[Federal Register Volume 59, Number 204 (Monday, October 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26325]
[[Page Unknown]]
[Federal Register: October 24, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-810]
Notice of Preliminary Determination of Sales at Less Than Fair
Value: Disposable Pocket Lighters From Thailand
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: October 24, 1994.
FOR FURTHER INFORMATION CONTACT: David Boyland or Susan Strumbel,
Office of Countervailing Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230; telephone
(202) 482-4198 and 482-1442, respectively.
Preliminary Determination: We preliminarily determine that disposable
pocket lighters from Thailand are being, or are likely to be, sold in
the United States at less than fair value, as provided in section 733
of the Tariff Act of 1930 (the ``Act''), as amended. The estimated
margins of sales at less than fair value are shown in the ``Suspension
of Liquidation'' section of this notice.
Case History
Since the initiation of this investigation on May 31, 1994 (59 FR
29412), the following events have occurred:
On June 29, 1994, the United States International Trade Commission
(``ITC'') issued an affirmative preliminary injury determination (see
ITC Investigation No. 731-TA-701).
In accordance with 19 CFR 353.42(b)(1994), an antidumping duty
questionnaire was presented on July 1, 1994, to Thai Merry Co., Ltd.
(``Thai Merry'') which accounts for over 60 percent of all Thai exports
of lighters to the United States during the POI. On August 11, 1994, we
sent a deficiency questionnaire regarding respondent's section A
questionnaire response. On August 19, 1994, the Department granted
respondent's request to extend the deadline for response to section B
and C of the Department's questionnaire, as well as the section A
deficiency questionnaire. On September 6, 1994, the Department received
responses to section B and C of the Department's questionnaire, as well
as the section A deficiency questionnaire. On September 13, 1994, the
Department issued a deficiency questionnaire with regard to
respondent's section B and C responses. On September 22, 1994, the
Department received the response to the second deficiency
questionnaire. On September 29, 1994, respondent was requested to
submit information regarding the single national distributor in the
home market. On October 3, 1994, the Department received additional
information regarding the home market national distributor.
Scope of the Investigation
The products covered by this investigation are disposable pocket
lighters, whether or not refillable, whose fuel is butane, isobutane,
propane, or other liquified hydrocarbon, or a mixture containing any of
these, whose vapor pressure at 75 degrees fahrenheit (24 degrees
celsius) exceeds a gage pressure of 15 pounds per square inch. Non-
refillable pocket lighters are imported under subheading 9613.10.0000
of the Harmonized Tariff Schedule of the United States (``HTSUS'').
Refillable, disposable pocket lighters would be imported under
subheading 9613.20.0000. Although the HTSUS subheadings are provided
for convenience and Customs purposes, our written descriptions of the
scope of these proceedings are dispositive.
Period of Investigation
The period of investigation (``POI'') is December 1, 1993 through
May 31, 1994.
Product Comparisons
We have determined that the class or kind of merchandise subject to
this investigation constitutes a single such or similar category. In
making our fair value comparisons, in accordance with the Department's
standard methodology, we first compared merchandise identical in all
respects. If no identical merchandise was sold, we compared the most
similar merchandise, as reflected in Appendix V of the questionnaire
(``Appendix V'') (on file in Room B-099 of the main building of the
Department of Commerce (``Public File'')) and incorporated by Thai
Merry in its response. For the U.S. sales compared to sales of similar
merchandise, we made an adjustment, pursuant to 19 CFR 353.57, for
physical differences in merchandise.
Fair Value Comparisons
To determine whether Thai Merry's sales for export to the United
States were made at less than fair value, we compared the United States
price (``USP'') to the foreign market value (``FMV''), as specified in
the ``United States Price'' and ``Foreign Market Value'' sections of
this notice.
Because all of Thai Merry's sales to the U.S. were made to national
distributors, respondent has argued that the Department should base FMV
on sales to a national distributor in Thailand and that sales to other
home market distributors should be excluded from the Department's
analysis. The Department normally makes its comparisons at the same
level of trade when sales are made to customers who fall into broad
categories such as retailers, distributors, and original equipment
manufacturers (see, Import Administration Policy Bulletin 92/1). Thai
Merry has claimed that there are different ``levels of trade'' within
the general category of distributors.
The ``levels of trade'' claimed by Thai Merry, i.e., national
distributor vs. distributor, are not clearly delineated. Both are
resellers, and the record does not establish that different functions
are involved in performing this activity. Hence, we would require
further information to determine whether national distributors and
other distributors are actually different levels of trade, rather than
simply different names for a common level.
We have preliminarily determined that respondent has not provided
sufficient information demonstrating that these two types of
distributors perform different selling functions. The Department has
requested that Thai Merry supply additional information to support its
claim, and we will evaluate this issue further for purposes of the
final determination. For purposes of this preliminary determination, we
are basing FMV on Thai Merry's sales to all distributors in Thailand.
United States Price
Because Thai Merry's U.S. sales of disposable pocket lighters were
made to unrelated purchasers prior to importation into the United
States, and the exporter's sales price methodology was not indicated by
other circumstances, in accordance with section 772(b) of the Act, we
based USP on the purchase price (``PP'') sales methodology. We
calculated Thai Merry's PP sales based on packed, CIF prices to
unrelated customers in the United States. We made deductions to the
U.S. price, where appropriate, for foreign inland freight, foreign
brokerage/handling expenses, marine insurance, and ocean freight. In
calculating U.S. credit expense, we used the borrowing rate in the
United States on short-term dollar-denominated loans. For a further
discussion of the Department's treatment of U.S. credit expense, please
see Memorandum from Barbara R. Stafford to Susan G. Esserman (September
26, 1994) on file in room B-099 of the U.S. Department of Commerce.
In accordance with Section 772(d)(1)(B) of the Act, we made an
addition to the U.S. price for the amount of import duties imposed on
inputs which were subsequently rebated upon exportation of the finished
merchandise to the United States.
We made an adjustment to U.S. price for VAT taxes paid on the
comparison sales in Thailand, in accordance with our practice, pursuant
to the Court of International Trade (CIT) decision in Federal-Mogul, et
al v. United States, 834 F. Supp. 1993. See Preliminary Antidumping
Duty Determination and Postponement of Final Determination; Color
Negative Photographic Paper and Chemical Components Thereof from Japan,
59 FR 16177, 16179, April 6, 1994, for an explanation of this tax
methodology.
Foreign Market Value
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating
FMV, we compared the volume of home market sales of subject merchandise
to the volume of third country sales of subject merchandise, in
accordance with section 773(a)(1)(B) of the Act. As a result, we
determined that the home market was viable.
We calculated FMV based on delivered prices, inclusive of packing,
to customers in the home market. From the delivered price, we deducted
home market packing and added U.S. packing costs. Pursuant to section
773(a)(4)(B) of the Act and 19 CFR 353.56(a)(2), we made circumstance-
of-sale-adjustments for differences in movement charges between
shipments to the United States and shipments in the home market. We
also made circumstance-of-sale-adjustments for differences in
advertising expenses and expenses related to securing credit (i.e.,
bank charges, and the imputed cost of credit).
For packing, movement, credit, and advertising expense we adjusted
respondent's reported values by using the net unit price as the
multiple of the value-based allocation factor. Additionally, because
average credit days were reported in the home market, as opposed to
transaction specific data, we are using average credit days to
calculate an imputed credit cost for all home market sales.
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.
Verification
As provided in section 776(b) of the Act, we will verify
information used in making our final determination.
Suspension of Liquidation
In accordance with section 733(d)(1) of the Act, we are directing
the Customs Service to suspend liquidation of all entries of disposable
pocket lighters from Thailand, as defined in the ``Scope of the
Investigation'' section of this notice, that are entered, or withdrawn
from warehouse, for consumption on or after the date of publication of
this notice in the Federal Register. The Customs Service shall require
a cash deposit or posting of a bond equal to the estimated dumping
margins, as shown below. This suspension of liquidation will remain in
effect until further notice. The weighted-average dumping margins are
as follows:
------------------------------------------------------------------------
Margin
Manufacture/producer/exporter percent
------------------------------------------------------------------------
Thai Merry.................................................... 14.74
All others.................................................... 14.74
------------------------------------------------------------------------
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our determination. If our final determination is affirmative,
the ITC will determine whether these imports are materially injuring,
or threaten material injury to, the U.S. industry within 75 days after
our final determination.
Public Comment
Interested parties who wish to request a hearing must submit a
written request to the Assistant Secretary for Import Administration,
U.S. Department of Commerce, Room B-099, within ten days of the
publication of this notice. Requests should contain: (1) the party's
name, address, and telephone number; (2) the number of participants;
and (3) a list of the issues to be discussed.
In accordance with 19 CFR 353.38, case briefs or other written
comments in at least ten copies must be submitted to the Assistant
Secretary no later than November 28, 1994, and rebuttal briefs no later
than December 5, 1994. A hearing, if requested, will be held on
December 8, 1994, at 1:00 pm at the U.S. Department of Commerce in Room
1815. Parties should confirm by telephone the time, date, and place of
the hearing 48 hours prior to the scheduled time. In accordance with 19
CFR 353.38(b), oral presentations will be limited to issues raised in
the briefs.
We will make our final determination not later than 75 days after
this preliminary determination.
This determination is published pursuant to section 733(f) of the
Act and 19 CFR 353.15(a)(4).
Dated: October 17, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-26325 Filed 10-21-94; 8:45 am]
BILLING CODE 3510-DS-P
