[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Notices]
[Pages 55269-55271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27357]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-845, A-570-846]
Preliminary Determinations of Critical Circumstances: Brake Drums
and Brake Rotors from the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce
EFFECTIVE DATE: October 25, 1996.
FOR FURTHER INFORMATION CONTACT: Brian C. Smith or Michelle A.
Frederick, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W.,
Washington, D.C. 20230; telephone: (202) 482-1766 or (202) 482-0186,
respectively.
SUPPLEMENTARY INFORATION:
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 (the Act) by the
Uruguay Rounds Agreements Act.
Preliminary Determinations of Critical Circumstances
On October 3, 1996, the Department of Commerce (the Department)
preliminarily determined, pursuant to section 733 of the Act, that
brake drums and brake rotors from the People's Republic of China (PRC)
are being, or are likely to be, sold in the United States at less than
fair value (61 FR 53190 (October 10, 1996)). On September 18, 1996, the
petitioner alleged that there is a reasonable basis to believe or
suspect that critical circumstances exist with respect to imports of
brake drums and brake rotors. In accordance with 19 CFR
353.16(b)(2)(ii), since these allegations were filed later than 20 days
before the scheduled date of the preliminary determinations, we must
issue our preliminary critical circumstances determinations not later
than 30 days after the allegations were submitted.
Section 733(e)(1) of the Act provides that the Department will
determine that there is a reasonable basis to believe or suspect that
critical circumstances exist if:
(A)(i) there is a history of dumping and material injury by reason
of dumped imports in the United States or elsewhere of the subject
merchandise, or
(ii) the person by whom, or for whose account, the merchandise was
imported knew or should have known that the exporter was selling the
subject merchandise at less than its fair value and that there was
likely to be material injury by reason of such sales, and
(B) there have been massive imports of the subject merchandise over
a relatively short period.
Brake Drums
History of Dumping and Importer Knowledge
(a) Selected respondents. To determine whether there is a history
of dumping of the merchandise under investigation, the Department
normally considers evidence of an existing antidumping order on brake
drums in the United States or elsewhere to be sufficient. Currently,
there are no antidumping orders on brake drums from the PRC. Therefore,
there is no history of dumped imports of brake drums from the PRC. In
determining whether an importer knew or should have known that the
exporter was selling the brake drums at less than fair value and
thereby causing material injury, the Department normally considers
margins of 15 percent or more sufficient to impute knowledge of dumping
and of resultant material injury for constructed export price (CEP)
sales, and margins of 25 percent or more for export price (EP) sales.
See, e.g., Final Preliminary Critical Circumstances Determination:
Honey from the People's Republic of China (PRC), 60 FR 29824 (June 6,
1995) (Honey).
Since the company-specific margins for EP sales in our preliminary
determination for brake drums are below 25 percent for China National
Machinery Import & Export Corporation; Yantai Import & Export
Corporation; Qingdao Metals & Machinery Import &
[[Page 55270]]
Export Corporation (Qingdao); and Beijing Xinchangyuan Automobile
Fittings Corporation, Ltd., we have not imputed knowledge of dumping
and injury with respect to these four selected respondents. Therefore,
we have not analyzed the shipment data for these companies and find
that critical circumstances do not exist with respect to these four
companies.
(b) Non-selected respondents. The Department is not analyzing data
for certain cooperative respondents due to the Department's own
administrative constraints. Therefore, we do not believe it is
appropriate to find critical circumstances with regard to these
companies not selected for analysis. This is the approach we took in
Honey, 60 FR at 29826.
(c) China-wide companies. For companies subject to the China-wide
rate, we are imputing knowledge of dumping based on the China-wide rate
(which is above 25 percent). See id.
Massive Imports
For cooperating selected respondents and cooperating non-selected
respondents, it is not necessary to consider whether there have been
massive imports since we found there was no history of dumping or
importer knowledge. For companies subject to the China-wide rate (i.e.,
companies which did not respond to the Department's questionnaire and
companies which responded but were preliminarily denied separate
rates), we determine, based on the facts available in accordance with
section 776(a) of the Act, that there were massive imports of brake
drums. See id. Therefore, we preliminarily determine that critical
circumstances exist with regard to these companies.
Conclusion
We find that critical circumstances do not exist for brake drum
sales by the following PRC firms:
China National Machinery Import & Export Corporation
Yantai Import & Export Corporation
Qingdao Metals & Machinery Import & Export Corporation
Beijing Xinchangyuan Automobile Fittings Corporation, Ltd.
China National Automotive Industry Import & Export Corporation,
Shandong Laizhou CAPCO Machinery Co., Ltd., and CAPCO International
USA (collectively CAIEC/CAPCO)
Jiuyang Enterprise Corporation
Hebei Metals and Machinery Import & Export Corporation
Longjing Walking Tractor Works Foreign Trade Import & Export
Corporation
Shanxi Machinery and Equipment Import & Export Corporation
For all firms not named above, we find that critical circumstances
do exist with respect to brake drums from the PRC.
Brake Rotors
History of Dumping and Importer Knowledge
(a) Selected respondents. To determine whether there is a history
of dumping of the merchandise under investigation, the Department
normally considers evidence of an existing antidumping order on brake
drums in the United States or elsewhere to be sufficient. Currently,
there are no antidumping orders on brake rotors from the PRC.
Therefore, there is no history of dumped imports of brake rotors from
the PRC. In determining whether an importer knew or should have known
that the exporter was selling the brake rotors at less than fair value
and thereby causing material injury, the Department normally considers
margins of 15 percent or more sufficient to impute knowledge of dumping
and of resultant material injury for constructed export price (CEP)
sales, and margins of 25 percent or more for export price (EP) sales.
Since the company-specific margins in the preliminary determination
for brake rotors are below 15 percent for CAIEC/CAPCO's CEP sales and
25 percent for CAIEC/CAPCO's EP sales, and below 25 percent for EP
sales of Yantai Import & Export Corporation and China National
Machinery and Equipment Import & Export (Xinjiang) Corporation, Ltd.,
we have not imputed knowledge of dumping and injury with respect to
these three selected respondents. Therefore, we have not analyzed the
shipment data for these companies, and find that critical circumstances
do not exist for their sales of brake rotors.
Since the company-specific margins in our preliminary determination
for brake rotors are above 15 percent for the CEP sales of Shenyang
Honbase Machinery Corporation, Ltd., Laizhou Luyuan Automobile Fittings
Corporation, Ltd. (collectively Shenyang/Laizhou) and Southwest
Technical Import & Export Corporation, Yangtze Machinery Corporation,
and MMB International, Inc. (collectively Southwest), and above 25
percent for EP sales of Southwest, we have determined that there is
knowledge of dumping and of material injury with respect to these two
selected firms.
(b) Non-selected respondents. As stated above with respect to brake
drums, the Department is not analyzing data for certain cooperative
respondents due to the Department's own administrative constraints.
Therefore, we do not believe it is appropriate to find critical
circumstances with regard to these companies not selected for analysis.
This is the approach we took in Honey. See 60 FR at 29826.
(c) China-wide companies. For companies subject to the China-wide
rate, we are imputing knowledge of dumping based on the China-wide rate
(which is above 25 percent). See id.
Massive Imports
For the cooperating selected respondents (except for Shenyang/
Laizhou and Southwest) and cooperating non-selected respondents, it is
not necessary to consider whether there have been massive imports since
we found there was no history of dumping or importer knowledge.
However, for Shenyang/Laizhou and Southwest, because there is importer
knowledge of dumping and resultant injury, we have examined whether
there were massive imports of brake rotors by these two companies.
When examining the volume and value data, the Department typically
compares the export volume for equal periods immediately preceding
(i.e., the pre-filing period) and following (i.e., the post-filing
period) the filing of the petition. Under 19 CFR 353.16(f)(2), unless
the imports in the post-filing period have increased by at least 15
percent over the imports during the pre-filing period, we will not
consider the imports to have been ``massive.'' In order to determine
whether there have been massive imports of brake rotors for the
companies for which we have determined that there is knowledge of
dumping and material injury, we compared shipments from August 1995 to
February 1996 (the pre-filing period) to shipments from March 1996 to
September 1996 (the post-filing period). The data we received indicates
that the increase in Southwest's shipment of brake rotors to the United
States during the post-filing period did not increase by more than 15
percent. Therefore, we preliminarily find that critical circumstances
do not exist with respect to sales of brake rotors by Southwest.
However, Shenyang/Laizhou's shipment of brake rotors to the United
States during the post-filing period did increase by more than 15
percent.
For companies subject to the China-wide rate (i.e., companies which
did not respond to the Department's questionnaire and companies which
responded but were preliminarily denied separate rates), we determine,
based on the facts available in accordance with section 776(a) of the
[[Page 55271]]
Act, that there were massive imports of brake rotors. See id.
Therefore, we preliminarily determine that critical circumstances exist
with regard to these companies.
Other Factors
Selected respondents. Our analysis pursuant to 19 CFR
353.16(f)(1)(ii) indicates no evidence that seasonal trends were a
significant factor leading to the increase in Shenyang/Laizhou's
shipments. We were unable to consider the share of U.S. consumption
represented by Shenyang/Laizhou, because we have insufficient
information with regard to the Shenyang/Laizhou's market share of U.S.
domestic consumption. Because we have determined that Shenyang/
Laizhou's purchasers knew or should have known that Shenyang/Laizhou
was dumping brake rotors and thereby causing injury, and because
Shenyang/Laizhou had massive imports over a relatively short period of
time, we preliminarily determine that critical circumstances exist with
respect to Shenyang/Laizhou's sales of brake rotors to the United
States.
Conclusion
We find that critical circumstances do not exist for the following
PRC brake rotors firms:
China National Automotive Industry Import & Export Corporation,
Shandong Laizhou CAPCO Machinery Co., Ltd., and CAPCO International
USA (collectively CAIEC/CAPCO)
Yantai Import & Export Corporation
Southwest Technical Import & Export Corporation, Yangtze Machinery
Corporation, and MMB International, Inc. (collectively Southwest)
China National Machinery and Equipment Import & Export (Xinjiang)
Corporation, Ltd.
Qingdao Metals & Machinery Import & Export Corporation
Xianghe Zichen Casting Corporation
Jiuyang Enterprise Corporation
Hebei Metals and Machinery Import & Export Corporation
Yenhere Corporation
Longjing Walking Tractor Works Foreign Trade Import & Export
Corporation
Jilin Provincial Machinery & Equipment Import & Export Corporation
Shanxi Machinery and Equipment Import & Export Corporation
We find that critical circumstances exist for Shenyang/Laizhou. In
addition, for companies subject to the China-wide rate, we are imputing
knowledge based on the China-wide rate (which is above 25 percent), and
determine, based on the facts available, that there were massive
imports of brake rotors by companies which did not respond to the
Department's questionnaire (see Honey, 60 FR at 29826). Therefore, we
preliminarily determine that critical circumstances exist with regard
to these companies.
Suspension of Liquidation
In accordance with section 733(e)(2) of the Act, we are directing
the Customs Service to suspend liquidation of all entries of brake
drums from PRC firms found to have critical circumstances that are
entered, or withdrawn from warehouse, for consumption on or after July
12, 1996 (i.e., 90 days prior to the date of publication of our
preliminary determination in the Federal Register).
For brake rotors, we are directing the Customs Service to suspend
liquidation of all entries of brake rotors from Shenyang/Laizhou and
all other PRC firms found to have critical circumstances that are
entered, or withdrawn from warehouse, for consumption on or after July
12, 1996 (i.e., 90 days prior to the date of publication of our
preliminary determination in the Federal Register).
The Customs Service shall require a cash deposit or posting of a
bond equal to the estimated preliminary dumping margins reflected in
the preliminary determinations which were published in the Federal
Register. This suspension of liquidation will remain in effect until
further notice.
Final Critical Circumstances Determinations
We will make final determinations concerning critical circumstances
when we make our final determinations of sales at less than fair value
in these investigations, which will be by February 24, 1997.
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our determinations.
These determinations are published pursuant to section 733(f) of
the Act.
Dated: October 18, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-27357 Filed 10-24-96; 8:45 am]
BILLING CODE 3510-DS-P
