98-18309. Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or Less in Outside Diameter, and Components Thereof, From Japan; Preliminary Results of Antidumping Duty ...  

  • [Federal Register Volume 63, Number 132 (Friday, July 10, 1998)]
    [Notices]
    [Pages 37344-37349]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-18309]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-588-054, A-588-604]
    
    
    Tapered Roller Bearings and Parts Thereof, Finished and 
    Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or 
    Less in Outside Diameter, and Components Thereof, From Japan; 
    Preliminary Results of Antidumping Duty Administrative Reviews
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of Preliminary Results of Antidumping Duty 
    Administrative Reviews and Recission in Part.
    
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    SUMMARY: In response to requests from respondents, the Department of 
    Commerce (the Department) is conducting administrative reviews of the 
    antidumping duty order on tapered roller bearings (TRBs) and parts 
    thereof, finished and unfinished, from Japan (A-588-604), and of the 
    antidumping finding on TRBs, four inches or less in outside diameter, 
    and components thereof, from Japan (A-588-054). The review of the A-
    588-054 finding covers two manufacturers/exporters and one reseller/
    exporter of subject merchandise to the United States during the period 
    October 1, 1996 through September 30, 1997. The review of the A-588-604 
    order covers two manufacturers/exporters and one reseller/exporter, and 
    the period October 1, 1996 through September 30, 1997.
        We preliminarily determine that sales of TRBs have been made below 
    the normal value (NV). If these preliminary results are adopted in our 
    final results of administrative reviews, we will instruct the U.S. 
    Customs Service to assess antidumping duties based on the difference 
    between United States price (USP) and the normal value. Interested 
    parties are invited to comment on these preliminary results. Parties 
    which submit argument in these proceedings are requested to submit with 
    the argument (1) a statement of the issues and (2) a brief summary of 
    the argument.
    
    EFFECTIVE DATE: July 10, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Charles Ranado or Stephanie Arthur,
    
    [[Page 37345]]
    
    AD/CVD Enforcement, Group III, Import Administration, International 
    Trade Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, N.W., Washington, D.C. 20230, telephone: (202) 
    482-3518 or, 482-6312, respectively.
    
    SUPPLEMENTARY INFORMATION:
    
    Applicable Statute and Regulations
    
        Unless otherwise indicated, all citations to the Tariff Act of 
    1930, as amended (the Act), are references to the provisions effective 
    January 1, 1995, the effective date of the amendments made to the Act 
    by the Uruguay Round Agreements Act. In addition, unless otherwise 
    indicated, all citations are to the Department's regulations, 19 CFR 
    part 351 (62 FR 27296 (May 19, 1997)).
    
    Background
    
        On August 18, 1976, the Treasury Department published in the 
    Federal Register (41 FR 34974) the antidumping finding on TRBs from 
    Japan, and on October 6, 1987, the Department published the antidumping 
    duty order on TRBs from Japan (52 FR 37352). On October 2, 1997, the 
    Department published the notice of ``Opportunity to Request 
    Administrative Review'' for both TRBs cases covering the period October 
    1, 1996 through September 30, 1997 (62 FR 51628).
        In accordance with 19 CFR 351.213(b), on October 28, 1997, NTN 
    Corporation (NTN) requested that we conduct a review of its sales in 
    the A-588-604 case. In addition, on October 31, 1997, Koyo Seiko Co., 
    Ltd. (Koyo) requested that we conduct a review of its sales in the A-
    588-054 case, and Fuji Heavy Industries, Ltd. (Fuji) and NSK Ltd. (NSK) 
    requested that we conduct a review of their sales in both the A-588-054 
    and A-588-604 TRB cases. On November 15, 1997, we published in the 
    Federal Register a notice of initiation of these antidumping duty 
    administrative reviews covering the period October 1, 1996 through 
    September 30, 1997 (62 FR 58513).
    
    Scope of the Reviews
    
        Imports covered by the A-588-054 finding are sales or entries of 
    TRBs, four inches or less in outside diameter when assembled, including 
    inner race or cone assemblies and outer races or cups, sold either as a 
    unit or separately. This merchandise is classified under Harmonized 
    Tariff Schedule (HTS) item numbers 8482.20.00 and 8482.99.30.
        Imports covered by the A-588-604 order include TRBs and parts 
    thereof, finished and unfinished, which are flange, take-up cartridge, 
    and hanger units incorporating TRBs, and roller housings (except pillow 
    blocks) incorporating tapered rollers, with or without spindles, 
    whether or not for automotive use. Products subject to the A-588-054 
    finding are not included within the scope of the A-588-604 order, 
    except those manufactured by NTN. This merchandise is currently 
    classifiable under HTS item numbers 8482.99.30, 8483.20.40, 8482.20.20, 
    8483.20.80, 8482.91.00, 8483.30.80, 8483.90.20, 8483.90.30, and 
    8483.90.60. The HTS item numbers listed above for both the A-588-054 
    finding and the A-588-604 order are provided for convenience and 
    Customs purposes. The written descriptions remain dispositive.
        The period for each review is October 1, 1996 through September 30, 
    1997. The review of the A-588-054 finding covers TRB sales by two 
    manufacturers/exporters (Koyo and NSK) and one reseller/exporter 
    (Fuji). The review of the A-588-604 order covers TRB sales by two 
    manufacturers/exporters (NTN and NSK) and one reseller/exporter (Fuji). 
    As explained in the ``Recission in Part'' section of this notice, we 
    are terminating our reviews in both the A-588-054 and A-588-604 cases 
    for two of the four firms.
    
    Recission in Part
    
        In accordance with section 351.213(d)(1) of the Department's 
    regulations, on January 9, 1998, NSK withdrew its request for review in 
    both the A-588-054 and A-588-604 cases. In addition, on January 23, 
    1998, Fuji withdrew its request for review in both the A-588-054 and A-
    588-604 cases. Because we received timely requests for the withdrawal 
    of review from both NSK and Fuji, and because no other party to the 
    proceedings requested a review for NSK and Fuji in either the A-588-054 
    or A-588-604 cases, in accordance with 19 CFR 351.213(d)(1), we are 
    rescinding both the A-588-054 and A-588-604 reviews for NSK and Fuji.
    
    Use of Facts Available
    
        We preliminary determine, in accordance with section 776(a) of the 
    Act, that the use of facts available is appropriate in one type of 
    situation. We used partial facts available in instances where we were 
    unable to use some portion of a response in calculating the dumping 
    margin. For partial facts available, we extrapolated information from 
    the company's response and used that information in our calculations. 
    Koyo's response indicates that for certain sales to original equipment 
    manufacturers (OEM sales) there were no pre-sale freight expenses. 
    However, from the information reported, we were unable to identify 
    those OEM sales for which Koyo incurred no pre-sale freight expenses; 
    therefore, we have applied non-adverse facts available and recalculated 
    the expense adjustment. For further information, please see the 
    preliminary analysis memorandum on file for Koyo.
    
    Export Price and Constructed Export Price
    
        Because all of Koyo's sales and certain of NTN's sales of subject 
    merchandise were first sold to unaffiliated purchasers after 
    importation into the United States, in calculating U.S. price we used 
    constructed export price (CEP) as defined in section 772(b) of the Act, 
    for all of Koyo's sales and certain of NTN's sales. We based CEP on the 
    packed, delivered price to unaffiliated purchasers in the United 
    States. We made deductions, where appropriate, for discounts, billing 
    adjustments, freight allowances, and rebates. Pursuant to section 
    772(c)(2)(A) of the Act, we reduced this price for movement expenses 
    (Japanese pre-sale inland freight, Japanese post-sale inland freight, 
    international air and/or ocean freight, marine insurance, Japanese 
    brokerage and handling, U.S. inland freight from the port to the 
    warehouse, U.S. inland freight from the warehouse to the customer, U.S. 
    duty, and U.S. brokerage and handling). We also reduced the price, 
    where applicable, by an amount for the following expenses incurred in 
    the selling of the merchandise in the United States pursuant to section 
    772(d)(1) of the Act: commissions to unaffiliated parties, U.S. credit, 
    payments to third parties, U.S. repacking expenses, and indirect 
    selling expenses (which included, where applicable, inventory carrying 
    costs, indirect advertising expenses, and indirect technical services 
    expenses). Finally, pursuant to section 772(d)(3) of the Act, we 
    further reduced U.S. price by an amount for profit to arrive at CEP.
        NTN claimed an offsetting adjustment to U.S. indirect selling 
    expenses to account for the cost of financing cash deposits during the 
    POR. In past reviews we have accepted such an adjustment, mainly to 
    account for the opportunity cost associated with making cash deposits 
    (i.e., the cost of having money unavailable for a period of time). 
    However, we have changed our practice of accepting such an adjustment. 
    See Antifriction Bearings (Other Than Tapered Roller Bearings) and 
    Parts Thereof from France, et. al.; Final Results of Antidumping 
    Administrative Review, 63 FR 33347 (June 18, 1998).
    
    [[Page 37346]]
    
        Because certain of NTN's sales of subject merchandise were made to 
    unaffiliated purchasers in the United States prior to importation into 
    the United States and the CEP methodology was not indicated by the 
    facts of record, in accordance with section 772(a) of the Act we used 
    export price (EP) for these sales. We calculated EP as the packed, 
    delivered price to unaffiliated purchasers in the United States. In 
    accordance with section 772(c)(2)(A) of the Act, we reduced this price, 
    where applicable, by Japanese pre-sale inland freight, Japanese post-
    sale inland freight, international air and/or ocean freight, marine 
    insurance, Japanese brokerage and handling, U.S. brokerage and 
    handling, U.S. duty, and U.S. inland freight.
        Where appropriate, in accordance with section 772(d)(2) of the Act, 
    the Department also deducts from CEP the cost of any further 
    manufacture or assembly in the United States, except where the special 
    rule provided in section 772(e) of the Act is applicable. Section 
    772(e) of the Act provides that, where the subject merchandise is 
    imported by an affiliated person and the value added in the United 
    States by the affiliated person is likely to exceed substantially the 
    value of the subject merchandise, we shall determine the CEP for such 
    merchandise using the price of identical or other subject merchandise 
    if there is a sufficient quantity of sales to provide a reasonable 
    basis for comparison and we determine that the use of such sales is 
    appropriate. If there is not a sufficient quantity of such sales or if 
    we determine that using the price of identical or other subject 
    merchandise is not appropriate, we may use any other reasonable basis 
    to determine CEP. See Sections 772(e)(1) and (2) of the Act.
        In judging whether the use of identical or other subject 
    merchandise is appropriate, the Department must consider several 
    factors, including whether it is more appropriate to use another 
    ``reasonable basis.'' Under some circumstances, we may use the standard 
    methodology as a reasonable alternative to the methods described in 
    paragraphs 772(e)(1) and (2) of the Act. In deciding whether it is more 
    appropriate to use the standard methodology, we have considered and 
    weighed the burden on the Department in applying the standard 
    methodology as a reasonable alternative and the extent to which 
    application of the standard methodology will lead to more accurate 
    results. The burden of using the standard methodology may vary from 
    case to case depending on factors such as the nature of the further-
    manufacturing process and the finished products. The increased accuracy 
    gained by applying the standard methodology will vary significantly 
    from case to case, depending upon such factors as the amount of value 
    added in the United States and the proportion of total U.S. sales that 
    involve further manufacturing. In cases where the burden is high, it is 
    more likely that the Department will determine that potential gains in 
    accuracy do not outweigh the burden of applying the standard 
    methodology. Thus, the Department will likely determine that 
    application of the standard methodology is not more appropriate than 
    application of the methods described in paragraphs 772(e)(1) and (2), 
    or some other reasonable alternative methodology. By contrast, if the 
    burden is relatively low and there is reason to believe the standard 
    methodology is likely to be more accurate, the Department is more 
    likely to determine that it is not appropriate to apply the methods 
    described in paragraphs 772(e)(1) or (2) of the Act in lieu of the 
    standard methodology. See Tapered Roller Bearings and Parts Thereof, 
    Finished and Unfinished, from Japan, and Tapered Roller Bearings, Four 
    Inches or Less in Outside Diameter, and Components Thereof, From Japan; 
    Preliminary Results of Antidumping Duty Administrative Reviews, 62 FR 
    47452 at 47455 (September 9, 1997).
        NTN imported subject merchandise (TRBs parts) which was further 
    processed in the United States. NTN further manufactured the imported 
    scope merchandise into merchandise of the same class or kind as 
    merchandise within the scope of the A-588-604 order. Based on 
    information provided by NTN, we first determined whether the value 
    added in the United States was likely to exceed substantially the value 
    of the subject merchandise. We estimated the value added based on the 
    differences between the averages of the prices charged to the first 
    unaffiliated U.S. customer for the final merchandise sold (finished 
    TRBs) and the averages of the prices paid for the subject merchandise 
    (imported TRBs parts) by the affiliated party, and determined that the 
    value added was likely to exceed substantially the value of the 
    imported TRB parts.
        We then examined whether it would be appropriate to use sales of 
    non-further-manufactured merchandise as a basis for comparison, as 
    stated under paragraphs 772(e)(1) and (2) of the Act. Based on the 
    information provided by NTN, we determined that the proportion of its 
    further-manufactured merchandise to its total imports of subject 
    merchandise was relatively low. In NTN's case, any potential gains in 
    accuracy gained from examining NTN's further-manufactured sales are 
    outweighed by the burden of the applying the standard methodology and 
    that it would be appropriate to apply one of the methodologies 
    specified in the statute with respect to NTN's imported TRB parts. 
    Furthermore, other sales are in sufficient quantity for the purpose of 
    determining dumping margins for NTN's imported TRBs which were further 
    manufactured in the United States prior to resale. Therefore, we have 
    used the weighted-average dumping margins we calculated on NTN's sales 
    of non-further-manufactured TRBs.
        No other adjustments were claimed or allowed.
    
    Normal Value
    
    A. Viability
    
        Based on 1) the fact that each company's quantity of sales in the 
    home market was greater than five percent of its sales to the U.S. 
    market and 2) the absence of any information that a particular market 
    situation in the exporting country does not permit a proper comparison, 
    we determined that the quantity of the foreign like product for all 
    respondents sold in the exporting country was sufficient to permit a 
    proper comparison with the sales of subject merchandise to the United 
    States, pursuant to section 773(a) of the Act. Therefore, in accordance 
    with section 773(a)(1)(B)(i) of the Act, we based NV on the prices at 
    which the foreign like products were first sold for consumption in the 
    exporting country.
    
    B. Arm's-Length Sales
    
        For NTN and Koyo we have excluded from our analysis those sales 
    made to affiliated customers in the home market which were not at arm's 
    length. See Section 773(a)(1)(B) of the Act. We determined the arm's-
    length nature of home market sales to affiliated parties by means of 
    our 99.5 percent arm's-length test in which we calculated, for each 
    model, the percentage difference between the weighted-average prices to 
    the affiliated customer and to all unaffiliated customers and then 
    calculated, for each affiliated customer, the overall weighted-average 
    percentage difference in prices for all models purchased by the 
    customer. If the overall weighted-average price ratio for the 
    affiliated customer was equal to or greater than 99.5 percent, we 
    determined that all sales to this affiliated customer were at arm's 
    length. Conversely, if the ratio for a customer was less than 99.5 
    percent, we
    
    [[Page 37347]]
    
    determined that all sales to the affiliated customer were not at arm's 
    length because, on average, the affiliated customer paid less than 
    unaffiliated customers for the same merchandise, and therefore we 
    excluded all sales to the affiliated customer from our analysis. Where 
    we were unable to calculate an affiliated-customer ratio because 
    identical merchandise was not sold to both affiliated and unaffiliated 
    customers, we were unable to determine if these sales were at arm's 
    length, and, therefore, we excluded them from our analysis (see, e.g., 
    Certain Stainless Steel Wire Rod from France: Preliminary Results of 
    Antidumping Duty Administrative Review, 61 FR 8915 (March 6, 1996); 
    Certain Stainless Steel Wire Rods from France: Final Results of 
    Antidumping Duty Administrative Review, 63 FR 30185 (June 3, 1998)).
    
    C. Cost-of-Production Analysis
    
        Because we disregarded sales below the cost of production (COP) in 
    our last completed A-588-054 review for Koyo, and in our last completed 
    A-588-604 review for NTN, we have reasonable grounds to believe or 
    suspect that sales of the foreign like product under consideration for 
    the determination of NV in these reviews may have been made at prices 
    below the COP, as provided by section 773(b)(2)(A)(ii) of the Act (see 
    Final Results of Antidumping Duty Administrative Reviews; Tapered 
    Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan 
    and Tapered Roller Bearings, Four Inches or Less in Outside Diameter, 
    and Components Thereof, from Japan, 63 FR 2558 (January 15, 1998)). 
    Therefore, pursuant to section 773(b)(1) of the Act, we initiated a COP 
    investigation of sales by Koyo in the A-588-054 case and NTN in the A-
    588-604 case.
        In accordance with section 773(b)(3) of the Act, we calculated COP 
    based on the sum of the costs of materials and fabrication employed in 
    producing the foreign like product, plus selling, general, and 
    administrative expenses (SG&A) and the cost of all expenses incidental 
    to placing the foreign like product in condition packed ready for 
    shipment. We relied on the home market sales and COP information 
    provided by Koyo and NTN except in those instances where the data were 
    not appropriately quantified or valued (see the company-specific COP/CV 
    preliminary results memoranda, on file in Import Administration's 
    Central Records Unit, Room B-099 of the main Commerce building).
        After calculating COP, we tested whether home market sales of TRBs 
    were made at prices below COP within an extended period of time in 
    substantial quantities and whether such prices permitted the recovery 
    of all costs within a reasonable period of time. We compared model-
    specific COPs to the reported home market prices less any applicable 
    movement charges, discounts, and rebates.
        Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
    percent of a respondent's home market sales for a model are at prices 
    less than the COP, we do not disregard any below-cost sales of that 
    model because we determine that the below-cost sales were not made in 
    ``substantial quantities.'' Where 20 percent or more of a respondent's 
    home market sales of a given model are at prices less than COP, we 
    disregard the below-cost sales because 1) they are made within an 
    extended period of time in substantial quantities, in accordance with 
    sections 773(b)(2)(B) and (C) of the Act, and 2) based on comparisons 
    of prices to weighted-average COPs for the POR, they were at prices 
    which would not permit the recovery of all costs within a reasonable 
    period of time, in accordance with section 773(b)(2)(D) of the Act.
        The results of our cost tests for Koyo and NTN indicated that for 
    certain home market models, less than 20 percent of the sales of the 
    model were at prices below COP. We therefore retained all sales of the 
    model in our analysis and used them as the basis for determining NV. 
    Our cost test for these respondents also indicated that, within an 
    extended period of time (normally one year, in accordance with section 
    773(b)(2)(B) of the Act), for certain home market models more than 20 
    percent of the home market sales were sold at prices below COP and were 
    not sold at prices which would permit recovery of all costs within a 
    reasonable period of time. In accordance with section 773(b)(1) of the 
    Act, we therefore excluded these below-cost sales from our analysis and 
    used the remaining above-cost sales as the basis for determining NV.
    
    D. Product Comparisons
    
        We compared U.S. sales with contemporaneous sales of the foreign 
    like product in the home market. We considered bearings identical on 
    the basis of nomenclature and determined most similar TRBs using our 
    sum-of-the-deviations model-match methodology which compares TRBs 
    according to the following five physical criteria: inside diameter, 
    outside diameter, width, load rating, and Y2 factor. We used a 20 
    percent difference-in-merchandise (difmer) cost deviation cap as the 
    maximum difference in cost allowable for similar merchandise, which we 
    calculated as the absolute value of the difference between the U.S. and 
    home market variable costs of manufacturing divided by the U.S. total 
    cost of manufacturing.
    
    E. Level of Trade (LOT)
    
        In accordance with section 773(a)(1)(B) of the Act, to the extent 
    practicable, we determine NV based on sales in the comparison market at 
    the same LOT as the EP or CEP transaction. The NV LOT is that of the 
    starting-price sales in the comparison market or, when NV is based on 
    constructed value (CV), that of the sales from which we derive selling, 
    SG&A expenses and profit. For EP, the U.S. LOT is also the level of the 
    starting-price sale, which is usually from exporter to importer. For 
    CEP, it is the level of the constructed sale from the exporter to the 
    importer.
        To determine whether NV sales are at a different LOT than EP or 
    CEP, we examine stages in the marketing process and selling functions 
    along the chain of distribution between the producer and unaffiliated 
    customer. If the comparison-market sales are at at a different LOT, and 
    the difference affects price comparability, as manifested in a pattern 
    of consistent price differences between the sales on which NV is based 
    and comparison-market sales at the LOT of the export transaction, we 
    make an LOT adjustment under 773(a)(7)(A) of the Act. Finally, for CEP 
    sales, if the NV level is more remote from the factory than the CEP 
    level and there is no basis for determining whether the difference in 
    the levels between NV and CEP affects price comparability, we adjust NV 
    under section 773(a)(7)(B) of the act (the CEP offset provision). See 
    Notice of Final Determination of Sales at Less than Fair Value; Certain 
    Cut-to-Length Carbon Steel Plate from South Africa, 62 FR 61731 
    (November 19, 1997).
        We determined that for Koyo there were two home market LOTs and one 
    U.S. LOT (i.e., the CEP LOT). Because there was no home market LOT 
    equivalent to the U.S. LOT, and because NV for Koyo was more remote 
    from the factory than the CEP, we made a CEP offset adjustment to NV.
        For NTN we found that there were three home market LOTs and two (EP 
    and CEP) LOTs in the United States. Because there were no home market 
    LOTs equivalent to NTN's CEP LOT, and because NV for NTN was more 
    remote from the factory than the CEP, we made a CEP offset adjustment 
    to NV. We also determined that NTN's EP LOT was equivalent to one of 
    its LOTs in the
    
    [[Page 37348]]
    
    home market. Because we determined that there was a pattern of 
    consistent price differences, we made a LOT adjustment to NV for NTN 
    when we compared sales at different LOTs. For a company-specific 
    description of our LOT analysis, see the preliminary analysis 
    memoranda.
    
    F. Home Market Price
    
        We based home market prices on the packed, ex-factory or delivered 
    prices to affiliated purchasers (where an arm's-length relationship was 
    demonstrated) and unaffiliated purchasers in the home market. We made 
    adjustments for differences in packing and for movement expenses in 
    accordance with sections 773(a)(6)(A) and (B) of the Act. In addition, 
    we made adjustments for differences in cost attributable to differences 
    in physical characteristics of the merchandise pursuant to section 
    773(a)(6)(C)(ii) of the Act, and for differences in circumstances of 
    sale (COS) in accordance with section 773(a)(6)(C)(iii) of the Act and 
    19 CFR 351.410. For comparison to EP we made COS adjustments by 
    deducting home market direct selling expenses and adding U.S. direct 
    selling expenses. For comparisons to CEP, we made COS adjustments to NV 
    by deducting home market direct selling expenses. We also made 
    adjustments, where applicable, for home market indirect selling 
    expenses to offset U.S. commissions in EP and CEP calculations. No 
    other adjustments were claimed or allowed.
        On January 8, 1998, the Court of Appeals for the Federal Circuit 
    (the Court) issued a decision in Cemex v. United States, 133 F.3d 897 
    (Fed. Cir. 1998). In that case, based on the pre-URAA version of the 
    Act, the Court discussed the appropriateness of using CV as the basis 
    for foreign market value when the Department finds home market sales to 
    be outside the ordinary course of trade. This issue was not raised by 
    any party in these 1996-97 reviews. However, the URAA amended the 
    definition of sales outside the ``ordinary course of trade'' to include 
    sales below cost. See section 771(15) of the Act. Consequently, the 
    Department has reconsidered its practice in accordance with this court 
    decision and has determined that it would be inappropriate to resort 
    directly to CV, in lieu of foreign market sales, as the basis for NV if 
    the Department finds foreign market sales of merchandise identical or 
    most similar to that sold in the United States to be outside the 
    ordinary course of trade. Instead, the Department will use sales of 
    similar merchandise, if such sales exist. The Department will use CV as 
    the basis for NV only when there are no above-cost sales that are 
    otherwise suitable for comparison. Therefore, in this proceeding, when 
    making comparisons in accordance with section 771(16) of the Act, we 
    considered all products sold in the home market as described in the 
    Scope of the Investigation section of this notice, above, that were in 
    the ordinary course of trade for purposes of determining appropriate 
    product comparisons to U.S. sales. Where there were no sales of 
    identical merchandise in the home market made in the ordinary course of 
    trade to compare to U.S. sales, we compared U.S. sales to sales of the 
    most similar foreign like product made in the ordinary course of trade, 
    based on the characteristics listed in Sections B and C to our 
    antidumping questionnaire. We have implemented the Court's decision in 
    this case, to the extent that the data on the record permitted. See, 
    e.g., Brass Sheet and Strip from Canada: Final Results of Antidumping 
    Duty Administrative Review and Notice of Intent Not to Revoke Order in 
    Part, 63 FR 33037, 33038 (June 17, 1998).
        We calculated CV based on the cost of materials and fabrication 
    employed in producing the subject merchandise, SG&A, and profit. In 
    accordance with 772(e)(2)(A) of the Act, we based SG&A expenses and 
    profit on the amounts incurred and realized by the respondent in 
    connection with the production and sale of the foreign like product in 
    the ordinary course of trade for consumption in the foreign country. 
    For selling expenses, we used the weighted-average home market selling 
    expenses. To the extent possible, we calculated CV by LOT, using the 
    selling expenses and profit determined for each LOT in the comparison 
    market. Where appropriate, we made adjustments to CV in accordance with 
    section 773(a)(8) of the Act and 19 CFR 351.410 for COS adjustments and 
    LOT differences. For comparisons to EP, we made COS adjustments by 
    deducting home market direct selling expenses and adding U.S. direct 
    selling expenses. For comparisons to CEP, we made COS adjustments by 
    deducting home market direct selling expenses. We also made 
    adjustments, where applicable, for home market indirect selling 
    expenses to offset commissions in EP and CEP comparisons.
    
    Preliminary Results of Review
    
        As a result of our reviews, we preliminarily determine the 
    following weighted-average dumping margins exist for the period October 
    1, 1996 through September 30, 1997:
    
    ------------------------------------------------------------------------
                                                                    Margin  
                       Manufacturer/Exporter                      (percent) 
    ------------------------------------------------------------------------
    For the A-588-054 Case:                                                 
        Koyo Seiko.............................................         7.62
    For the A-588-604 Case:                                                 
        NTN....................................................        18.83
    ------------------------------------------------------------------------
    
        Parties to these proceedings may request disclosure within five 
    days of the date of publication of this notice and may request a 
    hearing within thirty days of publication. Any hearing, if requested, 
    will be held 37 days after the date of publication, or the first 
    business day thereafter. Case briefs and/or written comments from 
    interested parties may be submitted no later than 30 days after the 
    date of publication. Rebuttal briefs and rebuttals to written comments, 
    limited to issues raised in the case briefs and comments, may be filed 
    no later than 35 days after the date of publication of this notice. 
    Parties who submit argument in these proceedings are requested to 
    submit with the argument (1) a statement of the issues and (2) a brief 
    summary of the argument. The Department will issue final results of 
    these administrative reviews, including the results of our analysis of 
    the issues in any such written comments or at a hearing, within 120 
    days of issuance of these preliminary results.
        The Department shall determine, and the U.S. Customs Service shall 
    assess, antidumping duties on all appropriate entries. In accordance 
    with 19 CFR 351.212(b)(1), we will calculate importer-specific ad 
    valorem assessment rates for the merchandise based on the ratio of the 
    total amount of antidumping duties calculated for the examined sales 
    made during the POR to the total customs value of the sales used to 
    calculate those duties. This rate will be assessed uniformly on all 
    entries of that particular importer made during the POR. The Department 
    will issue appropriate appraisement instructions directly to the 
    Customs Service upon completion of the review.
        Furthermore, the following deposit requirements will be effective 
    upon completion of the final results of these administrative reviews 
    for all shipments of TRBs from Japan entered, or withdrawn from 
    warehouse, for consumption on or after the publication date of the 
    final results of these administrative reviews, as provided by section 
    751(a)(1) of the Act:
        (1) The cash deposit rates for the reviewed companies will be those 
    rates established in the final results of these reviews;
        (2) For previously reviewed or investigated companies not listed 
    above,
    
    [[Page 37349]]
    
    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 these reviews, a prior 
    review, or the less-than-fair-value investigations, 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) If neither the exporter nor the manufacturer is a firm covered 
    in these or any previous reviews conducted by the Department, the cash 
    deposit rate for the A-588-054 case will be 18.07 percent, and 36.52 
    percent for the A-588-604 case (see Final Results of Antidumping Duty 
    Administrative Reviews; Tapered Roller Bearings, Finished and 
    Unfinished, and Parts Thereof, from Japan and Tapered Roller Bearings, 
    Four Inches or less in Outside Diameter, and Components Thereof, From 
    Japan, 58 FR 64720 (December 9, 1993)).
        This notice serves as a preliminary reminder to importers of their 
    responsibility 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 determination is issued and published in accordance with 
    sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.
    
        Dated: July 2, 1998.
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 98-18309 Filed 7-9-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
7/10/1998
Published:
07/10/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of Preliminary Results of Antidumping Duty Administrative Reviews and Recission in Part.
Document Number:
98-18309
Dates:
July 10, 1998.
Pages:
37344-37349 (6 pages)
Docket Numbers:
A-588-054, A-588-604
PDF File:
98-18309.pdf