[Federal Register Volume 64, Number 65 (Tuesday, April 6, 1999)] [Notices] [Pages 16697-16699] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-8485] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [A-428-602] Preliminary Results of Antidumping Duty Administrative Review: Brass Sheet and Strip From Germany AGENCY: Import Administration, International Trade Administration, Department of Commerce. SUMMARY: In response to a request by the petitioners and the respondent, Wieland-Werke AG, the Department of Commerce is conducting an administrative review of the antidumping duty order on brass sheet and strip from Germany. This review covers one manufacturer and exporter of the subject merchandise, Wieland-Werke AG. The period of review is March 1, 1997, through February 28, 1998. For the reasons provided in the Facts Available section of this notice, we have preliminarily determined Wieland-Werke AG's antidumping rate based on adverse facts available, assigning to this company the highest margin applied to a respondent during any segment of this proceeding. If these preliminary results are adopted in our final results of administrative review, we will instruct the Customs Service to assess antidumping duties based on that margin. Interested parties are invited to comment on these preliminary results. Parties who submit argument in this proceeding are requested to submit with the argument: (1) a statement of the issue; and (2) a brief summary of the argument. EFFECTIVE DATE: April 6, 1999. FOR FURTHER INFORMATION CONTACT: Magd Zalok or Kris Campbell, AD/CVD Enforcement Group I, Office 2, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202) 482-4162 or (202) 482-3813, respectively. SUPPLEMENTARY INFORMATION: Applicable Statute and Regulations Unless otherwise indicated, all citations to the Tariff Act of 1930, as amended (the Act), are references to the provisions effective January 1, 1995, the effective date of the amendments made to the Act by the Uruguay Round Agreements Act (URAA). In addition, unless otherwise indicated, all citations to the Department of Commerce's (the Department's) regulations are to the regulations provided in 19 CFR Part 351 (1998). Background The Department published the antidumping duty order on brass sheet and strip from Germany on March 6, 1987. See Notice of Antidumping Duty Order; Brass Sheet and Strip From the Federal Republic of Germany, 52 FR 6997 (March 6, 1987). On March 11, 1998, the Department published a notice of opportunity to request an [[Page 16698]] administrative review of the antidumping duty order for the 1997/98 review period. See Notice of Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 62 FR 11868 (March 11, 1998). On March 31, 1998, the petitioners 1 and Wieland-Werke AG (Wieland) requested that the Department conduct an administrative review of the antidumping duty order on brass sheet and strip from Germany for Wieland. We published a notice of initiation of this review on April 24, 1998. See Notice of Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part, 63 FR 20378 (April 24, 1998). On May 5, 1998, we issued an antidumping questionnaire to Wieland. Wieland withdrew from participation in this review on May 11, 1998. On December 7,1998, we extended the time limit for issuance of the preliminary results by 120 days because it was not practicable to issue these results within the specified time period. See Postponement of Preliminary Results of Antidumping Duty Administrative Review, 63 FR 67453 (December 7, 1998). --------------------------------------------------------------------------- \1\ Hussey Copper Ltd., The Miller Company, Outokumpu American Brass, Revere Copper Products, Inc., International Association of Machinists and Aerospace Workers, International Union, Allied Industrial Workers of America (AFL-CIO), Mechanics Educational Society of America (Local 56) and the United Steel Workers of America (AFL-CIO/CLC). --------------------------------------------------------------------------- Scope of the Review This review covers shipments of brass sheet and strip, other than leaded and tinned, from Germany. The chemical composition of the covered products is currently defined in the Copper Development Association (C.D.A.) 200 Series or the Unified Numbering System (U.N.S.) C2000; this review does not cover products the chemical compositions of which are defined by other C.D.A. or U.N.S. series. In physical dimensions, the products covered by this review have a solid rectangular cross section over 0.006 inches (0.15 millimeters) through 0.188 inches (4.8 millimeters) in finished thickness or gauge, regardless of width. Coiled, wound-on-reels (traverse wound), and cut- to-length products are included. The merchandise is currently classified under Harmonized Tariff Schedule of the United States (HTSUS) item numbers 7409.21.00 and 7409.29.00. Although the HTSUS item numbers are provided for convenience and customs purposes, the Department's written description of the scope of this order remains dispositive. Facts Available Section 776(a)(2) of the Act provides that if an interested party withholds information that has been requested by the Department, fails to provide such information in a timely manner or in the form requested, significantly impedes a proceeding under the antidumping statute, or provides information that cannot be verified, the Department shall use facts available in reaching the applicable determination. In selecting from among the facts otherwise available, section 776(b) of the Act authorizes the Department to use an adverse inference if the Department finds that a party has failed to cooperate by not acting to the best of its ability to comply with requests for information. See the Statement of Administrative Action to the URAA at 870 (SAA). In this case, Wieland informed the Department that it was withdrawing from participation in the review on May 11, 1998. By withdrawing its participation, Wieland impeded the instant review. Therefore, we preliminarily determine that the use of total facts available is appropriate, in accordance with section 776(a)(2) of the Act. As noted above, in selecting facts otherwise available, pursuant to section 776(b) of the Act, the Department may use an adverse inference if the Department finds that an interested party, such as Wieland in this case, failed to cooperate by not acting to the best of its ability to comply with requests for information. Consistent with Department practice in cases where a respondent fails to cooperate to the best of its ability, and in keeping with section 776(b)(3) of the Act, as adverse facts available we have applied a margin based on the highest margin found either in prior reviews or in the LTFV investigation. See, e.g., Viscose Rayon Staple Fiber From Finland, 63 FR 32820, 32822 (June 16, 1998) (final administrative review). In this case, the highest margin from either prior reviews or the less-than-fair-value (LTFV) investigation is 16.18 percent ad valorem. This rate was calculated for a respondent in the LTFV investigation. Section 776(c) of the Act requires the Department to corroborate, to the extent practicable, secondary information used as facts available. Secondary information is described in the SAA (at 870) as ``[i]nformation derived from the petition that gave rise to the investigation or review, the final determination concerning the subject merchandise, or any previous review under section 751 concerning the subject merchandise.'' The SAA further provides that ``corroborate'' means simply that the Department will satisfy itself that the secondary information to be used has probative value. Thus, to corroborate secondary information, to the extent practicable, the Department will examine the reliability and relevance of the information used. However, unlike other types of information, such as input costs or selling expenses, there are no independent sources for calculated dumping margins. The only source for margins is an administrative determination. Thus, in an administrative review, if the Department chooses as total adverse facts available a calculated dumping margin from a prior segment of the proceeding, it is not necessary to question the reliability of the margin from that time period (i.e., the Department can normally be satisfied that the information has probative value and that it has complied with the corroboration requirements of section 776(c) of the Act). See, e.g., Elemental Sulphur from Canada, 62 FR 971 (January 7, 1997) (preliminary administrative review) and Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof from France, et al., 62 FR 2081, 2088 (January 15, 1997) (final administrative review). With respect to the relevance aspect of corroboration, however, the Department will consider information reasonably at its disposal as to whether there are circumstances that would render a margin inappropriate. Where circumstances indicate that the selected margin is not appropriate as adverse facts available, the Department will disregard the margin and determine an appropriate margin. See, e.g., Fresh Cut Flowers from Mexico; Final Results of Antidumping Duty Administrative Review, 61 FR 6812, 6814 (February 22, 1996) (where the Department disregarded the highest margin as adverse facts available because the margin was based on another company's uncharacteristic business expense resulting in an unusually high margin). In this review, we are not aware of any circumstances that would render the use of the margin selected for Wieland as inappropriate. Preliminary Results of the Review As a result of this review, we preliminarily determine that the following margin exists for the period March 1, 1997, through February 28, 1998: [[Page 16699]] ------------------------------------------------------------------------ Percentage Producer/Manufacturer/Exporter Margin ------------------------------------------------------------------------ Wieland................................................. 16.18 ------------------------------------------------------------------------ Any interested party may request a hearing within thirty days of publication. See 19 CFR 351.310(c). If requested, a hearing will be held 44 days after the publication of this notice, or the first workday thereafter. Interested parties may submit case briefs within 30 days of the date of publication of this notice. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than 37 days after the date of publication. The Department will publish a notice of the final results of this administrative review, which will include the results of its analysis of issues raised in any such written comments, not later than 120 days after the date of publication of this notice. Assessment Rate In the event these preliminary results are made final, we intend to assess antidumping duties on Wieland's entries at the same rate as the dumping margin (i.e., 16.18 percent) since the margin is not a current calculated rate for the respondent, but a rate based upon total facts available pursuant to section 776(b) of the Act. Cash Deposit 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)(1) of the Act: (1) the cash deposit rate for Wieland will be the rate established in the final results of this administrative review (no deposit will be required for a zero or de minimis margin, i.e., a margin lower than 0.5 percent); (2) for merchandise exported by manufacturers or exporters not covered in these reviews but covered in a previous segment of this proceeding, the cash deposit rate will be the company-specific rate published for the most recent segment; (3) if the exporter is not a firm covered in this review, a prior review, or the original LTFV investigation, but the manufacturer is, the cash deposit rate will be the rate established for the most recent period for the manufacturer of the merchandise; and (4) if neither the exporter nor the manufacturer is a firm covered in these or any prior review, the cash deposit rate will be 7.30 percent, the all others rate established in the LTFV investigation. These deposit requirements, when imposed, shall remain in effect until publication of the final results of the next administrative review. This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402 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 antidumping duties occurred and the subsequent assessment of double antidumping duties. This determination is issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: March 31, 1999. Robert S. LaRussa, Assistant Secretary for Import Administration. [FR Doc. 99-8485 Filed 4-5-99; 8:45 am] BILLING CODE 3510-DS-P