[Federal Register Volume 59, Number 87 (Friday, May 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10986]
[[Page Unknown]]
[Federal Register: May 6, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[A-588-807]
Industrial Belts and Components and Parts Thereof, Whether Cured
or Uncured, From Japan; Termination of Circumvention Inquiry of
Antidumping Duty Order
AGENCY: International Trade Administration, Import Administration,
Commerce.
ACTION: Notice of termination of circumvention inquiry of antidumping
duty order.
-----------------------------------------------------------------------
SUMMARY: On June 9, 1992, the Department of Commerce (the Department)
received a request from Brecoflex Corporation (Brecoflex) for a
circumvention inquiry of the antidumping duty order on industrial belts
and components and parts thereof, whether cured or uncured, from Japan
with respect to imports by Mectrol Corporation (Mectrol). Pursuant to
that request, the Department initiated a circumvention inquiry on
October 18, 1993 (58 FR 53706). The circumvention inquiry covers the
period January 1, 1992 through June 30, 1993.
Based on a review of Brecoflex's submissions in conjunction with
the International Trade Commission's (ITC) analysis of the
manufacturing process for production of industrial power belts, the
Department determines that Brecoflex does not have standing as a
domestic producer of a like product to file the request in the instant
inquiry. Therefore, we are terminating the circumvention inquiry.
EFFECTIVE DATE: May 6, 1994.
FOR FURTHER INFORMATION CONTACT:Kimberley Huffman at (202) 482-0780 or
Wendy Frankel at (202) 482-5253, Office of Antidumping Compliance,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th and Constitution Avenue, NW., Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On June 14, 1989, the Department published the antidumping duty
order on industrial belts and components and parts thereof, whether
cured or uncured, from Japan (54 FR 25314). On August 4, 1989, we
published an amended order (54 FR 32104). On June 9, 1992, Brecoflex,
who identified itself as a producer of a like product in the United
States, alleged that the antidumping duty order on industrial belts
from Japan was being circumvented and requested that the Department
investigate the matter. The Department initiated a circumvention
inquiry on October 18, 1993.
In several submissions, Mectrol alleged that Brecoflex did not have
standing to file a request for a circumvention inquiry. Therefore, on
February 1, 1994, and February 28, 1994, the Department issued a
standing questionnaire and supplemental standing questionnaire,
respectively, to Brecoflex. Brecoflex responded to the standing
questionnaires on February 17, 1994, and March 4, 1994.
Analysis
Standing To File a Request for a Circumvention Inquiry
Section 353.29 of the Department's regulations states that ``[a]ny
interested party, as defined in Sec. 353.2(k), may file'' a request for
a circumvention inquiry (19 CFR 353.29). In its June 9, 1993, request
for a circumvention inquiry, Brecoflex claimed standing to bring the
request as a domestic producer of industrial power belts. The provision
in the Department's regulations for standing as a producer is
Sec. 353.2(k)(3) which includes in the definition of interested party
``[a] producer in the United States of the like product'' (19 CFR
353.2(k)(3)).
Brecoflex's U.S. Operations
In its June 9, 1992, request for a circumvention inquiry, Brecoflex
claimed standing to bring the request as a producer in the United
States of a like product as covered by the antidumping duty order on
industrial belts from Japan. Pursuant to questions raised by Mectrol
concerning Brecoflex's standing to bring this request for a
circumvention inquiry, the Department issued a standing questionnaire
to Brecoflex. In its standing questionnaire response, Brecoflex
explained its U.S. operations as follows.
Brecoflex states that it imports from Germany polyurethane timing
belts and performs secondary operations on these belts in its only
United States facility in Eatontown, New Jersey. The secondary
operations consist of the following:
(1) Slitting of roll stock and truly endless belts to narrower belt
widths;
(2) Cutting roll stock to specific lengths;
(3) Splicing and welding of open-ended roll stock to finished belts;
(4) Attaching injection molded profiles to belt backs; and
(5) Machining of finished belts such as edge grinding, removing
sections of teeth, providing holes for joining belts in linear drives,
and grinding of belt back.
Brecoflex states that it fabricates, markets and sells three basic
types of synchronous polyurethane timing belts that it considers to be
subject merchandise. These belts include the Breco M, the Breco V, and
the Brecoflex. Brecoflex performs the operations listed above on these
three belts. (See the Department's April 15, 1994, Recommendation
Memorandum for further detail.)
Production of Industrial Power Belts
In its final report during the injury investigation in 1989, the
ITC determined that there are four main stages in the manufacturing of
industrial power transmission belts:
(1) Parts manufacturing,
(2) Assembling or building,
(3) Curing or vulcanizing, and
(4) Finishing and packaging (see Industrial Belts from Japan, USITC
Pub. 2194 (1989) (ITC Report) at 6 and 7). In addition, the ITC Report
describes the three main components of most industrial power belts: (1)
A tensile member (a textile, fiberglass, or steel cord, yarn, or
fabric), which adds strength to withstand the tension imposed in
transmitting power;
(2) The base material (usually synthetic rubber, such as neoprene
or plastics), which forms the bulk of the belt and encloses the tensile
member, and is referred to as the undercord and the overcord; and
(3) Adhesion material or gum, which bonds all the components
together (USITC Pub. 2194 at a-2).
As discussed above, Brecoflex either sells the German belts as
imported, or performs secondary operations on the belts in preparation
for sale. We determine that these secondary operations listed above do
not add to the material composition of the belts or fundamentally alter
the essential nature of the merchandise as imported. Specifically, the
merchandise as imported already incorporates the three main components
of industrial belts as described in the ITC Report. Furthermore, the
belting stock as imported has already undergone, before arrival in the
United States, the first three stages of the belt manufacturing process
as described in the ITC Report.
As Brecoflex indicated in its request for a circumvention inquiry,
the major cost in producing timing belts is incurred in production of
the belt stock from which the finished belts are made. As Brecoflex
itself explained, completion of a finished belt from belt stock
requires merely slitting to width, cutting to length, and possibly die
cutting to length and welding. According to Brecoflex, these
operations--the same secondary operations that Brecoflex performs in
its U.S. facility--involve some skilled labor but little in the way of
machinery or capital investment. Thus, as indicated in its submissions,
Brecoflex performs only secondary operations in its U.S. facility, all
of which fall within the fourth stage of the belt manufacturing process
as described in the ITC Report, i.e., finishing and packaging.
Brecoflex also markets and services the imported roll stock it sells in
the United States.
Based on the above analysis and the information submitted by
Brecoflex, the Department determines that Brecoflex is not a domestic
producer of industrial belts and, therefore, is not an interested party
within the meaning of 19 CFR 353.2(k)(3) entitled to file a request for
a circumvention inquiry. As such, the Department determines that
Brecoflex does not have standing to file a request for a circumvention
inquiry against Mectrol.
Conclusion
Because Brecoflex Corporation is not a producer of industrial power
belts in the United States and, therefore, does not have standing under
19 CFR 353.2(k) to file a request for a circumvention inquiry with
regard to the antidumping duty order on industrial belts and components
and parts thereof, whether cured or uncured, from Japan, the Department
hereby terminates this circumvention inquiry.
Dated: April 27, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-10986 Filed 5-5-94; 8:45 am]
BILLING CODE 3510-DS-M
