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76234 Federal Register / Vol. 70, No.

246 / Friday, December 23, 2005 / Notices

COMMITTEE FOR PURCHASE FROM Services EFFECTIVE DATE:December 23, 2005.


PEOPLE WHO ARE BLIND OR Service Type/Location: Basewide Custodial FOR FURTHER INFORMATION CONTACT:
SEVERELY DISABLED Services Tisha Loeper–Viti at (202) 482–7425 or
U.S. Naval Academy Complex, Annapolis,
Ryan Douglas at (202) 482–1277, Import
Procurement List; Additions Maryland
NPA: Melwood Horticultural Training Administration, International Trade
AGENCY: Committee for Purchase from Center, Upper Marlboro, Maryland Administration, U.S. Department of
People Who Are Blind or Severely Contracting Activity: Naval Facilities Commerce, 14th Street and Constitution
Disabled. Engineering Command, Chesapeake, Avenue, NW, Washington, DC 20230.
ACTION: Additions to Procurement List. Washington, DC SUPPLEMENTARY INFORMATION:
Service Type/Location: Custodial Services
SUMMARY: This action adds to the West Point Gym, Building 705–C Barry Background
Procurement List services to be Road
West Point Middle School, Building 705– On December 1, 2004, the Department
furnished by nonprofit agencies
A Barry Road published a notice of opportunity to
employing persons who are blind or
West Point, New York request an administrative review of this
have other severe disabilities. NPA: Occupations, Inc., Middletown, New order. See Antidumping or
DATES: Effective Date: January 22, 2006. York Countervailing Duty Order, Finding, or
ADDRESSES: Committee for Purchase Contracting Activity: Directorate of Suspended Investigation; Opportunity
From People Who Are Blind or Severely Contracting, West Point, New York
To Request Administrative Review, 69
Disabled, Jefferson Plaza 2, Suite 10800, This action does not affect current FR 69889 (December 1, 2004). On
1421 Jefferson Davis Highway, contracts awarded prior to the effective December 30, 2004, in accordance with
Arlington, Virginia, 22202–3259. date of this addition or options that may 19 CFR 351.213(b)(1), Anvil
FOR FURTHER INFORMATION CONTACT: be exercised under those contracts. International, Inc. and Ward
Sheryl D. Kennerly, Telephone: (703) Manufacturing, Inc. (collectively, ‘‘the
Sheryl D. Kennerly,
603–7740, Fax: (703) 603–0655, or e- petitioners’’) requested that the
mail SKennerly@jwod.gov. Director, Information Management.
Department conduct administrative
SUPPLEMENTARY INFORMATION: On [FR Doc. E5–7764 Filed 12–22–05; 8:45 am] reviews of Beijing Sai Lin Ke Hardware
October 14, and October 28, 2005, the BILLING CODE 6353–01–P Co., Ltd. (‘‘SLK’’), Langfang Pannext
Committee for Purchase From People Pipe Fitting Co., Ltd. (‘‘Pannext’’),
Who Are Blind or Severely Disabled Chengde Malleable Iron General Factory
published notice (70 FR 60062, and DEPARTMENT OF COMMERCE (‘‘Chengde’’), and SCE Co., Ltd. (‘‘SCE’’).
62092) of proposed additions to the On January 31, 2005, the Department
Procurement List. International Trade Administration
published a notice of initiation of this
After consideration of the material (A–570–881) administrative review. See Initiation of
presented to it concerning capability of Antidumping and Countervailing Duty
qualified nonprofit agencies to provide Certain Malleable Iron Pipe Fittings Administrative Reviews and Request for
the services and impact of the additions From the People’s Republic of China: Revocation in Part, 70 FR 4818 (January
on the current or most recent Notice of Preliminary Results of 31, 2005). On September 2, 2005, the
contractors, the Committee has Antidumping Duty Administrative Department extended the due date for
determined that the services listed Review the preliminary results of this review to
below are suitable for procurement by December 16, 2005. See Notice of
AGENCY: Import Administration,
the Federal Government under 41 U.S.C. Extension of Time Limit for the
International Trade Administration,
46–48c and 41 CFR 51–2.4. Preliminary Results of Antidumping
Department of Commerce.
Regulatory Flexibility Act Certification SUMMARY: In response to a request from Duty Administrative Review: Certain
Anvil International, Inc. and Ward Malleable Iron Pipe Fittings from the
I certify that the following action will People’s Republic of China, 70 FR 52634
not have a significant impact on a Manufacturing, Inc., domestic producers
and interested parties in this (September 2, 2005).
substantial number of small entities.
proceeding, the Department of On March 14, 2005, we issued
The major factors considered for this
Commerce (‘‘the Department’’) is antidumping questionnaires to SLK,
certification were:
1. The action will not result in any conducting an administrative review of Pannext, Chengde and SCE. SLK,
additional reporting, recordkeeping or the antidumping duty order on certain Pannext, and SCE submitted timely
other compliance requirements for small malleable iron pipe fittings (‘‘MPF’’) responses to the Department’s
entities other than the small from the People’s Republic of China questionnaire in April and May 2005.
organizations that will furnish the (‘‘PRC’’). The period of review (‘‘POR’’) For information on Chengde’s response,
services to the Government. is December 2, 2003, through November see the Facts Otherwise Available
2. The action will result in 30, 2004. We have preliminarily section below. We issued supplemental
authorizing small entities to furnish the determined that sales were made below questionnaires in July and November of
services to the Government. normal value (‘‘NV’’). If these 2005 to certain respondents, as
3. There are no known regulatory preliminary results are adopted in our appropriate, and received timely
alternatives which would accomplish final results of review, the Department responses to each.
the objectives of the Javits-Wagner- will instruct U.S. Customs and Border On August 15, 2005, the petitioners
O’Day Act (41 U.S.C. 46–48c) in Protection (‘‘CBP’’) to assess submitted publicly available
connection with the services proposed antidumping duties on all appropriate information for consideration in valuing
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for addition to the Procurement List. entries of MPF during the POR for the factors of production (‘‘FOPs’’). SLK
which the importer–specific assessment and Pannext submitted information for
End of Certification rates are above de minimis. Interested this purpose on August 25, 2005. The
Accordingly, the following services parties are invited to comment on these petitioners submitted rebuttal comments
are added to the Procurement List: preliminary results. on September 2, 2005.

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Federal Register / Vol. 70, No. 246 / Friday, December 23, 2005 / Notices 76235

Scope of the Order whether each exporter is independent authority; (2) whether the respondent
For purposes of this order, the from government control. has the authority to negotiate and sign
products covered are certain malleable contracts and other agreements; (3)
A. Absence of De Jure Control
iron pipe fittings, cast, other than whether the respondent has autonomy
The Department considers the from the government in making
grooved fittings, from the PRC. The following de jure criteria in determining
merchandise is currently classifiable decisions regarding the selection of its
whether an individual company may be management; and (4) whether the
under item numbers 7307.19.90.30, granted a separate rate: (1) an absence of
7307.19.90.60 and 7307.19.90.80 of the respondent retains the proceeds of its
restrictive stipulations associated with export sales and makes independent
Harmonized Tariff Schedule of the an individual exporter’s business and decisions regarding disposition of
United States (‘‘HTSUS’’). Excluded export licenses; and (2) any legislative profits or financing of losses.
from the scope of this order are metal enactments decentralizing control of SLK and SCE reported that they are
compression couplings, which are companies. wholly owned by foreign entities.
imported under HTSUS number One of the respondents has placed on Pannext reported that it is privately
7307.19.90.80. A metal compression the record a number of documents to owned by individual shareholders. Each
coupling consists of a coupling body, demonstrate absence of de jure control has asserted the following: (1) There is
two gaskets, and two compression nuts. including the ‘‘Foreign Trade Law of the no government participation in setting
These products range in diameter from People’s Republic of China,’’ the export prices; (2) sales managers and
1/2 inch to 2 inches and are carried only ‘‘Administrative Regulations of the authorized employees have the
in galvanized finish. Although HTSUS People’s Republic of China Governing authority to bind sales contracts; (3)
subheadings are provided for the Registration of Legal Corporations,’’ they do not have to notify any
convenience and Customs purposes, the and the ‘‘Law of the People’s Republic government authorities of management
Department’s written description of the of China on Foreign Capital selections; (4) there are no restrictions
scope of this proceeding is dispositive. Enterprises.’’ The Department has on the use of export revenue; (5) each
Separate–Rates Determination analyzed such PRC laws and found that is responsible for financing its own
they establish an absence of de jure losses. The questionnaire responses of
The Department has treated the PRC control. See, e.g., Preliminary Results of SLK, Pannext, and SCE do not suggest
as a non–market-economy (‘‘NME’’) New Shipper Review: Certain Preserved that pricing is coordinated among
country in all past antidumping duty Mushrooms From the People’s Republic exporters. During our analysis of the
investigations and administrative of China, 66 FR 30695 (June 7, 2001), information on the record, we found no
reviews. See, e.g., Final Determination unchanged in the final determination. information indicating the existence of
of Sales at Less Than Fair Value: We have no information in this government control. Consequently, we
Tetrahydrofurfuryl Alcohol From the proceeding that would cause us to preliminarily determine that SLK,
People’s Republic of China, 69 FR 34130 reconsider this determination. Thus, we Pannext, and SCE have met the criteria
(June 18, 2004). A designation as an believe that the evidence on the record for the application of a separate rate.
NME country remains in effect until it supports a preliminary finding of an Because we find the information
is revoked by the Department. See absence of de jure government control provided by Chengde to be unreliable
section 771(18)(C)(i) of the Tariff Act of based on: (1) an absence of restrictive and Chengde has not cooperated to the
1930, as Amended (‘‘the Act’’). stipulations associated with the best of its ability, we are applying an
It is the Department’s standard policy exporter’s business license; and (2) the adverse inference with respect to
to assign all exporters of subject legal authority on the record Chengde for these preliminary results
merchandise subject to review in an decentralizing control over the and preliminarily find that it is part of
NME country a single rate unless an respondent. the PRC–wide entity. For further
exporter can demonstrate an absence of information, see the Facts Otherwise
government control, both in law and in B. Absence of De Facto Control
Available section below.
fact, with respect to exports. To As stated in previous cases, there is
establish whether an exporter is some evidence that certain enactments Export Price
sufficiently independent of government of the PRC central government have not For all sales made by SCE and certain
control to be entitled to a separate rate, been implemented uniformly among sales made by Pannext,1 we based the
the Department analyzes the exporter in different sectors and/or jurisdictions in U.S. price on export price (‘‘EP’’), in
light of the criteria established in the the PRC. See Final Determination of accordance with section 772(a) of the
Final Determination of Sales at Less Sales at Less Than Fair Value: Certain Act, because the first sale to an
Than Fair Value: Sparklers from the Preserved Mushrooms from the People’s unaffiliated purchaser was made prior
People’s Republic of China, 56 FR 20588 Republic of China, 63 FR 72255 to importation and constructed export
(May 6, 1991) (‘‘Sparklers’’); and Final (December 31, 1998). Therefore, the price (‘‘CEP’’) was not otherwise
Determination of Sales at Less Than Department has determined that an warranted by the facts on the record. We
Fair Value: Silicon Carbide from the analysis of de facto control is critical in calculated EP based on the packed price
People’s Republic of China, 59 FR 22585 determining whether respondents are, from the exporter to the first unaffiliated
(May 2, 1994) (‘‘Silicon Carbide’’). in fact, subject to a degree of customer in the United States.
SLK, Pannext, and SCE all provided government control which would For SCE, we deducted foreign inland
the requested separate–rate information preclude the Department from assigning freight, foreign brokerage and handling,
in their responses to our original and separate rates. The Department typically international ocean freight, marine
supplemental questionnaires. considers four factors in evaluating insurance, and U.S. inland freight
Accordingly, consistent with Notice of whether each respondent is subject to
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Final Determination of Sales at Less de facto government control of its 1 In this review, Pannext has reported that all of

Than Fair Value: Bicycles From the export functions: (1) whether the its sales are EP transactions. For purposes of these
preliminary results, however, we are treating
People’s Republic of China, 61 FR 19026 exporter sets its own export prices Pannext’s sales made through its U.S. affiliate as
(April 30, 1996), we performed independent of the government and CEP transactions. See the Constructed Export Price
separate–rates analyses to determine without the approval of a government section below for further details.

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76236 Federal Register / Vol. 70, No. 246 / Friday, December 23, 2005 / Notices

expenses, where appropriate, from the the U.S. affiliate and the unaffiliated no party has argued otherwise, we
gross unit price, in accordance with U.S. customer. According to Pannext, its calculated NV based on FOP in
section 772(c) of the Act. U.S. affiliate receives the purchase accordance with sections 773(c)(3) and
For Pannext, we deducted discounts, order, order confirmation, and payment (4) of the Act and 19 CFR 351.408(c).
foreign inland freight, foreign brokerage from the unaffiliated U.S. customer. In Because we are using surrogate–
and handling, international ocean its questionnaire response, Pannext country FOP prices to determine NV,
freight, marine insurance, freight describes its U.S. affiliate as its ‘‘sales section 773(c)(4) of the Act requires that
surcharges, U.S. brokerage and handling headquarters’’ that is involved in the the Department use values from an ME
expenses, and U.S. import duties, where marketing and sale of subject (surrogate) country that is at a level of
appropriate, from the gross unit price, in merchandise and incurs expenses economic development comparable to
accordance with section 772(c) of the typically associated with CEP sales (e.g., that of the PRC and that is a significant
Act. indirect selling expenses, credit producer of comparable merchandise.
expenses, etc.). Pannext further reported We find that India, Indonesia, Sri Lanka,
Constructed Export Price
that the chairman of Pannext is also the the Philippines, and Egypt are ME
In accordance with section 772(b) of president of the U.S. affiliate and has countries at a level of economic
the Act, we used CEP methodology the power to contractually bind Pannext development comparable to that of the
when the first sale to an unaffiliated to U.S. sales. Based on this information PRC. For a further discussion of our
purchaser occurred after importation of and the fact that Pannext has not surrogate selection, see the February 14,
the merchandise into the United States. demonstrated sufficiently why the 2005, memorandum from Ron Lorentzen
We calculated CEP for all of SLK’s sales Department should not continue to treat to Wendy Frankel regarding Request for
and, as described further below, for these sales as CEP transactions in the a List of Surrogate Countries, which is
certain U.S. sales made by Pannext current review, we find that the sales available in the Department’s Central
through its U.S. affiliate to unaffiliated made through Pannext’s U.S. affiliate Records Unit (‘‘CRU’’), room B099 of the
U.S. customers. should be treated as CEP transactions main Commerce building. In addition,
For SLK, we made adjustments to the consistent with the Department’s according to the Monthly Statistics of
gross unit price for foreign inland treatment of such sales in the LTFV the Foreign Trade of India (‘‘MSFTI’’) as
freight, foreign warehousing, foreign investigation. published by the Directorate General of
brokerage and handling, international For Pannext’s CEP transactions, we Commercial Intelligence and Statistics
ocean freight, marine insurance, U.S. made adjustments to the gross unit price of the Ministry of Commerce and
inland freight, U.S. brokerage and for discounts, foreign inland freight, Industry, Government of India, and
handling expenses, U.S. warehousing, foreign brokerage and handling, available from World Trade Atlas, we
and U.S. customs duties. In accordance international ocean freight, marine found that India exported 12,073,802
with section 772(d)(1) of the Act, we insurance, freight surcharges, U.S. kilograms of comparable merchandise
also deducted those selling expenses brokerage and handling expenses, and (i.e., cast iron pipe fittings NESOI or
associated with economic activities U.S. import duties. In accordance with steel based on HTS number 7307.19)
occurring in the United States, section 772(d)(1) of the Act, we also during the POR valued at USD
including commissions, credit expenses, deducted those selling expenses 24,535,575. See World Trade Atlas at
advertising expenses, inventory carrying associated with economic activities http://www.gtis.com/wta.htm.
costs, and indirect selling expenses. We occurring in the United States, Therefore, we find that India is a
also made an adjustment for profit in including credit expenses and indirect significant producer of comparable
accordance with section 772(d)(3) of the selling expenses. We also made an merchandise. Additionally, we are able
Act. adjustment for profit in accordance with to access Indian data that are
In this review, Pannext has reported section 772(d)(3) of the Act. contemporaneous with this POR. As in
that all of its sales are EP transactions. Where movement expenses were the LTFV investigation, we have chosen
In the LTFV investigation, however, provided by PRC service providers or India as the primary surrogate country
Pannext reported all sales through its paid for in Chinese renminbi, we valued and are using Indian prices to value the
U.S. affiliate as CEP transactions. See these services using Indian surrogate FOPs. See the December 16, 2005,
Notice of Preliminary Determination of values. See Surrogate Values section memorandum from Ryan A. Douglas to
Sales at Less Than Fair Value and below. Where applicable, we used the the File regarding Preliminary Valuation
Postponement of Final Determination: actual reported expense for those of Factors of Production (‘‘FOP Memo’’).
Certain Malleable Iron Pipe Fittings movement expenses provided by market We selected, where possible, publicly
From the People’s Republic of China, 68 economy (‘‘ME’’) suppliers and paid for available values from India that were
FR 33911 (June 6, 2003), unchanged in in an ME currency. average non–export values,
the final determination. We find that the representative of a range of prices
sales in the current review follow the Normal Value within the POR or most
same fact pattern as the sales reported Section 773(c)(1) of the Act provides contemporaneous with the POR,
as CEP transactions during the LTFV that, in the case of an NME, the product–specific, and tax–exclusive.
investigation. Pannext reported that its Department shall determine normal Also, where we have relied upon import
date of sale (i.e., date all material terms value (‘‘NV’’) using an FOP values, we have excluded imports from
of sale are set) is the date of shipment methodology if the merchandise is NME countries as well as from South
and that its U.S. affiliate issues the exported from an NME and the Korea, Thailand, and Indonesia. The
official invoice to the unaffiliated U.S. information does not permit the Department has found that South Korea,
customer upon shipment of the calculation of NV using home–market Thailand, and Indonesia maintain
merchandise by Pannext to the U.S. prices, third–country prices, or broadly available, non–industry-specific
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customer. Pannext issues an invoice to constructed value under section 773(a) export subsidies. The existence of these
the U.S. affiliate (e.g., a transfer–price of the Act. Because information on the subsidies provides sufficient reason to
sale between Pannext and the U.S. record does not permit the calculation believe or suspect that export prices
affiliate) for the sale typically in an of NV using home–market prices, third– from these countries may be subsidized.
amount that differs from that between country prices, or constructed value and See Final Determination of Sales at Less

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Than Fair Value: Certain Automotive for June 1, 2003, available at http:// appropriate, therefore, for these
Replacement Glass Windshields From www.midcindia.com/waterlsupply. To preliminary results, to average the
the People’s Republic of China, 67 FR value coke and firewood, we used the financial ratios derived from the
6482 (February 12, 2002), and per–kilogram values obtained from financial statements of Vishal, Ennore,
accompanying Issues and Decision MSFTI and made adjustments to and Bhagwati to calculate factory
Memorandum at Comment 1. Our account for freight costs incurred overhead and SG&A expenses for the
practice of excluding subsidized prices between the suppliers and the factory. respondents and, as Bhagwati did not
has been upheld in China National To value coal we used the Teri Energy earn a profit in 2003–2004, to average
Machinery Import and Export Data Directory & Yearbook (2004). the profit ratios of only Vishal and
Corporation v. United States, 293 F. For labor, we used the most recent Ennore.
Supp. 2d 1334, 1136 (CIT 2003). regression–based wage rate for the PRC SLK and Pannext have also placed on
While it is our preferred methodology in ‘‘Expected Wages of Selected NME the record of the current review the
to use a producer’s actual FOPs in the Countries,’’ available at http:// 2002–2003 financial statements of
calculation of NV, the Department has ia.ita.doc.gov. Rajesh Malleables Limited (‘‘Rajesh’’),
found it necessary to depart from that For factory overhead, selling, general, an Indian producer of identical
practice in instances where the actual and administrative expenses (‘‘SG&A’’), merchandise. We have declined to
FOP is a process provided by a and profit values, we used the 2002– include Rajesh’s financial data in our
subcontractor. In such cases, where we 2003 financial statements of Vishal calculation of surrogate financial ratios
have had difficulty obtaining reliable Malleables Limited (‘‘Vishal’’) and the because we have determined that this
surrogate values for the subcontracted 2003–2004 financial statements of company is a ‘‘sick company’’ under
production processes, we have resorted Ennore Foundries Limited (‘‘Ennore’’) India’s Sick Industrial Companies
to using the subcontractor’s FOPs as the and Bhagwati Autocast Limited (Special Provisions) Act of 1985,
producer’s own. See Certain Helical (‘‘Bhagwati’’), all of which are Indian amended 1993. It is the Department’s
Spring Lock Washers from the People’s producers of comparable merchandise. policy not to use the financial
Republic of China: Final Results of From this information, we were able to statements of ‘‘sick’’ companies in its
Antidumping Duty Administrative determine factory overhead as a calculations of surrogate financial ratios.
Review and Determination Not to percentage of the total raw materials, See, e.g., Persulfates from the People’s
Revoke the Antidumping Duty Order, in labor and energy (‘‘ML&E’’) costs; SG&A Republic of China: Final Results of
Part, 69 FR 12119 (March 15, 2004), and as a percentage of ML&E plus overhead Antidumping Duty Administrative
accompanying Issues and Decision (i.e., cost of manufacture); and the profit Review, 70 FR 6836 (February 9, 2005),
Memorandum at comment 4. In the rate as a percentage of the cost of and accompanying Issues and Decision
instant review, one of SLK’s suppliers manufacture plus SG&A. The Memorandum at Comment 3.
subcontracted its galvanizing process to Department used the 2001–2002 In calculating the surrogate ratios for
another company. SLK has provided the financial statements of Vishal in the Vishal, Ennore, and Bhagwati for
FOPs for these processes along with the final determination of the LTFV purposes of this review, we deviated
supplier’s own FOPs. Due to the investigation. See Final Determination from the methodology used in the LTFV
difficulty in obtaining reliable surrogate at comment 3. Although the petitioner investigation in two respects. First,
values for galvanizing, we have instead claimed in its September 2, 2005, regarding the treatment of job and
applied values to the subcontractors’ submission, that both Ennore and process charges, although such charges
FOPs. Bhagwati were primarily producers of are treated as overhead expenses in the
merchandise for the automotive financial statements, we are categorizing
Surrogate Values industry and, therefore, not producers of these expenses as ML&E in order to
To value all material inputs, by– comparable merchandise, we observe mirror the respondents’ experience,
products, and packing materials, we that both companies produce primarily explained below, as much as possible
used per–kilogram import values cast iron products utilizing substantially and avoid double counting. One of the
obtained from MSFTI. As appropriate, the same raw materials and production respondents is an independent producer
we adjusted these values to account for processes as the respondents in the and the FOPs we are using for the
freight costs incurred between the current review. We also observe that second respondent are from its supplier,
suppliers and the factory. We calculated Vishal manufactures products for the which is also an integrated producer.
these freight costs based on the shorter automotive industry as well. The third respondent, SLK, purchases
of the reported distance from the Furthermore, it is the Department’s MPF from several producers, two of
domestic supplier to the factory or preference to use multiple financial which are not fully integrated. These
distance from the port in accordance statements when they are not distortive two producers out–source certain
with the decision in Sigma Corporation or otherwise unreliable, in order to processes to sub–contractors. As
v. United States, 117F. 3d 1401, 1407– eliminate potential distortions that may explained below in the Facts Otherwise
8 (Fed. Cir. 1997). We made currency arise from using those of a single Available section, however, we are
conversions into U.S. dollars, in producer. See, e.g., Final Results of New valuing the actual inputs used in these
accordance with section 773A of the Shipper Review: Certain Preserved processes, rather than valuing the
Act, based on the exchange rates in Mushrooms From the People’s Republic processes themselves, and including
effect on the dates of the U.S. sale(s) as of China, 66 FR 45006 (August 27, them in ML&E in the respondent’s
certified by the U.S. Federal Reserve 2001), and accompanying Issues and build–up of NV. Therefore, it is
Bank. Decision Memorandum at Comment 1 appropriate to apply the surrogate
To value electricity, we used the 2000 and Brake Rotors From the People’s financial ratios to these producers’ costs
electricity price data from International Republic of China: Preliminary Results as if they were also integrated producers
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Energy Agency, Energy Prices and Taxes of Third New Shipper Review and in order to avoid double counting the
- Quarterly Statistics (Second Quarter Preliminary Results and Partial expenses associated with the out–
2003). To value water, we used the Rescission of Second Antidumping Duty sourced processes.
Revised Maharashtra Industrial Administrative Review, 64 FR 73007 Second, regarding the treatment of
Development Corporation water rates (December 29, 1999). We find it changes in inventory, it is the

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Department’s practice to exclude from Facts Otherwise Available margin calculated for its other reported
our calculation of surrogate financial U.S. sales.
ratios increases or decreases in Section 776(a)(1) and (2) of the Act
provides that the Department shall For another of SLK’s suppliers, SLK
finished–goods inventory, as well as was unable to provide complete FOPs
increases or decreases in the broader apply ‘‘facts otherwise available’’ if,
inter alia, necessary information is not for galvanized MPF. During the POR,
categories of stock or inventory where this supplier subcontracted the
there is insufficient detail regarding the on the record or an interested party or
any other person: (A) withholds galvanizing process to two different
content of these categories. We find that subcontractors: one for the first nine
each of the financial statements we are information that has been requested, (B)
fails to provide information within the months of the POR and the other for the
analyzing here, however, provides
deadlines established, or in the form last three months of the POR. Because
sufficient detail that enables us to
and manner requested by the the first subcontractor did not maintain
discriminate between inventory changes
Department, subject to subsections (c)(1) production records, SLK was able to
in finished goods and inventory changes
in work–in-process and raw materials. and (e) of section 782 of the Act, (C) provide the Department with complete
As the latter two items are properly significantly impedes a proceeding, or FOPs for only those products produced
categorized as production expenses, we (D) provides information that cannot be during the last three months of the POR.
are including them in our calculation as verified as provided by section 782(i) of Because of the small percentage of NV
ML&E. Consistent with the LTFV the Act. attributable to galvanizing, and because
investigation, we continue to exclude SLK has cooperated with the
In addition, section 776(b) of the Act
changes in finished–goods inventory. Department’s request for information to
provides that, if the Department finds
We used two sources to calculate a the best of its ability, for the purposes
that an interested party ‘‘has failed to
surrogate value for domestic brokerage of the prelminary results, we are
cooperate by not acting to the best of its
expenses. We averaged December 2003– applying neutral facts available by using
ability to comply with a request for
November 2004 data contained in Essar the three months of data representing
information,’’ the Department may use
Steel’s February 28, 2005, public the FOPs for galvanizing MPF provided
information that is adverse to the
version response submitted in the by the second subcontractor for the full
interests of that party as facts otherwise
antidumping duty administrative review available. The purpose of applying an POR.
of Hot–Rolled Carbon Steel Flat adverse inference is ‘‘to ensure that the SLK reported that certain products it
Products from India with October 2002– party does not obtain a more favorable sold to the U.S. during the POR were
September 2003 data contained in result by failing to cooperate than if it sold out of its own inventory and not
Pidilite Industries’ March 9, 2004, had cooperated fully.’’ See Statement of purchased from any of its suppliers
public version response submitted in Administrative Action (SAA) during the POR. Thus, for these
the antidumping duty investigation of accompanying the URAA, H.R. Doc. No. products, SLK was unable to provide
Carbazole Violet Pigment 23 from India. 316, 103d Cong., 2d Session at 870 the Department with purchased
The brokerage expense data reported by (1994). quantities to use as a weighting factor to
Essar Steel and Pidilite Industries in average each supplier’s reported FOPs.2
their public versions is ranged data. We SLK Additionally, SLK was unable to
first derived an average per–unit provide FOP data for approximately one
amount from each source. We then SLK purchased MPF from several
unaffiliated suppliers in the PRC. For half of those products because none of
adjusted each average rate for inflation SLK’s suppliers produced these
and, finally, averaged the two per–unit one supplier, SLK was able to provide
the Department with FOPs based only products during the POR. The
amounts to derive an overall average percentage of sales, by volume, that
rate for the POR. on a standard production formula.
Because this information is not based on these products represent is less than
To value truck freight, we used the
the supplier’s actual production three percent of its U.S. sales during the
freight rates published by Indian Freight
experience and it cannot be verified, the POR. Because of this, and because the
Exchange available at http://
Department has declined to use the Department did not request SLK to
www.infreight.com. To value domestic
reported FOPs. SLK also suggested an provide FOPs for these products based
warehousing, we used a rate obtained
alternative methodology; however, we on a prior period, we find that an
from the Board of Jawaharlal Nehru Port
do not have sufficient information at adverse inference is not warranted for
Trust, available at http://
this time to apply that alternative. Due the preliminary results. As neutral facts
www.jnport.com/newlsite/
to the totality of the circumstances, available, where we are unable to
itarrifflcrc.asp. To value international
ocean freight and U.S. inland freight, we however, we have determined that SLK weight average the product–specific
used price quotes obtained from Maersk has acted to the best of its ability to FOPs of each supplier by SLK’s
Sealand available at http:// provide the Department with the purchased quantities, we are using a
www.maersksealand.com. To value requested information and, in the simple average of the reported product–
marine insurance, we used a price quote absence of the actual FOPs, for the specific FOPs provided by the suppliers
obtained from RJG Consultants and purposes of these preliminary results, of that product. For the remaining
available at http:// an adverse inference is not warranted. products sold out of inventory, none of
www.rjgconstultants.com. Where As facts otherwise available for those SLK’s suppliers reported FOPs. For
necessary, we adjusted the surrogate products that SLK also purchased from sales of these products, for the purpose
values to reflect inflation/deflation other suppliers, we are using the of the preliminary results, we are
using the Indian Wholesale Price Index weighted–average FOPs (weighted by applying SLK’s weighted–average
as published on the Reserve Bank of purchased quantity) of the other margin calculated using its other
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India Web site, available at http:// suppliers. For those U.S. sales of
2 The Department requested that SLK report the
www.rbi.org.in. products not purchased from other
quantities of each product it purchased from each
For further detail regarding all of the suppliers (i.e., unique products supplier during the POR. This information is being
above surrogate values, see the FOP provided only by this supplier), we are used to weight the product-specific FOPs of each
Memo. applying SLK’s weighted–average supplier during the POR.

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reported U.S. sales as neutral facts inventory. We will provide Pannext information. Thus far we have issued
available. with an additional opportunity to two supplemental questionnaires to
Finally, SLK did not report FOPs for explain the methodology it used to Chengde. The first supplemental
a small number of unique products identify the ‘‘most similar’’ products questionnaire was issued on July 20,
purchased from all but one of its reported to the Department following 2005. Chengde’s response was received
suppliers. Due to the small number of these preliminary results, and will on August 10, 2005. On November 23,
sales affected by these missing FOPs, for revisit this issue for the final results of 2005, we issued a second supplemental
the purpose of the preliminary results, this proceeding. If appropriate, we may questionnaire to Chengde requesting,
we are applying neutral facts available resort to the use of AFA for Pannext for among other things, revised U.S. sales
to these sales. As neutral facts available, the final results of review. and FOP databases and reconciliations
we are applying the average of the FOPs For further detail, see the December for Chengde’s reported FOPs. Chengde
for the same products purchased from 16, 2005, memorandum from Sochieta requested an extension until December
other suppliers, if available. If Moth to the File regarding the 2003– 23, 2005, to respond to the
unavailable, we are applying SLK’s 2004 Administrative Review of the supplemental questionnaire. The
weighted–average margin. Antidumping Duty Order on Certain Department granted Chengde the full
We will provide SLK with an Malleable Iron Pipe Fittings from the extension requested, on the condition
opportunity to cure the deficiencies People’s Republic of China: Analysis that Chengde provide the Department
discussed above and will revisit the Memorandum for Preliminary Results with a specified minimal amount of
facts–available calls for SLK for the final for Pannext Fittings Corporation. information necessary for the
results of review in light of the Department to perform its calculation
adequacy of SLK’s response to this Chengde
analysis of Chengde’s sales of subject
opportunity. If appropriate, we may In the current proceeding, Chengde merchandise during the POR. Chengde
resort to the use of adverse facts significantly impeded both our ability to provided revised databases on
available (‘‘AFA’’) for SLK for the final complete the review of the MPF order December 5, 2005. However, we find
results of review. which we are conducting pursuant to that the databases are so deficient they
For further detail, see the December section 751 of the Act, and to impose cannot be used for the purpose of
16, 2005, memorandum from Jennifer the correct antidumping duties, as performing a calculation for Chengde.
Moats to the File regarding the 2003– mandated by section 731 of the Act. As Our review of the data revealed several
2004 Administrative Review of the discussed below, we preliminarily find major inconsistencies and omissions in
Antidumping Duty Order on Certain that its failure to cooperate with the Chengde’s most recent U.S. sales and
Malleable Iron Pipe Fittings from the Department to the best of its ability in FOP databases. For example, Chengde
People’s Republic of China: Analysis responding to the Department’s request did not provide FOP data for 26 of its
Memorandum for Preliminary Results for information warrants the use of sales (representing 23 different
for Beijing Sai Lin Ke Hardware Co., adverse facts available in determining products), and it provided different per–
Ltd. dumping margins for its sales of piece weights for the same products in
merchandise subject to the order. its FOP and U.S. sales databases.
Pannext Chengde has had extensive difficulty Because Chengde has not provided
Pannext did not report FOPs for less complying with the Department’s filing complete or usable data to the
than one percent of its U.S. sales made and service requirements during the Department despite the multiple
during the POR. Pannext has stated that course of this proceeding. On April 29, opportunities provided, pursuant to
it was not able to supply FOPs for these 2005, the Department rejected section 776(a)(1) of the Act, the
sales because the products were sold out Chengde’s sections A, C, and D Department will apply facts available to
of inventory and were not produced questionnaire responses due to filing Chengde because it did not provide the
during the POR. Pannext has suggested format and service deficiencies, offering necessary information to calculate a
that the Department use the FOPs of the Chengde the opportunity to correct the dumping margin. Because Chengde has
most similar products that were deficiencies and resubmit its responses. not cooperated to the best of its ability
produced during the POR and identified Chengde resubmitted its responses on pursuant to section 776(b) of the Act, it
the most similar products in its May 18, 2005. The Department is appropriate to use AFA for Chengde
December 1, 2005, submission to the subsequently discovered that the for purposes of the preliminary results
Department. However, Pannext did not submissions contained inconsistencies of review. Furthermore, we find that
provide any supporting information on regarding bracketed information. After because Chengde’s information is
the criteria used to identify the products giving Chengde multiple opportunities unreliable it does not merit a separate
on this list as ‘‘most similar’’ to those to re–bracket the proprietary rate and will be subject to the PRC–wide
products without reported FOP data. information and resubmit its responses rate.
Therefore, we are unable to use correctly, which Chengde did not do, As AFA for the PRC–wide entity
Pannext’s suggested methodology for the Department notified Chengde on (including Chengde), for the preliminary
these preliminary results. Because the July 7, 2005, that Chengde’s improperly results, we are applying the highest
sales in question constitute a small bracketed information would be treated weighted–average margin calculated in
percentage of Pannext’s sales of MPF to as public information by the this proceeding (i.e., 200.24 percent). In
the United States during the POR and Department. On July 21, 2005, after this case, the rate is the margin
Pannext has cooperated to the best of its improperly filing a request for an calculated for another respondent (i.e.,
ability, we find that an adverse extension and failing to serve it on the SCE) in the instant segment of the
inference is not warranted in this case. other parties to the proceeding, the proceeding.
As neutral facts available, for purposes Department again reminded Chengde of For further detail, see the December
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of the preliminary results, we are the filing requirements and helped it 16, 2005, memorandum from Tisha
applying Pannext’s calculated meet those requirements. Loeper–Viti to Wendy J. Frankel
weighted–average margin of its other In addition to filing problems, regarding the 2003–2004 Administrative
reported U.S. sales during the POR to Chengde had difficulty complying with Review of the Antidumping Duty Order
those U.S. sales that were sold out of the Department’s requests for on Certain Malleable Iron Pipe Fittings

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76240 Federal Register / Vol. 70, No. 246 / Friday, December 23, 2005 / Notices

from the People’s Republic of China: margin.’’ See TRBs, 61 FR at 57392. See Manufacturer/exporter Margin (percent)
Adverse Facts Available Analysis also Fresh Cut Flowers from Mexico;
Memorandum for Preliminary Results Preliminary Results of Antidumping Beijing Sai Lin Ke Hard-
for Chengde Malleable Iron General Duty Administrative Review, 61 FR ware Co., Ltd ............ 23.44
Factory. 6812, 6814 (February 22, 1996) Langfang Pannext Pipe
We intend to issue Chengde one more Fitting Co., Ltd. ......... 5.25
(disregarding the highest margin in the SCE Co., Ltd. ............... 200.24
supplemental questionnaire outlining case as best information available PRC–Wide Entity (in-
the deficiencies we are able to identify because the margin was based on cluding Chengde) ...... 200.24
in its current submissions. Should another company’s uncharacteristic
Chengde’s forthcoming response to the business expense resulting in an We will disclose the calculations used
Department’s second and third (to be in our analysis to parties to this
extremely high margin).
issued following the preliminary
In this review, we are using as AFA proceeding within five days of the
results) supplemental questionnaires be
the margin calculated for a respondent publication date of this notice. See 19
incomplete or unusable, or should
in the instant review, which constitutes CFR § 351.224(b). Interested parties are
Chengde fail to provide additional data
secondary information within the invited to comment on the preliminary
requested by the Department within the
results. Interested parties may submit
requested time frame, we may continue meaning of the SAA. See SAA at 870.
case briefs and rebuttal briefs, limited to
to use AFA for Chengde for the final Unlike other types of information issues raised in the case briefs. The
results of review. such as input costs or selling expenses, Department will notify all parties of the
Corroboration of Secondary however, there are no independent briefing and hearing request schedule at
Information sources for calculated dumping margins. a later date. Parties who submit
Section 776(c) of the Act provides that Thus, in an administrative review, if the arguments are requested to submit with
when the Department relies on the facts Department chooses as facts available a each argument a statement of the issue,
otherwise available and relies on calculated dumping margin from the a brief summary of the argument, and a
‘‘secondary information,’’ the current or from a prior segment of the table of authorities. Further, we would
Department shall, to the extent proceeding, it is not necessary to appreciate if parties submitting written
practicable, corroborate that information question the reliability of the margin if comments provide an additional copy of
from independent sources reasonably at it was calculated from sales and cost the public version of any such
its disposal. Secondary information is data. The 200.24 percent rate is based comments on a diskette. Any interested
defined in the SAA as ‘‘information on information provided by SCE in the party may request a hearing. See 19 CFR
derived from the petition that gave rise instant review of this proceeding. 351.310(c). The Department will publish
to the investigation or review, the final Therefore, we consider this rate to be a notice of the final results of this
determination concerning subject reliable. review, which will include the results of
merchandise, or any previous review its analysis of issues raised in any
With respect to the relevance aspect written comments or hearing, within
under section 751 concerning the of corroboration, the Department will
subject merchandise.’’ See SAA at 870. 120 days from publication of this notice.
consider information reasonably at its
The SAA provides that to ‘‘corroborate’’ Assessment
disposal to determine whether a margin
means simply that the Department will
satisfy itself that the secondary continues to have relevance. Nothing in Pursuant to 19 CFR 351.212(b), the
information to be used has probative the record of this review calls into Department calculated an exporter/
value. See id. The SAA also states that question the relevance of the margin we importer (or customer)-specific
independent sources used to corroborate have selected as AFA. Moreover, the assessment rate for merchandise subject
may include, for example, published selected margin will be applied as the to this review. To determine whether
price lists, official import statistics and PRC–wide rate and will be applicable to the duty assessment rates covering the
customs data, and information obtained exporters who do not have a separate period were de minimis, in accordance
from interested parties during the rate. Thus, it is appropriate to use the with the requirement set forth in 19 CFR
particular investigation. See id. As selected rate as adverse facts available 351.106(c)(2), for each respondent we
noted in Tapered Roller Bearings and in the instant review. Accordingly, we calculate importer (or customer)-specific
Parts Thereof, Finished and Unfinished, have corroborated the AFA rate ad valorem rates by aggregating the
from Japan, and Tapered Roller identified above, as required, by section dumping margins calculated for all U.S.
Bearings, Four Inches or Less in Outside 776(c) of the Act (i.e., established its sales to that importer (or customer) and
Diameter, and Components Thereof, probative value). dividing this amount by the total value
from Japan; Preliminary Results of of the sales to that importer (or
Because this is a preliminary margin,
Antidumping Duty Administrative customer). Where an importer (or
the Department will consider all
Reviews and Partial Termination of customer)-specific ad valorem rate is
margins on the record at the time of the greater than de minimis and the
Administrative Reviews, 61 FR 57391,
final results for the purpose of respondent has reported reliable entered
57392 (November 6, 1996) (‘‘TRBs’’), to
corroborate secondary information, the determining the most appropriate final values, we apply the assessment rate to
Department will, to the extent margin based on total AFA. See Notice the entered value of the importer’s/
practicable, examine the reliability and of Preliminary Determination of Sales at customer’s entries during the review
relevance of the information used. Less Than Fair Value: Solid Fertilizer period. Where an importer (or
While the Department need not prove Grade Ammonium Nitrate From the customer)-specific ad valorem rate is
that the selected facts available are the Russian Federation, 65 FR 1139 greater than de minimis and we do not
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best alternative information (SAA at (January 7, 2000). have entered values for all U.S. sales,
869), where circumstances indicate that Preliminary Results of Review we calculate a per–unit assessment rate
the selected margin is not appropriate as by aggregating the dumping duties due
AFA, the Department will disregard the We preliminarily determine that the for all U.S. sales to each importer (or
margin and determine an appropriate following dumping margins exist: customer) and dividing this amount by

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Federal Register / Vol. 70, No. 246 / Friday, December 23, 2005 / Notices 76241

the total quantity sold to that importer Date: January 13, 2006. DEPARTMENT OF COMMERCE
(or customer). The Department will
Time: 9 a.m. to 4 p.m. National Institute of Standards and
issue assessment instructions directly to
CBP within 15 days of publication of the Place: Department of Commerce, 14th Technology
final results of review. and Constitution NW., Washington, DC [Docket No.: 051202321–5335–02]
Cash Deposit Requirements 20230, Room 4830.
SUMMARY: The Environmental Small Grants Programs and Precision
The following cash deposit rates will Measurement Grants Program;
be effective upon publication of the Technologies Trade Advisory
Committee (ETTAC) will hold a plenary Availability of Funds
final results for all shipments of MPF
from the PRC entered, or withdrawn meeting on January 13, 2006, at the U.S. AGENCY: National Institute of Standards
from warehouse, for consumption on or Department of Commerce, 14th Street and Technology, Commerce.
after the publication date, as provided and Constitution Avenue, NW., ACTION: Notice.
for by section 751(a)(1) of the Act: (1) for Washington, DC 20230, in Room 4830.
the above listed respondents, which The ETTAC will discuss global climate SUMMARY: The National Institute of
each have a separate rate, the cash change mitigation initiatives, the Standards and Technology (NIST)
deposit rate will be the company– European Union’s electronic and other announces that the following programs
specific rate established in the final waste initiatives, updated negotiations are soliciting applications for financial
results of the review; (2) the cash in the World Trade Organization’s assistance for FY 2006: (1) The
deposit rates for any other companies environmental goods and services trade Electronics and Electrical Engineering
that have separate rates established in liberalization, the Export-Import Bank’s Laboratory Grants Program; (2) the
the investigation, but were not reviewed environmental exports program, U.S. Manufacturing Engineering Laboratory
in this proceeding, will not change; (3) EPA’s Environmental Technologies Grants Program; (3) the Chemical
for all other PRC exporters, the cash Science and Technology Laboratory
Verification (ETV) Program, the USG
deposit rate will be 200.24 percent, the Grants Program; (4) the Physics
role in the Asia-Pacific Partnership, and
PRC–wide rate established in the LTFV; Laboratory Grants Program; (5) the
and (4) for non–PRC exporters of MPF an overview of the U.S. International
Materials Science and Engineering
from the PRC, the cash deposit rate will Trade Commission’s environmental
Laboratory Grants Program; (6) the
be the rate applicable to the PRC services sector market analysis. The
Building Research Grants and
supplier of that exporter. These deposit meeting is open to the public and time Cooperative Agreements Program; (7)
rates, when imposed, shall remain in will be permitted for public comment. the Fire Research Grants Program; (8)
effect until publication of the final Written comments concerning ETTAC the Information Technology Laboratory
results of the next administrative affairs are welcome anytime before or Grants Program; and (9) the Precision
review. after the meeting. Minutes will be Measurement Grants Program. Each
This notice also serves as a available within 30 days of this meeting. program will only consider applications
preliminary reminder to importers of that are within the scientific scope of
their responsibility under 19 CFR The ETTAC is mandated by Public
Law 103–392. It was created to advise the program as described in this notice
351.402(f) to file a certificate regarding and in the detailed program
the reimbursement of antidumping the U.S. government on environmental
descriptions found in the Federal
duties prior to liquidation of the trade policies and programs, and to help
Funding Opportunity (FFO)
relevant entries during this review it to focus its resources on increasing
announcement for these programs. Prior
period. Failure to comply with this the exports of the U.S. environmental to preparation of a proposal, it is
requirement could result in the industry. ETTAC operates as an strongly suggested that potential
Secretary’s presumption that advisory committee to the Secretary of applicants contact the Program Manager
reimbursement of antidumping duties Commerce and the Trade Promotion for the appropriate field of research, as
occurred and the subsequent assessment Coordinating Committee (TPCC). specified in the FFO announcement
of double antidumping duties. ETTAC was originally chartered in May found at http://www.grants.gov, for
This determination is issued and of 1994. It was most recently rechartered clarification of the program objectives
published in accordance with sections until May 30, 2006. and to determine whether their proposal
751(a)(1) and 777(i)(1) of the Act.
For further information phone Ellen is responsive to this notice.
Dated: December 16, 2005.
Bohon, Office of Energy and DATES: See below.
Stephen J. Claeys,
Environmental Technologies Industries ADDRESSES: See below.
Acting Assistant Secretaryfor Import (OEEI), International Trade
Administration. SUPPLEMENTARY INFORMATION:
Administration, U.S. Department of Catalog of Federal Domestic
[FR Doc. E5–7785 Filed 12–22–05; 8:45 am]
Commerce at (202) 482–0359. This Assistance Name and Number:
BILLING CODE 3510–DS–S
meeting is physically accessible to Measurement and Engineering Research
people with disabilities. Requests for and Standards—11.609
DEPARTMENT OF COMMERCE sign language interpretation or other
auxiliary aids should be directed to Electronics and Electrical Engineering
Laboratory (EEEL) Grants Program
International Trade Administration OEEI at (202) 482–5225.
Program Description: The Electronics
Dated: December 15, 2005.
Environmental Technologies Trade and Electrical Engineering Laboratory
Advisory Committee (ETTAC) Joe O. Neuhoff, (EEEL) Grants Program will provide
wwhite on PROD1PC61 with NOTICES

Director, Office of Energy and Environmental grants and cooperative agreements for
AGENCY: International Trade Industries.
Administration, U.S. Department of the development of fundamental
[FR Doc. E5–7767 Filed 12–22–05; 8:45 am] electrical metrology and of metrology
Commerce.
BILLING CODE 3510–DR–P supporting industry and government
ACTION: Notice of open meeting.
agencies in the broad areas of

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