[Federal Register Volume 62, Number 47 (Tuesday, March 11, 1997)]
[Notices]
[Pages 11152-11155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5895]
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DEPARTMENT OF COMMERCE
[A-485-602]
Tapered Roller Bearings and Parts Thereof, Finished or
Unfinished, From Romania; Preliminary Results of Antidumping Duty
Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of preliminary results of antidumping duty
administrative review.
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SUMMARY: In response to a request by the petitioner, The Timken Company
(Timken), the Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on tapered roller
bearings and parts thereof, finished or unfinished (TRBs), from
Romania. The review covers shipments of the subject merchandise to the
United States during the period June 1, 1995, through May 31, 1996.
Interested parties are invited to comment on these preliminary
results. Parties who submit arguments are requested to submit with each
argument (1) a statement of the issue and (2) a brief summary of the
argument.
EFFECTIVE DATE: March 11, 1997.
FOR FURTHER INFORMATION CONTACT: Rick Johnson or Jean Kemp, Office of
Antidumping and Countervailing Duty Enforcement, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW, Washington, DC 20230; telephone:
(202) 482-3793.
[[Page 11153]]
SUPPLEMENTARY INFORMATION:
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 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
On June 19, 1987, the Department published in the Federal Register
(52 FR 23320) the antidumping duty order on TRBs from Romania. On June
6, 1996, the Department published in the Federal Register (61 FR 28840,
28841) a notice of opportunity to request an administrative review of
this antidumping duty order. On June 28, 1996, in accordance with 19
CFR 353.22(a), the petitioner requested that we conduct an
administrative review of the following firms: Tehnoimportexport, S.A.
(TIE); Tehnoforestimportexport; S.C. Rulmenti S.A. Alexandria
(Alexandria); S.C. Rulmentul S.A. Brasov (Brasov); S.C. Rulmenti S.A.
Birlad (Birlad); S.C. Rulmenti Grei S.A. Ploiesti (Ploiesti); S.C.
Rulmenti S.A. Slatina (Slatina); and S.C. URB Rulmenti S.A. Suceava
(Suceava); S.C. Ocromfer SRL; A. Hartrodt; Shanghai Yawa Printing
Machinery Co., Ltd.; Famous Freight Forwarding Company; Accord Shipping
Pte Ltd.; ABCO International Freight (Hong Kong) Ltd.; Thompson Russel
& Ulrich Semiconductor Technologies Inc.; Votainer Nederland B.V.;
Sunrise Bearing and Technology Ltd.; Destrex Dora AFV SA DE CV AVE;
Madison Metals Corp.; Euro Precision Bearings and Commodities, Inc.;
William McGinty Company; Associated Dynamics Inc.; Universal Automotive
Trading Company, Ltd.; Stevens Graphics; Eurasia Freight Service Inc.;
ABCO International Freight Inc.; Ameru Trading del Peru, S.A.; and
Madison Bearing Co. We published the notice of initiation of this
antidumping duty administrative review on August 8, 1996 (61 FR 41373,
41374). On September 12, 1996, the petitioner withdrew its request that
the administrative review include Ameru Trading del Peru.
Scope of This Review
Imports covered by this review are shipments of TRBs from Romania.
These products include flange, take-up cartridge, and hanger units
incorporating tapered roller bearings, and tapered roller housings
(except pillow blocks) incorporating tapered rollers, with or without
spindles, whether or not for automotive use. This merchandise is
currently classifiable under Harmonized Tariff Schedule (HTS) item
numbers 8482.20.00, 8482.91.00, 8482.99.30, 8483.20.40, 8483.30.40, and
8483.90.20. Although the HTS item numbers are provided for convenience
and Customs purposes, the written description of the scope of this
order remains dispositive.
This review covers 28 companies and the period June 1, 1995 through
May 31, 1996. Of the 28 companies for which petitioner requested a
review, only TIE made shipments of the subject merchandise to the
United States during the period of review (POR). Alexandria and Brasov
produced the merchandise sold by TIE to the United States, but have
stated that they did not ship TRBs directly to the United States. The
Department has received information from the Government of Romania and
other respondents stating that they did not produce or sell TRBs
subject to this review.
Verification
As provided in section 782(i) of the Act, we verified information
provided by TIE and Brasov, using standard verification procedures,
including on-site inspection of the manufacturer's facilities,
examination of relevant sales and financial records, and selection of
original documentation containing relevant information. Our
verification results are outlined in the public versions of the
verification reports.
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
(``Sparklers''), 56 FR 20588 (May 6, 1991), as amplified by the Final
Determination of Sales at Less Than Fair Value: Silicon Carbide from
the People's Republic of China (``Silicon Carbide''), 59 FR 22585 (May
2, 1994). 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 and in
fact, 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 or 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.
TIE is the only company covered by this review with shipments of
the subject merchandise to the United States during the POR. Therefore,
TIE is the only firm for which we have made a determination of whether
it should receive a separate rate. We have found that the evidence on
the record demonstrates an absence of government control, both in law
and in fact, with respect to TIE according to the criteria identified
in Sparklers and Silicon Carbide. For a further discussion of the
Department's preliminary determination that TIE is entitled to a
separate rate, see Memorandum to Edward Yang, Office Director, AD/CVD
Enforcement Group III, dated February 25, 1997: Antidumping
Administrative Review of Tapered Roller Bearings from Romania:
Assignment of a Separate Rate for Tehnoimportexport, S.A. in the 1995/
96 review, which is on file in the Central Records Unit (room B099 of
the Main Commerce Building).
Export Price
Information on the record indicates that TIE was the only Romanian
exporter of the subject merchandise to the United States during the
POR. For sales made by TIE, the Department used export price, in
accordance with section 772(a) of the Act, in calculating U.S. price.
We calculated export price based on the price to unrelated purchasers.
We made deductions, where appropriate, for foreign inland freight and
ocean freight. We used surrogate information from Indonesia to value
foreign inland freight for reasons explained in the ``Normal Value''
section of this notice.
Normal Value
For merchandise exported from an NME country, section 773(c)(1) of
the Act provides that the Department shall determine NV using factors
of production methodology if available
[[Page 11154]]
information does not permit the calculation of NV using home market or
third country prices under section 773(a) of the Act. In every case
conducted by the Department involving Romania, Romania has been treated
as an NME country. None of the parties to this proceeding has contested
such treatment in this review. Accordingly, we calculated NV in
accordance with section 773(c) of the Act and Sec. 353.52 of the
Department's regulations. In accordance with section 773(c)(3) of the
Act, the factors of production utilized in producing TRBs include, but
are not limited to--(a) hours of labor required, (b) quantities of raw
materials employed, (c) amounts of energy and other utilities consumed,
and (d) representative capital cost, including depreciation. In
accordance with section 773(c)(4) of the Act, the Department valued the
factors of production, to the extent possible, using the prices or
costs of factors of production in market economy countries that are--
(a) at a level of economic development comparable to that of Romania,
and (b) significant producers of comparable merchandise.
We determined that Indonesia is at a level of economic development
comparable to that of Romania. We also found that Indonesia is a
producer of bearings. Therefore, we have selected Indonesia as the
primary surrogate country. For a further discussion of the Department's
selection of surrogate countries, see Memorandum to the File:
Antidumping Administrative Review of Tapered Roller Bearings from
Romania: Selection of a surrogate country in the 1995/96 review, dated
February 27, 1997, which is on file in the Central Records Unit (room
B099 of the Main Commerce Building).
For purposes of calculating NV, we valued the Romanian factors of
production as follows:
Where materials used to produce TRBs were imported into
Romania from market economy countries, we used the import price to
value the material input. To value all other direct materials used in
the production of TRBs, we used the import value per metric ton of
these materials into Indonesia for the period January 1994 through
September 1994 as published in the Indonesian Foreign Trade Statistical
Bulletin--Imports, and adjusted, as appropriate, with the wholesale
price index inflator to place these values on an equivalent basis. We
made adjustments to include freight costs incurred between the
suppliers and the TRB factories, using freight rates obtained from the
public version of the May 10, 1996 and July 15, 1996 submissions of
P.T. Multi Raya Indah Abadi, respondent in the antidumping case
Melamine Institutional Dinnerware from Indonesia, which is on file in
the Central Records Unit (B099 of the Main Commerce Building). We also
made an adjustment for scrap steel which was sold by the producers.
For direct labor, we used the Indonesian average daily
wage and hours worked per week for the iron and steel basic industries
reported in the 1994 Special Supplement to the Bulletin of Labour
Statistics, published by the International Labour Office.
For factory overhead, selling, general and administrative
expenses, and profit, we could not find a value for the bearings
industry in Indonesia. Therefore, we used information provided to the
Department by the U.S. Embassy in Jakarta, Indonesia in the antidumping
duty investigation of Certain Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China, because the pipe fittings industry is a
similar metal manufacturing industry.
To value packing materials, where materials used to
package TRBs were imported into Romania from market-economy countries,
we used the import price to value the material input. To value all
other packing materials, we used the import value per metric ton of
these materials for the period January 1994 through September 1994 (and
adjusted with the wholesale price index inflator to place these values
on an equivalent basis), as published in the Indonesian Foreign Trade
Statistical Bulletin--Imports. We adjusted these values to include
freight costs incurred between the suppliers and the TRB factories.
To value foreign inland freight, we used freight rates
obtained from public versions of submissions to the Department in the
antidumping case Melamine Institutional Dinnerware from Indonesia, as
indicated above.
Currency Conversion
We made currency conversions in accordance with Section 773A(a) of
the Act. In this case, we used average monthly exchange rates published
by the International Monetary Fund in International Financial
Statistics.
Non-Shippers
The following companies stated that they did not have shipments to
the United States during the POR: S.C. Rulmentul S.A. Brasov, S.C.
Rulmenti S.A. Birlad, S.C. Rulmenti S.A. Slatina, S.C. Rulmenti S.A.
Alexandria, S.C. Rulmenti Grei S.A. Ploiesti, Votainer Nederland B.V.,
Sunrise Bearing and Technology Ltd., A. Hartrodt, Shanghai Yawa
Printing Machinery Co., Ltd., Famous Freight Forwarding Company, ABCO
International Freight (Hong Kong) Ltd., William McGinty Company,
Associated Dynamics Inc., Stevens Graphics, Eurasia Freight Service,
Inc., and ABCO International Freight Inc. Additionally, the Government
of Romania stated that TIE was the sole exporter to the United States,
and that therefore the Romanian companies Tehnoforestimportexport, S.C.
Ocromfer SRL, and S.C. Rulmenti S.A. Suceava did not export to the
United States during the POR. We received no responses to our
questionnaire from Universal Automotive Trading Company, Ltd., Euro
Precision Bearings and Commodities, Inc., Thompson, Russel & Ulrich
Semiconductor Technologies Inc., and Accord Shipping Pte Ltd. We were
unable to locate Madison Bearing Company, Madison Metals Corporation,
and Destrex Dora AFV SA DE CV AVE.
We confirmed that none of the aforementioned companies shipped TRBs
to the United States with the United States Customs Service. Therefore,
we are treating all of these companies as non-shippers for this review.
Preliminary Results of the Review
As a result of our review, we preliminarily determine that the
following margins exist:
------------------------------------------------------------------------
Margin
Manufacturer/exporter Time period (percent)
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Tehnoimportexport, S.A..................... 6/1/95-5/31/96 8.05
Non-shippers............................... 6/1/95-5/31/96 *7.67
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*No shipments during the POR, but never determined to merit a separate
rate. Therefore, we applied the Romania-wide rate established in the
most recent segment of the proceeding.
Parties to the proceedings 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.
[[Page 11155]]
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 U.S. Customs
Service.
Furthermore, the following deposit requirements will be effective
upon publication of the final results of this administrative review for
all shipments of TRBs from Romania 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) The cash deposit
rate for TIE will be the rate we determine in the final results of
review; (2) for the other companies named above which had no shipments
during the POR and which were not found to have separate rates,
Tehnoforestimportexport, Alexandria, Brasov, Barlad, Ploiesti, Slatina,
and Suceava, and for all other Romanian exporters, the cash deposit
rate will be 7.67%, the Romania-wide rate established in the most
recent segment of the proceeding; and (3) for non-Romanian exporters of
subject merchandise from Romania, the cash deposit rate will be the
rate applicable to the Romanian supplier of that exporter. These
deposit requirements, when imposed, shall remain in effect until
publication of the final results of the next administrative review.
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 353.26 of the Department's regulations 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.
Dated: March 3, 1997.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 97-5895 Filed 3-10-97; 8:45 am]
BILLING CODE 3510-DS-P
