[Federal Register Volume 61, Number 152 (Tuesday, August 6, 1996)]
[Notices]
[Pages 40815-40817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19999]
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DEPARTMENT OF COMMERCE
[A-475-031]
Large Power Transformers From Italy; Preliminary Results of
Antidumping Duty Administrative Review and Intent To Revoke Antidumping
Finding in Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Preliminary Results of Antidumping Duty
Administrative Review and Intent to Revoke Antidumping Finding in Part.
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SUMMARY: In response to requests by the petitioner, ABB Power T&D Co.,
Inc. (ABB), and by Tamini Costruzioni Elettromeccaniche (Tamini), a
manufacturer/exporter of transformers, the Department of Commerce (the
Department) is conducting an administrative review of the antidumping
finding on large power
[[Page 40816]]
transformers from Italy. The review covers exports of subject
merchandise by Tamini to the United States during the period from June
1, 1994, through May 31, 1995.
We have preliminarily determined that Tamini did not make sales at
prices below normal value (NV) during the period of review (POR). If
these preliminary results are adopted in our final results of
administrative review, we intend to revoke the antidumping duty order
with respect to Tamini based on three years of sales at not less than
normal value. See Intent to Revoke, infra. Interested parties are
invited to comment on these preliminary results. Parties who submit
comments in this proceeding are requested to submit with each argument
(1) a statement of the issue, and (2) a brief summary of the argument.
EFFECTIVE DATE: August 6, 1996.
FOR FURTHER INFORMATION CONTACT: Andrea Chu or Kris Campbell, Import
Administration, International Trade Administration, U.S. Department of
Commerce, Washington, D.C. 20230; telephone: (202) 482-4733.
SUPPLEMENTARY INFORMATION:
The Applicable Statute
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 (URAA).
Background
On June 6, 1995, the Department published a notice of ``Opportunity
to Request Administrative Review'' (60 FR 29821) of the antidumping
finding on large power transformers from Italy (37 FR 11772, June 14,
1972). ABB and Tamini both requested administrative reviews on June 30,
1995. We published a notice of initiation of the review on July 14,
1995 (60 FR 36260), covering the period June 1, 1994, through May 31,
1995. The Department is conducting this review in accordance with
section 751 of the Act.
Scope of the Review
Imports covered by the review are shipments of large power
transformers (LPTs); that is, all types of transformers rated 10,000
kVA (kilovolt-amperes) or above, by whatever name designated, used in
the generation, transmission, distribution, and utilization of electric
power. The term ``transformers'' includes, but is not limited to, shunt
reactors, autotransformers, rectifier transformers, and power rectifier
transformers. Not included are combination units, commonly known as
rectiformers, if the entire integrated assembly is imported in the same
shipment and entered on the same entry and the assembly has been
ordered and invoiced as a unit, without a separate price for the
transformer portion of the assembly. This merchandise is currently
classifiable under the Harmonized Tariff Schedule (HTS) item numbers
8504.22.00, 8504.23.00, 8504.34.33, 8504.40.00, and 8504.50.00. The HTS
item numbers are provided for convenience and Customs purposes. The
written description remains dispositive.
The review covers shipments of transformers by Tamini during the
period June 1, 1994, through May 31, 1995.
Verification
In accordance with section 782(i) of the Act, we conducted a
verification of the information Tamini submitted during the review at
Tamini's headquarters in Melegnano, Italy, from May 20-24, 1996.
United States Price
We reviewed three U.S. sales that entered into the United States
during the POR. In calculating U.S. prices, the Department used export
price (EP), as defined in section 772(a) of the Act, because the
subject merchandise was sold by the producer or exporter outside the
United States to unaffiliated U.S. purchasers prior to the date of
importation. We calculated EP based on the packed price to the U.S.
customer. We made adjustments to EP for transportation expenses and
duty drawback.
Normal Value
Although the home market is viable, based on a review of product
specifications, we have preliminarily determined that the LPTs sold in
the home market during the period of review are not appropriate matches
to the LPTs involved in the three U.S. sales. See Memorandum from
Andrea M. Chu to File: Preliminary Analysis Memo for Tamini Costruzioni
Elettromeccaniche, 1994-95 Administrative Review (July 27, 1996).
Therefore, pursuant to section 773(a)(4) of the Act, we calculated NV
based on the constructed value of the model sold in the United States.
In accordance with section 773(e) of the Act, the constructed value
includes the costs of (1) materials and fabrication, (2) selling,
general, and administrative (SG&A) expenses, (3) profit, and (4)
packing for shipment to the United States. Where possible, we use an
amount based on sales of the foreign like product, in the ordinary
course of trade, for consumption in the home market. See section
773(e)(2)(A) of the Act. If such information is not available, we
calculate profit using one of three non-hierarchical alternatives. The
third alternative is any other reasonable method, capped by the amount
normally realized on sales in the foreign country of the general
category of products. See section 773(e)(2)(B)(iii) of the Act. The
Statement of Administrative Action states that, if the Department does
not have the data to determine this profit cap, it may apply
alternative three on the basis of ``the facts available.''
Tamini stated in its questionnaire response that it was unable to
provide a profit rate attributable to sales made for consumption in
Italy because it does not maintain records of the profitability of LPTs
by market. At verification, we confirmed that Tamini does not maintain
market-, product-, or sale-specific profit information. We also
calculated estimated profits on selected home market sales, all of
which were less than Tamini's worldwide profit rate. See Memorandum
from Andrea M. Chu to File: Cost Verification Report of Tamini
Costruzioni Elettromeccaniche, 1994-95 Administrative Review. As a
result of our analysis of the information submitted by Tamini, as well
as our findings at verification, we have preliminarily determined that
the use of Tamini's worldwide profit rate for transformer sales, as
derived from its 1994 financial statements, is a reasonable method for
calculating profits given the facts available in this case. Although we
do not have the data to determine the profit cap regarding profits
normally realized by LPT producers in Italy, we have preliminarily
determined that the use of this rate is a reasonable method of
calculating profit, within the meaning of section 773(e)(2)(B)(iii),
based on the facts available. See section 776(a) of the Act.
In accordance with sections 773(a)(6)(C) and 773(a)(8) of the Act,
we made circumstance-of-sale adjustments for differences in credit
expenses, direct bank charges, warranty expenses, technical service
expenses, and commissions. Since commissions were granted only in the
home market, we offset the commission adjustment by adding U.S.
indirect selling expenses to the constructed value in accordance with
section 353.56 of our regulations.
[[Page 40817]]
Intent To Revoke
Tamini requested, pursuant to 19 C.F.R. 353.25(b), revocation of
the order with respect to its sales of the merchandise in question and
submitted the certification required by 19 C.F.R. 353.25(b)(1). Tamini
was not required to provide the certification required by 19 C.F.R.
353.25(b)(2) (a statement in writing agreeing to its immediate
reinstatement in the order if the Department concludes, subsequent to
revocation, that the respondent sold merchandise at less than normal
value) because the Department has not previously determined that Tamini
sold subject merchandise in the United States at less than NV. Based on
the preliminary results in this review and the two preceding reviews
(see Large Power Transformers from Italy; Final Results of Antidumping
Duty Administrative Review, 59 FR 48851 (September 23, 1994), and Large
Power Transformers from Italy; Final Results of Antidumping Duty
Administrative Review, 61 FR 37443 (July 18, 1996), Tamini has
demonstrated three consecutive years of sales at not less than NV.
Given the results of the two preceding reviews, if the final
results of this review demonstrate that Tamini sold the merchandise at
not less than NV, and if we determine that it is not likely that Tamini
will sell the subject merchandise at less than NV in the future, we
intend to revoke the order with respect to merchandise produced and
exported by Tamini.
Preliminary Results of Review
As a result of our comparison of USP to NV, we preliminarily
determine that a weighted-average margin of zero percent exists for
sales of LPTs made to the United States by Tamini during the period
June 1, 1994, through May 31, 1995.
Parties to this proceeding may request disclosure within 5 days of
publication of this notice and may request a hearing within 10 days of
publication. Any hearing, if requested, will be held 44 days after the
date of publication or the first business day thereafter. Case briefs
and/or written comments from interested parties may be submitted not
later than 30 days after the date of publication of this notice.
Rebuttal briefs and rebuttals to written comments, limited to issues
raised in those comments, may be filed not later than 37 days after the
date of publication of this notice. Parties who submit comments in this
proceeding are requested to submit with each argument (1) a statement
of the issue, and (2) a brief summary of the argument. Service of all
briefs and written comments must be in accordance with 19 C.F.R.
353.38(e). The Department will publish the final results of the
administrative review, including the results of its analysis of any
such comments or hearing, within 180 days of publication of these
preliminary results of review.
The Department will issue appropriate appraisement instructions
directly to the Customs Service upon completion of this review.
Furthermore, the following deposit requirements 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 by section
751(a)(1) of the Act: (1) for Tamini, if we revoke the order with
respect to its merchandise, suspension of liquidation and cash deposits
will no longer be required; (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 less-than-fair-value (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; (4) the
cash deposit rate for all other manufacturers or exporters will be
92.47 percent, which is the ``new shipper'' rate established in the
first final results of review of this finding. See Large Power
Transformers from Italy: Notice of Final Results of Administrative
Review, 49 FR 31313 (August 6, 1984). For a further explanation of our
policy concerning the all other deposit rate in this case, see Large
Power Transformers from Italy: Notice of Final Results of
Administrative Review, 59 FR 48851 (September 23, 1994). These deposit
requirements, when imposed, shall 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 C.F.R. 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 are in accordance with
section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and 19 C.F.R.
353.22(c)(5).
Dated: July 26, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-19999 Filed 8-5-96; 8:45 am]
BILLING CODE 3510-DS-P
