94-29237. Initiation of Antidumping Duty Investigation: Certain Partial- Extension Steel Drawer Slides With Rollers From the People's Republic of China (PRC)  

  • [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
    
    
    

Document Information

Published:
11/28/1994
Department:
International Trade Administration
Entry Type:
Uncategorized Document
Document Number:
94-29237
Dates:
November 28, 1994.
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: November 28, 1994, A-570-839