers for Tapered Roller Bearings). Although the above 
    HTSUS and TSUSA subheadings are provided for convenience and customs 
    purposes, the written description remains dispositive.
        In the ninth administrative review (62 FR 61276, 61289, November 
    17, 1997), the Department clarified the scope of the order when it 
    added two additional HTSUS numbers (8708.99.90.15 and 8708.99.80.80) 
    applicable to imports of the subject merchandise which previously had 
    not been included in the order. In addition, the Department clarified 
    under the HTSUS numbers that should correspond to subject merchandise 
    previously classified under TSUSA item number 692.32 in the original 
    antidumping order. We note that scope rulings are made on an order-wide 
    basis.
    
    History of the Order
    
        In the original investigation, covering the period September 1, 
    1985 through August 31, 1986 (55 FR 6669, February 26, 1990), the 
    Department determined a margin of 0.97 for Premier Bearing & Equipment, 
    Ltd. (``Premier''); 4.69 percent for China National Machinery & 
    Equipment Import & Export Corporation (``CMEC'') and 2.96 percent for 
    ``all others.''
        There have been ten administrative reviews for the subject 
    antidumping duty order. A summary of these reviews follows:
    
    ------------------------------------------------------------------------
                              Period of review
           Review                 (``POR'')                 Citation
    ------------------------------------------------------------------------
    (1).................  6 Feb 1987-31 May 1988..  56 FR 66 (January 2,
                                                     1991).
    (2).................  1 June 1988-31 May 1989.  56 FR 66 (January 2,
                                                     1991).
    (3).................  2 May 1989-31 May 1990..  61 FR 29345 (June 10,
                          1 June 1989-31 May 1990.   1996).
                                                    61 FR 29345 (June 10,
                                                     1996).
    (4).................  1 June 1990-31 May 1991.  61 FR 65527 (December
                                                     13, 1996).
    (5).................  1 June 1991-31 May 1992.  61 FR 65527 (December
                                                     13, 1996).
    (6).................  1 June 1992-31 May 1993.  61 FR 65527 (December
                                                     13, 1996).
    
    [[Page 57035]]
    
     
    (7).................  1 June 1993-31 May 1994.  62 FR 6189 (February 11,
                                                     1997).
    (8).................  1 June 1994-31 May 1995.  62 FR 6173 (February 11,
                                                     1997).
    (9).................  1 June 1995-31 May 1996.  62 FR 61276 (November
                                                     17, 1997).
    (10)................  1 June 1996-31 May 1997.  63 FR 63842 (December
                                                     28, 1998).
    ------------------------------------------------------------------------
    
    Over the life of this order the Department has investigated and/or 
    reviewed imports from 21 different producers/exporters. Although all 21 
    had, at some point, established the right to a separate rate, three of 
    these companies ceased participation in the more recent reviews, and 
    therefore, are no longer entitled to a separate rate. Additionally, the 
    order was revoked in part with respect to subject merchandise produced 
    by Shanghai General Bearing Company, Ltd. (62 FR 6173, February 11, 
    1997).
    
    Background
    
        On April 1, 1999, the Department initiated a sunset review of the 
    antidumping order on TRBs from the PRC (64 FR 15727), pursuant to 
    section 751(c) of the Act. The Department received a Notice of Intent 
    to Participate on behalf of domestic interested parties, The Timken 
    Company (``Timken'') and The Torrington Company (``Torrington'') 
    (``domestic interested parties'') within the applicable deadline (April 
    16, 1998) specified in section 351.218(d)(1)(i) of the Sunset 
    Regulations. The domestic interested parties each claimed interested 
    party status under section 771(9)(C) of the Act as a U.S. producer of a 
    domestic like product. On May 3, 1999, Zheijiang Machinery Import & 
    Export Corporation (``Zheijiang Machinery''); Liaoning Mec Group, Ltd. 
    (``Liaoning''); Luoyang Bearing Corporation (Group) (``Luoyang''); 
    Zheijiang Changshan Changhe Bearing Co., Ltd. (``ZCCBC''); Zheijiang 
    Wanxiang Group (``Wanxiang''); China National Machinery Import & Export 
    Corporation (``CMC''); Xibei Bearing Group Import & Export Co., Ltd. 
    (``Xibei''); and Xiangyiang Bearing Factory (``Xiangyiang''); and the 
    China TRB Sunset Coalition (``China Coalition'') (collectively 
    ``respondent interested parties'') notified the Department that they 
    intended to participate in this sunset review. CMC noted that it is a 
    different and distinct company from CMEC.
        We received complete substantive responses from the domestic and 
    respondent interested parties on May 3, 1999. In response to a request 
    from respondent interested parties, the Department, pursuant to 19 CFR 
    351.302, granted an extension of the deadline for filing substantive 
    responses, and, on May 7, 1999, the respondent interested parties 
    submitted supplemental information to complete their substantive 
    response.
        Timken claims that it was a petitioner in the original 
    investigation and a participant in the ten administrative reviews. 
    Torrington, however, did not participate in the original investigation 
    or any administrative review. The respondent interested parties claimed 
    interested party status under section 771(9)(B) of the Act, as foreign 
    producers/exporters of the subject merchandise. As an association of 
    foreign producers/exporters of subject merchandise, the China Coalition 
    claimed interested party status under section 771(9)(A) of the Act. 
    None of the above respondent interested parties participated in the 
    original investigation. However, Zheijiang and CMC participated in the 
    seventh through tenth reviews; Liaoning and Luoyang participated in the 
    third through tenth reviews; and Wanxiang participated in the ninth and 
    tenth reviews. ZCCBC is currently the subject of a new shipper review.
        On May 12, 1999, we received rebuttal comments from the domestic 
    and respondent interested parties. On May 24, 1999, the Department 
    determined to conduct an expedited sunset review of this order on the 
    basis that respondent interested parties accounted for significantly 
    less than 50 percent of the value of imports over the past five 
    years.1 On June 10, 1999, within the 70-day deadline 
    specified in 19 CFR 351.309(e)(ii), respondent interested parties 
    submitted comments on the Department's determination to conduct an 
    expedited sunset review. On July 20, 1999, we notified the 
    International Trade Commission that we had reconsidered our 
    determination of adequacy and, on the basis of complete substantive 
    responses from domestic and respondent interested parties to the notice 
    of initiation, and pursuant to 19 CFR 351.218(e)(1)(ii)(A), the 
    Department determined to conduct a full (240-day) sunset review of this 
    order.
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        \1\ See May 24, 1999, Memorandum for Jeffrey A. May, Re: Sunset 
    Review of Tapered Roller Bearings from the People's Republic of 
    China: Adequacy of Respondent Interested Party Response to the 
    Notice of Initiation.
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        In accordance with section 751(c)(5)(C)(v) of the Act, the 
    Department may treat a review as extraordinarily complicated if it is a 
    review of a transition order (i.e., an order in effect on January 1, 
    1995). Accordingly, on July 20, 1999, the Department determined that 
    the sunset review of the antidumping duty investigation on TRBs from 
    the PRC is extraordinarily complicated, and extended the time limit for 
    completion of the preliminary results of this review until not later 
    than October 18, 1999, in accordance with section 751(c)(5)(B) of the 
    Act.2
    ---------------------------------------------------------------------------
    
        \2\ See Tapered Roller Bearings from the People's Republic of 
    China: Extension of Time Limit for Preliminary Results of Five-Year 
    Review (July 20, 1999).
    ---------------------------------------------------------------------------
    
    Determination
    
        In accordance with section 751(c)(1) of the Act, the Department is 
    conducting this review to determine whether revocation of the 
    antidumping order would be likely to lead to continuation or recurrence 
    of dumping. Section 752(c) of the Act provides that, in making this 
    determination, the Department shall consider the weighted-average 
    dumping margins determined in the investigation and subsequent reviews 
    and the volume of imports of the subject merchandise for the period 
    before and the period after the issuance of the antidumping order, and 
    shall provide to the International Trade Commission (``the 
    Commission'') the magnitude of the margin of dumping likely to prevail 
    if the order is revoked.
        The Department's preliminary determination concerning continuation 
    or recurrence of dumping and the magnitude of the margin are discussed 
    below. In addition, the domestic and respondent interested parties' 
    comments with respect to continuation or recurrence of dumping and the 
    magnitude of the margin are addressed within the respective sections 
    below.
    
    Continuation or Recurrence of Dumping
    
        Drawing on the guidance provided in the legislative history 
    accompanying the Uruguay Round Agreements Act (``URAA''), specifically 
    the Statement of Administrative Action, H.R. Doc. No. 103-316, vol. 1 
    (1994) (``the SAA''), the House Report, H.R. Rep. No. 103-826, pt.1 
    (1994), and the Senate Report, S. Rep. No. 103-412 (1994), the
    
    [[Page 57036]]
    
    Department issued its Sunset Policy Bulletin providing guidance on 
    methodological and analytical issues, including the bases for 
    likelihood determinations. In its Sunset Policy Bulletin, the 
    Department indicated that determinations of likelihood will be made on 
    an order-wide basis (see section II.A.2). In addition, the Department 
    indicated that normally it will determine that revocation of an 
    antidumping order is likely to lead to continuation or recurrence of 
    dumping where (a) dumping continued at any level above de minimis after 
    the issuance of the order, (b) imports of the subject merchandise 
    ceased after the issuance of the order, or (c) dumping was eliminated 
    after the issuance of the order and import volumes for the subject 
    merchandise declined significantly (see section II.A.3).
        Domestic interested parties argue that revocation of the 
    antidumping duty order would be likely to lead to continuation or 
    recurrence of dumping. With respect to whether dumping continued at any 
    level above de minimis after the issuance of the order, domestic 
    interested parties assert in their substantive response that TRB 
    producers from the PRC have dumped subject merchandise into the United 
    States prior to 1987 (see March 3, 1999, Substantive Response of 
    domestic interested parties at 7). Further, the domestic interested 
    parties assert that, throughout the history of the order, bearings 
    producers in China have had to sell at less than fair value in order to 
    export to the United States. Id. For example, the rate of dumping found 
    for ``all others'' increased from 8.83 percent in the 1990/91 review, 
    to 33.18 percent in the most recent 1996/97 review.
        With respect to whether dumping was eliminated after the issuance 
    of the order and import volumes for the subject merchandise declined 
    significantly, the domestic interested parties assert that the margins 
    of dumping for PRC imports have increased over the life of the order, 
    along with the volume of TRB imports. Further, the domestic interested 
    parties assert that Chinese producers have continued to increase their 
    exports of subject merchandise--despite increasing margins--because of 
    incentives unique to the PRC market. Their examples include government 
    incentives such as preferential loan and tax policies; triangular debt 
    in the bearings industry, in which government policies requiring full 
    employment with limited money supply result in a surge of exports to 
    attract hard currency; and PRC government reform of state-owned 
    enterprises (``SOEs''), in which their sale or liquidation results in 
    excess capacity that can be devoted to production for export. Id. at 8-
    9.
        Respondent interested parties argue that revocation of the 
    antidumping duty order on TRBs from China will not result in a 
    continuation or recurrence of dumping. With respect to whether dumping 
    continued at any level above de minimis after the issuance of the 
    order, the respondent interested parties assert that the weighted-
    average margins of dumping have declined significantly in recent years 
    and that the margins of dumping for the 1997/98 review are likely to 
    decline to a de minimis level (see May 3, 1999 Substantive Response of 
    respondent interested parties at 21).
        With respect to whether dumping was eliminated after the issuance 
    of the order and import volumes for the subject merchandise declined 
    significantly, the respondent interested parties assert that, imports 
    of subject merchandise from China are dramatically higher during the 
    period following the issuance of the order. Id at 20. Specifically, the 
    respondent interested parties assert that annual imports of TRBs from 
    China during the period from 1994 to 1998 averaged over twenty times 
    the level in 1985, the year preceding the issuance of the order. Id. 
    Moreover, they note that China's import market share is substantially 
    higher during this more recent period than in 1985. Id. at 21.
        In their rebuttal comments of May 12, 1999, domestic interested 
    parties assert that the respondent interested parties' submission 
    should not be deemed adequate because the Chinese government has not 
    indicated its willingness to participate in the sunset review (see May 
    12, 1999 Rebuttal Comments of domestic interested parties at 5). The 
    domestic interested parties argue that, absent government 
    participation, the Department will not obtain the kind of data that 
    would warrant a full review. Furthermore, domestic interested parties 
    reassert that, in every review in every year since the order was put in 
    place, the Department has found dumping. Id. at 7. As dumping has not 
    been eliminated, and significant margins continued to be found, dumping 
    is therefore likely to continue or recur.
        In their May 12, 1999 rebuttal comments, respondent interested 
    parties assert that the domestic interested parties' distort the 
    effects of revocation and possible margins by using the PRC-wide review 
    rates to total PRC imports, when a substantial portion of these imports 
    are from Chinese companies that have received separate rates in past 
    administrative reviews (see May 12, 1999 Rebuttal comments of 
    respondent interested parties at 2).
        With respect to the issue of government incentive programs raised 
    by domestic interested parties, respondent interested parties argue 
    that Chinese TRB producers and exporters do not receive benefits from 
    any export incentive programs. They assert that the only benefit 
    received by TRB producers and exporters is reimbursement of, and/or 
    exemption from, VAT taxation for exporting. Id. at 3. However, the 
    refunding of VAT is not deemed a subsidy under either U.S. law or under 
    the WTO Agreement on Subsidies and Countervailing Measures. Moreover, 
    respondent interested parties argue that market economy countervailing 
    duty principles should not be applied to non-market economies in the 
    evaluation of fair market value. Id at 4.
        With respect to the issue of triangular debt raised by domestic 
    interested parties, respondent interested parties assert that 
    triangular debt (see May 3, 1999 Substantive Response of domestic 
    interested parties) has no bearing on the Chinese TRB companies, which, 
    as the Department has repeatedly recognized, are not state-owned (see 
    May 12, 1999 Rebuttal Comments of respondent interested parties at 4).
        Respondent interested parties dispute the domestic interested 
    parties' assertion that there is reduced demand for TRBs in the PRC, 
    arguing that, on the contrary, Chinese government policies and SOE 
    reform are increasing the domestic demand for TRBs. Id. at 6. Moreover, 
    they dispute the argument of the domestic interested parties that 
    Chinese TRB producers maintain inventories of subject merchandise, 
    which they are stockpiling for U.S. export. Id. at 7.
        As discussed in section II.A.3 of the Sunset Policy Bulletin, the 
    SAA at 890, and the House Report at 63-64, if companies continue to 
    dump despite the discipline of an order in place, the Department may 
    reasonably infer that dumping would continue were the discipline to be 
    removed. In this case, the Department finds that, although the margins 
    of four companies decreased below de minimis in the ninth and tenth 
    reviews, dumping by other producers/exporters nonetheless continued 
    since the issuance of an antidumping order. In addition, the PRC-wide 
    rate has increased steadily every year since the third review, 
    especially between the sixth and seventh reviews. Given that dumping 
    has continued over the life of the order, the Department preliminarily 
    determines that dumping is likely to continue if the order were 
    revoked.
    
    [[Page 57037]]
    
    Magnitude of the Margin
    
        In the Sunset Policy Bulletin, the Department stated that it will 
    normally provide to the Commission the margin that was determined in 
    the final determination of the original investigation. Further, for 
    companies not specifically investigated or for companies that did not 
    begin shipping until after the order was issued, the Department 
    normally will provide a margin based on the ``all others'' rate from 
    the investigation (see section II.B.1 of the Sunset Policy Bulletin). 
    Exceptions to this policy include the use of a more recently calculated 
    margin, where appropriate, and consideration of duty absorption 
    determinations (see sections II.B.2 and 3 of the Sunset Policy 
    Bulletin).
        As noted above, the Department published a rate of 0.97 percent for 
    Premier, 4.69 percent for CMEC and, 2.96 for ``all others'' in its 
    final determination of sale at less than fair value (55 FR 6669, 
    February 26, 1989). In addition, the Department has conducted ten 
    administrative reviews of this order. Further, we note that, to date, 
    the Department has not issued any duty absorption findings in this 
    case.
        The domestic interested parties assert that the Department should 
    select the highest calculated rate that corresponds to the review 
    period in which the companies--Wanfangdian, Jilin, Lianoning and 
    Guizhou--had their highest import volumes. The domestic interested 
    parties argue that, for these companies, the increases in the dumping 
    margin correspond to increases in U.S. imports, indicating that these 
    companies increased dumping in order to expand their market share. 
    Furthermore, domestic interested parties argue that, because imports of 
    Chinese TRBs and PRC-wide dumping margins have increased almost every 
    year since the issuance of the order, the Department should determine 
    that the most recent PRC-wide rate of 33.18 percent is the rate likely 
    to prevail for imports from all producers that do not currently have a 
    separate rate (see May 3, 1999 Substantive Response of domestic 
    interested parties at 13). Finally, the domestic interested parties 
    argue that companies that lost their status as independent companies 
    should be assigned the most recent PRC-wide rate.
        Respondent interested parties argue that, in view of the 
    dramatically increased level of imports from China from the period 
    before the issuance of the antidumping order, and the declining 
    weighted-average dumping margins in the most recent two reviews, the 
    Department should provide to the Commission the weight average of the 
    most recent rates of 3.20 percent, 0.02 percent and 0.03 percent for 
    Luoyang, Liaoning, and CMC, respectively (i.e., rates from the 1996/97 
    administrative review) (see May 3, 1999 Substantive Response of 
    respondent interested parties at 22), as the margin likely to prevail 
    if the order were revoked.
        In their May 12, 1999, rebuttal, the domestic interested parties 
    reassert that as Chinese TRB imports have increased during the life of 
    the subject order, margins have also increased, showing that producers/
    importers from the PRC have had to increase dumping in order to 
    increase sales volume (see May 12, 1999 Rebuttal of domestic interested 
    parties at 7). In addition, the domestic interested parties disagree 
    with the respondent interested parties' argument that the Department 
    should calculate the weight average of the margins of Luoyang, 
    Liaoning, and China National in the 1996/97 review, as the margin 
    likely to prevail if the order were revoked, because, allegedly, these 
    respondents failed to identify extraordinary circumstances that would 
    warrant such revised rates. Id. at 9.
        With respect to the domestic interested parties' argument that the 
    Department use the historical PRC-wide rate, respondent interested 
    parties assert that this argument ignores the fact that over 23 
    different companies were not participants in the original investigation 
    (see May 12, 1999 Rebuttal of respondent interested parties at 10). 
    Moreover, in one or more annual reviews, nearly all companies received 
    separate rates and lower margins than the determined PRC-wide rate. Id.
        With respect to the issue of assignment of the PRC-wide rate to 
    companies previously eligible for separate rate, respondent interested 
    parties assert that certain companies dropped out of the review process 
    because they decided to leave the U.S. market and for no other reason. 
    Id at 7.
        As stated above, the Department normally will provide to the 
    Commission the margin that was determined in the original 
    investigation. The SAA at 889-90 and the House Report at 63 state that 
    declining (or no) margins accompanied by steady or increasing imports 
    may indicate that foreign companies do not have to dump to maintain 
    market share in the United States, and that dumping is less likely to 
    continue or recur were the order to be revoked. Therefore, section 
    II.B.2 of the Sunset Policy Bulletin states that in response to 
    argument from an interested party, the Department may provide to the 
    Commission a more recently calculated margin for a particular company 
    where, for that particular company, dumping margins declined or dumping 
    was eliminated after the issuance of the order and import volumes 
    remained steady or increased. Additionally, if a company chooses to 
    increase dumping in order to increase or maintain market share, the 
    Department may provide the Commission with a more recently calculated 
    margin for that company.
        Based on our review of information submitted by the interested 
    parties, the U.S. Census Bureau IM146 reports, and data from our 
    original investigation and subsequent administrative reviews, the 
    Department preliminarily determines that:
        (1) With respect to Wafangdian, Jilin and Liaoning, the Department 
    agrees with the domestic interested parties that company-specific 
    export volumes and company-specific dumping margins peaked 
    concurrently, during the 1994/95 period of review. Additionally, 
    company-specific exports and the dumping margin for Guizhou Machinery 
    peaked concurrently during the 1995/96 period of review. This trend 
    shows that these companies may be willing to increase dumping in order 
    to increase or maintain market share. Therefore, the Department, in 
    accordance with section II.B.2 of the Sunset Policy Bulletin, 
    preliminarily intends to report to the Commission company-specific 
    rates from the periods of review during which their imports increased: 
    29.40 percent for Wafangdian, from the 1994/95 review period; 29.40 
    percent for Jilin, from the 1994/95 and 1995/96 periods of review; 9.72 
    percent for Lioaning, from the 1994/95 period of review, and 21.79 
    percent for Guizhou Machinery, from the 1995/96 period of review.
        (2) At some time over the life of the order, CMEC, Guizhou 
    Automotive and Tianshui Hailin were subject to separate rates, but were 
    assigned the PRC-wide rate when they did not participate in subsequent 
    reviews. The Department agrees with the domestic interested parties' 
    argument that it is not appropriate to assign a rate to these companies 
    based on a status they no longer enjoy. Therefore, the Department 
    preliminarily intends to report to the Commission the 1995/96 review 
    PRC-wide rate of 29.40 percent for CMEC, Guizhou Automotive and 
    Tianshui Hailin.
        (3) With respect to CMC and Luoyang, the Department agrees with 
    respondent interested parties that as company-specific exports from 
    these companies increased from the period prior to issuance of the 
    order, their company-specific weighted-average dumping
    
    [[Page 57038]]
    
    margins have declined in the two most recent reviews. The Department 
    finds the same trend for Zheijiang Machinery and Waxiang, which shows 
    that each of these exporters are likely to continue dumping at the 
    lower rates found in more recent reviews. Thus, the Department, in 
    accordance with section II.B.2 of the Sunset Policy Bulletin, 
    preliminarily intends to report to the Commission the company-specific 
    margin of 0.03 percent for CMC, 3.20 percent for Luoyang, and 0.11 
    percent for Zheijiang Machinery, each from the 1996/97 period of 
    review; and 0.03 percent for Waxiang from the 1995/96 review.
        (4) Because three respondent interested parties--Xiangyiang, Xibei 
    and ZCCBC (a participant in the current new shipper review)--have never 
    been determined eligible for a company-specific rate, the Department 
    preliminarily intends to assign the PRC-wide rate of 29.40 percent to 
    these companies.
        (5) The margins for Premier, a company subject to the original 
    investigation, have generally increased throughout the history of the 
    order. Premier's original margin of 0.97 percent peaked at 25.56 
    percent in the 1993/94 review, and then decreased to 7.22 percent in 
    the most recent 1996/97 review. Absent comments or information 
    regarding the margin and import volumes for Premier from domestic and 
    respondent interested parties, the Department, in accordance with 
    section II.B.2 of the Sunset Policy Bulletin, preliminarily intends to 
    report to the Commission a more recent rate of 5.43 percent for 
    Premier. This rate is from the 1995/96 period of review, in which the 
    overall volume of imports peaked and then began to decline.
        (6) With respect to the PRC ``all others'' rate, the Department 
    agrees with domestic interested parties' argument that, as import 
    volumes generally increased, with the highest volumes in the years with 
    the highest margins, companies have increased dumping in order to 
    maintain or increase market share. We note that the total volume of 
    imports less imports of those companies with separate rates increased 
    from fiscal years 1994 through 1996, then declined in fiscal years 1997 
    through 1998. During this five-year period, the PRC rate increased 
    approximately 30 percent, reaching a peak of 33.18 percent in FY 1997. 
    Following this margin increase, imports declined approximately 60 
    percent. Because overall imports increased through 1996 and then began 
    to decline, the Department preliminarily intends to report to the 
    Commission a rate of 29.40 percent for ``all others'', in accordance 
    with section II.B.2 of the Sunset Policy Bulletin. This is the PRC-wide 
    rate from the 1995/96 administrative review.
    
    Preliminary Results of Review
    
        As a result of this review, the Department preliminarily finds that 
    revocation of the antidumping duty order would likely lead to 
    continuation or recurrence of dumping at the margins listed below:
    
    ------------------------------------------------------------------------
                                                                    Margin
                         Producer/exporter                        (percent)
    ------------------------------------------------------------------------
    China National Machinery Import & Export Corp.(``CMC'')....         0.03
    Zheijiang Wanxiang Group...................................         0.03
    Zheijiang Machinery Import & Export Corp...................         0.11
    Luoyang....................................................         3.20
    Premier....................................................         5.43
    Liaoning...................................................         9.72
    Guizhou Machinery..........................................        21.79
    Wafangdian.................................................        29.40
    Jilin......................................................        29.40
    China National Machinery Import & Export Corp.(``CMEC'')...        29.40
    Guizhou Automotive.........................................        29.40
    Tianshui Hailin............................................        29.40
    Xiangyiang.................................................        29.40
    Xibei......................................................        29.40
    Zheijiang Changshan Changhe Bearing Co. (``ZCCBC'')........        29.40
    All Others.................................................        29.40
    ------------------------------------------------------------------------
    
        Any interested party may request a hearing within 30 days of 
    publication of this notice in accordance with 19 CFR 351.310(c). Any 
    hearing, if requested, will be held on December 14, 1999, in accordance 
    with 19 CFR 351.310(d). Interested parties may submit case briefs no 
    later than December 7, 1999, in accordance with 19 CFR 
    351.309(c)(1)(i). Rebuttal briefs, which must be limited to issues 
    raised in the case briefs, may be filed not later than December 13, 
    1999. The Department will issue a notice of final results of this 
    sunset review, which will include the results of its analysis of issues 
    raised in any such Policy Bulletin.
        This five-year (``sunset'') review and notice are in accordance 
    with sections 751(c), 752, and 777(i)(1) of the Act.
    
        Dated: October 18, 1999.
    Richard W. Moreland,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 99-27686 Filed 10-21-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
10/22/1999
Published:
10/22/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of full sunset review: tapered roller bearings from the People's Republic of China.
Document Number:
99-27686
Dates:
October 22, 1999.
Pages:
57034-57038 (5 pages)
Docket Numbers:
A-570-601
PDF File:
99-27686.pdf