[Federal Register Volume 76, Number 220 (Tuesday, November 15, 2011)]
[Notices]
[Pages 70706-70709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29498]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-933]
Frontseating Service Valves From the People's Republic of China:
Final Results of the 2008-2010 Antidumping Duty Administrative Review
of the Antidumping Duty Order
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: On May 9, 2011, the Department of Commerce (``Department'')
published the preliminary results in the 2008-2010 antidumping duty
administrative review of frontseating service valves (``FSVs'') from
the People's Republic of China
[[Page 70707]]
(``PRC'').\1\ The period of review (``POR'') is October 22, 2008,
through March 31, 2010. We have rescinded the review with respect to
Tycon Alloy Industries (Shenzhen) Co., Ltd. (``Tycon Alloy''). We have
determined that Zhejiang DunAn Hetian Metal Co., Ltd. (``DunAn'') and
Zhejiang Sanhua Co., Ltd. (``Sanhua''), the only respondents in this
review, made sales in the United States at prices below normal value
(``NV''). There are no other respondents covered by this review. We
invited interested parties to comment on our Preliminary Results. Based
on our analysis of the comments received, we made changes to our margin
calculations for DunAn and Sanhua. The final dumping margins for this
review are listed in the ``Final Results Margins'' section below.
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\1\ See Frontseating Service Valves from the People's Republic
of China: Preliminary Results of the 2008-2010 Antidumping Duty
Administrative Review and Partial Rescission of Review, 76 FR 26686
(May 9, 2011) (``Preliminary Results'').
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DATES: Effective Date: November 15, 2011.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, Paul Stolz, or Eugene
Degnan, AD/CVD Operations, Office 8, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230; telephone:
(202) 482-4243, (202) 482-4474, and (202) 482-0414, respectively.
Background
On May 9, 2011, the Department published its Preliminary Results in
the antidumping duty administrative review of frontseating service
valves from the People's Republic of China.\2\ On June 7 and June 8,
2011, Sanhua and DunAn, respectively, requested a hearing for issues
raised in the case and rebuttal briefs.
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\2\ See Preliminary Results.
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On June 21, 2011, all parties (Parker-Hannifin Corporation
(``Petitioner''), DunAn and Sanhua) submitted publicly available
surrogate value (``SV'') data to value TMI's factors of production. On
July 11, 2011, DunAn and Sanhua submitted rebuttal SV comments on the
June 21, 2011, submissions. On July 19, 2011, in conformity with the
Department's revised wage rate methodology,\3\ we placed on the record
additional wage rate information for consideration in the final
results, and requested parties to comment on that data.\4\ None of the
parties to this proceeding provided comments on the Department's wage
rate data. We received the case briefs from all parties on August 16,
2011, and rebuttal briefs on August 22, 2011.
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\3\ See Antidumping Methodologies in Proceedings Involving Non-
Market Economies: Valuing the Factor of Production: Labor, 76 FR
36092 (June 21, 2011).
\4\ See Memorandum to the File, ``Frontseating Service Valves
from the People's Republic of China: Industry-Specific Surrogate
Wage Rate and Surrogate Financial Ratios,'' dated July 19, 2011.
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On August 24, 2011, the Department extended the deadline for the
final results of review until November 5, 2011.\5\ On September 8,
2011, DunAn and Sanhua each withdrew their request for a hearing.
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\5\ See Frontseating Service Valves from the People's Republic
of China: Extension of Time for the Final Results of the Antidumping
Duty Administrative Review, 76 FR 52935 (August 24, 2011).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs filed by parties
in this review are addressed in the Memorandum from Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for
Import Administration, ``Frontseating Service Valves From the People's
Republic of China: Issues and Decision Memorandum for the Final Results
of the 2008-2010 Administrative Review, dated November 7, 2011
(``Issues and Decision Memorandum''),'' which is hereby adopted by this
notice. A list of the issues that parties raised and to which we
responded in the Issues and Decision Memorandum follows as an appendix
to this notice. The Issues and Decision Memorandum is a public document
and is on file in the Central Records Unit (``CRU''), Main Commerce
Building, Room 7046, and is also accessible on the Web at http://ia.ita.doc.gov/frn. The paper copy and electronic version of the Issues
and Decision Memorandum are identical in content.
Period of Review
The POR is October 22, 2008, through March 31, 2010.
Scope of the Order
The merchandise covered by this order is frontseating service
valves, assembled or unassembled, complete or incomplete, and certain
parts thereof. Frontseating service valves contain a sealing surface on
the front side of the valve stem that allows the indoor unit or outdoor
unit to be isolated from the refrigerant stream when the air
conditioning or refrigeration unit is being serviced. Frontseating
service valves rely on an elastomer seal when the stem cap is removed
for servicing and the stem cap metal to metal seat to create this seal
to the atmosphere during normal operation.\6\
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\6\ The frontseating service valve differs from a backseating
service valve in that a backseating service valve has two sealing
surfaces on the valve stem. This difference typically incorporates a
valve stem on a backseating service valve to be machined of steel,
where a frontseating service valve has a brass stem. The backseating
service valve dual stem seal (on the back side of the stem), creates
a metal to metal seal when the valve is in the open position, thus,
sealing the stem from the atmosphere.
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For purposes of the scope, the term ``unassembled'' frontseating
service valve means a brazed subassembly requiring any one or more of
the following processes: The insertion of a valve core pin, the
insertion of a valve stem and/or O ring, the application or
installation of a stem cap, charge port cap or tube dust cap. The term
``complete'' frontseating service valve means a product sold ready for
installation into an air conditioning or refrigeration unit. The term
``incomplete'' frontseating service valve means a product that when
sold is in multiple pieces, sections, subassemblies or components and
is incapable of being installed into an air conditioning or
refrigeration unit as a single, unified valve without further assembly.
The major parts or components of frontseating service valves
intended to be covered by the scope under the term ``certain parts
thereof'' are any brazed subassembly consisting of any two or more of
the following components: A valve body, field connection tube, factory
connection tube or valve charge port. The valve body is a rectangular
block, or brass forging, machined to be hollow in the interior, with a
generally square shaped seat (bottom of body). The field connection
tube and factory connection tube consist of copper or other metallic
tubing, cut to length, shaped and brazed to the valve body in order to
create two ports, the factory connection tube and the field connection
tube, each on opposite sides of the valve assembly body. The valve
charge port is a service port via which a hose connection can be used
to charge or evacuate the refrigerant medium or to monitor the system
pressure for diagnostic purposes.
The scope includes frontseating service valves of any size,
configuration, material composition or connection type. Frontseating
service valves are classified under subheading 8481.80.1095, and also
have been classified under subheading 8415.90.80.85, of the Harmonized
Tariff Schedule of the United States (``HTSUS''). It is possible for
frontseating service valves to be
[[Page 70708]]
manufactured out of primary materials other than copper and brass, in
which case they would be classified under HTSUS subheadings
8481.80.3040, 8481.80.3090, or 8481.80.5090. In addition, if
unassembled or incomplete frontseating service valves are imported, the
various parts or components would be classified under HTSUS subheadings
8481.90.1000, 8481.90.3000, or 8481.90.5000. The HTSUS subheadings are
provided for convenience and customs purposes, but the written
description of the scope of this proceeding is dispositive.
Rescission of Administrative Review in Part
In the Preliminary Results, the Department partially rescinded the
review with respect to Tycon Alloy because it submitted a ``no
shipment'' letter and our review of CBP import data did not contradict
that information. Because Tycon Alloy is part of the PRC-wide entity,
the Department stated that it would issue liquidation instructions for
the PRC-wide entity, which includes Tycon Alloy, 15 days after the
publication of these Final Results.\7\
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\7\ Tycon Alloy was not previously assigned a separate rate from
a prior segment of the proceeding. See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 75 FR 29976 (May 28,
2010); and Preliminary Results, 76 FR at 26693. The Department could
not order liquidation for a company which, although no longer under
review as an independent entity, might still be under review as part
of the PRC-wide entity. See Preliminary Results, 76 FR at 26693;
and, Certain Steel Nails From the People's Republic of China: Notice
of Extension of Time Limits and Partial Rescission of the Second
Antidumping Duty Administrative Review, 76 FR 23788 (April 28,
2011).
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Changes Since the Preliminary Results
Based on an analysis of the comments received, the Department has
made certain changes in the margin calculation. For the final results,
the Department has made the following changes:
We revised the surrogate financial ratios for overhead,
selling, general and administrative expenses and profit to account for
our determination that the financial statements of Pyrocast India
Private Limited (``Pyrocast'') alone represented the best information
available on the record to value these ratios. See Comment 1 of the
accompanying Issues and Decision Memorandum.
We revised the valuation of brazing rings for Sanhua to
account for the proportion of copper, silver and phosphorus recorded on
a quality certificate that Sanhua provided with respect to brazing
rings in its supplemental questionnaire response. See Comment 6 of the
accompanying Issues and Decision Memorandum.
We valued DunAn's brass bar processed by tollers using
scrap provided by DunAn using publicly available data from an
economically comparable country. See Comment 12 of the accompanying
Issues and Decision Memorandum.
Consistent with Antidumping Methodologies in Proceedings
Involving Non-Market Economies: Valuing the Factor of Production:
Labor, 76 FR 36092 (June 21, 2011), we have made revisions to the
surrogate labor rate for the final results of this administrative
review. For these final results, the surrogate labor rate has changed
from US$1.04/hour to 80.14 Indian Rupees per hour. See Memorandum to
the File, ``Frontseating Service Valves from the People's Republic of
China: Industry-Specific Surrogate Wage Rate and Surrogate Financial
Ratios,'' dated July 19, 2011; see also Memorandum to the File,
``Antidumping Duty Administrative Review of Frontseating Service Valves
from the People's Republic of China: Factor Valuation for the Final
Results of Review,'' dated November 7, 2011.
Final Results Margin
We determine the weighted-average dumping margins for the period
October 22, 2008, through March 31, 2010, to be:
Frontseating Service Valves From the PRC
------------------------------------------------------------------------
Weighted-
average
Exporter margin
(percentage)
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Zhejiang DunAn Hetian Metal Co. Ltd..................... 9.42
Zhejiang Sanhua Co., Ltd................................ 5.22
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Assessment Rates
Pursuant to section 751(a)(2)(A) of the Act and 19 CFR 351.212(b),
the Department will determine, and U.S. Customs and Border Protection
(``CBP'') shall assess, antidumping duties on all appropriate entries
of subject merchandise in accordance with the final results of this
review. For assessment purposes, we calculated importer (or customer)-
specific assessment rates for merchandise subject to this review. Where
appropriate, we calculated an ad valorem rate for each importer (or
customer) by dividing the total dumping margins for reviewed sales to
that party by the total entered values associated with those
transactions. For duty-assessment rates calculated on this basis, we
will direct CBP to assess the resulting ad valorem rate against the
entered customs values for the subject merchandise. Where appropriate,
we calculated a per-unit rate for each importer (or customer) by
dividing the total dumping margins for reviewed sales to that party by
the total sales quantity associated with those transactions. For duty-
assessment rates calculated on this basis, we will direct CBP to assess
the resulting per-unit rate against the entered quantity of the subject
merchandise. Where an importer (or customer)-specific assessment rate
is de minimis (i.e., less than 0.50 percent), the Department will
instruct CBP to assess that importer (or customer's) entries of subject
merchandise without regard to antidumping duties, in accordance with 19
CFR 351.106(c)(2). The Department intends to issue assessment
instructions to CBP 15 days after the date of publication of these
final results of review.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date, as
provided for by section 751(a)(2)(C) of the Act: (1) For DunAn and
Sanhua, the cash deposit rate will be the rate identified in the Final
Results Margin section, as listed above; (2) for previously
investigated or reviewed PRC and non-PRC exporters not listed above
that have separate rates, the cash deposit rate will continue to be the
exporter-specific rate published for the most recent period; (3) for
all PRC exporters of subject merchandise which have not been found to
be entitled to a separate rate (including Tycon Alloy), the cash
deposit rate will continue to be the PRC-wide rate of 55.62 percent;
\8\ and (4) for all non-PRC exporters of subject merchandise which have
not received their own rate, the cash deposit rate will be the rate
applicable to the PRC exporter that supplied that non-PRC exporter. The
deposit requirements shall remain in effect until further notice.
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\8\ This rate was established in the final results of the
original investigation. See Frontseating Service Valves from the
People's Republic of China: Final Determination of Sales at Less
Than Fair Value and Final Negative Determination of Critical
Circumstances, 74 FR 10886 (March 13, 2009).
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Notification to Importers
This notice also serves as a final reminder to importers of their
responsibility under 19 CFR
[[Page 70709]]
351.402(f)(2) to file a certificate regarding the reimbursement of
antidumping duties prior to liquidation of the relevant entries during
this review period. Failure to comply with this requirement could
result in the Secretary's presumption that reimbursement of the
antidumping duties occurred and the subsequent assessment of double
antidumping duties.
Notification to Interested Parties
This notice also serves as a reminder to parties subject to
administrative protective orders (``APOs'') of their responsibility
concerning the return or destruction of proprietary information
disclosed under the APO in accordance with 19 CFR 351.305(a)(3), 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.
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
We are issuing and publishing the final results and notice in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: November 7, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I
Issues for the Final Results
Surrogate Values
Comment 1: Selection of Surrogate Financial Statements
Comment 2: Surrogate Value Data Source for Brass Bar
Comment 3: Whether to Include French Import Data to Value Brass Bar
Comment 4: Whether To Use the Average of HTS 7407.21.10 and HTS
7407.21.20 Import Values to Value Brass Bar
Comment 5: The Valuation of Valve Bodies
Comment 6: The Valuation of Brazing Rings
Comment 7: The Classification of Ammonia Gas
Comment 8: The Valuation of Labor
Comment 9: The Use of October 2008 GTA Data in the Calculation of
Surrogate Values
Issues With Respect to DunAn
Comment 10: Rebates Paid on Sales to the United States
Comment 11: Freight Charges on U.S. Sales
Comment 12: The Use of Tollers' FOPs in the Calculation of NV
Issues With Respect to Sanhua
Comment 13: Upward Billing Adjustments
Comment 14: Brokerage and Handling Expense in the United States
Comment 15: Indirect Selling Expenses in the United States
General Issues
Comment 16: Zeroing
Comment 17: Procedures for Issuing Liquidation Instructions
Comment 18: By-Product Offset for Brass Scrap
[FR Doc. 2011-29498 Filed 11-14-11; 8:45 am]
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