94-20846. Stainless Steel Hollow Products From Sweden; Final Results of Antidumping Duty Administrative Reviews  

  • [Federal Register Volume 59, Number 164 (Thursday, August 25, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-20846]
    
    
    [[Page Unknown]]
    
    [Federal Register: August 25, 1994]
    
    
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    DEPARTMENT OF COMMERCE
    [A-401-603]
    
     
    
    Stainless Steel Hollow Products From Sweden; Final Results of 
    Antidumping Duty Administrative Reviews
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of Final Results of Antidumping Duty Administrative 
    Reviews.
    
    -----------------------------------------------------------------------
    
    SUMMARY: On December 30, 1993, the Department of Commerce (the 
    Department) published the preliminary results of two administrative 
    reviews of the antidumping duty order on stainless steel hollow 
    products (SSHP) from Sweden. We have completed these reviews and 
    determined the margins for Sandvik AB, AB Sandvik Steel, and Sandvik 
    Steel Company (collectively, Sandvik) to be 3.65 percent for the period 
    May 22, 1987 through November 30, 1988, and 1.33 percent for the period 
    December 1, 1988 through November 30, 1989.
    
    EFFECTIVE DATE: August 25, 1994.
    
    FOR FURTHER INFORMATION CONTACT: David Mason Jr. or Richard Herring, 
    Office of Countervailing Duty Compliance, Import Administration, 
    International Trade Administration, U.S. Department of Commerce, 14th 
    Street and Constitution Avenue, NW., Washington, DC 20230; telephone: 
    (202) 482-3389.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On December 3, 1987, the Department published in the Federal 
    Register an antidumping duty order on SSHP from Sweden (52 FR 45985, as 
    amended, 57 FR 52761). On December 5, 1988, pursuant to the 
    Department's notice of ``Opportunity to Request Administrative Review'' 
    (53 FR 48004) of the order for the period May 22, 1987 through November 
    30, 1988, Sandvik requested that the Department conduct an 
    administrative review. On December 19, 1989, pursuant to the 
    Department's notice of ``Opportunity to Request Administrative Review'' 
    (54 FR 52436) of the order for the period December 1, 1988 through 
    November 30, 1989, Sandvik again requested that the Department conduct 
    an administrative review.
        On December 30, 1993, the Department published the preliminary 
    results of these administrative reviews (58 FR 69332). We gave 
    interested parties an opportunity to comment on the preliminary 
    results. On March 16, 1994, we received comments from Sandvik. The 
    Department has completed these administrative reviews in accordance 
    with section 751 of the Tariff Act of 1930, as amended (the Act).
    
    Scope of Reviews
    
        The merchandise covered by these reviews is stainless steel hollow 
    products, including pipes, tubes, hollow bars and blanks of circular 
    cross section, containing over 11.5 percent chromium by weight. This 
    merchandise is currently classified under subheadings 7304.41.00 and 
    7304.49.00 of the Harmonized Tariff System (HTS). Prior to January 1, 
    1989, this merchandise was classified under subheadings 610.5130, 
    610.5202, 610.5229 and 610.5230 of the Tariff Schedules of the United 
    States Annotated (TSUSA). Although the HTS and TSUSA subheadings are 
    provided for convenience and customs purposes, the written description 
    of the scope of these reviews remains dispositive.
    
    Analysis of the Comments Received
    
        Based upon our analysis of the comments received, we have changed 
    the results from those presented in the preliminary results of these 
    reviews as discussed below in the comments section of this notice. In 
    addition, where we found clerical errors, we made appropriate 
    corrections.
        Comment 1: Sandvik contends that the Department should grant a 
    level of trade adjustment in those situations in which sales to 
    distributors are compared with sales to end-users. In support of its 
    argument, Sandvik states that 19 CFR 353.58 (1994) provides that, when 
    comparisons at the same level of trade are not possible, the Department 
    will ``make appropriate adjustments for differences affecting price 
    comparability.'' Sandvik notes that the Department has correctly made 
    comparisons of merchandise at the same level of trade, where possible, 
    and that it should make a level of trade adjustment where sales to 
    distributors are matched with sales to end-users.
        Sandvik also asserts that, contrary to the Department's contention 
    that the company failed to ``demonstrate that it incurred different 
    indirect selling expenses on sales to different levels of trade in the 
    German market,'' the company demonstrated, in significant detail, that 
    discounts were granted exclusively to German distributors to compensate 
    these distributors for their cost of holding a stock of Sandvik 
    products. Sandvik claims that the fact that these distributor discounts 
    were granted is undisputed in the case record.
        Finally, contrary to the Department's traditional reliance on cost 
    differences as the basis for the adjustment, Sandvik contends that 
    other methods of valuing the adjustment may also be used since the 
    Department's regulations do not expressly limit the grant of the 
    adjustment to those instances in which cost differences are present. 
    Rather, Sandvik argues that the regulation simply ``requires a level of 
    trade adjustment whenever prices are not comparable.'' According to 
    Sandvik, the distributor discount in this case is exactly the amount by 
    which the sale price at the distributor level of trade varies from the 
    price of an identical sale at the end-user level of trade. Sandvik 
    concludes that the distributor discount is the best basis, if not the 
    only basis, for valuing the level of trade adjustment. Accordingly, 
    since the company has shown that ``the discount is uniformly provided 
    in all German distributor sales'', the Department must make the level 
    of trade adjustment whenever sales at different levels of trade are 
    compared.
    
    Department's Position
    
        To determine whether a level of trade adjustment is warranted when 
    sales to distributors are matched with sales to end-users, we compared 
    the reported unit sale prices to distributors with reported unit prices 
    to end-users for the same product, month of sale, and quantity bracket. 
    Based upon our examination of these prices in both reviews, we found 
    wide price fluctuations without any discernible pattern. Moreover, in 
    some instances, we found that prices to distributors exceeded prices to 
    end-users. Based upon these facts, Sandvik has not demonstrated that 
    there are differences affecting price comparability relating solely to 
    the fact that sales are made at different levels of trade. Thus, the 
    Department maintains that there is insufficient justification to make a 
    level of trade adjustment in those situations where distributor and 
    end-user sales are compared.
        Comment 2: Sandvik contends that two separate and distinct 
    exporters are under review in the first administrative review, and 
    therefore, the Department should calculate separate rates for these 
    companies. According to Sandvik, it sold to an unrelated Canadian 
    distributor a small volume of hollow bar, most, if not all, of which 
    has never been sold into the United States. Sandvik contends that the 
    Department incorrectly assumes these sales have entered the United 
    States since the dumping calculation is based on Sandvik's sales to the 
    Canadian company, not on the Canadian company's subsequent sales into 
    the United States.
        Second, Sandvik maintains that the Department has an established 
    practice of calculating a separate margin for each manufacturer/
    exporter investigated in an antidumping duty action provided the firms 
    operate as separate and distinct entities. In discussing its position, 
    Sandvik addresses Certain Granite Products from Italy (53 FR 27187, 
    July 19, 1988), where the Department collapsed firms with common 
    ownership and boards of directors and similar production facilities 
    such that the firms would not have to retool in order to produce 
    jointly; Certain Granite Products from Spain (53 FR 24337, June 28, 
    1988), where the firms shared sales opportunities, manufacturing 
    decisions, and were billed jointly; and Certain Granite Products from 
    Italy (53 FR 27189, June 28, 1988) where the firms acted in concert in 
    the marketplace. Sandvik claims, in contrast to these cases, that it 
    and the Canadian company are independently owned, possess no corporate 
    or other close relationship, and never operated closely or in concert 
    for the production or sales of hollow bar.
        Finally, citing Hot-Rolled Carbon Steel Plate and Hot-Rolled Carbon 
    Steel Sheet from Brazil (49 FR 3104, January 25, 1984), Sandvik 
    contends that the only other situation in which the Department may 
    consider calculating a single margin for two companies involves 
    entities with cooperative sales operations or firms that do not 
    separately negotiate prices with U.S. customers. Once again, Sandvik 
    maintains that the facts in this case do not warrant such treatment. 
    Sandvik argues that it maintained separate sales operations at all 
    times. Moreover, Sandvik asserts that in those instances in which the 
    Canadian company made sales to the United States, it directly competed 
    with Sandvik. Sandvik further maintains that each firm separately 
    negotiated prices with potential U.S. customers.
        As a final point, Sandvik contends that the Department has 
    consistently published separate rates for sales made through unrelated 
    third-country trading companies or resellers. According to Sandvik, 
    that practice should apply in this case as the Canadian company is an 
    unrelated third-country reseller.
    
    Department's Position
    
        We normally treat sales by a respondent to an unrelated purchaser 
    as sales to the United States where the seller knows that the 
    merchandise is being sold for export to the United States. This is true 
    of sales to trading companies in the country of origin or those in 
    third country locations. (Sandvik AB v. United States, 721 F.Supp 1322, 
    1341 (CIT 1989); Final Determination of Sales at Less Than Fair Value; 
    Stainless Steel Hollow Products from Sweden, (52 FR 37819, 37813, 
    October 9, 1987); see also Urea from USSR; Final Determination of Sales 
    at Less Than Fair Value (52 FR 19560, May 26, 1987) and Fuel Ethanol 
    from Brazil; Final Determination of Sales at Less Than Fair Value (51 
    FR 5573, February 14, 1986).
        The antidumping duty rate calculated for Sandvik in the first 
    administrative review pertains to Sandvik's sales of the subject 
    merchandise (1) made directly to the United States and (2) destined for 
    consumption in the United States. In its response, Sandvik stated that 
    the Canadian company ``was authorized to sell the merchandise in the 
    U.S.'' and that the merchandise was intended for ultimate importation 
    into the United States (Sandvik's April 5, 1989 response at 10). 
    Accordingly, we have continued to treat Sandvik's sales to the Canadian 
    company as sales to the United States because they were made with the 
    knowledge that the merchandise was destined for consumption in the 
    United States. Therefore, we believe that such sales properly belong in 
    the calculation of Sandvik's antidumping duty rate.
        Comment 3: Sandvik contends that it was inappropriate for the 
    Department to apply, as best information available (BIA), the 
    antidumping duty rate from the less than fair value (LTFV) 
    investigation for those instances in which constructed value was not 
    available for comparison to U.S. sales. Instead, according to Sandvik, 
    in several recent administrative reviews the Department has found that, 
    where a gap existed in the record for certain U.S. sales, and the 
    Department had to use ``other information,'' not ``BIA,'' it could use 
    a neutral and reasonable surrogate to bridge the gap. Sandvik argues 
    that the Department derives its authority to use reasonable, ``other 
    information'' from its own inherent authority to administer the U.S. 
    antidumping law in a fair and equitable manner.
        Sandvik further points out that in this case the Department has 
    already calculated margins on the overwhelming majority of Sandvik's 
    U.S. sales transactions. Therefore, Sandvik maintains that, rather than 
    apply the rate from the LTFV investigation as BIA, the Department 
    should apply the weighted-average margin derived from the pool of sales 
    with calculated margins as the more appropriate rate for unmatched 
    sales in this review.
    
    Department's Position
    
        Section 776(c) of the Act requires the Department to apply BIA 
    ``whenever a party or any other person refuses or is unable to produce 
    information requested in a timely manner or in the form required, or 
    otherwise significantly impedes an investigation.'' When a company 
    substantially cooperates with our requests for information, but fails 
    to provide the information requested in a timely manner or in the form 
    required, we use as BIA the higher of (1) The highest rate (including 
    the ``all others'' rate) ever applicable to the firm for the same class 
    or kind of merchandise from either the LTFV investigation or a prior 
    administrative review; or (2) the highest calculated rate in this 
    review for any firm for the class or kind of merchandise from the same 
    country of origin (Final Results of Antidumping Duty Administrative 
    Reviews and Revocation in Part of An Antidumping Duty Order (referring 
    to Antifriction Bearings (Other Than Tapered Roller Bearings) And Parts 
    Thereof from France; et al.) (58 FR 39729, 39739, July 26, 1993); and 
    Antifriction Bearings (Other Than Tapered Roller Bearings) And Parts 
    Thereof from France; et al.; Final Results of Antidumping Duty 
    Administrative Review, (57 FR 28360, 28379. June 24, 1992)).
        In cases where a firm failed to supply certain FMV information 
    (e.g., corresponding home market sales within the contemporaneous 
    window or constructed value data for a few U.S. sales), we apply the 
    BIA rate as outlined above, and limit its application to the particular 
    transactions involved.
        In this case, Sandvik substantially cooperated with the Department 
    in furnishing the requested information. Therefore, for those few sales 
    in which we found it necessary to use partial BIA, we applied the rate 
    of 20.47 percent from the LTFV investigation, which is the highest rate 
    ever applicable to Sandvik for the same class or kind of merchandise 
    from either the LTFV investigation or a prior administrative review.
        Comment 4: Sandvik contends that the Department's use of mean 
    average shipment, entry, and payment dates to represent missing 
    shipment, entry, and payment dates imposes an unjustified penalty on 
    the company. According to Sandvik, there were a number of sales for 
    which this particular information could not be furnished because, at 
    the time the response was prepared, payment, shipment and entry had not 
    yet occurred.
        Sandvik claims that the use of mean shipment and entry dates 
    greatly and arbitrarily increases the size of any adjustments based on 
    such dates. In particular, Sandvik notes that the time the merchandise 
    is in inventory and the days for which credit is extended are both 
    greatly overstated through the application of these mean dates. 
    Accordingly, Sandvik urges the Department to adopt the company's 
    earlier proposal of using the substituted date of June 1, 1989, the 
    date on which the first review tape was prepared, as the shipment date. 
    According to Sandvik, this proposal is reasonable even though it still 
    overstates these adjustments.
    
    Department's Position
    
        We note that since the June 1, 1989, date of preparation of the 
    computer tape, Sandvik received subsequent opportunities to submit 
    these missing data when replacement tapes were requested by the 
    Department. Sandvik, however, provided no additional data for these 
    missing values. Accordingly, we have continued to apply mean values as 
    BIA for these missing data.
        Comment 5: With respect to warranty expenses, Sandvik maintains 
    that the Department based its calculation of U.S. warranty expenses on 
    the mistaken belief that Sandvik failed to report U.S. warranty 
    expenses in its response. Contrary to the Department's belief, Sandvik 
    maintains that all warranty-related costs, consisting of the cost of 
    reworking defective merchandise and the transportation costs associated 
    with returning the merchandise to the factory and reshipping the 
    reworked merchandise, were included in the cost and expense data 
    submitted in its responses.
        According to Sandvik, reworking costs are indistinguishable from 
    normal production costs and are accumulated in cost centers with other 
    costs associated with further manufacturing. Thus, Sandvik maintains 
    that reworking costs are fully accounted for in the direct labor and 
    factory burden components of Sandvik's conversion costs. Accordingly, 
    Sandvik argues there is no need to create a separate adjustment for 
    costs incurred in reworking defective merchandise. With respect to the 
    freight expenses for returned merchandise and reshipment of reworked 
    merchandise, Sandvik claims that these expenses were included in its 
    total freight calculation. Thus, to the extent the Department deducted 
    total freight expense from the U.S. price (USP), it must not deduct 
    separate freight expenses pertaining to return of defective and 
    reshipment of reworked merchandise.
        In addition, Sandvik characterizes the Department's calculation of 
    warranty expense as inappropriate since it is based on the total value 
    of returned defective merchandise and the cost of reworking defective 
    merchandise. Sandvik maintains that the value of returned merchandise 
    does not constitute an expense incurred by the company because 
    defective merchandise is not discarded or scrapped at the company's 
    expense, but rather is reworked and either returned to the customer or 
    placed in inventory for sale to another customer. Thus, Sandvik claims 
    that the company only incurs the cost of reworking the merchandise and 
    the cost of return freight, which therefore constitute the entire 
    amount of U.S. warranty expenses. Sandvik claims that these warranty-
    related expenses were fully reported and have been deducted elsewhere 
    in the cost and expense data. Thus, any additional deduction would be 
    unfair and impermissible double-counting of warranty expenses for U.S. 
    sales.
    
    Department's Position
    
        To the extent that freight expenses, pertaining to the return of 
    defective merchandise and reshipment of reworked merchandise, were part 
    of Sandvik's total freight expense, we agree that such expenses should 
    not be included in U.S. warranty expenses since they have already been 
    deducted from USP. Thus, we have adjusted the warranty expense 
    accordingly.
        We disagree with Sandvik, however, that USP need not be adjusted 
    for the cost of reworking the defective merchandise based upon 
    Sandvik's contention that these costs are already part of the total 
    cost of production. Inclusion of reworking costs in the cost of 
    production by itself has no impact on the calculation of dumping 
    margins. Rather, dumping margins are primarily price-based 
    calculations, and therefore prices net of warranty expenses are 
    essential for apples-to-apples comparisons. Hence, the Department has 
    adjusted USP for warranty expenses. In addition, since Sandvik did not 
    separately report the cost of reworking defective merchandise, we 
    continued to use, as BIA, the value of the returned merchandise to 
    represent Sandvik's warranty expenses.
        Comment 6: Sandvik claims that the Department incorrectly treated 
    expenses pertaining to transportation of merchandise from the U.S. port 
    to Sandvik's U.S. factory as an element of further manufacturing 
    contributing to U.S. value added, rather than as a cost of the imported 
    input. Sandvik claims that, by attributing these movement expenses to 
    U.S. further manufacturing costs rather than to the cost of the 
    imported redraw hollow, the Department artificially increased the 
    amount of U.S. value added, and thus allocated too large a share of 
    profit to U.S. further manufacturing.
        Second, Sandvik maintains that this method of allocation is 
    inconsistent with the antidumping statute and the Department's 
    regulations. Citing both section 772(e)(3) of the Act and 19 CFR 
    353.41(e), Sandvik contends that both authorities direct the Department 
    to reduce exporter's sales price (ESP) by any increased value 
    ``resulting from a process of manufacture or assembly performed on the 
    imported merchandise,'' which does not specifically include the cost of 
    moving the component or product from the port to its factory.
        Third, Sandvik contends that according to the Court of 
    International Trade (CIT) ruling in Sandvik AB v. United States (721 F. 
    Supp. 1322, 1335 (CIT 1989)) the Department must calculate profit based 
    on the ``increased value'' as defined in the statute. Sandvik maintains 
    that movement of a product or component does not constitute performance 
    of a ``manufacture or assembly'' process on the imported merchandise. 
    Thus, Sandvik concludes that movement expenses may not be considered 
    part of the U.S. value added.
    
    Department's Position
    
        The Department's standard practice is to subtract from USP any 
    increased value added to the merchandise by a process performed after 
    importation and before sale to the first unrelated customer (see e.g., 
    Roller Chain, Other Than Bicycle, from Japan; Final Results of 
    Administrative Review of Antidumping Finding (48 FR 51801, November 14, 
    1983), and Cellular Mobile Telephones and Subassemblies from Japan; 
    Final Results of Antidumping Duty Administrative Review (54 FR 48011, 
    November 20, 1989). Accordingly, the Department correctly included the 
    costs of transporting the product from the port to the U.S. factory as 
    an element of further manufacturing. Contrary to respondent's claims, 
    this practice is consistent with the statute and the Department's 
    regulations, which allow for adjustments to USP for any increased value 
    resulting from a process of manufacture or production, or assembly (see 
    19 USC Sec. 1677a(e)(3) and 19 CFR 353.41(e)). The Department treats 
    the costs of moving the product to the factory as part of the process 
    of further manufacturing because, were it not for the further 
    manufacturing, these costs would not be incurred. Furthermore, the 
    Department's regulations allow for inclusion of transportation costs in 
    calculating value added adjustments. Specifically, 19 CFR 353.41(e)(3) 
    states that the Secretary ``generally will'' consider many factors, 
    including ``other expenses,'' in the determination of ``increased 
    value.'' Thus, the Department's practice is consistent with its 
    authority to assess the costs of port to factory movement expenses in 
    determining value added adjustments.
        Sandvik's reliance on the CIT case, Sandvik AB v. United States 
    (721 F. Supp. 1322, 1335 (CIT 1989) (Sandvik)), to support its 
    contention that the movement of a product does not constitute 
    performance of a ``manufacture or assembly'' process is misplaced. In 
    Sandvik, the CIT held that the Department can deduct from the USP the 
    profit associated with further manufacturing. In making this decision, 
    the CIT simply quoted the relevant portions of the statute and 
    regulations at issue, but never addressed the precise meaning of the 
    statute or the issue of movement expenses.
        Moreover, the Department's approach to these movement expenses is 
    in accordance with longstanding practice (see Gray Portland Cement and 
    Clinker from Japan; Final Results of Antidumping Duty Administrative 
    Review (56 FR 48826, September 20, 1983, as amended, 58 FR 53705, April 
    21, 1983) (the Department included freight from the U.S. port to the 
    U.S. plant in the U.S. further manufacturing costs); see also, 
    Stainless Steel Hollow Products from Sweden; Final Results of 
    Antidumping Duty Administrative Review (57 FR 21389, 21392, May 20, 
    1992)). Finally, in Final Results of Antidumping Duty Administrative 
    Review, Certain Internal-Combustion, Industrial Forklift Trucks from 
    Japan (57 FR 3167, 3169, January 28, 1992), the Department included 
    transportation of merchandise as part of U.S. value added. Although 
    these were delivery charges incurred in the transportation of the goods 
    from the factory, this case nonetheless illustrates the Department's 
    practice of including movement expenses as part of the costs of further 
    manufacturing.
        Therefore, the Department has included the costs of transporting 
    the product from the port to the factory as an element of further 
    manufacturing.
        Comment 7: According to Sandvik, the company imposes a service 
    charge for cutting each piece of hollow bar sold in Sweden to the 
    length desired by each Swedish customer. Sandvik points out that since 
    none of the hollow bar sold in the United States was cut to length, 
    sales of hollow bar in the home market carry a selling expense that 
    U.S. sales do not. Accordingly, Sandvik requests that the Department 
    reduce the home market price by the amount of the service charge.
        In support of its position, Sandvik contends that both the 
    Department's regulations and current practice establish that Sandvik is 
    entitled to a circumstance of sale adjustment for the service of 
    cutting hollow bar to length. According to Sandvik, 19 CFR 353.56(a)(2) 
    sets forth the types of differences in circumstances of sale for which 
    the Department may normally make reasonable allowances, which includes 
    ``those involving differences in * * * servicing.'' Thus, Sandvik 
    contends that the company's service charge is properly characterized as 
    a circumstance of sale adjustment.
        In addition, Sandvik cites cases demonstrating that the requested 
    adjustment is supported by Department practice. In the antidumping duty 
    investigation on Polyethylene Terephthalate Film, Sheet and Strip from 
    the Republic of Korea (Pet Film) (56 FR 16305, April 22, 1991), Sandvik 
    claims the Department granted a circumstance of sale adjustment to 
    account for slitting costs when respondent cut its merchandise to the 
    width desired by each home market customer. According to Sandvik, no 
    such expenses were incurred for U.S. sales. Thus, Sandvik claims Pet 
    Film is analogous to the situation in the present review on SSHP.
        Moreover, Sandvik states that the Department previously determined 
    in the LTFV investigation of SSHP that the service charge for cutting 
    hollow bar to length should properly be treated as a circumstance of 
    sale adjustment. Sandvik stresses that the Department, during its 
    verification in the LTFV investigation, found that hollow bar sold in 
    Sweden was in fact cut to length, while hollow bar sold in the United 
    States was not. Sandvik claims that nothing has changed since the LTFV 
    investigation to warrant a change in the treatment of the expense. 
    Based upon Department practice and in particular, the Department's 
    previous treatment of the service charge in the SSHP case, Sandvik 
    concludes that the Department should make a circumstance of sale 
    adjustment under 19 CFR 353.56 to account for the additional selling 
    expense that Sandvik incurs when it sells hollow bar in the home 
    market.
        Finally, Sandvik contends that, contrary to the Department's claim 
    in this administrative review that the company ``did not provide * * * 
    the necessary information to make the adjustment,'' Sandvik asserts 
    that the record demonstrates otherwise. Specifically, Sandvik cites to 
    its November 7, 1991, submission which sets forth the cutting charge as 
    a percentage of total Swedish hollow bar sales.
    
    Department's Position
    
        The Department grants a circumstance of sale adjustment where the 
    claimed expense is directly related to sales of the subject merchandise 
    or sales used to represent foreign market value, in accordance with 19 
    CFR 353.56(a). In this case, Sandvik calculated a per unit servicing 
    charge based upon the company's total servicing expense as a percentage 
    of total sales of hollow bar in Sweden. As indicated in its January 19, 
    1990, response, the amount charged for cutting hollow bar to length for 
    customers varies according to the grade and volume of hollow bar which 
    is purchased. Thus, the service charge varies by sale, and should have 
    been reported on a transaction-specific basis as specifically requested 
    in the Department's deficiency questionnaire. We have, therefore, 
    denied Sandvik a circumstance of sale adjustment in this case.
        With respect to treatment of the servicing charge as an indirect 
    selling expense under 19 CFR 353.56(b), Sandvik calculated the total 
    servicing expense using the largest fixed percentage of the invoice 
    price rather than an application of either the grade or volume of the 
    sales, which would have reduced the amount of the servicing charge. 
    Therefore, we have denied Sandvik's servicing charge as an indirect 
    selling expense for these sales because the methodology used to 
    calculate the charge overstates the total expense by failing to account 
    for the effect of different grades and volumes on the total amount.
    
    Final Results of Review
    
        The final results of our reviews are as follows:
    
    ------------------------------------------------------------------------
                                                                    Margin  
             Manufacturer/exporter               Time period      (percent) 
    ------------------------------------------------------------------------
    Sandvik.................................   05/22/87-11/30/88        3.65
    Sandvik.................................   12/01/88-11/30/89       1.33 
    ------------------------------------------------------------------------
    
        The Department will instruct the U.S. Customs Service to assess 
    antidumping duties on all appropriate entries. Furthermore, the 
    following cash deposit requirements will be effective upon publication 
    of this notice of final results of administrative reviews for all 
    shipments of the subject merchandise entered, or withdrawn from 
    warehouse, for consumption on or after the publication date, as 
    provided for by section 751(a)(1) of the Act: (1) The cash deposit rate 
    for the reviewed company listed above will continue to be the rate 
    established in the final results of the third administrative review (57 
    FR 21389, May 20, 1992); (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 manufacture of the merchandise; (4) the cash deposit rate for 
    all other manufacturers or exporters will be 20.47 percent, the ``all 
    other'' rate established in the original LTFV investigation by the 
    Department (52 FR 37810, October 9, 1987; as amended 52 FR 45985, 
    December 3, 1987), in accordance with the decisions of the CIT in 
    Floral Trade Council v. United States, Slip Op. 93-79, and Federal-
    Mogul Corporation v. United States, Slip Op. 93-83.
        This notice serves as a final 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 notice also serves as the only reminder to parties subject to 
    administrative protective order (APO) of their responsibilities 
    concerning the return or destruction of proprietary information 
    disclosed under APO in accordance with 19 CFR 353.34(d). Failure to 
    comply is a violation of the APO.
        These administrative reviews and notice are in accordance with 
    sections 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 353.22 of the 
    Department's regulations.
    
        Dated: August 17, 1994.
    Susan G. Esserman,
    Assistant Secretary for Import Administration.
    [FR Doc. 94-20846 Filed 8-24-94; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
08/25/1994
Department:
Commerce Department
Entry Type:
Uncategorized Document
Action:
Notice of Final Results of Antidumping Duty Administrative Reviews.
Document Number:
94-20846
Dates:
August 25, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 25, 1994, A-401-603