[Federal Register: January 4, 2005 (Volume 70, Number 2)]
[Notices]
[Page 326-329]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04ja05-29]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-865]
Notice of Final Determination of Sales at Less Than Fair Value:
Outboard Engines From Japan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 4, 2005.
FOR FURTHER INFORMATION CONTACT: James Kemp or Shane Subler at (202)
482-5346 or (202) 482-0189, respectively; AD/CVD Operations, Office 1,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street & Constitution Avenue, NW.,
Washington, DC 20230.
Final Determination
We determine that outboard engines from Japan are being sold, or
are likely to be sold, in the United States at less than fair value
(LTFV), as provided in section 735 of the Tariff Act of 1930, as
amended (the Act). The estimated margins of sales at LTFV are shown in
the Continuation of Suspension of Liquidation section of this notice.
Case History
The preliminary determination in this investigation was published
on August 12, 2004. See Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination: Outboard
Engines from Japan, 69 FR 49863 (August 12, 2004) (Preliminary
Determination). Since the publication of the preliminary determination,
the following events have occurred:
In September and October 2004, the Department of Commerce (the
Department) verified the questionnaire responses submitted by Yamaha
Motor Company, Ltd., Yamaha Marine Company, Ltd., and Yamaha Motor
Corporation, U.S.A. (collectively Yamaha). The sales and cost
verification
[[Page 327]]
reports were issued on November 1, 2004. On November 10, 2004, we
received case briefs from (1) the petitioner; \1\ (2) BRP U.S. Inc. and
Bombardier Recreational Products Inc. (collectively, BRP), a domestic
interested party; (3) American Honda Motor Co., Inc., and Honda Motor
Co., Ltd., American Suzuki Motor Corporation and Suzuki Motor
Corporation, Tohatsu Corporation, Tohatsu Marine Corporation, and
Tohatsu America Corporation, Nissan Marine Co., Ltd. (collectively, the
Other Japanese Parties); and (4) Yamaha.\2\ On November 17, 2004, we
received rebuttal briefs from the petitioner, BRP, and Yamaha. Since no
request was made for a public hearing, a public hearing was not held.
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\1\ The petitioner in this investigation is Mercury Marine, a
division of Brunswick Corporation.
\2\ On December 6, 2004, we rejected the case briefs submitted
by Yamaha and the Other Japanese Parties because they contained new
factual information. After making the revisions requested by the
Department, Yamaha and the Other Japanese Parties resubmitted the
briefs on December 7, 2004.
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Scope of Investigation
For the purpose of this investigation, the products covered are
outboard engines (also referred to as outboard motors), whether
assembled or unassembled; and powerheads, whether assembled or
unassembled. The subject engines are gasoline-powered spark-ignition,
internal combustion engines designed and used principally for marine
propulsion for all types of light recreational and commercial boats,
including, but not limited to, canoes, rafts, inflatable, sail and
pontoon boats. Specifically included in this scope are two-stroke,
direct injection two-stroke, and four-stroke outboard engines.
Outboard engines are comprised of (1) a powerhead assembly, or an
internal combustion engine, (2) a midsection assembly, by which the
outboard engine is attached to the vehicle it propels, and (3) a
gearcase assembly, which typically includes a transmission and
propeller shaft, and may or may not include a propeller. To the extent
that these components are imported together, but unassembled, they
collectively are covered within the scope of this investigation. An
``unassembled'' outboard engine consists of a powerhead as defined
below, and any other parts imported with the powerhead that may be used
in the assembly of an outboard engine.
Powerheads are comprised of, at a minimum, (1) a cylinder block,
(2) pistons, (3) connecting rods, and (4) a crankshaft. Importation of
these four components together, whether assembled or unassembled, and
whether or not accompanied by additional components, constitute a
powerhead for purposes of this investigation. An ``unassembled''
powerhead consists of, at a minimum, the four powerhead components
listed above, and any other parts imported with it that may be used in
the assembly of a powerhead.
The scope does not include parts or components (other than
powerheads) imported separately.
The outboard engines and powerheads subject to this investigation
are currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) at subheadings 8407.21.0040 and 8407.21.0080.
Although the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the merchandise under
investigation is dispositive.
Excluded from the scope of the investigation are five specific
models of powerheads.
The specific characteristics for each excluded powehead are
described below.
1. 75 Horsepower Carbureted Powerhead: the engine type is four-
stroke inline four cylinder internal combustion engine; the valve train
consists of sixteen valves and twin cam with timing belt and tensioner;
the crankcase is of high-pressure die-cast aluminum; the block is of
high-pressure die-cast aluminum with iron cylinder liners; displacement
1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6:
1; fuel supplied by four individual carburetors fitted to left side (as
viewed from rear) of engine; power output 55.9 kW at 5000 RPM; fuel
consumption 28.0 L/H Max at 6000 RPM; maximum height 539 mm; maximum
width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6
kg.
2. 90 Horsepower Carbureted Powerhead: the engine type is four-
stroke inline four cylinder internal combustion engine; the valve train
consists of sixteen valves and twin cam with timing belt and tensioner;
the crankcase is of high-pressure die-cast aluminum; the block is of
high-pressure die-cast aluminum with iron cylinder liners; displacement
1.596 liters; bore and stroke 79 mm x 81.4 mm; compression ratio 9.6:
1; fuel supplied by four individual carburetors fitted to left side (as
viewed from rear) of engine; power output 67.1 kW at 5500 RPM; fuel
consumption 31.5 L/H Max at 6000 RPM; maximum height 539 mm; maximum
width 435 mm; maximum length 646 mm; and weight (dry) 180.5 lbs./81.6
kg.
3. 75 Horsepower Electronic Fuel Injection Powerhead: the engine
type is four-stroke inline four cylinder internal combustion engine;
the valve train consists of sixteen valves and twin cam with timing
belt and tensioner; the crankcase is of high-pressure die-cast
aluminum; the block is of high-pressure die-cast aluminum with iron
cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x
81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle
body multi-point electronic fuel injection; power output 55.9 kW at
5000 RPM; fuel consumption 29.0 L/H Max at 6000 RPM; maximum height 539
mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0
lbs./83.0 kg.
4. 90 Horsepower Electronic Fuel Injection Powerhead: the engine
type is four-stroke inline four cylinder internal combustion engine;
the valve train consists of sixteen valves and twin cam with timing
belt and tensioner; the crankcase is of high-pressure die-cast
aluminum; the block is of high-pressure die-cast aluminum with iron
cylinder liners; displacement 1.596 liters; bore and stroke 79 mm x
81.4 mm; compression ratio 9.6: 1; fuel supplied by single throttle
body multi-point electronic fuel injection; power output 67.1 kW at
5500 RPM; fuel consumption 33.0 L/H Max at 6000 RPM; maximum height 539
mm; maximum width 435 mm; maximum length 646 mm; and weight (dry) 183.0
lbs./83.0 kg.
5. 115 Horsepower Electronic Fuel Injection Powerhead: the engine
type is four-stroke inline four cylinder internal combustion engine;
the valve train consists of sixteen valves and twin cam with timing
belt and tensioner; the crankcase is of high-pressure die-cast
aluminum; the block is of high-pressure die-cast aluminum with iron
cylinder liners; displacement 1.741 liters; bore and stroke 79 mm x 89
mm; compression ratio 9.7: 1; fuel supplied by multi-point electronic
fuel injection with four individual throttle bodies; power output 85.8
kW at 5500 RPM; fuel consumption 38.0 L/H Max at 5500 RPM; maximum
height 539 mm; maximum width 444 mm; maximum length 637 mm; and weight
(dry) 189.0 lbs./85.7 kg.
Period of Investigation
The period of investigation (POI) is January 1, 2003, through
December 31, 2003. This period corresponds to the four most recent
fiscal quarters prior to the month of filing of the petition (i.e.,
January 2004) involving imports from a market economy, and is in
accordance with our regulations. See 19 CFR 351.204(b)(1).
[[Page 328]]
Scope Issues
Outboard Engines Under 25 Horsepower
In the preliminary determination, we analyzed parties' comments
regarding the appropriateness of including engines of 25 horsepower or
less in the scope of investigation and determined that the engines were
within the scope. See Preliminary Determination at 49864. For the final
determination, we affirm our decision in the preliminary determination
and continue to find that these engines are included in the scope of
the investigation. No parties commented on this issue for the final
determination.
Powerheads Imported as Replacement Parts
In the preliminary determination, we found that engines imported
for the purpose of repairing outboard engines previously sold are
properly included in the scope of the investigation. See Preliminary
Determination at 49865. The Other Japanese Parties submitted a case
brief arguing that the Department should exclude these engines from the
scope for the final determination. The petitioner and BRP submitted
rebuttal briefs on this issue. After analyzing the parties' arguments,
we continue to find that engines imported for the purpose of repair are
properly included in the scope of the investigation for the reasons
outlined at Comment 2 of the Memorandum from Barbara E. Tillman, Acting
Deputy Assistant Secretary, to James J. Jochum, Assistant Secretary for
Import Administration, RE: Issues and Decision Memorandum for the Final
Determination of the Investigation of Outboard Engines from Japan
(Decision Memorandum), dated December 27, 2004.
Treatment of Powerheads as a Separate Class or Kind
In the preliminary determination, we found that completed engines
and powerheads constituted the same class or kind of merchandise. See
Preliminary Determination at 49865. Yamaha and the Other Japanese
Parties submitted case briefs arguing that the Department should find
that powerheads are a separate class or kind from completed outboard
engines. The petitioner and BRP submitted a rebuttal brief on this
issue. After analyzing the parties' arguments, we continue to find that
completed engines and powerheads constitute the same class or kind of
merchandise for the reasons outlined at Comment 1 of the Decision
Memorandum.
Amendment to the Scope of Investigation
In a separate November 17, 2004, submission, the petitioner
requested that the Department exclude certain models of powerheads from
the scope of the investigation. On November 23, 2004, Yamaha submitted
comments on the petitioner's request.\3\ The petitioner submitted a
response to these comments on November 30, 2004. After analyzing the
parties' arguments, we accepted the petitioner's proposed scope
amendment to exclude certain powerhead models for the reasons outlined
at Comment 17 of the Decision Memorandum. For a description of the
excluded powerheads, see the Scope of Investigation section of this
notice.
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\3\ On December 6, 2004, we rejected Yamaha's comments because
they contained new factual information submitted after the
Department's regulatory deadline. The date of Yamaha's revised
submission is December 7, 2004.
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Verification
As provided in section 782(i) of the Act, we conducted verification
of the cost and sales information submitted by Yamaha. We used standard
verification procedures including examination of relevant accounting
and production records, and original source documents provided by the
respondent.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs submitted by
parties to this proceeding are listed in the appendix to this notice
and addressed in the Decision Memorandum hereby adopted by this notice.
The Decision Memorandum is on file in room B-099 of the main Department
building. In addition, a complete version of the Decision Memorandum
can be accessed directly on the World Wide Web at http://www.ita.doc.gov/frn.
The paper and electronic versions of the Decision
Memorandum are identical in content.
Changes Since the Preliminary Determination
Based on our findings at verification and our analysis of comments
received, we have made adjustments to the preliminary determination
calculation methodologies in calculating the final dumping margin for
Yamaha. These adjustments are discussed in the Decision Memorandum and
the Memorandum from James Kemp and Shane Subler, International Trade
Compliance Analysts, through Constance Handley, Program Manager, RE:
Final Determination Analysis Memorandum for Yamaha Motor Company, Ltd.,
Yamaha Marine Company, Ltd., and Yamaha Motor Corporation, USA, dated
December 27, 2004.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all entries of outboard engines exported from
Japan, that are entered, or withdrawn from warehouse, for consumption
on or after the date of the preliminary determination. CBP shall
continue to require a cash deposit or the posting of a bond based on
the estimated weighted-average dumping margins shown below. The
suspension of liquidation instructions will remain in effect until
further notice.
We determine that the following weighted-average dumping margin
exists for Japan:
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Margin
Manufacturer/exporter (percent)
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Yamaha..................................................... 18.98
All others................................................. 18.98
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our determination. The ITC will
determine, within 45 days, whether imports of subject merchandise from
Japan are causing material injury, or threaten material injury, to an
industry in the United States. If the ITC determines that material
injury or threat of material injury does not exist, this proceeding
will be terminated and all securities posted will be refunded or
canceled. If the ITC determines that such injury does exist, the
Department will issue an antidumping duty order directing CBP officials
to assess antidumping duties on all imports of the subject merchandise
entered, or withdrawn from warehouse for consumption on or after the
effective date of the suspension of liquidation.
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. Timely notification of return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to complywith the regulations and the
terms of an APO is a sanctionable violation.
[[Page 329]]
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act.
Dated: December 27, 2004.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
Appendix
Issues Covered in Decision Memorandum
1. Class or Kind.
2. Powerheads Imported for Repair Purposes.
3. Treatment of Non-Dumped Sales.
4. Level of Trade (LOT) Adjustment for Yamaha's Sales to
Original Equipment Manufacturer (OEM) Customers.
5. Surrogate Prices for Yamaha's CEP Sales to Its Affiliated
Boat Builders.
6. Per-Unit Cap on the CEP Offset.
7. Home Market Levels of Trade.
8. Adjustments to U.S. Price.
9. Reported Home Market Payment Dates.
10. Certain Home Market Sales within the Ordinary Course of
Trade.
11. Credit Expenses for Export Price Sales.
12. Reporting of the REBATE4U Field.
13. Minor Corrections Submitted at Verification.
14. Application of LOT Adjustment.
15. Home Market Consignment Sales.
16. Packing Costs.
17. Amendment to Scope.
18. Yamaha's Standard Cost System.
19. Certain Excluded Costs.
20. Parent Company G&A Expenses.
21. Affiliated Supplier Inputs.
[FR Doc. E4-3925 Filed 1-3-05; 8:45 am]