[Federal Register: September 16, 2005 (Volume 70, Number 179)]
[Notices]
[Page 54711-54714]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16se05-45]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-427-801, A-428-801, A-475-801, A-588-804, A-559-801, A 412-801]


Ball Bearings and Parts Thereof from France, Germany, Italy,
Japan, Singapore, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews

AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On May 13, 2005, the Department of Commerce published the
preliminary results of the administrative reviews of the antidumping
duty orders on ball bearings and parts thereof from France, Germany,
Italy, Japan, Singapore and the United Kingdom. The reviews cover 19
manufacturers/exporters. The period of review is May 1, 2003, through
April 30, 2004.
    Based on our analysis of the comments received, we have made
changes, including corrections of certain programming and other
clerical errors, in the margin calculations. Therefore, the final
results differ from the preliminary results. The final weighted-average
dumping margins for the reviewed firms are listed below in the section
entitled ``Final Results of the Reviews.''

EFFECTIVE DATE: September 16, 2005.

FOR FURTHER INFORMATION CONTACT:  Thomas Schauer or Kristin Case, AD/
CVD Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
4733.

SUPPLEMENTARY INFORMATION:

Background

    On June 30, 2004, in accordance with 19 CFR 351.213(b), we
published a notice of initiation of administrative reviews of these
orders (68 FR 39055). The companies for which we are conducting
administrative reviews are as follows:
France:
    [star30] SKF France S.A. or Sarma (SKF France)
    [star30] SNR Roulements or SNR Europe (SNR)
Germany:
    [star30] Gebr[uuml]der Reinfurt GmbH & Co., KG, Wurzberg, Germany
(GRW)
    [star30] INA-Schaeffler KG; INA Vermogensverwaltungsgesellschaft
GmbH; INA Holding Schaeffler KG; FAG Kugelfischer Georg-Schaefer AG;
FAG Automobiltechnik AG; FAG OEM und Handel AG; FAG Komponenten AG; FAG
Aircraft/ Super Precision Bearings GmbH; FAG Industrial Bearings AG;
FAG Sales Europe GmbH; FAG International Sales and Service GmbH
(collectively FAG/INA)
    [star30] SKF GmbH (SKF Germany)
Italy:
    [star30] FAG Italia S.p.A.; FAG Automobiltechnik AG; FAG OEM und
Handel AG (collectively FAG Italy)
    [star30] SKF Industrie S.p.A.; SKF RIV-SKF Officine di Villas
Perosa S.p.A.; RFT S.p.A.; OMVP S.p.A. (collectively SKF Italy)
Japan:
    [star30] Asahi Seiko Co., Ltd. (Asahi)
    [star30] Koyo Seiko Co., Ltd. (Koyo)
    [star30] NSK Ltd. (NSK)
    [star30] NTN Corporation (NTN)
    [star30] Nankai Seiko Co., Ltd. (SMT)
    [star30] Nippon Pillow Block Company, Ltd. (NPB)
    [star30] Osaka Pump Co., Ltd. (Osaka Pump)
    [star30] Sapporo Precision Inc., Kitanihon Seiko Co., Ltd., and
Sanbi Co., Ltd. (collectively Sapporo)
    [star30] Takeshita Seiko Co., Ltd. (Takeshita)
Singapore:
    [star30] NMB Singapore Ltd.; Pelmec Industries (Pte.) Ltd.; NMB
Technologies Corporation (collectively NMB/Pelmec)
United Kingdom:
    [star30] The Barden Corporation (UK) Limited; FAG (U.K.) Limited
(collectively Barden/FAG)
    [star30] SKF Aeroengine Bearings UK (formerly known as Aeroengine
Bearings UK or NSK Aerospace) (SKF UK)
    On May 13, 2005, the Department published the preliminary results
of the administrative reviews of the antidumping duty orders on ball
bearings and parts thereof from France, Germany, Italy, Japan,
Singapore, and the United Kingdom (70 FR 25538). The period of review
is May 1, 2003, through April 30, 2004. We invited interested parties
to comment on the preliminary results. At the request of certain
parties, we held hearings for general issues on June 28, 2005, and for
Japan-specific issues on July 1, 2005. The Department has conducted
these administrative reviews in accordance with section 751 of the
Tariff Act of 1930, as amended (the Act).

Scope of Orders

    The products covered by these orders are ball bearings (other than
tapered roller bearings) and parts thereof. These

[[Page 54712]]

products include all bearings that employ balls as the rolling element.
Imports of these products are classified under the following
categories: antifriction balls, ball bearings with integral shafts,
ball bearings (including radial ball bearings) and parts thereof, and
housed or mounted ball bearing units and parts thereof.
    Imports of these products are classified under the following
Harmonized Tariff Schedules of the United States (HTSUS) subheadings:
3926.90.45, 4016.93.00, 4016.93.10, 4016.93.50, 6909.19.5010,
8431.20.00, 8431.39.0010, 8482.10.10, 8482.10.50, 8482.80.00,
8482.91.00, 8482.99.05, 8482.99.2580, 8482.99.35, 8482.99.6595,
8483.20.40, 8483.20.80, 8483.50.8040, 8483.50.90, 8483.90.20,
8483.90.30, 8483.90.70, 8708.50.50, 8708.60.50, 8708.60.80,
8708.70.6060, 8708.70.8050, 8708.93.30, 8708.93.5000, 8708.93.6000,
8708.93.75, 8708.99.06, 8708.99.31, 8708.99.4960, 8708.99.50,
8708.99.5800, 8708.99.8080, 8803.10.00, 8803.20.00, 8803.30.00,
8803.90.30, and 8803.90.90.
    Although the HTSUS item numbers above are provided for convenience
and customs purposes, written descriptions of the scope of these orders
remain dispositive.
    The size or precision grade of a bearing does not influence whether
the bearing is covered by one of the orders. These orders cover all the
subject bearings and parts thereof (inner race, outer race, cage,
rollers, balls, seals, shields, etc.) outlined above with certain
limitations. With regard to finished parts, all such parts are included
in the scope of the these orders. For unfinished parts, such parts are
included if (1) they have been heat-treated, or (2) heat treatment is
not required to be performed on the part. Thus, the only unfinished
parts that are not covered by these orders are those that will be
subject to heat treatment after importation. The ultimate application
of a bearing also does not influence whether the bearing is covered by
the orders. Bearings designed for highly specialized applications are
not excluded. Any of the subject bearings, regardless of whether they
may ultimately be utilized in aircraft, automobiles, or other
equipment, are within the scope of these orders.
    For a listing of scope determinations which pertain to the orders,
see the Scope Determination Memorandum (Scope Memorandum) from the
Antifriction Bearings Team to Laurie Parkhill, dated April 15, 2005.
The Scope Memorandum is on file in the Central Records Unit (CRU), main
Commerce building, Room B-099, in the General Issues record (A-100-001)
for the 03/04 reviews.

Analysis of the Comments Received

    All issues raised in the case and rebuttal briefs by parties to the
concurrent administrative reviews of the orders on ball bearings and
parts thereof are addressed in the ``Issues and Decision Memorandum''
(Decision Memo) from Barbara E. Tillman, Acting Deputy Assistant
Secretary, to Joseph A. Spetrini, Acting Assistant Secretary, dated
September 12, 2005, which is hereby adopted by this notice. A list of
the issues which parties have raised and to which we have responded,
all of which are in the Decision Memo, is attached to this notice as an
Appendix. This Decision Memo, which is a public document, is on file in
the CRU, main Commerce building, Room B-099, and is accessible on the
Web at http://ia.ita.doc.gov/frn/index.html. The paper copy and

electronic version of the Decision Memo are identical in content.

Sales Below Cost in the Home Market

    The Department disregarded home-market sales that failed the cost-
of-production test for the following firms for these final results of
reviews:

------------------------------------------------------------------------
                       Country                              Company
------------------------------------------------------------------------
France..............................................            SKF, SNR
Germany.............................................   GRW, INA/FAG, SKF
                                                                 Germany
Italy...............................................      FAG Italy, SKF
                                                                   Italy
Japan...............................................        Asahi, Koyo,
                                                      Nankai Seiko, NPB,
                                                         NSK, NTN, Osaka
                                                         Pump, Takeshita
Singapore...........................................          NMB/Pelmec
United Kingdom......................................              Barden
------------------------------------------------------------------------

Use of Adverse Facts Available

    In accordance with section 776(a) of the Act, we determine that the
use of facts available as the basis for the weighted-average dumping
margin is appropriate for SKF UK. SKF UK did not submit a response to
our antidumping duty questionnaire.\1\ Consequently, we find that it
has withheld ``information that has been requested by the administering
authority'' under section 776(a)(2)(A) of the Act and we must use facts
otherwise available to calculate a margin for SKF UK.
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    \1\ See memorandum from analyst to Laurie Parkhill, ``The Use of
Facts Available and Corroboration of Secondary Information for
Aeroengine Bearings UK in the 2003/2004 Administrative Review of the
Antidumping Duty Order on Ball Bearings and Parts Thereof from the
United Kingdom,'' dated May 6, 2005 (Corroboration Memo).
---------------------------------------------------------------------------

    In accordance with section 776(b) of the Act, we are making an
adverse inference in our application of the facts available. This is
appropriate because SKF UK has not provided a response to our request
for information and has not provided any acceptable rationale for its
failure to respond. Therefore, we find that SKF UK has not acted to the
best of its ability in providing us with relevant information which is
under its control. As adverse facts available for SKF UK, we have
applied the highest rate which we have calculated for any company in
any segment of the proceeding on ball bearings from the United Kingdom.
We have selected this rate because it is sufficiently high as to
reasonably assure that SKF UK does not obtain a more favorable result
by failing to cooperate. We calculated this rate, 61.14 percent, for
SKF UK in the original less-than-fair-value investigation. See
Antidumping Duty Orders and Amendments to the Final Determinations of
Sales at Less Than Fair Value: Ball Bearings and Parts Thereof From the
United Kingdom, 54 FR 20910 (May 15, 1989).
    Section 776(c) of the Act provides that the Department shall, to
the extent practicable, corroborate secondary information used for
facts available using independent sources reasonably at its disposal.
Information from a prior segment of the proceeding or from another
company in the same proceeding constitutes secondary information. The
Statement of Administrative Action accompanying the Uruguay Round
Agreements Act, H.R. Doc. 103-316, at 870 (1994) (SAA), provides that
the word ``corroborate'' means that the Department will satisfy itself
that the secondary information to be used has probative value. As
explained in Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from Japan, and Tapered Roller Bearings Four Inches or Less
in Outside Diameter, and Components Thereof, from Japan: Preliminary
Results of Antidumping Duty Administrative Reviews and Partial
Termination of Administrative Reviews, 61 FR 57391, 57392 (November 6,
1996), in order to corroborate secondary information, the Department
will examine, to the extent practicable, the reliability and relevance
of the information used. Unlike other types of information, however,
such as input costs or selling expenses, there are no independent
sources for calculated dumping margins. The only source for margins is
administrative determinations. Thus, with respect to an administrative
review, if the Department

[[Page 54713]]

chooses as facts available a calculated dumping margin from a prior
segment of the proceeding, it is not necessary to question the
reliability of the margin for that time period.
    With respect to the relevance aspect of corroboration, however, the
Department will consider information reasonably at its disposal as to
whether there are circumstances that would render a margin not
relevant. Where circumstances indicate that the selected margin is not
appropriate as adverse facts available, the Department will disregard
the margin and determine an appropriate margin. See Fresh Cut Flowers
from Mexico; Final Results of Antidumping Duty Administrative Review,
61 FR 6812, 6814 (February 22, 1996), where the Department disregarded
the highest dumping margin as best information available because the
margin was based on another company's uncharacteristic business expense
resulting in an unusually high margin. Further, in accordance with
F.LII De Cecco Di Filippo Fara S. Martino S.p.A. v. United States, 216
F.3d 1027, 1034 (Fed. Cir. 2000), we also examine whether information
on the record would support the selected rate as reasonable facts
available. This rate is the current cash-deposit rate for a number of
firms, was applied to SKF UK in the previous review, and there is no
information reasonably at our disposal that would indicate that there
are circumstances which would render the margin not relevant at this
time. Therefore, we find that the rate which we are using for these
final results has probative value. See Corroboration Memo.
    Furthermore, there is no information on the record that
demonstrates that the rate we have selected is inappropriate for use as
the total adverse facts-available rate for the company in question.
Therefore, we consider the selected rate to have probative value with
respect to the firm in question in this review and to reflect the
appropriate adverse inferences.

Other Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made revisions
that have changed the results for certain firms. We have corrected
programming and clerical errors in the preliminary results, where
applicable. Any alleged programming or clerical errors about which we
or the parties do not agree are discussed in section 8 of the Decision
Memo.

Final Results of the Reviews

    We determine that the following percentage weighted-average margins
on ball bearings and parts thereof exist for the period May 1, 2003,
through April 30, 2004:

                                 FRANCE
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
SKF France..........................................                8.41
SNR.................................................               11.93
------------------------------------------------------------------------


                                 GERMANY
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
FAG/INA.............................................                5.65
GRW.................................................                4.58
SKF Germany.........................................               16.06
------------------------------------------------------------------------


                                  ITALY
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
FAG Italy...........................................                5.88
SKF Italy...........................................                2.59
------------------------------------------------------------------------


                                  JAPAN
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
Asahi...............................................                1.33
Koyo................................................               12.78
NSK.................................................                8.28
NTN.................................................                5.93
Nankai Seiko (SMT)..................................                7.15
NPB.................................................               15.83
Osaka Pump..........................................                6.14
Sapporo.............................................               13.01
Takeshita...........................................                7.38
------------------------------------------------------------------------


                                SINGAPORE
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
NMB/Pelmec..........................................                3.56
------------------------------------------------------------------------


                             UNITED KINGDOM
------------------------------------------------------------------------
                       Company                              Margin
------------------------------------------------------------------------
Barden/FAG..........................................                2.78
SKF UK..............................................               61.14
------------------------------------------------------------------------

Assessment Rates

    The Department will determine and CBP shall assess antidumping
duties on all appropriate entries. We will issue appropriate assessment
instructions directly to CBP within 15 days of publication of these
final results of reviews. In accordance with 19 CFR 351.212(b)(1), we
have calculated, whenever possible, an importer/customer-specific
assessment rate or value for subject merchandise.The Department
clarified its ``automatic assessment'' regulation on May 6, 2003 (68 FR
23954). This clarification will apply to entries of subject merchandise
during the period of review produced by companies included in these
final results of reviews for which the reviewed companies did not know
their merchandise was destined for the United States. In such
instances, we will instruct CBP to liquidate unreviewed entries at the
all-others rate if there is no rate for the intermediate company(ies)
involved in the transaction. For a full discussion of this
clarification, see Notice of Policy Concerning Assessment of
Antidumping Duties, 68 FR 23954 (May 6, 2003).

a. Export Price

    With respect to export-price (EP) sales, we divided the total
dumping margins (calculated as the difference between normal value and
the EP) for each exporter's importer or customer by the total number of
units the exporter sold to that importer or customer. We will direct
CBP to assess the resulting per-unit dollar amount against each unit of
merchandise on each of that importer's or customer's entries under the
relevant order during the review period.

b. Constructed Export Price

    For constructed export-price (CEP) sales (sampled and non-sampled),
we divided the total dumping margins for the reviewed sales by the
total entered value of those reviewed sales for each importer. We will
direct CBP to assess the resulting percentage margin against the
entered customs values for the subject merchandise on each of that
importer's entries under the relevant order during the review period.
See 19 CFR 351.212(b)(1).

Cash-Deposit Requirements

    To calculate the cash-deposit rate for each respondent (i.e., each
exporter and/or manufacturer included in these reviews), we divided the
total dumping margins for each company by the total net value of that
company's sales of merchandise during the review period subject to each
order.
    To derive a single deposit rate for each respondent, we weight-
averaged the EP and CEP deposit rates (using the EP and CEP,
respectively, as the weighting factors). To accomplish this when we
sampled CEP sales, we first calculated the total dumping margins for
all CEP sales during the review period by multiplying the sample CEP
margins by the ratio of total days in the review period to days in the
sample weeks. We then calculated a total net

[[Page 54714]]

value for all CEP sales during the review period by multiplying the
sample CEP total net value by the same ratio. Finally, we divided the
combined total dumping margins for both EP and CEP sales by the
combined total value for both EP and CEP sales to obtain the deposit
rate.
    We will direct CBP to collect the resulting percentage deposit rate
against the entered customs value of each of the exporter's entries of
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice. Entries
of parts incorporated into finished bearings before sales to an
unaffiliated customer in the United States will receive the
respondent's deposit rate applicable to the order.
    Furthermore, the following 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 date of
publication, as provided by section 751(a)(1) of the Act: (1) the cash-
deposit rates for the reviewed companies will be the rates shown above;
(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 continue to be the ``All Others''
rate for the relevant order made effective by the final results of
review published on July 26, 1993. See Antifriction Bearings (Other
Than Tapered Roller Bearings) and Parts Thereof from France, et al:
Final Results of Antidumping Duty Administrative Reviews and Revocation
in Part of an Antidumping Duty Order, 58 FR 39729 (July 26, 1993). For
ball bearings from Italy, see Antifriction Bearings (Other Than Tapered
Roller Bearings) and Parts Thereof from France, et al; Final Results of
Antidumping Duty Administrative Reviews, Partial Termination of
Administrative Reviews, and Revocation in Part of Antidumping Duty
Orders, 61 FR 66472, 66521 (December 17, 1996). These rates are the
``All Others'' rates from the relevant LTFV investigation.
    These deposits requirements shall remain in effect until
publication of the final results of the next administrative reviews.
    This notice serves as a 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 these review periods. Failure to comply with
this requirement could result in the Department'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(a)(3). Timely notification of the
return or 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 are sanctionable violations.
    We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i) of the Act.

    Dated: September 12, 2005.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix

Comments and Responses

1. Offsetting of Negative Margins
2. Model-Match Methodology
3. Acquisition Cost vs. Suppliers Cost
4. U.S. Repacking Costs
5. CEP Profit
6. Affiliation
7. Billing Adjustments
8. Clerical Errors
9. Miscellaneous Issues
A. NSK-U.S. Selling Expense: Treatment of Certain Japanese-Worker
Expenses
B. Bearing-Design Types
C. Ordinary Course of Trade: High-Profit Sales
D. Sample Sales in the Home Market
E. Inventory Carrying Costs
F. U.S. Customs Duties
G. Packing Expense for Home-Market Sales
H. Indirect Selling Expenses Incurred in Japan
I. Indirect Selling Expenses Incurred in the United States
[FR Doc. E5-5090 Filed 9-15-05; 8:45 am]

BILLING CODE 3510-DS-S