69 FR 35296, June 24, 2004 DEPARTMENT OF COMMERCE International Trade Administration [A-570-888] Notice of Final Determination of Sales at Less Than Fair Value: Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof From the People's Republic of China AGENCY: Import Administration, International Trade Administration, Department of Commerce. ACTION: Notice of final determination of sales at less than fair value. ----------------------------------------------------------------------- DATES: Effective Date: June 24, 2004. FOR FURTHER INFORMATION CONTACT: Paige Rivas or Sam Zengotitabengoa, AD/CVD Enforcement, Office 4, Group II, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-0651 or (202) 482-4195, respectively. SUPPLEMENTARY INFORMATION: Final Determination We determine that floor-standing, metal-top ironing tables and certain parts thereof (ironing tables) from the People's Republic of China (PRC) 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 ``Final Determination of Investigation'' section of this notice. Case History On February 3, 2004, the Department of Commerce (the Department) published the preliminary determination of sales at LTFV in the antidumping duty investigation of ironing tables from the PRC. See Notice of Preliminary Determination of Sales at Less Than Fair Value: Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China, 69 FR 5127 (February 3, 2004) (Preliminary Determination). Since the preliminary determination, the following events have occurred. On February 3, 2004, Shunde Yongjian Housewares Co. Ltd. (Yongjian), a mandatory respondent in this investigation, requested a full postponement of the final determination. Accordingly, on February 19, 2004, the Department published the postponement of the final determination from April 10, 2003, until June 13, 2004. See Floor- Standing, Metal-Top Ironing Tables and Certain Parts Thereof From the People's Republic of China: Postponement of Final Antidumping Determination, 69 FR 8625 (February 25, 2004). From February 23, 2004, through March 8, 2004, the Department conducted a sales and factors of production verification of Yongjian and Since Hardware (Guangzhou) Co., Ltd. (Since Hardware), the other mandatory respondent in this investigation. On March 4, 2004, the petitioner \1\ filed a request for a public hearing in this investigation, but then withdrew its request on May 5, 2004. Since Hardware and Yongjian filed publicly available surrogate value information and data on March 29, 2004. The respondents filed case briefs on April 29, 2004, and the petitioner filed its case brief on April 30, 2004. The respondents filed rebuttal briefs on May 4, 2004, and the petitioner filed its rebuttal brief on May 5, 2004. --------------------------------------------------------------------------- \1\ The petitioner in this case is Home Products International, Inc. (HPI). --------------------------------------------------------------------------- Due to the unexpected closure of the main Commerce building on Friday, June, 11, 2004, the Department has tolled the deadline for this final determination by two days to June 15, 2004. Period of Investigation The period of investigation (POI) is October 1, 2002, through March 31, 2003. This period corresponds to the two most recent fiscal quarters prior to the month of the filing of the petition (i.e., June 2003). See 19 CFR 351.204(b)(1). Scope of Investigation For purposes of this investigation, the product covered consists of floor-standing, metal-top ironing tables, assembled or unassembled, complete or incomplete, and certain parts thereof. The subject tables are designed and used principally for the hand ironing or pressing of garments or other articles of fabric. The subject tables have full- height leg assemblies that support the ironing surface at an appropriate (often adjustable) height above the floor. The subject tables are produced in a variety of leg finishes, such as painted, plated, or matte, and they are available with various features, including iron rests, linen racks, and others. The subject ironing tables may be sold with or without a pad and/or cover. All types and configurations of floor-standing, metal-top ironing tables are covered by this investigation. Furthermore, this investigation specifically covers imports of ironing [[Page 35297]] tables, assembled or unassembled, complete or incomplete, and certain parts thereof. For purposes of this investigation, the term ``unassembled'' ironing table means a product requiring the attachment of the leg assembly to the top or the attachment of an included feature such as an iron rest or linen rack. The term ``complete'' ironing table means a product sold as a ready-to-use ensemble consisting of the metal-top table and a pad and cover, with or without additional features, e.g. iron rest or linen rack. The term ``incomplete'' ironing table means a product shipped or sold as a ``bare board''--i.e., a metal-top table only, without the pad and cover--with or without additional features, e.g. iron rest or linen rack. The major parts or components of ironing tables that are intended to be covered by this investigation under the term ``certain parts thereof'' consist of the metal top component (with or without assembled supports and slides) and/or the leg components, whether or not attached together as a leg assembly. The investigation covers separately shipped metal top components and leg components, without regard to whether the respective quantities would yield an exact quantity of assembled ironing tables. Ironing tables without legs (such as models that mount on walls or over doors) are not floor-standing and are specifically excluded. Additionally, tabletop or counter top models with short legs that do not exceed 12 inches in length (and which may or may not collapse or retract) are specifically excluded. The subject ironing tables were previously classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 9403.20.0010. Effective July 1, 2003, the subject ironing tables are classified under the new HTSUS subheading 9403.20.0011. The subject metal top and leg components are classified under HTSUS subheading 9403.90.8040. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope remains dispositive. 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, which is hereby adopted by this notice. See Memorandum from Holly A. Kuga, Acting Deputy Assistant Secretary for Import Administration, Office II, to James Jochum, Assistant Secretary for Import Administration, ``Issues and Decision Memorandum for the Final Determination in the Antidumping Duty Investigation of Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China,'' dated concurrently with this notice, (Issues and Decision Memorandum) on file in the Central Records Unit (CRU) located in room B-099 of the Main Commerce Building.) and accessible on the Internet at http://enforcement.trade.gov. The paper copy and electronic version of the Issues and Decision Memorandum are identical in content. Non-Market Economy Country Status The Department has treated the PRC as a non-market economy (NME) country in all its past antidumping investigations. See Notice of Final Determination of Sales at Less Than Fair Value: Certain Circular Welded Carbon-Quality Steel Pipe from the People's Republic of China, 67 FR 36570, 36571 (May 24, 2002); and Notice of Final Determination of Sales at Less Than Fair Value: Structured Steel Beams from the People's Republic of China, 67 FR 35479, 35480 (May 20, 2000); and Notice of Final Determination of Sales at Less Than Fair Value Certain: Folding Metal Tables and Chairs from the People's Republic of China, 67 FR 20090 (April 24, 2002). In accordance with section 771(18)(C) of the Act, any determination that a foreign country is an NME country shall remain in effect until revoked. No party to this investigation has sought revocation of the NME status of the PRC. Therefore, pursuant to section 771(18)(C) of the Act, the Department will continue to treat the PRC as an NME country. For further details, see the Preliminary Determination. Separate Rates In our Preliminary Determination, we found that both mandatory responding companies, Since Hardware and Yongjian, and three of the four companies responding to Section A of the Department's questionnaire, Forever Holdings Ltd. (Forever Holdings), Gaoming Lihe Daily Necessities Co., Ltd. (Gaoming Lihe), and Harvest International Housewares Ltd. (Harvest International), met the criteria for the application of separate, company-specific antidumping duty rates. We have not received any other information since the preliminary determination which would warrant reconsideration of our separates rates determination with respect to these companies. For a complete discussion of the Department's determination that the respondents are entitled to a separate rate, see the Preliminary Determination. The PRC-Wide Rate In all NME cases, the Department makes a rebuttable presumption that all exporters located in the NME country comprise a single exporter under common government control, the ``NME entity.'' See Notice of Final Determination of Sales at Less Than Fair Value: Bicycles From the People's Republic of China, 61 FR 19026, 19027 (April 30, 1996) (Bicycles from the PRC). Although the Department provided all known PRC exporters of the subject merchandise with the opportunity to respond to our initial questionnaire, only Since Hardware, Yongjian, Forever Holdings, Gaoming Lihe, Harvest International, and Lerado responded. However, because other PRC companies did not submit a response to the Department's Section A quantity and value question, as discussed above in the ``Case History'' section of the Preliminary Determination, and did not demonstrate their entitlement to a separate rate, we have implemented the Department's rebuttable presumption that these exporters constitute a single enterprise under common control by the PRC government. Accordingly, we are applying adverse facts available to determine the single antidumping duty rate, the PRC-wide rate, applicable to all other PRC exporters comprising this single enterprise. See, e.g., Final Determination of Sales at Less Than Fair Value: Synthetic Indigo from the People's Republic of China, 65 FR 25706, 25707 (May 3, 2000). Surrogate Country For purposes of the final determination, we continue to find that India remains the appropriate surrogate country for the PRC. For further discussion and analysis regarding the surrogate country selection for the PRC, see the Preliminary Determination. Verification As provided in section 782(i) of the Act, we verified the information submitted by the respondents for use in our final determination. We used standard verification procedures including examination of relevant accounting and production records, and original source documents provided by the respondents. For changes from the Preliminary Determination as a result of verification, see the ``Changes Since the Preliminary Determination'' section below. [[Page 35298]] Changes Since the Preliminary Determination Based on our findings at verification and on our analysis of the comments received, we have made adjustments to the calculation methodologies used in the preliminary determination. These adjustments are listed below and discussed in detail in the: (1) Issues and Decision Memorandum; (2) Memorandum from Sam Zengotitabengoa, International Trade Compliance Analyst, Group II, Office 4, to the File, ``Surrogate Country Factors of Production Values in the Final Determination of the Antidumping Duty Investigation on Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China,'' dated concurrently with this notice, (Surrogate Factors Valuation Memo); and, (3) Memorandum from Sam Zengotitabengoa, International Trade Compliance Analyst, Group II, Office 4, to the File, ``Since Hardware's Margin Calculation Analysis for the Final Determination in the Antidumping Duty Investigation of Floor-Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China,'' dated concurrently with this notice (Since Hardware's Calculation Memorandum), and Memorandum from Sam Zengotitabengoa, International Trade Compliance Analyst, Group II, Office 4, to the File, ``Yongjian's Margin Calculation Analysis for the Final Determination in the Antidumping Duty Investigation of Floor- Standing, Metal-Top Ironing Tables and Certain Parts Thereof from the People's Republic of China,'' dated concurrently with this notice (Yongjian's Calculation Memorandum). 1. We revised the PRC labor rate. See Issues and Decision Memorandum, at Comment 2. 2. We revised the calculation of inland truck freight. See Issues and Decision Memorandum, at Comment 3. 3. We revised our surrogate value for PE septa. See Issues and Decision Memorandum, at Comment 4-B. 4. We revised our surrogate value of stainless steel. See Issues and Decision Memorandum, at Comment 4-C. 5. We revised our surrogate value of welding wire. See Issues and Decision Memorandum, at Comment 4-D. 6. We revised our surrogate value of pigment. See Issues and Decision Memorandum, at Comment 4-E. 7. We revised our surrogate value for silica gel parts. See Issues and Decision Memorandum, at Comment 4-F. 8. We revised our surrogate value for cotton rope. See Issues and Decision Memorandum, at Comment 4-H. 9. We revised our surrogate value for glue. See Issues and Decision Memorandum, at Comment 4-J. 10. We revised our surrogate value for cotton fixing strips. See Issues and Decision Memorandum, at Comment 4-K. 11. We revised our surrogate value for cold rolled steel. See Issues and Decision Memorandum, at Comment 6 and Comment 6-A. 12. We revised our surrogate value for hot rolled steel. See Issues and Decision Memorandum, at Comment 6-B. 13. We revised our surrogate value for steel wire rod. See Issues and Decision Memorandum, at Comment 6-C. 14. We revised our surrogate value for powder coating. See Issues and Decision Memorandum, at Comment 6-F. 15. We did not grant Since Hardware's billing adjustment. See Issues and Decision Memorandum, at Comment 9. 16. We revised the surrogate financial ratios for overhead, SG&A, and profit. See Issues and Decision Memorandum, at Comment 10. 17. We revised the data contained in Yongjian's factors of production database, based on our findings at verification. See Issues and Decision Memorandum, at Comment 11. 18. We revised the inland freight distances for the materials whose values were either not reported or mis-reported at the preliminary determination. See Surrogate Factors Valuation Memo. Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B)(ii) of the Act, we are directing U.S. Customs and Border Protection (CBP) to continue suspension liquidation of entries of subject merchandise from the PRC that are entered, or withdrawn from warehouse, for consumption on or after February 3, 2004 (the date of publication of the Preliminary Determination in the Federal Register). We will instruct CBP to require a cash deposit or the posting of a bond equal to the weighted-average amount by which NV exceeds the U.S. price, as indicated in the chart below. These suspension-of-liquidation instructions will remain in effect until further notice. Final Determination of Investigation We determine that the following weighted-average percentage margins exist for the period October 1, 2002, through March 31, 2003: ------------------------------------------------------------------------ Weighted- average Manufacturer/exporter margin (percent) ------------------------------------------------------------------------ Since Hardware (Guangzhou) Co., Ltd........................ 6.60 Shunde Yongjian Housewares Co., Ltd........................ 113.80 Forever Holdings Ltd....................................... 52.04 Gaoming Lihe Daily Necessities Co., Ltd.................... 52.04 Harvest International Housewares Ltd....................... 52.04 PRC-Wide Rate.............................................. 113.80 ------------------------------------------------------------------------ The PRC-wide rate applies to all entries of the subject merchandise except for entries from Since Hardware, Yongjian, Forever Holdings, Harvest International, and Gaoming Lihe. International Trade Commission Notification In accordance with section 735(d) of the Act, we have notified the International Trade Commission (ITC) of our determination. As our final determination is affirmative, the ITC will determine, within 45 days, whether these imports are materially injuring, or threaten material injury to, the U.S. industry. If the ITC determines that material injury, or threat of material injury does not exist, the proceeding will be terminated and all securities posted will be refunded or cancelled. 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 subject merchandise entered for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Order 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 comply with the regulations and the terms of an APO is a sanctionable violation. This determination is issued and published in accordance with sections 735(d) and 777(i)(1) of the Act. [[Page 35299]] Dated: June 15, 2004. James J. Jochum, Assistant Secretary, for Import Administration. Appendix--Issues and Decision Memorandum Comment 1: Whether the Department Should Correct Alleged Ministerial Errors in the Preliminary Determination Comment 2: Whether the Department Should Use the Most Current Wage Rate for China Comment 3: Whether the Department Should Correct Surrogate Values for Inland Freight and Brokerage and Handling Comment 4: Whether the Department Should Use Different Harmonized Tariff Classifications for Certain Material Inputs Comment 5: Whether the Department Used the Best Available Data Source To Value Certain Material Inputs Comment 6: Whether the Department Used Aberrant Surrogate Values for Certain Material Inputs Comment 7: Whether the Department Should Accept Since Hardware's Market Economy Purchases That Were Not Verified by the Department Comment 8: Whether the Department Should Use the Market Economy Price to Value Cold-Rolled Steel Inputs Comment 9: Whether the Department Should Consider Billing Adjustments in the Calculation of Since Hardware's U.S. Price Comment 10: Whether the Department Selected the Proper Data Source for its Calculation of Surrogate Overhead, SG&A, and Profit Ratios Comment 11: Corrections Arising From Verification [FR Doc. 04-14360 Filed 6-23-04; 8:45 am]