[Federal Register Volume 59, Number 227 (Monday, November 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29237]
[Federal Register: November 28, 1994]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-839]
Initiation of Antidumping Duty Investigation: Certain Partial-
Extension Steel Drawer Slides With Rollers From the People's Republic
of China (PRC)
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: November 28, 1994.
FOR FURTHER INFORMATION CONTACT: Michelle A. Frederick or John
Brinkmann, Office of Antidumping Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, N.W., Washington, D.C. 20230;
telephone: (202) 482-0186 or (202) 482-5288, respectively.
INITIATION OF INVESTIGATION:
The Petition
On October 31, 1994, we received a petition filed in proper form
from Hardware Designers, Inc. (the petitioner). At the request of the
Department of Commerce (the Department), the petitioner filed
supplements to support and clarify the petition's data on November 16
and 18, 1994. In accordance with 19 CFR 353.12, the petitioner alleges
that certain partial-extension steel drawer slides with rollers (drawer
slides) are being, or are likely to be, sold in the United States at
less than fair value within the meaning of section 731 of the Tariff
Act of 1930, as amended (the Act), and that these imports are
materially injuring, or threaten material injury to, a U.S. industry.
The petitioner states that it has standing to file the petition
because it is an interested party, as defined under section 771(9)(C)
of the Act, and because the petition is filed on behalf of the U.S.
industry producing the product subject to this investigation. If any
interested party, as described under paragraphs (C), (D), (E), or (F)
of section 771(9) of the Act, wishes to register support for, or
opposition to, this petition, such party should file a written
notification with the Assistant Secretary for Import Administration.
Scope of Investigation
The subject merchandise in this investigation is certain partial-
extension steel drawer slides of any length with rollers. A drawer
slide is composed of two separate drawer slide rails. Each rail has
screw holes and an attached polymer roller. The polymer roller may or
may not have ball bearings. The subject drawer slides come in two
models: European or Low-Profile and Over-Under or High-Profile. The
former model has two opposing rails that provide one channel along
which both rollers move and the latter has two opposing rails that
provide two channels, one for each roller. For both models of drawer
slides, the two opposing rails differ slightly in shape depending on
whether the rail is to be affixed to the side of a cabinet or the side
of a drawer. A rail may also feature a flange for affixing to or
aligning along the bottom of a drawer.
Drawer slides may be packaged in an assembly pack with two drawer
slides; that is, four rails with their attached rollers, or in an
assembly pack with one drawer slide; that is, two rails with their
attached rollers; or individually; as a drawer slide rail with its
attached roller. An assembly pack may or may not contain a packet of
screws.
Not included in the scope of this investigation are linear ball
bearing steel drawer slides (with ball bearing in a linear plane
between the steel elements of the slide), roller bearing drawer slides
(with roller bearings in the wheel), metal box drawer slides (slides
built into the side of a metal or aluminum drawer), full extension
drawer slides (with more than four rails per pair), and industrial
slides (customized, high-precision slides without polymer rollers).
The subject merchandise is currently classifiable under subheading
8302.42.30 of the Harmonized Tariff Schedule of the United States
(HTSUS). It may also be classified under 9403.90.80. Although the HTSUS
subheadings are provided for convenience and customs purposes, our
written description of the scope of this proceeding is dispositive.
United States Price and Foreign Market Value
The petitioner based United States Price (USP) on a January 1994
price quotation obtained for a set of 14-inch drawer slides. The terms
of the price quotation were CIF New York. In calculating USP, the
petitioner deducted amounts for foreign inland freight, ocean freight,
and marine insurance.
The petitioner contends that the PRC is a non-market economy (NME)
country within the meaning of section 771(18)(A) of the Act. The
Department has determined in all previous investigations that the PRC
is an NME, and the presumption of NME status continues for purposes of
initiation of this investigation. See e.g., Final Determination of
Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR
51168 (October 7, 1994).
In accordance with section 773(c) of the Act, foreign market value
in NME cases is based on NME producers' factors of production, valued
in a market economy country. Consistent with Department practice absent
evidence that the PRC government determines which of its factories
shall produce for export to the United States, we intend, for purposes
of this investigation, to base FMV only on those factories that
produced drawer slides sold to the United States during the period of
investigation (POI).
In the course of this investigation, parties will have the
opportunity to address this NME designation and provide relevant
information and argument related to the issues of the PRC's NME status
and granting of separate rates to individual exporters. In addition,
parties will have the opportunity in this investigation to submit
comments on whether FMV should be based on prices or costs in the PRC
consistent with section 773(c)(1)(B) of the Act. See Amendment to Final
Determination of Sales at Less Than Fair Value and Amendment to
Antidumping Duty Order: Chrome-Plated Lug Nuts from the People's
Republic of China, 57 FR 15052 (April 24, 1992).
The petitioner calculated FMV on the basis of the valuation of the
factors of production. The petitioner, claiming that its production
process is similar to the Chinese production process, based the factors
of production on its own experience. The factors of production were
valued, where possible, on publicly available published information
pertaining to India. The petitioner argues that India is a country at a
comparable level of economic development to the PRC and that India is a
significant producer of comparable merchandise, thus meeting the
requirements of section 773(c)(4) of the Act. For purposes of this
initiation, we have accepted India as an appropriate surrogate country
selection.
Where Indian values were not available, the petitioner valued the
factors of production using either a ratio based on its own experience
or its own costs.
In accordance with section 773(c)(1)(B) of the Act, the
petitioner's FMV consisted of the sum of values assigned to materials,
labor, energy, overhead and selling, general and administrative (SG&A)
expenses. Certain of these factor values were adjusted for inflation.
Pursuant to section 773(e)(1) of the Act, the petitioner added to the
cost of manufacturing (COM), overhead and SG&A expenses, the statutory
minimum of eight percent for profit.
Based on our analysis of the petition and subsequent amendments, we
have made certain adjustments to the petitioner's FMV calculation as
follows:
(1) We disallowed all factors valued using the petitioner's own
costs;
(2) We recalculated factory overhead and SG&A expenses to account
for certain energy and inventory expenses excluded from the
petitioner's calculation of COM;
(3) We disallowed an amount included by the petitioner for scrap
loss because this cost was already included in the cost of steel.
Fair Value Comparisons
Based on a comparison of USP and FMV, the petitioner's alleged
dumping margin, as revised by the Department, is 55.69 percent.
Initiation of Investigation
Pursuant to section 732(c) of the Act, the Department must
determine, within 20 days after a petition is filed, whether a petition
sets forth an allegation necessary for the initiation of an antidumping
duty investigation, and whether the petition contains information
reasonably available to the petitioner supporting the allegation.
We have examined the petition for drawer slides from the PRC, as
amended, and have found that it meets the requirements of section
732(b) of the Act. Therefore, we are initiating an antidumping duty
investigation to determine whether imports of drawer slides from the
PRC are being, or are likely to be, sold in the United States at less
than fair value. If this investigation proceeds normally, we will make
our preliminary determination by April 9, 1995.
International Trade Commission (ITC) Notification
Section 732(d) of the Act requires us to notify the ITC of this
action and we have done so.
Preliminary Determinations by the ITC
The ITC will determine by December 15, 1994, whether there is a
reasonable indication that imports of drawer slides from the PRC are
materially injuring, or threaten material injury to, a U.S. industry.
Pursuant to section 733(a) of the Act, a negative ITC determination
will result in the investigation being terminated; otherwise, the
investigation will proceed according to statutory and regulatory time
limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: November 21, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-29237 Filed 11-25-94; 8:45 am]
BILLING CODE 3510-DS-P