[Federal Register: June 10, 2008 (Volume 73, Number 112)]
[Notices]               
[Page 32678-32681]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn08-18]                         

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

A-570-846

 
Brake Rotors From the People's Republic of China: Final Results 
of 2006-2007 Administrative and New Shipper Reviews and Partial 
Rescission of 2006-2007 Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On February 5, 2008, the Department of Commerce 
(``Department'') published Brake Rotors From the People's Republic of 
China: Preliminary Results of the 2006 2007 Administrative and New 
Shipper Reviews and Partial Rescission of the 2006 2007 Administrative 
Review, 73 FR 6700 (February 5, 2008) (``Preliminary Results''). The 
period of review (``POR'') is April 1, 2006, through March 31, 2007. 
The administrative review covers two mandatory respondents and 12 
separate-rate respondents. The new shipper review covers one new 
shipper.
    We invited interested parties to comment on our Preliminary 
Results. Based on our analysis of the comments received, we made 
certain changes to our calculations. The final dumping margins for the 
administrative and new shipper reviews are listed in the ``Final 
Results of the Reviews'' section, below.

EFFECTIVE DATE: June 10, 2008.

FOR FURTHER INFORMATION CONTACT: Frances Veith or Blanche Ziv, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14\th\ Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: 202-482-4295 
or 202-482-4207, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 5, 2008, the Department published the Preliminary 
Results of the administrative and new shipper reviews of the 
antidumping duty order on brake rotors from the People's Republic of 
China (``PRC'').
    On March 6, 2008, the Department received a case brief from Trade 
Pacific PLLC on behalf of its clients Laizhou Auto Brake Equipment 
Company (``LABEC''), Yantai Winhere Auto-Part Manufacturing Co., Ltd. 
(``Winhere''), Longkou Haimeng Machinery Co., Ltd. (``Haimeng''), 
Laizhou Luqi Machinery Co., Ltd. (``Luqi''), Laizhou Hongda Auto 
Replacement Co., Ltd. (``Hongda''), Qingdao Meita Automotive Industry 
Co., Ltd. (``Meita''), Dixion Brake System (Longkou) Ltd. (``Dixion''), 
and Laizhou Wally Automobile Co., Ltd. (``Wally'') (collectively, ``the 
Trade Pacific respondents''). On March 11, 2008, we received a rebuttal 
brief from the Coalition for the Preservation of American Brake Drum 
and Rotor Aftermarket Manufacturers (``petitioner'').
    We conducted these reviews in accordance with sections 751 and 
777(i)(1) of the Tariff Act of 1930, as amended (``the Act''), and 19 
CFR 351.213 and 19 CFR 351.221, as appropriate.

Period of Review

    The POR is April 1, 2006, through March 31, 2007.

Scope of the Order

    The products covered by this order are brake rotors made of gray 
cast iron, whether finished, semifinished, or unfinished, ranging in 
diameter from 8 to 16 inches (20.32 to 40.64 centimeters) and in weight 
from 8 to 45 pounds (3.63 to 20.41 kilograms). The size parameters 
(weight and dimension) of the brake rotors limit their use to the 
following types of motor vehicles: automobiles, all-terrain vehicles, 
vans and recreational vehicles under ``one ton and a half,'' and light 
trucks designated as ``one ton and a half.''
    Finished brake rotors are those that are ready for sale and 
installation without any further operations. Semi-finished rotors are 
those on which the surface is not entirely smooth, and have undergone 
some drilling. Unfinished rotors are those which have undergone some 
grinding or turning.
    These brake rotors are for motor vehicles, and do not contain in 
the casting a logo of an original equipment manufacturer (``OEM'') 
which produces vehicles sold in the United States (e.g., General 
Motors, Ford, Chrysler, Honda, Toyota, Volvo). Brake rotors covered in 
this order are not certified by OEM producers of vehicles sold in the 
United States. The scope also includes composite brake rotors that are 
made of gray cast iron, which contain a steel plate, but otherwise meet 
the above criteria. Excluded from the scope of this order are brake 
rotors made of gray cast iron, whether finished, semifinished, or 
unfinished, with a diameter less than 8 inches or greater than 16 
inches (less than 20.32 centimeters or greater than 40.64 centimeters) 
and a weight less than 8 pounds or greater than 45 pounds (less than 
3.63 kilograms or greater than 20.41 kilograms).
    Brake rotors are currently classifiable under subheading 
8708.39.5010 of the Harmonized Tariff Schedule of the United States 
(``HTSUS'').\1\ Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the scope 
of this order is dispositive.
---------------------------------------------------------------------------

    \1\ As of January 1, 2005, the HTSUS classification for brake 
rotors (discs) changed from 8708.39.5010 to 8708.39.5030. As of 
January 1, 2007, the HTSUS classification for brake rotors (discs) 
changed from 8708.39.5030 to 8708.30.5030. See Harmonized Tariff 
Schedule of the United States (2007) (Rev. 2), available at 
.
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs filed by parties 
in these reviews are addressed in the Memorandum from Stephen J. 
Claeys, Deputy Assistant Secretary for Import Administration, to David 
M. Spooner, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum for the 2006-2007 Administrative and New Shipper 
Reviews of the Antidumping Duty Order on Brake Rotors From the People's 
Republic of China,'' dated June 4, 2008 (``Issues and Decision Memo''), 
which is hereby adopted by this notice. A list of the issues that 
parties raised and to which we responded in the Issues and Decision 
Memo follows as an appendix to this notice. The Issues and Decision 
Memo is a public document which is on file in the Central Records Unit 
(``CRU'') in room 1117 of the main Department building, and is also 
accessible on the Web at <http://ia.ita.doc.gov/frn/>. The paper copy 
and electronic version of the Issues and Decision Memo are identical in 
content.

[[Page 32679]]

Partial Rescission of Administrative Review

    In the Preliminary Results, the Department issued a notice of 
intent to rescind the administrative review with respect to exporters 
in the following specified exporter or exporter/producer (manufacturer) 
combinations: (1) Shanxi Zhongding Auto Parts Co., Ltd. (``SZAP''), (2) 
Shandong Huanri Group Co., Ltd. (``Huanri''), (3) Longkou Qizheng Auto 
Parts Co. (``Qizheng''), (4) China National Industrial Machinery Import 
& Export Corporation (``CNIM''), (5) Xianghe Xumingyuan Auto Parts Co. 
(``Xumingyuan''), (6) Qingdao Golrich Autoparts Co., Ltd. 
(``Golrich''), (7) China National Automotive Industry Import & Export 
Corporation (``CAIEC''), manufactured by any company other than 
Shandong Laizhou CAPCO Industry (``CAPCO''), (8) CAPCO/manufactured by 
any company other than CAPCO, (9) Laizhou Luyuan Automobile Fittings 
Co. (``Luyuan''), manufactured by any company other than Luyuan or 
Shenyang Honbase Machinery Co., Ltd. (``Honbase''), and (10) Honbase, 
manufactured by any company other than Honbase or Luyuan, in accordance 
with 19 CFR 351.213(d)(3), because we found no evidence that any of 
these companies made shipments of subject merchandise to the United 
States during the POR. See Preliminary Results, 73 FR at 6703. The 
Department received no comments on this issue, and we did not receive 
any further information since the issuance of the Preliminary Results 
that provides a basis for reconsideration of this determination. 
Therefore, the Department is rescinding this administrative review with 
respect to these exporters in the following specified exporter or 
exporter/producer combinations: (1) SZAP, (2) Huanri, (3) Qizheng, (4) 
CNIM, (5) Xumingyuan, (6) Golrich, (7) CAIEC/manufactured by any 
company other than CAPCO, (8) CAPCO/manufactured by any company other 
than CAPCO, (9) Luyuan/manufactured by any company other than Luyuan or 
Honbase, and (10) Honbase/manufactured by any company other than 
Honbase or Luyuan.

Separate Rates

    In our Preliminary Results, we determined that the two mandatory 
respondents (i.e., Haimeng and Meita), the 12 separate-rate respondents 
(i.e., non-selected respondents),\2\ and the new shipper (i.e., 
Shanghai Tylon Company Ltd. (``Tylon'')) met the criteria for the 
assignment of a separate rate. See Preliminary Results, 73 FR at 6702, 
6703. The Department received no comments on this issue, and we did not 
receive any further information since the issuance of the Preliminary 
Results that provides a basis for reconsideration of these 
determinations for the final results.
---------------------------------------------------------------------------

    \2\ The non-selected respondents are as follows: (1) Winhere; 
(2) LABEC; (3) Hongda; (4) Wally; 5) Dixion; (6) Qingdao Gren Co. 
(``Gren''); (7) Zibo Luzhou Automobile Parts Co., Ltd. (``ZLAP''); 
(8) Longkou TLC Machinery Co., Ltd. (``TLC''); (9) Zibo Golden 
Harvest Machinery Limited Company (``ZGOLD''); (10) Luqi; (11) 
Shenyang Yinghao Machinery Co. (``Yinghao''); and (12) Longkou 
Jinzheng Machinery Co. (``Jinzheng'').
---------------------------------------------------------------------------

Changes Since the Preliminary Results

    Based on our analysis of comments received from interested parties 
and information on the record of these reviews, we made changes to the 
margin calculations as noted below.
    We have made certain changes to the financial ratio calculations 
for the final results. For further details, see the Issues and Decision 
Memo at Comment 3 and the Department's memorandum entitled, ``2006-2007 
Administrative and New Shipper Reviews of the Antidumping Duty Order on 
Brake Rotors from the People's Republic of China: Surrogate Values for 
the Final Results,'' dated concurrently with this notice. We also 
applied the updated value for labor using the regression-based wage 
rate for the PRC published on Import Administration's website. See 
<http://ia.ita.doc.gov/wages/05wages/05wages-051608.html/, and see 
Corrected 2007 Calculation of Expected Non-market Economy Wages, 73 FR 
27795 (May 14, 2008)>. For further details on company-specific 
calculations, see the company-specific analysis memoranda.\3\
---------------------------------------------------------------------------

    \3\ See the Department's memorandum entitled, ``2006-2007 
Administrative and New Shipper Reviews of the Antidumping Duty Order 
on Brake Rotors from the People's Republic of China: Analysis of the 
Final Results Margin Calculation for Longkou Haimeng Machinery Co., 
Ltd.,'' dated concurrently with this notice; the Department's 
memorandum entitled, ``2006-2007 Administrative and New Shipper 
Reviews of the Antidumping Duty Order on Brake Rotors from the 
People's Republic of China: Analysis of the Final Results Margin 
Calculation for Qingdao Meita Automotive Industry Co., Ltd,'' dated 
concurrently with this notice; and the Department's memorandum 
entitled, ``2006-2007 Administrative and New Shipper Reviews of the 
Antidumping Duty Order on Brake Rotors from the People's Republic of 
China: Analysis of the Final Results Margin Calculation for Shanghai 
Tylon Company Ltd.,'' dated concurrently with this notice.
---------------------------------------------------------------------------

Final Results of the Reviews

    We determine that the following final weighted-average dumping 
margins exist for the period April 1, 2006, through March 31, 2007:

                        Brake Rotors from the PRC
------------------------------------------------------------------------
Individually Reviewed Exporters 2006-2007     Weighted-Average Percent
          Administrative Review                        Margin
------------------------------------------------------------------------
Longkou Haimeng Machinery Co., Ltd.......              0.02 (de minimis)
Qingdao Meita Automotive Industry Co.,                              0.00
 Ltd.....................................
------------------------------------------------------------------------


------------------------------------------------------------------------
 Separate-Rate Applicant Exporters 2006-      Weighted-Average Percent
        2007 Administrative Review                     Margin
------------------------------------------------------------------------
Laizhou Auto Brake Equipment Co., Ltd....                           0.00
Yantai Winhere Auto-Part Manufacturing                              0.00
 Co., Ltd................................
Laizhou Hongda Auto Replacement Parts                               0.00
 Co., Ltd................................
Laizhou City Luqi Machinery Co., Ltd.....                           0.00
Laizhou Wally Automobile Co., Ltd........                           0.00
Zibo Luzhou Automobile Parts Co., Ltd....                           0.00
Zibo Golden Harvest Machinery Limited                               0.00
 Company.................................
Longkou TLC Machinery Co., Ltd...........                           0.00
Longkou Jinzheng Machinery Co., Ltd......                           0.00
Qingdao Gren (Group) Co..................                           0.00
Shenyang Yinghao Machinery Co............                           0.00

[[Page 32680]]


Longkou Dixion Brake System Ltd..........                           0.00
------------------------------------------------------------------------


------------------------------------------------------------------------
  2006-2007 New Shipper Review Exporter/      Weighted-Average Percent
                 Producer                              Margin
------------------------------------------------------------------------
Exporter: Shanghai Tylon Company Ltd.                               0.00
 Producer: Shanghai Tylon Company Ltd....
------------------------------------------------------------------------

    The Department will disclose calculations performed for the final 
results to the parties within five days of the date of publication of 
this notice in accordance with 19 CFR 351.224(b).

Assessment Rates

    The Department has determined, and U.S. Customs and Border 
Protection (``CBP'') shall assess, antidumping duties on all 
appropriate entries covered by these reviews. The Department intends to 
issue assessment instructions to CBP 15 days after the publication date 
of the final results of these reviews. In accordance with 19 CFR 
351.212(b)(1), for Haimeng and Meita, we calculated an exporter/
importer (or customer)-specific assessment rate for the merchandise 
subject to these reviews. For Tylon, we calculated an exporter/
producer/importer (or customer)-specific assessment rate for the 
merchandise subject to these reviews. Where the respondent has reported 
reliable entered values, we calculated importer (or customer)-specific 
ad valorem rates by aggregating the dumping margins calculated for all 
U.S. sales to each importer (or customer) and dividing this amount by 
the total entered value of the sales to each importer (or customer). 
See 19 CFR 351.212(b)(1). Where an importer (or customer)-specific ad 
valorem rate is greater than de minimis, we will apply the assessment 
rate to the entered value of the importer's/customer's entries during 
the review period. See 19 CFR 351.212(b)(1). Where we do not have 
entered values for all U.S. sales, we calculated a per-unit assessment 
rate by aggregating the antidumping duties due for all U.S. sales to 
each importer (or customer) and dividing this amount by the total 
quantity sold to that importer (or customer). See 19 CFR 351.212(b)(1). 
To determine whether the duty assessment rates are de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer (or customer)-specific ad valorem ratios based on 
the estimated entered value. Where an importer (or customer)-specific 
ad valorem rate is zero or de minimis, we will instruct CBP to 
liquidate appropriate entries without regard to antidumping duties. See 
19 CFR 351.106(c)(2).
    For the companies receiving a separate rate that were not selected 
for individual review (i.e., Winhere, LABEC, Hongda, Wally, Dixion, 
Gren, ZLAP, TLC, ZGOLD, Luqi, Yinghao, and Jinzheng), we will calculate 
an assessment rate based on the weighted average of the cash deposit 
rates calculated for the companies selected for individual review 
pursuant to section 735(c)(5)(B) of the Act. For further details, see 
the Issues and Decision Memo at Comment 1.

Cash-Deposit Requirements

    The following cash deposit rates will be effective upon publication 
of this notice of final results for all shipments of subject 
merchandise exported by Tylon entered or withdrawn from warehouse, for 
consumption on or after publication date of this notice: (1) zero cash 
deposit will be required for subject merchandise manufactured and 
exported by Tylon; and (2) for subject merchandise exported by Tylon 
but not manufactured by Tylon, the cash deposit rate will be the PRC-
wide rate of 43.32 percent.
    The following cash deposit requirements will be effective upon 
publication of this notice of final results for all other shipments of 
brake rotors from the PRC entered, or withdrawn from warehouse, for 
consumption on or after the publication date, as provided by section 
751(a)(1) of the Act: (1) for Haimeng, Meita, Winhere, LABEC, Hongda, 
Wally, Dixion, Gren, ZLAP, TLC, ZGOLD, Luqi, Yinghao, and Jinzheng, 
zero cash deposit will be required; (2) the cash deposit rate for 
previously investigated or reviewed PRC and non-PRC exporters who 
received a separate rate in a prior segment of the proceeding (which 
were not reviewed in this segment of the proceeding) will continue to 
be the rate assigned in that segment of the proceeding; (3) the cash 
deposit rate for all PRC exporters of subject merchandise that have not 
been found to be entitled to a separate rate will be the PRC-wide rate 
of 43.32 percent; and (4) the cash deposit rate for all non-PRC 
exporters or exporter/producer combination of subject merchandise which 
have not received their own rate will be the rate applicable to the PRC 
exporter that supplied that non-PRC exporter. These requirements shall 
remain in effect until further notice.

Notification to Interested Parties

    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Pursuant to 19 CFR 
351.402(f)(3), 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.
    This notice also serves as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO, in accordance with 19 CFR 351.305 and as explained in the APO 
itself. 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 the terms of an 
APO is a sanctionable violation.
    This notice of final results of the administrative and new shipper 
reviews is issued and published in accordance with sections 751(a)(1) 
and 777(i)(1) of the Act.

    Dated: June 4, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Issues and Decisions Memorandum

Comment 1 Calculation of Separate Rate for Non-Selected Respondents
Comment 2 Voluntary Responses of Non-selected Respondents
Comment 3 Financial Ratios: Calculation of Factory Overhead,

[[Page 32681]]

Selling, General, and Administrative Expenses and Profit
[FR Doc. E8-13001 Filed 6-9-08; 8:45 am]

BILLING CODE 3510-DS-S