Final Results of Redetermination Pursuant to Court Remand . Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A.; NSK Ltd. and NSK Corporation; NTN Bearing Corporation of America, American NTN Bearing Manufacturing Corporation and NTN Corporation; and The Timken Company v. United States . Consol. Court No. 98-06-02274, Slip Op. 02-11 (CIT February 1, 2002)

Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A.; NSK Ltd. and NSK Corporation; NTN Bearing Corporation of America, American NTN Bearing Manufacturing Corporation and NTN Corporation; and The Timken Company v. United States

Consol. Court No. 98-06-02274, Slip Op. 02-11 (CIT February 1, 2002)

Final Results of Redetermination Pursuant to Court Remand

Summary

On February 1, 2002, the U.S. Court of International Trade (the CIT) issued an order remanding to the Department of Commerce (the Department) the final results of the administrative reviews of the antidumping finding on tapered roller bearings (TRBs), four inches or less in outside diameter, and components thereof, from Japan (A-588-054), and the antidumping duty order on TRBs and parts thereof, finished or unfinished, from Japan (A-588-604). See Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A.; NSK Ltd. and NSK Corporation; NTN Bearing Corporation of America, American NTN Bearing Manufacturing Corporation and NTN Corporation; and The Timken Company v. United States, 186 F.Supp. 2d 1232 (CIT February 1, 2002) (Koyo). The final results of these reviews covered the period October 1, 1993 through September 30, 1994 for multiple respondents, and the period October 1, 1992 through September 30, 1993, for one respondent, Koyo Seiko Co., Ltd. (Koyo).

In accordance with the CIT's order in Koyo, we have recalculated the antidumping margins for Koyo, NTN Corporation (NTN)⁽¹⁾ and NSK Ltd. (NSK) for such merchandise entered between October 1, 1993 through September 30, 1994, and the antidumping margins for Koyo for such merchandise entered between October 1, 1992 and September 30, 1993.

Please refer to the section of this redetermination entitled "Final Results of Redetermination" for the revised weighted-average antidumping duty margins that resulted from making the changes instructed by the CIT.

Background

On April 27, 1998, we published in the Federal Register the final results of the adminstrative reviews on TRBs from Japan for the period October 1, 1993 through September 30, 1994 (the 1993-94 period of review (POR)) for multiple respondents, and the period October 1, 1992 through September 30, 1993 (the 1992-93 POR) for Koyo. See 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; Final Results of Antidumping Duty Administrative Reviews and Termination in Part, 63 FR 20585 (April 27, 1998) (1993-1994 Final Results). On February 1, 2002, the CIT remanded the 1993-1994 Final Results to the Department, ordering us to: (1) deduct Koyo's home market movement expenses from home market gross unit price for the purpose of calculating CV profit; (2) recalculate Koyo's marine insurance expenses for sales of further-processed merchandise using the correct factor reported by Koyo; (3) recalculate Koyo's CV using the commission factor provided by Koyo; (4) recalculate Koyo's CV direct selling expenses using the factor reported in Koyo's questionnaire response; (5) make corrections to programming language related to Koyo's product nomenclature; (6) recalculate Koyo's U.S. inventory carrying costs (ICCs) for sales of further-processed merchandise by applying the appropriate ICC factors to the landed cost for the 1992-93 POR and the appropriate ICC factors to the cost of manufacture (COM) for the 1993-94 POR; (7) apply the correct general and administrative (G&A) expense factor in the calculation of NSK's cost of production (COP); and (8) correct a programming error with respect to NTN's sales by applying the revised indirect selling expense ratio only to NTN's purchase price sales.

On June 13, 2002, we released our draft results of redetermination to Koyo, NSK, NTN, and the petitioner, The Timken Company (Timken). On June 18 and 20, 2002, we received comments from NSK, and on June 19, 2002 we received comments from Koyo. We did not receive any rebuttal comments.

Discussion

Recalculation of Koyo's CV Profit

In recalculating Koyo's reported CV profit for both the 1992-93 POR and the 1993-94 POR, we included movement expenses (home market pre-sale inland freight and home market post-sale inland freight) in the gross unit price, but did not include them in COP. In accordance with FAG Kugelfischer Georg Schafer AG v. United States, 19 CIT 634 (1995), the CIT remanded the 1993-1994 Final Results to the Department to deduct Koyo's home market movement expenses from the unit price (represented by the variable "PRICE") so that these expenses are excluded from the calculation of CV profit. As instructed by the CIT, we have deducted Koyo's home market movement expenses from unit price so that these expenses are not included in the calculation of CV profit.

Recalculation of Marine Insurance for Certain of Koyo's U.S. Sales

In calculating marine insurance for Koyo's sales of further-manufactured merchandise for the 1993-94 POR, we did not utilize the correct marine insurance factor. In accordance with the CIT's instructions, we have recalculated marine insurance for Koyo's sales of further-manufactured merchandise using the correct factor as reported by Koyo.

Recalculation of Koyo's CV Using the Commission Factor Provided by Koyo

For the 1993-94 POR we used the best information available (now "facts available") to recalculate CV for certain of Koyo's sales, operating under the assumption that Koyo did not report a CV commission factor. However, as Koyo had actually reported a CV commission factor, the CIT remanded the 1993-1994 Final Results to the Department to recalculate CV using the commission factor reported by Koyo. Accordingly, we have recalculated CV using Koyo's reported commission factor.

Recalculation of Koyo's CV Direct Selling Expenses

To calculate Koyo's CV direct selling expenses for the 1993-94 POR, we did not apply the correct expense ratio. As a result, the CIT remanded the 1993-1994 Final Results to the Department to recalculate CV direct selling expenses using the ratio specified in Koyo's March 14, 1995 questionnaire response (i.e., the sum of warranty and imputed credit expenses). In accordance with the CIT's instructions, we have recalculated CV direct selling expenses based on this ratio.

Product Nomenclature for Certain of Koyo's Sales

For the final results of the 1993-94 POR, we corrected an input error Koyo made with respect to the nomenclature of a cone contained in a particular home market TRB set. In making this correction, however, we inadvertently made three transcription errors and inserted the correction language too early in the computer program. As a result, the program generated erroneous results. The CIT therefore instructed the Department to correct our transcription errors and to implement the changes at the proper place in the computer program for the 1993-1994 Final Results. Thus, we have corrected these transcription errors and have inserted the correction language at the proper place in the computer program.

Comment: Koyo states that while the Department amended the transcription errors referred to above for the draft results of redetermination, the Department has now made two additional transcription errors. Therefore, Koyo requests the Department correct these additional transcription errors prior to issuing the final results of redetermination.

Department's Position: We agree with Koyo, and have corrected the two transcription errors cited by Koyo in its June 19, 2002 letter. For further information, see "Final Remand Results for the 1993-1994 Administrative Reviews of the Antidumping Finding (A-588-054) and the Antidumping Duty Order (A-588-604) on Tapered Roller Bearings from Japan; Analysis Memorandum for Koyo Seiko Co., Ltd.," dated July 1, 2002.

Recalculation of Koyo's ICCs for Certain of Koyo's U.S. Sales

Timken argued before the CIT that in reporting ICCs for sales of further-manufactured merchandise, Koyo did not apply its reported formulas in a consistent manner. While Koyo's reported formulas satisfied statutory requirements, the CIT found that Koyo had applied those formulas inconsistently. Therefore, the CIT remanded the 1993-1994 Final Results to the Department in order to recalculate ICCs for Koyo's sales of further-processed merchandise by applying Koyo's reported ICC factors to the landed cost for the 1992-93 POR, and by applying Koyo's reported ICC factors to the COM for the 1993-94 POR. Accordingly, we have recalculated ICCs for Koyo's further-manufactured sales as instructed by the CIT.

Recalculation of NSK's COP Using the Correct G&A Factor

For the 1993-1994 Final Results, we revised NSK's reported G&A expenses. However, we failed to apply the revised G&A factor in our calculation of COP. Therefore, the CIT remanded the 1993-1994 Final Results to the Department to apply the correct G&A expense factor in the calculation of NSK's COP. In accordance with the CIT's instructions, we have calculated NSK's COP using the correct G&A expense factor.

Comment: For the draft results of redetermination, NSK notes, the Department applied the correct G&A factor at line 390 of the margin calculation program. In order to carry out the CIT's instructions correctly, NSK asserts, the Department should modify line 607 of the margin calculation program in the same manner.

Department's Position: We agree with NSK, and have corrected the margin calculation program accordingly. See "Final Remand Results for the 1993-1994 Administrative Reviews of the Antidumping Finding (A-588-054) and the Antidumping Duty Order (A-588-604) on Tapered Roller Bearings from Japan; Analysis Memorandum for NSK Ltd. (NSK)," dated July 1, 2002.

Recalculation of NTN's U.S. Indirect Selling Expenses

For the 1993-1994 Final Results, we calculated a revised indirect selling expense ratio which we intended to apply only to NTN's purchase price (now export price) sales. However, we inadvertently applied this ratio to all of NTN's U.S. sales due to improper placement of the correction language in our computer program. Therefore, the CIT remanded the 1993-1994 Final Results to the Department in order to amend its computer program such that the revised indirect selling expense ratio is applied only to NTN's purchase price sales. Accordingly, we have amended our computer program in order to apply the revised indirect selling ratio only to NTN's purchase price sales.

9. Miscellaneous

Comment: NSK states that for the 1993-1994 Final Results, the Department included the entered values of NSK's zero-priced sample sales in the calculation of the assessment rates. NSK notes the Department performed this calculation manually and handwrote the calcualtion on the last page of the 1993-1994 Final Results margin calculation program output. NSK requests that the Department use the same methodology to calculate the assessment rate for these final results of redetermination, and to calculate the assessment rate to two decimal places in order to avoid the net over-assessment that arises from rounding to a whole percentage.

Department's Position: We agree with NSK. As in the 1993-1994 Final Results, we have included the entered values of zero-priced sample sales in the calculation of the assessment rates. Further, we have performed this calculation to two decimal places.

Final Results of Redetermination

In accordance with the CIT's order, we have made the following changes:

•To both Koyo's 1992-93 and 1993-94 computer programs, we have: (1) deducted Koyo's home market movement expenses from home market price for purposes of recalculating Koyo's CV profit; and (2) recalculated Koyo's U.S. inventory carrying costs (ICCs) for sales of further-processed merchandise using the formulas indicated by Koyo.
•To Koyo's 1993-94 computer program, we have: (1) recalculated Koyo's marine insurance expenses for sales of further-processed merchandise using the factor reported by Koyo; (2) recalculated Koyo's CV using the commission factor reported by Koyo rather than using the best information available; (3) recalculated Koyo's CV direct selling expenses using the factor reported in Koyo's questionnaire response; and (4) corrected programming language related to Koyo's product nomenclature.
•For NSK, we have applied the correct G&A expense factor in calculating NSK's COP.
•For NTN, we have corrected a programming error with respect to NTN's sales such that the revised indirect selling expense ratio is applied only to NTN's purchase price sales.

As a result of recalculating the antidumping duty weighted-average margins for Koyo, NSK, and NTN, we have determined that the weighted-average dumping margins for the 1993-1994 Final Results are as follows:

For the A-588-054 Review:

Manufacturer/    Period of Review          Weighted-Average Margin (%)
Exporter                                   Original:          Revised:

Koyo Seiko       10/1/1992 - 9/30/1993      38.07              37.80
Koyo Seiko       10/1/1993 - 9/30/1994      35.27              29.94
NSK              10/1/1993 - 9/30/1994      11.25              11.24


For the A-588-604 Review:

Manufacturer/    Period of Review          Weighted-Average Margin (%)
Exporter                                   Original:          Revised:

Koyo Seiko       10/1/1992 - 9/30/1993      40.12              38.76
Koyo Seiko       10/1/1993 - 9/30/1994      41.04              40.49
NSK              10/1/1993 - 9/30/1994      12.78              12.78
NTN              10/1/1993 - 9/30/1994      20.80              21.97

Upon a final and conclusive court decision, the Department will publish a notice of amended final results reflecting these changes in the margin calculations and will instruct the Customs Service to assess appropriate antidumping duties on entries of subject merchandise made by Koyo during the period October 1, 1992 through September 30 1994, and made by NSK and NTN during the period October 1, 1993 through September 30, 1994.

_______________________

Joseph A. Spetrini

Acting Assistant Secretary

for Import Administration

_______________________

Date

1. NTN is not subject to the antidumping finding (A-588-054) on TRBs from Japan.