96-28557. Natural Bristle Paint Brushes and Brush Heads From the People's Republic of China; Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 61, Number 216 (Wednesday, November 6, 1996)]
    [Notices]
    [Pages 57389-57391]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-28557]
    
    
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    DEPARTMENT OF COMMERCE
    [A-570-501]
    
    
    Natural Bristle Paint Brushes and Brush Heads From the People's 
    Republic of China; Preliminary Results of Antidumping Duty 
    Administrative Review
    
    AGENCY: International Trade Administration/Import Administration.
    
    ACTION: Notice of preliminary results of the antidumping duty 
    administrative review of natural bristle paint brushes and brush heads 
    from the People's Republic of China.
    
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    SUMMARY: The Department of Commerce (the Department) is conducting an 
    administrative review of the antidumping duty order on natural bristle 
    paint brushes and brush heads (paint brushes) from the People's 
    Republic of China (PRC) in response to requests by domestic interested 
    parties, the Paint Applicator Division of the American Brush 
    Manufacturers Association (PADABMA) and EZ Paintr Corporation (EZ 
    Paintr). This review covers shipments of this merchandise to the United 
    States during the period February 1, 1995, through January 31, 1996.
        We have preliminarily determined that sales have been made below 
    normal value (NV). If these preliminary results are adopted in our 
    final results, we will instruct U.S. Customs to assess antidumping 
    duties on appropriate entries.
        Interested parties are invited to comment on these preliminary 
    results. Parties who submit argument are requested to submit with each 
    argument (1) a statement of the issue and (2) a brief summary of the 
    argument.
    
    EFFECTIVE DATE: November 6, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Elisabeth Urfer or Maureen Flannery, 
    Import Administration, International Trade Administration, U.S. 
    Department of Commerce, 14th Street and Constitution Avenue, N.W., 
    Washington D.C. 20230; telephone (202) 482-4733.
    
    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 Round Agreements Act (URAA). In addition, unless otherwise 
    indicated, all citations to the Department's regulations are to the 
    current regulations, as amended by the interim regulations published in 
    the Federal Register on May 11, 1995 (60 FR 25130).
    
    Background
    
        The Department published in the Federal Register an antidumping 
    duty order on paint brushes from the PRC on February 14, 1986 (51 FR 
    5580). On February 9, 1996, the Department published in the Federal 
    Register (61 FR 4956) a notice of opportunity to request an 
    administrative review of the antidumping duty order on paint brushes 
    from the PRC covering the period February 1, 1995, through January 31, 
    1996.
        In accordance with 19 CFR 353.22(a), PADABMA requested that the 
    Department conduct an administrative review of Yixing Sanai Brush 
    Making Co., Ltd. (Yixing); Eastar B.F. (Thailand) Company Ltd. 
    (Eastar); Hebei Animal By-Products I/E Corp. (HACO); China National 
    Metals & Minerals I/E Corp, Zhenjiang Trading Corp. (Zhenjiang 
    Trading); China National Native Product and Animal By-Product Import 
    and Export Corporation (China National); and Inner Mongolia Autonomous 
    Region Light Industrial Products I/E Corp. EZ Paintr requested that we 
    conduct an administrative review of HACO. We published a notice of 
    initiation of this antidumping duty administrative review on March 19, 
    1996 (61 FR 11185). The Department is conducting this administrative 
    review in accordance with section 751 of the Act.
    
    Scope of Review
    
        Imports covered by this review are shipments of natural bristle 
    paint brushes and brush heads from the PRC. The merchandise under 
    review is currently classifiable under item 9603.40.40.40 of the 
    Harmonized Tariff Schedule of the United States (HTSUS). Although the 
    HTSUS subheading is provided for convenience and customs purposes, the 
    written description of the merchandise is dispositive.
        This review covers the period February 1, 1995, through January 31, 
    1996.
    
    Separate Rates
    
        To establish whether a company is sufficiently independent to be 
    entitled to a separate rate, the Department analyzes each exporting 
    entity under the test established in the Final Determination of Sales 
    at Less Than Fair Value: Sparklers from the People's Republic of China, 
    56 FR 20588 (May 6, 1991) (Sparklers), as amplified in Final 
    Determination of Sales at Less Than Fair Value: Silicon Carbide from 
    the People's Republic of China, 59 FR 22585 (May 2, 1994) (Silicon 
    Carbide). Under this policy, exporters in non-market-economy (NME) 
    countries are entitled to separate, company-specific margins when they 
    can demonstrate an absence of government control, both in law (de jure) 
    and in fact (de facto), with respect to exports. Evidence supporting, 
    though not requiring, a finding of de jure absence of government 
    control includes: (1) An absence of restrictive stipulations associated 
    with an individual exporter's business and export licenses; (2) any 
    legislative enactments decentralizing control of companies; and (3) any 
    other formal measures by the government decentralizing control of 
    companies. De facto absence of government control with respect to 
    exports is based on four criteria: (1) Whether the export prices are 
    set by or subject to the approval of a government authority; (2) 
    whether each exporter retains the proceeds from its sales and makes 
    independent decisions regarding the disposition of profits and 
    financing of losses; (3) whether each exporter has autonomy in making 
    decisions regarding the selection of management; and (4) whether each 
    exporter has the authority to negotiate and sign contracts. See Silicon 
    Carbide, 59 FR at 22587.
        In our final results of review of this order for the 1994-1995 
    review period, the Department determined that HACO warranted a company-
    specific dumping margin according to the criteria identified in 
    Sparklers and Silicon Carbide. See Final Results of Antidumping Duty 
    Administrative Review: Natural Bristle Paint Brushes and Brush Heads 
    From the People's Republic of China, 61 FR 52917 (October 9, 1996). 
    Because there is no new evidence on the record to warrant 
    reconsideration of that issue, we preliminarily determine that HACO 
    continues to be entitled to a separate rate.
        Because Yixing, Eastar, Zhenjiang Trading, China National Native 
    Produce and Animal By-Products Import-Export Corporation, and Inner 
    Mongolia Autonomous Region Light Industrial Products I/E Corp. did not 
    respond to our separate rates questionnaire, we preliminarily determine 
    that they do not qualify for separate rates.
    
    Non-Shipper
    
        HACO stated that it did not have shipments during the period of 
    review, and we confirmed this with the United States Customs Service. 
    Therefore, we
    
    [[Page 57390]]
    
    are treating HACO as a non-shipper for this review. HACO will retain 
    its rate from the last administrative review.
    
    Facts Available
    
        We preliminarily determine that the use of the facts available is 
    appropriate for Yixing, Eastar, Zhenjiang Trading, China National, and 
    Inner Mongolia Autonomous Region Light Industrial Products I/E Corp., 
    because these firms did not respond to the Department's antidumping 
    questionnaire. Because necessary information is not available on the 
    record with regard to sales by these firms, as a result of their 
    withholding the requested information, we must make our preliminary 
    determination based on facts otherwise available pursuant to section 
    776(a) of the Act. In addition, the Department finds that, in not 
    responding to the questionnaire, these five firms failed to cooperate 
    by not acting to the best of their ability to comply with requests for 
    information from the Department.
        Where the Department must base the entire dumping margin for a 
    respondent in an administrative review on the facts available because 
    that respondent failed to cooperate, section 776(b) of the Act 
    authorizes the Department to use an inference adverse to the interests 
    of that respondent in choosing the facts available. Section 776(b) of 
    the Act also authorizes the Department to use as adverse facts 
    available information derived from the petition, the final 
    determination, a previous administrative review, or other information 
    placed on the record. Because information from prior proceedings 
    constitutes secondary information, section 776(c) of the Act provides 
    that the Department shall, to the extent practicable, corroborate that 
    secondary information from independent sources reasonably at its 
    disposal. The Statement of Administrative Action (SAA) provides that 
    ``corroborate'' means simply that the Department will satisfy itself 
    that the secondary information to be used has probative value.
        To corroborate secondary information, the Department will, to the 
    extent practicable, examine the reliability and relevance of the 
    information to be used. However, unlike other types of information, 
    such as input costs or selling expenses, there are no independent 
    sources for calculated dumping margins. The only source for margins is 
    administrative determinations. Thus, in an administrative review, if 
    the Department chooses as total adverse facts available a calculated 
    dumping margin from a prior segment of the proceeding, it is not 
    necessary to question the reliability of the margin for that time 
    period. With respect to the relevance aspect of corroboration, however, 
    the Department will consider information reasonably at its disposal as 
    to whether there are circumstances that would render a margin not 
    relevant. Where circumstances indicate that the selected margin is not 
    appropriate as adverse facts available, the Department will disregard 
    the margin and determine an appropriate margin (see, e.g., Fresh Cut 
    Flowers from Mexico; Preliminary Results of Antidumping Duty 
    Administrative Review (60 FR 49567), where the Department disregarded 
    the highest margin in that case as adverse best information available 
    because the margin was based on another company's uncharacteristic 
    business expense resulting in an unusually high margin). The Department 
    has preliminarily determined that no such circumstances exist with 
    respect to the selected margin, the highest rate from any prior segment 
    of the proceeding, 351.92 percent.
    
    Preliminary Results of the Review
    
        We preliminarily determine that the following dumping margins 
    exist:
    
    ------------------------------------------------------------------------
                                                                    Margin  
              Manufacturer/exporter              Time period      (percent) 
    ------------------------------------------------------------------------
    Hebei Animal By-Products I/E Corp.......     2/1/95-1/31/96   \1\ 351.92
    PRC-wide rate...........................     2/1/95-1/31/96      351.92 
    ------------------------------------------------------------------------
    \1\ No shipments subject to this review. Rate is from the last relevant 
      segment of the proceeding in which the firm had shipments.            
    
        Parties to the proceeding may request disclosure within 5 days of 
    the date of publication of this notice. Any interested party may 
    request a hearing within 10 days of publication. Any hearing, if 
    requested, will be held 44 days after the publication of this notice, 
    or the first workday thereafter. Interested parties may submit case 
    briefs within 30 days of the date of publication of this notice. 
    Rebuttal briefs, which must be limited to issues raised in the case 
    briefs, may be filed not later than 37 days after the date of 
    publication. The Department will publish a notice of final results of 
    this administrative review, which will include the results of its 
    analysis of issues raised in any such comments.
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. The Department 
    will issue appraisement instructions directly to the Customs Service.
        Furthermore, the following deposit rates will be effective upon 
    publication of the final results of this administrative review for all 
    shipments of paint brushes from the PRC entered, or withdrawn from 
    warehouse, for consumption on or after the publication date, as 
    provided for by section 751(a)(2)(c) of the Act: (1) For the companies 
    named above which were not found to have separate rates, as well as for 
    all other PRC exporters, the cash deposit rate will be the PRC-wide 
    rate established in the final results of this review; (2) for any 
    company found to merit a separate rate for the final results of this 
    review, the rate will be the company-specific rate for that company 
    established in the final results of this review; (3) for previously 
    reviewed non-PRC exporters, the cash deposit rate will be the rate 
    established in the most recent segment of the proceeding; and (4) for 
    all other non-PRC exporters of subject merchandise from the PRC, the 
    cash deposit rate will be the rate applicable to the PRC supplier of 
    that exporter.
        These deposit rates, when imposed, shall remain in effect until 
    publication of the final results of the next administrative review.
        This notice also serves as a preliminary reminder to importers of 
    their responsibility under 19 CFR 353.26 to file a certificate 
    regarding the reimbursement of antidumping duties prior to liquidation 
    of the relevant entries during this review period. Failure to comply 
    with this requirement could result in the Secretary's presumption that 
    reimbursement of antidumping duties occurred and the subsequent 
    assessment of double antidumping duties.
        This administrative review and notice are in accordance with 
    section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 CFR 353.22.
    
    
    [[Page 57391]]
    
    
        Dated: October 30, 1996.
    Robert S. LaRussa,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 96-28557 Filed 11-5-96; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
11/6/1996
Published:
11/06/1996
Department:
Commerce Department
Entry Type:
Notice
Action:
Notice of preliminary results of the antidumping duty administrative review of natural bristle paint brushes and brush heads from the People's Republic of China.
Document Number:
96-28557
Dates:
November 6, 1996.
Pages:
57389-57391 (3 pages)
Docket Numbers:
A-570-501
PDF File:
96-28557.pdf