[Federal Register: September 19, 2005 (Volume 70, Number 180)]
[Notices]
[Page 54897-54900]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19se05-29]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-803]
Heavy Forged Hand Tools, Finished or Unfinished, With or Without
Handles, From the People's Republic of China: Final Results of
Antidumping Duty Administrative Reviews and Final Rescission and
Partial Rescission of Antidumping Duty Administrative Reviews
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On March 10, 2005, the Department of Commerce (the
``Department'') published in the Federal Register the preliminary
results of the administrative review of the antidumping duty order on
heavy forged hand tools, finished or unfinished, with or without
handles (``HFHTs''), from the People's Republic of China (``PRC''). See
Heavy Forged Hand Tools, Finished or Unfinished, With or Without
Handles, From the People's Republic of China: Preliminary Results of
Administrative Reviews and Preliminary Partial Rescission of
Antidumping Duty Administrative Reviews, 70 FR 11934 (March 10, 2005)
(``Preliminary Results''). We gave interested parties an opportunity to
comment on the Preliminary Results and conducted verification of two
Respondents. Based upon our analysis of the comments and information
received, we made changes to the dumping margin calculations for the
final results. We find that certain manufacturers/exporters sold
subject merchandise at less than normal value during the POR.
EFFECTIVE DATE: September 19, 2005.
FOR FURTHER INFORMATION CONTACT: Paul Walker or Julia Hancock, AD/CVD
Operations, Office 9, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-0413 or (202) 482-1394, respectively.
SUPPLEMENTARY INFORMATION:
Case History
The Preliminary Results in this administrative review were
published on March 10, 2005. Since the Preliminary Results, the
following events have occurred:
On March 18, 2005, the Department sent pre-verification
questionnaires to TMC and Huarong. On March 22, 2004, the Department
served the verification schedules for TMC and Huarong on all interested
parties. On March 28, 2005, TMC and Huarong submitted their responses
to the Department's March 18, 2005 pre-verification questionnaires.
On April, 4, 2005, TMC submitted a request for an extension of time
to prepare for verification. On April 5, 2005, TMC withdrew its request
for an extension of time to prepare for verification. On April 5, 2005,
the Department sent a second pre-verification questionnaire to TMC. On
April 8, 2005, TMC submitted its response to the Department's second
pre-verification questionnaire. The Department conducted verification
of the data submitted by Huarong and TMC on April 11-15, 2005 and April
18-20, 2005, respectively.
On April 18, 2005, the Department received Huarong's verification
Exhibits. On April 22, 2005, the Department received TMC's verification
Exhibits. On April 27, 2005, Shandong Jinma Industrial Group Company,
Ltd. (``Jinma'') requested that the reviews be rescinded with respect
to Jinma. On May 17, 2005, the verification report for Huarong was
completed. On May 23, 2005, the verification report for TMC was
completed.
On June 7, 2005, the Department preliminarily rescinded the review
with respect to Jinma and requested that parties comment on this
rescission in their briefs. On June 13, 2005, the Petitioner\1\ and
Respondents submitted their case briefs. On June 20, 2005, the
Petitioner and Respondents submitted their rebuttal briefs.
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\1\ Ames True Temper.
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On June 27, 2005, the Department extended the time limit for
completion of the final results of the instant administrative review.
See Heavy Forged Hand Tools, Finished or Unfinished, With or Without
Handles, From the People's Republic of China: Extension of Time Limit
for the Final Results of the Antidumping Duty Administrative Review, 70
FR 36928 (June 27, 2005).
Scope of the Order
The products covered by these orders are HFHTs comprising the
following classes or kinds of merchandise: (1) Hammers and sledges with
heads over 1.5 kg (3.33 pounds) (hammers/sledges); (2) bars over 18
inches in length, track tools and wedges (bars/wedges); (3) picks and
mattocks (picks/mattocks); and (4) axes, adzes and similar hewing tools
(axes/adzes).
HFHTs include heads for drilling hammers, sledges, axes, mauls,
picks and mattocks, which may or may not be painted, which may or may
not be finished, or which may or may not be imported with handles;
assorted bar products and track tools including wrecking bars, digging
bars, and tampers; and steel woodsplitting wedges. HFHTs are
manufactured through a hot forge operation in which steel is sheared to
required length, heated to forging temperature, and formed to final
shape on forging equipment using dies specific to the desired product
shape and size. Depending on the product, finishing operations may
include shot blasting, grinding, polishing and painting, and the
insertion of handles for handled products. HFHTs are currently provided
for under the following Harmonized Tariff Schedule of the United States
(``HTSUS'') subheadings: 8205.20.60, 8205.59.30, 8201.30.00, and
8201.40.60. Specifically excluded from these investigations are hammers
and sledges with heads 1.5 kg. (3.33 pounds) in weight and under, hoes
and rakes, and bars 18 inches in length and under.
The Department has issued six conclusive scope rulings regarding
the merchandise covered by these orders: (1) On August 16, 1993, the
Department found the ``Max Multi-Purpose Axe,'' imported by the Forrest
Tool Company, to be within the scope of the axes/adzes order; (2) on
March 8, 2001, the Department found ``18-inch'' and ``24-inch'' pry
bars, produced without dies, imported by Olympia Industrial, Inc. and
SMC Pacific Tools, Inc., to be within the scope of the bars/wedges
order; (3) on March 8, 2001, the Department found the ``Pulaski'' tool,
produced without dies by TMC, to be within the scope of the axes/adzes
order; (4) on March 8, 2001, the Department found the ``skinning axe,''
imported by Import Traders, Inc., to be within the scope of the axes/
adzes order; (5) on December 9, 2004, the Department found the
``MUTT,''
[[Page 54898]]
imported by Olympia Industrial, Inc., under HTSUS 8205.59.5510, to be
within the scope of the axes/adzes order; and (6) on May 23, 2005, the
Department found 8 inch by 8 inch and 10 inch by 10 inch cast tampers,
imported by Olympia Industrial, Inc. to be outside the scope of the
orders.
We also note that on May 12, 2005, the Department initiated a
formal scope inquiry on the ``Mean Green Splitting Machine'' imported
by Avalanche Industries. This decision is currently due on September
23, 2005.
Rescission of Review
We preliminarily rescinded these reviews with respect to Shanghai
Xinike Trading Company, Ltd. (``Olympia Shanghai''), Ningbo Tiangong
Great Star Tools Company, Ltd. (``Ningbo''), Fexian Hualu Tool Company,
Ltd. (``Fexian''), Jinhua Twin-Star Tools Company (``Jinhua''), Ltd.
and ZhangJiagang Tianda Special Hardware Company, Ltd.
(``ZhangJiagang''), which reported that they did not sell merchandise
subject to any of the four HFHT antidumping orders during the POR. See
Preliminary Results at 11937. As stated above, on June 7, 2005, the
Department preliminarily rescinded the reviews with respect to Jinma,
which requested on April 27, 2005, that the reviews be rescinded
because it did not sell merchandise subject to any of the four HFHT
antidumping orders during the POR. See the Department's June 7, 2005
letter to All Interested Parties.
For Olympia Shanghai, Ningbo, Fexian, Jinhua, ZhangJiagang and
Jinma, the Department reviewed data from Customs and Border Protection
(``Customs''), which supports the claims that these companies did not
export subject merchandise during the POR. Furthermore, no party has
placed evidence on the record demonstrating that these companies
exported the merchandise identified above during the POR. Therefore, in
accordance with 19 CFR 351.213(d)(3) and consistent with the
Department's practice, we are rescinding these administrative reviews
with respect to the companies and merchandise identified above.
In addition, we also preliminarily rescinded the review of Huarong
with respect to the hammers/sledges and picks/mattocks orders, since
Huarong reported that they made no shipments of subject hammers/sledges
and picks/mattocks during the POR. See Preliminary Results at 11937.
The Department reviewed Customs data which supports the claim that
Huarong did not export hammers/sledges and picks/mattocks during the
POR. Furthermore, no party has placed evidence on the record
demonstrating that Huarong exported the merchandise identified above
during the POR. Therefore, in accordance with 19 CFR 351.213(d)(3) and
consistent with the Department's practice, we are rescinding these
administrative reviews on hammers/sledges and picks/mattocks with
respect to Huarong.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this proceeding and to which we have responded are listed in the
Appendix to this notice and addressed in the Issues and Decision
Memorandum, which is hereby adopted by this notice. Parties can find a
complete discussion of the issues raised in this administrative review
and the corresponding recommendations in this public memorandum which
is on file in the Central Records Unit (CRU), room B-099 of the main
Department building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly on the internet at http://ia.ita.doc.gov/.
The paper copy and electronic version of the Issues
and Decision Memorandum are identical in content.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by TMC and Huarong for use in our final results.
See the Department's verification reports on the record of this
investigation in the CRU with respect to TMC and Huarong. For all
verified companies, we used standard verification procedures, including
examination of relevant accounting and production records, as well as
original source documents provided by the Respondents.
During verification, TMC informed the Department that its supplier
of picks/mattocks had all accounting books seized by the Tianjin Tax
Authority, thereby rendering the Department unable to verify any of
TMC's factors of production for picks/mattocks. See Memorandum to the
File from Paul Walker, Verification of Sales for Tianjin Machinery
Import & Export Corporation in the 13th Administrative Review of Heavy
Forged Hand Tools from the People's Republic of China, dated May 23,
2005.
Facts Available
In the Preliminary Results, we based the dumping margins for
Huarong and TMC on total adverse facts available (``AFA'') for their
sales of merchandise subject to certain HFHTs orders pursuant to
sections 776(a) and 776(b) of the Tariff Act of 1930, as amended (the
``Act''). See Preliminary Results, 70 FR 11934 at 11938-39. We continue
to apply total AFA to Huarong for bars/wedges and TMC for bars/wedges,
axes/adzes and hammers/sledges because they significantly impeded our
ability to (1) conduct the reviews of these orders, and (2) instruct
Customs to assess the correct antidumping duties, as mandated by
section 731 of the Act. Huarong and TMC participated in an ``agent''
sales scheme whereby one PRC company allowed another PRC company to
enter subject merchandise using the first company's invoices. In
addition, we have applied total AFA to TMC in the review of the picks/
mattocks order due to TMC's failed FOP verification. See Issues and
Decision Memorandum at Comment 9 (a). Lastly, we continue to find that
the companies that constitute the PRC-wide entity, which did not
establish entitlement to a separate rate, failed to provide requested
information. For this reason, we continue to find that, in accordance
with sections 776(a)(2)(A), (B), and (C) of the Act, it is appropriate
to base the PRC-wide margin in these reviews on total AFA.
Section 776(b)(4) of the Act permits the Department to use, as AFA,
information from the less than fair value (``LTFV'') investigation or
any prior review. Thus, in selecting an AFA rate, the Department's
practice has been to assign Respondents who fail to cooperate with the
Department's requests for information the highest margin determined for
any party in the LTFV investigation or in any administrative review.
See, e.g., Stainless Steel Plate in Coils from Taiwan; Preliminary
Results and Rescission in Part of Antidumping Duty Administrative
Review, 67 FR 5789 (February 7, 2002). As AFA, we are assigning to the
PRC-wide entity's sales of axes/adzes, bars/wedges, hammers/sledges,
and picks/mattocks the rates of 174.58, 139.31, 45.42, and 98.77
percent, respectively. The rates selected for bars/wedges was published
in the most recently completed review of the HFHTs orders. See Heavy
Forged Hand Tools, Finished or Unfinished, With or Without Handles,
From the People's Republic of China: Final Results of Antidumping Duty
Administrative Reviews, Final Partial Rescission of Antidumping Duty
Administrative Reviews, and Determination Not To Revoke in Part, 69 FR
55581 (September 15, 2004) (``Final Results of the 12th Review'') as
amended. The rate selected as AFA for hammers/sledges was originally
from the LTFV investigation
[[Page 54899]]
and is currently the PRC-wide rate. See Final Results of the 12th
Review as amended. The rate for axes/adzes was calculated in the
instant review. The rate for picks/mattocks was calculated in the 5th
review and corroborated in the Final Results of the 12th Review as
amended.
A complete explanation of the selection, corroboration, and
application of AFA can be found in the Preliminary Results. See
Preliminary Results, 70 FR at 11938-41. The Department received
comments and rebuttal comments with regard to certain aspects of our
selection and application of AFA. See Issues and Decision Memorandum,
at Comments 2, 3, 8 and 9. Nothing has changed since the Preliminary
Results that would affect the Department's selection, corroboration,
and application of facts available for the above-referenced companies
and orders, except for the AFA rate used for picks/mattocks.
Accordingly, for the final results, we continue to apply AFA as noted
above.
Final Results of Review
The weighted-average dumping margins for the POR are as follows:
------------------------------------------------------------------------
Manufacturer/exporter Margin (percent)
------------------------------------------------------------------------
Huarong:............................................
Axes/Adzes.......................................... 174.58
PRC-Wide Entity\2\:.................................
Axes/Adzes.......................................... 174.58
Bars/Wedges......................................... 139.31
Hammers/Sledges..................................... 45.42
Picks/Mattocks...................................... 98.77
------------------------------------------------------------------------
\2\ Including TMC for all four orders (hammers/sledges, bars/wedges,
axes/adzes and picks/mattocks) and Huarong for the bars/wedges order.
Cash Deposit Requirements
The following deposit requirements will be effective upon
publication of the final results of these administrative reviews for
all shipments of HFHTs from the PRC entered, or withdrawn from
warehouse, for consumption on or after the publication date of this
notice, as provided for by section 751(a)(1) of the Act: (1) The cash
deposit rates for the reviewed companies named above will be the rates
for those firms established in the final results of these
administrative reviews; (2) for any previously reviewed or investigated
PRC or non-PRC exporter, not covered in these reviews, with a separate
rate, the cash deposit rate will be the company-specific rate
established in the most recent segment of these proceedings; (3) for
all other PRC exporters, the cash deposit rates will be the PRC-wide
rates established in the final results of these reviews; and (4) the
cash deposit rate for any non-PRC exporter of subject merchandise from
the PRC who does not have its own rate will be the rate applicable to
the PRC exporter that supplied the non-PRC exporter. These deposit
requirements, when imposed, shall remain in effect until publication of
the final results of the next administrative reviews.
The PRC-Wide Cash Deposit Rates
The current PRC-wide cash deposit rates are 174.58 percent for
axes/adzes, 139.31 percent for bars/wedges, 45.42 percent for hammers/
sledges, and 98.77 percent for picks/mattocks. These deposit
requirements shall remain in effect until publication of the final
results of the next administrative reviews.
Assessment Rates
Upon completion of these administrative reviews, the Department
will determine, and Customs shall assess, antidumping duties on all
appropriate entries. In accordance with 19 CFR 351.212(b)(1), for the
respondent receiving a calculated dumping margin, we calculated
importer-specific per-unit duty assessment rates based on the ratio of
the total amount of the dumping duties calculated for the examined
sales to the total quantity of those same sales. These importer-
specific per-unit rates will be assessed uniformly on all entries of
each importer that were made during the POR. In accordance with 19 CFR
351.106(c)(2), we will instruct Customs to liquidate without regard to
antidumping duties any entries for which the importer-specific
assessment rate is de minimis (i.e., less than 0.5 percent ad valorem).
In testing whether any importer-specific assessment rate is de minimis,
we used the reported data to calculate the freight on board at the port
of export (``FOB'') price of U.S. sales and used this FOB price as an
estimate for the entered value. For all shipments of subject
merchandise for the four antidumping orders covering HFHTs from the
PRC, exported by the respondents and imported by entities not
identified by the respondents in their questionnaire responses, we will
instruct Customs to assess antidumping duties at the cash deposit rate
in effect on the date of the entry. Lastly, for the respondents
receiving dumping rates based upon AFA, the Department, upon completion
of these reviews, will instruct Customs to liquidate entries according
to the AFA ad valorem rate. The Department will issue appraisement
instructions directly to Customs upon the completion of the final
results of these administrative reviews.
Reimbursement of Duties
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR 351.402(f) to file a certificate regarding
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this POR. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of doubled antidumping duties.
Administrative Protective Orders
This notice also serves as a reminder to parties subject to
administrative protective orders (``APO'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305, which continues
to govern business proprietary information in this segment of the
proceeding. Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
We are issuing and publishing these results and notice in
accordance with sections 751(a) and 777(i) of the Act.
Dated: September 6, 2005.
Joseph A Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix I - Decision Memorandum
I. General Comments:
Comment 1: Inclusion of Cast Picks within the Scope
Comment 2: Adverse Facts Available (``AFA'') for ``Agent'' Sales
Comment 3: AFA Rate for Bars/Wedges
Comment 4: Subsidy Suspicion Policy for Surrogate Value Sources in the
Bars/Wedges Order
Comment 5: Denial of Due Process Rights
Comment 6: Changed Circumstance Reviews for the 10th and 11th AD
Reviews of HFHTs
Comment 7: Combination Rates & Master List Assessment Instructions
II. Company Specific Comments
Comment 8: Huarong
A. Price Adjustment
B. AFA for Movement Expense
C. AFA for Labor
D. AFA for Packing
E. Scrap Offset
F. Surrogate Value for Steel Billet
G. Surrogate Value for Brokerage &
[[Page 54900]]
Handling (``B&H'')
H. Inclusion of Packing Weight in Movement Expenses' Calculation
I. Factors of Production for Pallets
J. Application of Packing Materials and the Byproduct Offset in the
Calculation of Normal Value
Comment 9: TMC
A. AFA for Failure at Verification
B. Separate Rate
C. AFA for Suppliers
D. Discounts
E. Surrogate Value for Scrap Rail
Comment 10: Jinma
[FR Doc. 05-18587 Filed 9-16-05; 8:45 am]
BILLING CODE 3510-DS-S