[Federal Register: September 14, 2006 (Volume 71, Number 178)]
[Notices]
[Page 54269-54272]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14se06-24]
[[Page 54269]]
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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 8, 2006, 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, 71 FR 11580 (March 8, 2006)
(``Preliminary Results''). We gave interested parties an opportunity to
comment on the Preliminary Results. 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 period of review (``POR'') February 1, 2004, through
January 31, 2005.
EFFECTIVE DATE: September 14, 2006.
FOR FURTHER INFORMATION CONTACT: Matthew Renkey (Respondents Shandong
Huarong Machinery Co. Ltd. and Tianjin Machinery Import & Export
Corporation), Cindy Robinson (Respondent Iron Bull Industrial Co.,
Ltd.), and Nicole Bankhead (Respondent Shandong Machinery Import &
Export Company), 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) 482-2312, (202) 482-3797 and (202) 482-9068,
respectively.
SUPPLEMENTARY INFORMATION:
Case History
The Preliminary Results in this administrative review were
published on March 8, 2006. See Preliminary Results. This
administrative review covers four exporters or producer/exporters of
subject merchandise: Shandong Huarong Machinery Co., Ltd.
(``Huarong''), Iron Bull Industrial Co., Ltd. (``Iron Bull''), Tianjin
Machinery Import & Export Corporation (``TMC''), and Shandong Machinery
Import & Export Company (``SMC'')\1\, collectively ``the Respondents,''
and exports of the subject merchandise to the United States during the
period February 1, 2004, through January 31, 2005.
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\1\ On March 23, 2005, the Department initiated the 14th
administrative review of HFHTs from the PRC, for twenty-one
companies in the axes/adzes and bars/wedges orders, and twenty
companies in the hammers/sledges and picks/mattocks orders. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Requests for Revocation in Part (``Initiation Notice``),
70 FR 14643 (March 23, 2005). The Department notes that SMC was
inadvertently referred to as ``Shanghai Machinery Import and Export
Corporation'' instead of Shandong Machinery Import & Export Company
in the Initiation Notice of the instant review for the hammers/
sledges order.
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On March 2, 2006, an importer/customer in the instant review
(``Customer A'')\2\ requested a second extension to respond to the
Department's February 17, 2006, letter requesting that Customer A
provide its downstream sales data and additional information about its
bankruptcy status. The Department granted Customer A an additional
extension of eleven days to respond to the Department's February 17,
2006, questionnaire. On March 17, 2006, Customer A submitted its
questionnaire response providing additional information on its
bankruptcy status but no downstream sales information. On March 20,
2006, Customer A submitted certifications from its bankruptcy lawyers.
On March 28, 2006, the Department issued supplemental questionnaires to
TMC and SMC.
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\2\ Please see SMC Hammers/Sledges Final Analysis Memo, SMC
Bars/Wedges Final Analysis Memo, and Affiliation Memo for
information regarding Customer A.
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On April 4, 2006, TMC submitted its supplemental questionnaire
response. On April 5, 2006, SMC submitted its supplemental
questionnaire response. On April 7, 2006, the Petitioner,\3\ interested
party Council Tool Company, and the Respondents submitted their case
briefs. On April 13, 2006, the Petitioner and the Respondents submitted
their rebuttal briefs.
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\3\ Ames True Temper.
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On June 9, 2006, 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 14th Antidumping Duty Administrative Review, 71 FR 33438 (June
9, 2006). On July 26, 2006, the Department fully extended 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 14th
Antidumping Duty Administrative Review, 71 FR 43714 (August 2, 2006).
On July 26, 2006, the Department issued Customer A a questionnaire
requesting additional information on its bankruptcy status. Customer A
did not respond to this questionnaire.
Scope of the Antidumping Duty Orders
The products covered by these orders are HFHTs from the PRC,
comprising the following classes or kinds of merchandise: (1) Hammers
and sledges with heads over 1.5 kg (3.33 pounds); (2) bars over 18
inches in length, track tools and wedges; (3) picks and mattocks; and
(4) axes, adzes and similar hewing tools. 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 wood
splitting 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 System of the United States (``HTSUS'') subheadings:
8205.20.60, 8205.59.30, 8201.30.00, 8201.40.60, and 8205.59.5510.\4\
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 HTSUS subheadings are
provided for convenience and Customs purposes. The written description
remains dispositive.
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\4\ See Final Decision Memo at Comment 5.
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The Department issued nine conclusive scope rulings regarding the
merchandise covered by these orders: (1) On August 16, 1993, the
Department found the ``Max Multi-Purpose Axe,''
[[Page 54270]]
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,'' imported by Olympia Industrial, Inc.,
under HTSUS 8205.59.5510, to be within the scope of the axes/adzes
order; (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; (7) on September 22, 2005,
following remand, the U.S. Court of International Trade affirmed the
Department's determination that cast picks are outside the scope of the
order; (8) on October 14, 2005, the Department found the Mean Green
Splitting Machine, imported by Avalanche Industries, under HTSUS
8201.40.60, to be within the scope of the bars/wedges order, and (9) on
July 27, 2006, the Department found that the gooseneck claw wrecking
bar which has a length of 17 7/8'' not including the curvature portion
of the bar stock, imported by Central Purchasing, LLC. to be outside
the scope of the order for bars and wedges.
Separate Rates
TMC, SMC, Huarong, and Iron Bull have requested separate, company-
specific antidumping duty rates. In the Preliminary Results, we
determined that TMC, SMC, Huarong, and Iron Bull met the criteria for
the application of a separate antidumping duty rate. See Preliminary
Results at 11583. For the final results, we continue to find that the
evidence placed on the record of the instant review by TMC, SMC,
Huarong, and Iron Bull demonstrate both a de jure and de facto absence
of government control, with respect to their respective exports of the
subject merchandise, and, thus all four companies are eligible for
separate rate status. See Final Decision Memo at Comment 3.
Rescission of Review
In our Preliminary Results, in accordance with 19 CFR
351.213(d)(1), we preliminarily rescinded the review for all four
orders for Shanghai Xinike Trading Company (``SXT''). Additionally, in
accordance with 19 CFR 351.213(d)(3), we preliminarily rescinded the
orders on hammers/sledges and picks/mattocks for Huarong and Iron Bull,
and also the order on axes/adzes for Iron Bull. See Preliminary
Results, 71 FR 11583.
In accordance with 19 CFR 351.213(d)(1), we are rescinding these
administrative reviews with respect to all four orders for SXT. The
Department reviewed data from Customs and Border Protection (``CBP'')
for Huarong and Iron Bull, which supports the claims that these
companies did not export subject merchandise during the POR.
Furthermore, no party placed evidence on the record demonstrating that
Huarong or Iron Bull exported the merchandise identified above during
the POR since the issuance of the Preliminary Results. 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 hammers/sledges and picks/mattocks orders for
Huarong and Iron Bull, and also the order on axes/adzes for Iron Bull.
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 (``Final Decision Memo''), 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 copy
of the Final Decision Memo can be accessed directly on our website at
http://ia.ita.doc.gov/. The paper copy and electronic version of the
Final Decision Memo are identical in content.
Changes Since the Preliminary Results
Based on a review of the record as well as comments received from
parties regarding our Preliminary Results, we have made revisions to
the margin calculations for the final results. Specific changes to
SMC's margin calculation include a recalculation of the international
freight expenses and truck freight in the margin programs for both the
hammers/sledges and bars/wedges orders and a revision to the
calculation of one packing freight factor, packing weight, and normal
value in the margin program for the hammers/sledges order. See Final
Decision Memo at Comment 8; see also Analysis for the Final Results of
the 14th Administrative Review of Heavy Forged Hand Tools from the
Peoples' Republic of China: Shandong Machinery Import & Export Company
(``SMC'') - Hammers/Sledges (``SMC Final Hammers/Sledges Analysis
Memo''); Analysis for the Final Results of the 14th Administrative
Review of Heavy Forged Hand Tools from the Peoples' Republic of China:
Shandong Machinery Import & Export Company (``SMC'') - Bars/Wedges
(``SMC Final Bars/Wedges Analysis Memo''). Specific changes to
Huarong's axes/adzes calculation program include a recalculation of
international freight expenses and truck freight. See Final Decision
Memo at Comment 8; see also Analysis for the Final Results of the 14th
Administrative Review of Heavy Forged Hand Tools from the Peoples'
Republic of China: Huarong (``Huarong Final Analysis Memo''). Specific
changes to TMC's margin calculation in the picks/mattocks order include
a recalculation of truck freight in the margin program. See Final
Decision Memo at Comment 8; see also Analysis for the Final Results of
the 14th Administrative Review of Heavy Forged Hand Tools from the
Peoples' Republic of China: TMC (``TMC Final Analysis Memo'').
The Department also notes that in the Preliminary Results the
brokerage and handling value for Pidilite Industries Ltd.
(``Pidilite'') was incorrectly labeled November 1, 2002, through
September 30, 2003. See Memorandum from Matt Renkey, Case Analyst,
through Alex Villanueva, Program Manager, Office 9, to the File, 14th
Administrative Review of HFHTs from the People's Republic of China
(``PRC''): Surrogate Values for the Preliminary Results, dated February
28, 2006 (``Surrogate Values Memo'') at Exhibits 2 and 12. The
Department also notes that the average brokerage and handling surrogate
value was incorrectly calculated. See Id. The Department has corrected
the brokerage and handling value for these final results. See
Memorandum from Matthew Renkey, Case Analyst, through Alex Villanueva,
Program Manager, Office 9, to the File, 14th Administrative Review of
HFHTs from the People's Republic of China (``PRC''): Selection of
Surrogate Values for the Final Results, dated September 5, 2006.
Affiliation
The Department preliminarily determined that SMC is affiliated with
one of its U.S. customers, Customer A. See Preliminary Results, at
11584. Specifically, the Department determined
[[Page 54271]]
that SMC and Customer A are affiliated through their joint ownership of
another PRC company involved in the production and export of subject
merchandise. See Memorandum from Nicole Bankhead, Case Analyst, through
Alex Villanueva, Program Manager, Office 9, to James C. Doyle,
Director, Office 9, 14th Administrative Review of the Antidumping Duty
Order on Heavy Forged Hand Tools, Finished or Unfinished, With or
Without Handles, from the People's Republic of China: Affiliation,
dated February 28, 2006 (``SMC Affiliation Memo'') for further details
regarding this issue. The Department continues to find that SMC is
affiliated with Customer A. See Final Analysis Memo at Comment 10A and
Facts Available (``FA'') Section Below.
Facts Available
In the Preliminary Results, we determined that the use of partial
neutral facts available was appropriate for SMC's constructed export
price (``CEP'') sales through Customer A in accordance with sections
776(a)(2)(A) and 776(a)(2)(B) of the Tariff Act of 1930, as amended
(``the Act''). In addition, we preliminarily based the dumping margins
for SMC, Huarong, TMC, and Iron Bull 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 Act. See
Preliminary Results, 71 FR 11580 at 11584-87.
For these final results, in accordance with sections 776(a)(2)(A),
776(a)(2)(B) and 776(b) of the Act, we have determined that the use of
partial AFA, rather than neutral facts available, is appropriate for
SMC's CEP sales through Customer A. See Final Decision Memo at Comment
10B. As partial AFA, we are applying the highest transaction margin
from SMC's sales to its other U.S. customers to those sales it made to
Customer A. See SMC Hammers/Sledges Final Analysis Memo and the SMC
Bars/Wedges Final Analysis Memo. We also continue to find that the
application of total AFA to SMC for axes/adzes and picks mattocks;
Huarong for bars/wedges; to TMC for axes/adzes, hammers/sledges, and
bars/wedges; and Iron Bull for bars/wedges is appropriate because each
respondent significantly impeded our ability to (1) conduct the reviews
of these orders, and (2) instruct CBP to assess the correct antidumping
duties, as mandated by section 731 of the Act.
For the final results the Department is basing SMC's sales through
Customer A on partial AFA, using SMC's own data. A complete explanation
of the selection, corroboration, and application of AFA for all other
AFA rates can be found in the Preliminary Results. See Preliminary
Results, 71 FR 11580 at 11587. The Department received comments and
rebuttal comments with regard to certain aspects of our selection and
application of AFA. See Final Decision Memo, at Comments 2, 3, 8, 9 and
10. The Department has made no changes since the Preliminary Results
that would affect the Department's selection, corroboration, and
application of facts available for the other companies receiving AFA.
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:
Heavy Forged Hand Tools from the PRC: Axes/Adzes
------------------------------------------------------------------------
Weighted-Average
Manufacturer/Exporter Margin (Percent)
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TMC................................................. 189.37
Huarong............................................. 189.37
SMC................................................. 189.37
PRC-Wide Rate....................................... 189.37
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Heavy Forged Hand Tools from the PRC: Hammers/Sledges
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Weighted-Average
Manufacturer/Exporter Margin (Percent)
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TMC................................................. 45.42
SMC................................................. 34.56
PRC-Wide Rate....................................... 45.42
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Heavy Forged Hand Tools from the PRC: Picks/Mattocks
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Weighted-Average
Manufacturer/Exporter Margin (Percent)
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TMC................................................. 53.04
SMC................................................. 98.77
PRC-Wide Rate....................................... 98.77
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Heavy Forged Hand Tools from the PRC: Bars/Wedges
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Weighted-Average
Manufacturer/Exporter Margin (Percent)
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TMC................................................. 139.31
Huarong............................................. 139.31
SMC................................................. 104.54
Iron Bull........................................... 139.31
PRC-Wide Rate....................................... 139.31
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Cash Deposit Requirements
The following deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of certain 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 will be the rates shown above;
(2) for any previously reviewed or investigated PRC or non-PRC
exporter, not covered in this review, with a separate rate, the cash
deposit rate will be the company-specific rate established in the most
recent segment of those proceedings; (3) for all other PRC exporters,
the cash deposit rates will be the PRC-wide rates established in the
final results of this review; 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 review.
Assessment Rates
The Department will issue appraisement instructions directly to CBP
within 15 days of publication of the final results of this
administrative review. In accordance with 19 CFR 351.212(b)(1), we have
calculated importer-specific assessment rates for merchandise subject
to this review. For SMC, TMC, and Huarong, we divided the total dumping
margins of its reviewed sales by the total entered value of its
reviewed sales for each applicable importer to calculate ad valorem
assessment rates. We will direct CBP to assess the resulting assessment
rates against the entered customs values for the subject merchandise on
SMC, TMC and Huarong's entries under the relevant order during the POR.
Where an importer-specific ad valorem rate is de minimis, we will order
CBP to liquidate appropriate entries without regard to antidumping
duties.
Lastly, for the respondents receiving dumping rates based upon AFA,
the Department will instruct CBP to liquidate entries according to the
AFA ad valorem rate. The Department will issue appraisement
instructions directly to CBP upon the completion of the final results
of this administrative review.
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
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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 this administrative review and notice
in accordance with sections 751(a) and 777(i) of the Act.
Dated: September 5, 2006.
David M. Spooner,
Assistant Secretary for Import Administration,
Appendix I Decision Memorandum
I. CHANGES SINCE THE PRELIMINARY RESULTS
II. GENERAL COMMENTS:
Comment 1: Adverse Facts Available (``AFA'') for ``Agent'' Sales
Comment 2: AFA Rate for the Bars/Wedges Order
Comment 3: Separate Rates for TMC and SMC
Comment 4: Rejecting the Respondents' Case Brief
Comment 5: Addition of an HTS Number to the Scope of the Order
Comment 6: Application of Packing Materials and the By-product Offset
in the Calculation of Normal Value
Comment 7: Referral to Customs and Border Protection (``CBP'')
Regarding Evasion of These Orders by Huarong, TMC and Iron Bull
Comment 8: Clerical Errors from the Preliminary Results
A. Calculation of per unit Importer Assessment Rates
B. SMC Missing Packing Variable
C. CBP Instructions
III. COMPANY-SPECIFIC ISSUES:
Comment 9: Huarong
A. Axes/Adzes Rate
B. Bars/Wedges Rate
Comment 10: SMC
A. Affiliation Determination
B. Partial Adverse Facts Available for Constructed Export Price
(``CEP'') Sales
C. Rate to Apply to SMC
D. AFA for SMC's Non-Reported Sales
Comment 11: AFA for Iron Bull's Sales of Bars/Wedges
[FR Doc. E6-15277 Filed 9-13-06; 8:45 am]
BILLING CODE 3510-DS-S