[Federal Register: November 24, 2003 (Volume 68, Number 226)]
[Notices]
[Page 65873-65875]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24no03-25]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-881]
Notice of Amended Final Determination of Sales at Less Than Fair
Value: Certain Malleable Iron Pipe Fittings From the People's Republic
of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Amended Final Determination of Sales at Less Than
Fair Value.
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EFFECTIVE DATE: November 24, 2003.
FOR FURTHER INFORMATION CONTACT: Helen Kramer or Ann Barnett-Dahl,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW,
Washington, DC 20230; telephone: (202) 482-0405, or 482-3833,
respectively.
SUPPLEMENTARY INFORMATION:
Scope of Investigation
For purposes of this investigation, the products covered are
certain malleable iron pipe fittings, cast, other than grooved
fittings, from the People's Republic of China. The merchandise is
classified under item numbers 7307.19.90.30, 7307.19.90.60 and
7307.19.90.80 of the Harmonized Tariff Schedule (HTSUS). Excluded from
the scope of this investigation are metal compression couplings, which
are imported under HTSUS number 7307.19.90.80. A metal compression
coupling consists of a coupling body, two gaskets, and two compression
nuts. These products range in diameter from 1/2 inch to 2 inches and
are carried only in galvanized finish. Although HTSUS subheadings are
provided for convenience and Bureau of Customs and Border Protection
(CBP) purposes, the Department's written description of the scope of
this proceeding is dispositive.
Background
On October 20, 2003, the Department of Commerce (``the
Department'') determined that certain malleable iron pipe fittings from
the People's Republic of China (``MPF'') are being, or are likely to
be, sold in the United States at less than fair value, as provided in
section 735(a) of the Act. See Final Determination of Sales at Less
Than Fair Value: Certain Malleable Iron Pipe Fittings from the People's
Republic of China, 68 FR 61395 (October 28, 2003). The Department
released disclosure materials to respondents on October 22, 2003, and
to the petitioners on October 23, 2003.
On October 27, 2003, we received ministerial error allegations,
timely filed pursuant to 19 CFR 351.224(c)(2), from mandatory
respondents Jinan Meide Casting Co., Ltd. (``JMC'') and Beijing Sai Lin
Ke Hardware Co., Ltd. (``SLK''). On October 28, 2003, the petitioners
also submitted a timely letter to the Department alleging ministerial
errors . On October 30, 2003, the petitioners submitted a response to
SLK's comments.
Section 351.224(f) of the Department's regulations defines a
ministerial error as an error in addition, subtraction, or other
arithmetic function, clerical error resulting from inaccurate copying,
duplication, or the like, and any other similar type of unintentional
error which the Secretary considers ministerial.
Ministerial Error Allegations From the Mandatory Respondents
Comment 1: Surrogate Values for Adhesive Tape and Steel Shavings
JMC alleges that the Department utilized the incorrect values for
the adhesive tape and steel shavings factors of production. JMC notes
that the Department's Factors Valuation Memorandum calculates a
surrogate value of $4.9585 per kg for adhesive tape, excluding
aberrantly high-priced imports from Sweden, and a surrogate value of
$0.1300 per kg for steel shavings, excluding aberrantly high-priced
imports from the United Kingdom However, JMC notes that the Department
used values of $4.9587 and $0.1329, respectively, in the calculation of
the final margin and that the Department apparently failed to exclude
the aberrant imports from the Excel spreadsheets. JMC requests that the
Department correct these clerical errors.
The petitioners did not comment on this issue.
Department's Position:
We agree with JMC that we made clerical errors with respect to the
surrogate values of adhesive tape and steel shavings as a result of
inaccurate copying. Accordingly, we have corrected the Excel worksheets
for adhesive tape and steel shavings used to
[[Page 65874]]
calculate surrogate values for JMC's factors of production (FOP). In
addition, we corrected the surrogate value for adhesive tape in the
worksheet used for SLK's packing, and the surrogate value for steel
shavings in the worksheet used for one of SLK's suppliers.
Comment 2: Indirect Labor Calculation for an SLK Supplier
SLK argues that the Department incorrectly recalculated indirect
labor hours in the galvanizing workshop of one of its suppliers by
allocating them to the total weight of galvanized fittings produced in
the galvanizing workshop. SLK states that both black and galvanized
fittings are cleaned in the galvanizing workshop, and argues that the
indirect labor hours should be divided by the weight of both types of
fittings.
The petitioners argue that the selection of the basis over which to
allocate indirect labor is not ministerial, but instead methodological,
and urge the Department to deny SLK's request to revise the
calculation.
Department's Position:
We agree with SLK that the omission of the weight of the black
fittings cleaned in the galvanizing workshop was a ministerial error.
The error resulted from SLK's formatting of a worksheet, in which only
the galvanized fittings are shown under the heading ``Galvanizing and
Cleaning.'' As it was not an intentional choice of methodology, but
resulted from an error in copying, we have made the requested
correction. For a more detailed discussion, see the memorandum to
Richard O. Weible from Helen M. Kramer entitled ``Allegations of
Ministerial Errors; Final Determination in the Antidumping Duty
Investigation of Certain Malleable Iron Pipe Fittings from the People's
Republic of China (A-570-881),'' dated November xx, 2003 (``Ministerial
Errors Memorandum'').
Comment 3: Application of Surrogate Freight in Facts Available Scrap
Input Valuation
SLK claims that the Department applied a freight factor to recycled
scrap in the final determination, contrary to its stated position,
because it applied the surrogate value for freight in its facts
available steel scrap calculation. SLK argues that the Department
applied a factor of 56.83% for recycled scrap as facts available, and
applied the surrogate value for freight equally to scrap and recycled
scrap.
The petitioners rebut SLK, arguing that the alleged error involves
a methodological decision regarding the application of facts available,
and is not a ministerial error. The petitioners also argue that SLK's
claim is not factually correct, because the Department applied the
56.83 percent facts available factor to purchased scrap and pig iron,
and not to recycled inputs, as noted in the final determination
analysis memorandum for SLK. See Memorandum to the File from Helen
Kramer, Case Analyst, entitled ``Antidumping Duty Investigation of
Certain Malleable Iron Pipe Fittings from the People's Republic of
China; Final Determination Analysis for LDR/SLK,'' (October 20, 2003)
at 3. The petitioners conclude that the Department therefore properly
applied the freight factor to the full cost of metallic inputs, which
includes the cost of freight.
Department's Position:
We agree with the petitioners that the Department's methodology of
applying facts available is not a ministerial error within the meaning
of 19 CFR 351.224(f) because the Department's decision to apply a
surrogate freight value was intentional. We also agree with the
petitioners that SLK's claim is not factually correct. We used a
combination of petitioners' and two respondents' data to calculate the
percentage by which purchased steel scrap and pig iron inputs should be
increased to account for all metallic inputs. This calculation did not
include freight. Inasmuch as we are applying facts available to
purchased scrap steel which incurs freight expenses, and we did not use
the respondents' data on recycled scrap, we do not agree with SLK that
we applied surrogate freight to recycled scrap contrary to our stated
intention.
Ministerial Error Allegations from the Petitioners
Comments 1 and 2: Deductions from U.S. Price
The petitioners argue that the Department made ministerial errors
in the calculation of SLK's net U.S. price by not deducting the
variable ``OTHDIS1'' added after the preliminary determination for an
additional discount, and the variable ``INLFPWU,'' representing the
cost of trucking the subject merchandise from the Chicago rail station
to LDR's warehouse for certain sales.
SLK did not comment on this issue.
Department's Position:
We agree with the petitioners that these were ministerial errors.
The omission of these variables from the adjustments to U.S. price was
not a methodological decision, but rather errors in copying. For this
amended final determination, we have therefore recalculated net U.S.
price by deducting these variables from the gross price. See
Ministerial Errors Memorandum at 4.
Amended Final Determination
In accordance with 19 CFR 351.224(e), we are amending the final
determination of the antidumping duty investigation of MPF from the PRC
to correct these ministerial errors. The revised final weighted-average
dumping margins are as follows:
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Original weighted-average Revised weighted-average
Exporter/manufacturer margin (Percent) margin (Percent)
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Jinan Meide Casting Co., Ltd........................ 11.35 11.31
Beijing Sai Lin Ke Hardware Co. Ltd................. 14.32 15.92
Langfang Pannext Pipe Fitting Co., Ltd.............. 7.35 7.35
Chengde Malleable Iron General Factory.............. 10.96 11.18
SCE Co., Ltd........................................ 10.96 11.18
PRC-Wide............................................ 111.36 111.36
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B)(ii) of the Act, we are
directing the Bureau of Customs and Border Protection (CBP) to continue
to suspend liquidation of all imports of MPF from the PRC. CBP shall
require a cash deposit or the posting of a bond equal to the weighted-
average amount by which the normal value exceeds the export price, as
indicated in the chart above. These suspension of liquidation
instructions will remain in effect until further notice.
[[Page 65875]]
ITC Notification
In accordance with section 735(d) of the Tariff Act, we have
notified the International Trade Commission of our amended final
determination.This determination is issued and published in accordance
with sections 735(d), 735(e) and 777(i)(1) of the Act.
Dated: November 17, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 03-29306 Filed 11-21-03; 8:45 am]
BILLING CODE 3510-DS-S