FAG U.K. LTD., THE BARDEN CORPORATION (U.K.) LTD., FAG BEARINGS CORPORATION, RHP BEARINGS LTD., NSK BEARINGS EUROPE LTD., AND NSK CORPORATION

Court No. 97-01-00063

FINAL RESULTS OF REDETERMINATION PURSUANT TO COURT REMAND

SUMMARY

The Department of Commerce (the Department) has prepared these final results of redetermination pursuant to the remand order from the U.S. Court of International Trade (CIT) in the case of FAG U.K. Ltd., the Barden Corporation (U.K.) Ltd., FAG Bearings Corporation, RHP Bearings Ltd., NSK Bearings Europe Ltd., and NSK Corporation. v. United States, Slip Op. 98-133 (September 16, 1998) (FAG).

On November 19, 1998, the Department released draft results of redetermination pursuant to the remand order in Slip Op. 99-133 to all parties for comment. We received no comments.

BACKGROUND

On September 16, 1998, the CIT issued an order remanding to the Department the final results of the 1993-1994 administrative reviews of the antidumping duty orders on antifriction bearings (other than tapered roller bearings) and parts thereof from the United Kingdom (Final Results)⁽¹⁾. The remand affects FAG U.K. Limited (FAG UK) with respect to the antidumping duty order on ball bearings from the United Kingdom, Barden Corporation (U.K.) Limited (Barden) with respect to the antidumping duty order on ball bearings from the United Kingdom, and RHP Bearings Limited, NSK Bearings Europe Limited, and NSK Corporation (NSK/RHP) with respect to the antidumping duty orders on ball bearings and cylindrical roller bearings from the United Kingdom.

In FAG, the CIT remanded the Final Results to the Department to: (1) recalculate Barden's dumping margin without regard to the results of the test for below-cost sales; (2) recalculate both Barden's and FAG U.K.'s dumping margins, treating them as distinct entities; (3) correct the clerical error in the SAS computer program for Barden and FAG U.K. so that the "other revenue" variable is included in the value-added tax adjustment in the home market unit price adjustment; (4) exclude transactions not supported by consideration from NSK/RHP's U.S. sales database; (5) exclude sample transfers for no consideration from NSK/RHP's home market sales database for the purposes of calculating profit for constructed value; (6) recalculate constructed value for NSK/RHP by applying the arm's-length and profit-variance tests to related-party transactions involving consideration, if any, and using sales of such or similar merchandise for any remaining unrelated-party sales; and (7) reduce RHP Aerospace's cost of manufacture and constructed value by post-sale domestic inland freight costs.

DISCUSSION

Below-Cost Test

In the Final Results, we applied the below-cost test of section 773(b) of the Act to Barden's home market sales. The CIT in FAG ruled that we conducted the below-cost test on Barden's home market sales unlawfully because we did not have reasonable grounds to believe or suspect that Barden had made sales in the home market at below-cost prices. The CIT further instructed us to recalculate Barden's dumping margin without regard to the results of the below-cost test. We have complied with the CIT's instruction by including all of Barden's home market sales in the home market database without regard to a test under section 773(b) of the Act.

Treatment of FAG U.K. and Barden as Distinct Entities

In the Final Results, we treated FAG U.K. and Barden as a single entity because we had collapsed the companies in prior review periods. As in prior reviews, the CIT in FAG instructed us to make the necessary adjustments to correct the consequences of the improper collapsing of the companies and to recalculate the dumping margins of both FAG U.K. and Barden, treating them as distinct entities. We have complied with the CIT's instruction.

Clerical Error for FAG U.K. and Barden

In the Final Results, we neglected to adjust for "other revenue" in the value-added tax- adjustment calculation in both FAG U.K.'s and Barden's margin programs. The CIT in FAG instructed us to correct this clerical error. We have complied with the CIT's instruction.

NSK/RHP's Sample Transactions in the U.S. Market

In the Final Results, we included in NSK/RHP's U.S. sales database certain claimed sample sales and calculated margins, in part, on the basis of such sales. The CIT in FAG, citing NSK v. United States, 115 F.3d 965 (Fed. Cir. 1997), instructed us to exclude from NSK/RHP's U.S. sales database those sample transactions for which NSK/RHP received no consideration. We have complied with the CIT's instruction.

Sample Transactions in NSK/RHP's Home Market

After further review of NSK/RHP's margin program, we found that, in the Final Results, we had already disregarded NSK/RHP's claimed home market sample transactions from the home market database. Therefore, we made no changes to NSK/RHP's margin program with regard to home market sample transactions for which NSK/RHP received no consideration.

Calculation of NSK/RHP's Constructed Value

In the Final Results, we compared the profit NSK/RHP earned on sales to related parties which passed the arm's-length test to those related-party sales which failed the arm's-length test. Based on our analysis of the two profit figures, we selected a profit figure for use in our calculation of constructed value. The CIT instructed us to remove zero-priced samples from the home market database which we use in our arm's-length test. Although, as indicated above, we had excluded such sales from the database in our margin calculation for the Final Results, we had included zero-priced samples in our arm's-length test. Therefore, as instructed by the CIT, we have removed the zero-priced samples from the database we used for the arm's-length test and calculated profit on a class-or-kind basis for all non-zero-priced sales which passed the arm's-length test.

Post-Sale Domestic Inland Freight Costs

In the Final Results, we accepted NSK/RHP's post-sale domestic inland freight calculation for bearings manufactured by RHP Aerospace, but we did not reduce RHP Aerospace's cost of manufacture and constructed value by the same expense factor. We acknowledged that, absent such a reduction, our calculation would result in double-counting of inland freight in RHP Aerospace's cost of manufacture and constructed value. The CIT in FAG, instructed us to reduce RHP Aerospace's cost of manufacture and constructed value by post-sale domestic inland freight costs. We have complied with the CIT's instruction.

COMMENTS

We released the draft results on November 19, 1998 and received no comments.

FINAL RESULTS OF REDETERMINATION

In accordance with the remand order, we have revised our calculations for the Final Results of the 1993/94 administrative review.

The recalculated weighted-average percentage dumping margins for ball bearings ("BBs") and cylindrical roller bearings ("CRBs") during the period May 1, 1993 through April 30, 1994, are as follows:

* No sales reported for CRBs during the period of review.

This final redetermination is pursuant to the order of the CIT in FAG v. United States, Consol. Court No. 97-01-00063, Slip Op. 98-133 (CIT September 16, 1998).

________________________

Robert S. LaRussa

Assistant Secretary

for Import Administration

December 14, 1998

(Date)

1. Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Singapore, Sweden, and the United Kingdom; Final Results of Antidumping Duty Administrative Reviews and Partial Termination of Administrative Reviews ((61 FR 66,472) (December 17, 1996)), as amended by Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof from Germany, Italy, Japan, and the United Kingdom; Amended Final Results of Antidumping Duty Administrative Reviews (62 FR 3,003 (January 21, 1997)) (Amended Final Results) (collectively "Final Results"). These administrative reviews and this redetermination were conducted under the Tariff Act of 1930 (the Act) prior to amendment by the Uruguay Round Agreement Act (URAA).