[Federal Register Volume 61, Number 118 (Tuesday, June 18, 1996)]
[Notices]
[Pages 30854-30856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15460]
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DEPARTMENT OF COMMERCE
[A-412-602]
Certain Forged Steel Crankshafts From the United Kingdom;
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 requests from interested parties, the
Department of Commerce (the Department) is conducting an administrative
review of the antidumping duty order on certain forged steel
crankshafts from the United Kingdom. This review covers one producer/
exporter of this merchandise to the United States for the review period
September 1, 1993 through August 31, 1994.
We have preliminarily determined that sales have been made below
the foreign market value (FMV).
We invite interested parties to comment on these preliminary
results. Parties who submit arguments in this proceeding are requested
to submit with the argument (1) a statement of the issue and (2) a
brief summary of the argument.
EFFECTIVE DATE: June 18, 1996.
FOR FURTHER INFORMATION CONTACT:
J. David Dirstine or Lyn Johnson, Office of Antidumping Compliance,
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.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute and to the
Department's regulations are references to the provisions as they
existed on December 31, 1994.
Background
On September 2, 1994, the Department published in the Federal
Register a notice of ``Opportunity to Request Administrative Review''
(59 FR 45664) of the antidumping duty order on certain forged steel
crankshafts from the United Kingdom. We received a request from UES
Ltd.-Forgings Division (UEF) to review its sales to the United States.
On October 13, 1994, in accordance with 19 CFR 353.22(c) (1994), we
initiated an administrative review of this order for UES Ltd.-Forgings
Division covering the period September 1, 1993 through August 31, 1994
(59 FR 51939).
The Department has now conducted this administrative review in
accordance with section 751 of the Tariff Act of 1930, as amended (the
Tariff Act).
Scope of Review
Imports covered by this review are certain forged steel
crankshafts. The term ``crankshafts,'' as used in this review, includes
forged carbon or alloy steel crankshafts with a shipping weight between
40 and 750 pounds, whether machined or unmachined. These products are
currently classifiable under item numbers 8483.10.10.10, 8483.10.10.30,
8483.10.30.10, and 8483.10.30.50 of the Harmonized Tariff Schedule
(HTS). Neither cast crankshafts nor forged crankshafts with shipping
weights of less than 40 pounds or more than 750 pounds are subject to
this review. The HTS item numbers are
[[Page 30855]]
provided for convenience and Customs purposes. The written description
remains dispositive.
Such or Similar Merchandise
In determining similar merchandise comparisons pursuant to section
771(18) of the Act, we considered the following physical
characteristics, which appear in order of importance: (1) twisted vs.
untwisted; (2) number of throws; (3) forging method; (4) engine type;
(5) number of bearings; (6) number of flanges; and (7) number of
counterweights. We applied weight separately based on a range of plus
or minus 20 percent of the weight of the U.S. model. If there were two
or more potential home market matches after applying each of the
matching criteria, including the 20-percent weight range, we chose the
home market model that was closest in weight to the U.S. model. Our
reasons for applying weight as we did are outlined in the Notice of
Final Results of Antidumping Duty Administrative Review: Certain Forged
Steel Crankshafts from the United Kingdom, 60 FR 52150, 52151-152
(October 5, 1995).
United States Price
In calculating U.S. price (USP), we used purchase price as defined
in section 772 of the Tariff Act, because all sales to the first
unrelated purchaser took place prior to importation into the U.S. We
calculated purchase price based on the packed, c.i.f. price to the
first unrelated purchaser in the United States.
We made deductions, where appropriate, for ocean freight (which
includes foreign inland freight), U.S. duties, marine insurance and
U.S. brokerage and handling expenses in accordance with section
772(d)(2) of the Act.
Foreign Market Value
Section 733(a)(1)(A) of the Tariff Act requires the Department to
compare sales in the United States with home market sales of such or
similar merchandise made in the ordinary course of trade if the home
market is viable. Pursuant to section 773(a)(1)(B) of the Act, we
determined that the home market is viable, and it is therefore an
appropriate basis for calculating FMV.
Where we used home market sales for comparisons, we calculated FMV
based on packed, ex-factory or delivered prices to customers in the
United Kingdom. We made deductions, where appropriate, for rebates. We
also adjusted for home market movement charges.
Because all price-to-price comparisons involved purchase price
sales, we also made circumstance-of-sale (COS) adjustments, where
appropriate, for differences in credit expenses, warranty expenses,
customer- requested tooling expenses, and post-sale warehousing
expenses in accordance with 19 CFR 353.56(a). UEF did not claim home
market packing expenses since subject merchandise is loaded into bins
as part of the production process with no packing material expenses
incurred. In accordance with section 773(a)(1) of the Act, we then
added U.S. packing costs to all home market prices.
For certain U.S. products, we found no home market product
comparisons after applying the model-matching methodology, the 90/60-
day contemporaneity test, and the difference-in-merchandise test. For
these products, we based FMV on constructed value (CV) in accordance
with section 773(e) of the Tariff Act. We calculated CV based on the
sum of the respondent's submitted cost of materials, fabrication,
selling, general and administrative (SG&A) expenses, U.S. packing and
profit. In accordance with sections 773(e)(1)(B) (i) and (ii) of the
Act, we included the actual general expenses calculated which exceeded
the statutory minimum (ten percent of the cost of manufacturing (COM)).
We used the statutory minimum profit, eight percent of the sum of COM
and general expenses, because the actual profit amount was less than
the statutory minimum.
We made adjustments to CV, in accordance with 19 CFR 353.56, for
differences in circumstances of sale. These adjustments were made for
differences in credit expenses, warranties, and warehousing.
On February 10, 1995, the petitioner, the Krupp Gerlach Company
(KGC) submitted an allegation that UES Ltd.-Forgings Division (UEF)
sold unmachined subject merchandise in its home market at less than its
cost of production (COP) during the period of review. After analyzing
the allegation, the Department determined, on January 18, 1996 (see
memo to file), that reasonable grounds did not exist to believe or
suspect that home market sales were made below COP, as required to
initiate a COP investigation under 773(b) of the Act. Therefore, we did
not initiate an investigation of sales made below COP for this review
period.
Preliminary Results of Review
As a result of our comparison of USP with FMV, we preliminarily
determine the following weighted-average margin for the period
September 1, 1993 through August 31, 1994:
Producer/Exporter: UEF.
Margin (Percent): .52.
Parties to the proceeding may request disclosure within 5 days and
interested parties may request a hearing not later than 10 days after
publication of this notice. Interested parties are invited to comment
on these preliminary results and may submit written arguments in case
briefs on these preliminary results within 30 days of the date of
publication of this notice. Rebuttal briefs, limited to issues raised
in case briefs, may be filed no later than 7 days after the time limit
for filing case briefs. Any hearing, if requested, will be held 7 days
after the scheduled date for submission of rebuttal briefs. Copies of
case briefs and rebuttal briefs must be served on interested parties in
accordance with 19 CFR 353.38(e). The Department will publish the final
results of this administrative review, including the results of its
analysis of issues raised in the case or briefs.
Upon completion of the final results in this review, the Department
shall determine, and the Customs Service shall assess, antidumping
duties on all appropriate entries. Individual differences between USP
and FMV may vary from the percentage stated above. The Department will
issue appraisement instructions directly to the Customs Service.
Furthermore, the following deposit requirement will be effective
for all shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided for by section
751(a)(1) of the Tariff Act: (1) the cash deposit rate for the reviewed
company will be that established in the final results of this
administrative review (except that no deposit will be required if the
margin is zero or de minimis, i.e., less than 0.5 percent); (2) for
previously reviewed or investigated companies not listed above, the
cash deposit rate will continue to be the company-specific rate
published for the most recent period; (3) if the exporter is not a firm
covered in this review, a prior review, or the original LTFV
investigation, but the manufacturer is, the cash deposit rate will be
the rate established for the most recent period for the manufacturer of
the merchandise; and (4) for all other producers and/or exporters of
this merchandise, the cash deposit rate shall be 6.55 percent, the
adjusted ``all others'' rate from the LTFV investigation. These deposit
requirements, when imposed, shall
[[Page 30856]]
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 is in accordance with section
751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and section 353.22
of the Department's regulations (19 CFR 353.22(c)(5)).
Dated: June 10, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-15460 Filed 6-17-96; 8:45 am]
BILLING CODE 3510-DS-P
