[Federal Register Volume 72, Number 46 (Friday, March 9, 2007)]
[Notices]
[Pages 10643-10645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4290]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-801, A-412-801]


Ball Bearings and Parts Thereof from Italy and the United 
Kingdom: Initiation of Antidumping Duty Changed-Circumstances Reviews

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce has received information sufficient 
to warrant initiation of changed-circumstances reviews of the 
antidumping duty orders on ball bearings and parts thereof from Italy 
and the United Kingdom pursuant to section 751(b) of the Tariff Act of 
1930, as amended.

EFFECTIVE DATE: March 9, 2007.

FOR FURTHER INFORMATION CONTACT: Kristin Case at (202) 482-3174 or 
Richard Rimlinger at (202) 482-4477, AD/CVD Operations, Office 5, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    The Department of Commerce (the Department) published antidumping 
duty orders on ball bearings and parts thereof from Italy and the 
United Kingdom on May 15, 1989. See Antidumping Duty Orders: Ball 
Bearings

[[Page 10644]]

and Cylindrical Roller Bearings and Parts Thereof From Italy, 54 FR 
20903 (May 15, 1989), and Antidumping Duty Orders and Amendments to the 
Final Determinations of Sales at Less Than Fair Value: Ball Bearings 
and Cylindrical Roller Bearings and Parts Thereof From the United 
Kingdom, 54 FR 20910 (May 15, 1989).
    On August 11, 2000, the Department revoked the antidumping duty 
order on ball bearings and parts thereof from Italy with respect to 
Somecat S.p.A. (Somecat). See Antifriction Bearings (Other Than Tapered 
Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, 
Romania, Singapore, Sweden, and the United Kingdom; Final Results of 
Antidumping Duty Administrative Reviews and Revocation of Orders in 
Part, 65 FR 49219 (August 11, 2000).\1\ On July 12, 2001, the 
Department revoked the antidumping duty order on ball bearings and 
parts thereof from the United Kingdom with respect to SNFA UK. See 
Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts 
Thereof From France, Germany, Italy, Japan, Sweden, and the United 
Kingdom: Final Results of Antidumping Duty Administrative Reviews and 
Revocation of Orders in Part, 66 FR 36551 (July 12, 2001).
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    \1\ The Department had determined previously that Somecat 
bearings are marked ``SNFA Italy'' (Antifriction Bearings (Other 
Than Tapered Roller Bearings) and Parts Thereof From France, 
Germany, Italy, Japan, Romania, Sweden, and the United Kingdom; 
Final Results of Antidumping Duty Administrative Reviews, 64 FR 
35590 (July 1, 1999), and accompanying Issues and Decision 
Memorandum at Comment 1 in Section 11.B).
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    On January 9, 2007, Somecat S.p.A., a subsidiary of Societe 
Nouvelle de Fabrication Aeronautique S.A.S.U. (SNFA), and SKF 
Industries S.p.A. (SKF Italy) notified the Department of a change in 
ownership of SNFA.\2\ On January 26, 2007, SNFA Bearings Ltd. (SNFA 
UK), a subsidiary of SNFA, and SKF UK Ltd. filed a similar 
notification. Specifically, Somecat, SNFA UK, SKF Italy, and SKF UK 
notified the Department that, on July 4, 2006, through its subsidiary 
SKF Holding France S.A., AB SKF purchased all outstanding shares of 
SNFA. Somecat and SKF Italy stated that, because Somecat and SKF Italy 
will continue to operate as separate and distinct businesses, Somecat 
is not the successor-in-interest to SKF Italy nor is SKF Italy a 
successor-in-interest to the pre-acquisition Somecat. Accordingly, SKF 
Italy and Somecat asserted, it would be inappropriate to assign the SKF 
Italy cash-deposit rate to entries of subject merchandise from Somecat. 
SNFA UK and SKF UK stated that, because SNFA UK and SKF UK will 
continue to operate as separate and distinct businesses until a planned 
relocation of SNFA UK's manufacturing facilities occurs later in 2007, 
SNFA UK is not the successor-in-interest to SKF UK nor is SKF UK the 
successor-in-interest to the pre-acquisition SNFA UK. Accordingly, SKF 
UK and SNFA UK asserted, it would be inappropriate to assign the SKF UK 
cash-deposit rate to entries of subject merchandise from SNFA UK.
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    \2\ In response to a request by Societe Nouvelle de Fabrication 
Aeronautique S.A.S.U., SKF France S.A., and SKF Aerospace France 
S.A.S., the Department has initiated a changed- circumstances review 
of the antidumping duty order on ball bearings and parts thereof 
from France. See Ball Bearings and Parts Thereof From France: 
Initiation of an Antidumping Duty Changed-Circumstances Review, 72 
FR 9513 (March 2, 2007).
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    We did not receive any other comments.

Scope of the Order

    The products covered by these orders are ball bearings and parts 
thereof. These products include all bearings that employ balls as the 
rolling element. Imports of these products are classified under the 
following categories: antifriction balls, ball bearings with integral 
shafts, ball bearings (including radial ball bearings) and parts 
thereof, and housed or mounted ball bearing units and parts thereof.
    Imports of these products are classified under the following 
Harmonized Tariff Schedules of the United States (HTSUS) subheadings: 
3926.90.45, 4016.93.00, 4016.93.10, 4016.93.50, 6909.19.5010, 
8431.20.00, 8431.39.0010, 8482.10.10, 8482.10.50, 8482.80.00, 
8482.91.00, 8482.99.05, 8482.99.2580, 8482.99.35, 8482.99.6595, 
8483.20.40, 8483.20.80, 8483.50.8040, 8483.50.90, 8483.90.20, 
8483.90.30, 8483.90.70, 8708.50.50, 8708.60.50, 8708.60.80, 
8708.70.6060, 8708.70.8050, 8708.93.30, 8708.93.5000, 8708.93.6000, 
8708.93.75, 8708.99.06, 8708.99.31, 8708.99.4960, 8708.99.50, 
8708.99.5800, 8708.99.8080, 8803.10.00, 8803.20.00, 8803.30.00, 
8803.90.30, and 8803.90.90.
    As a result of recent changes to the Harmonized Tariff Schedule, 
effective February 2, 2007, the subject merchandise is also 
classifiable under the following additional HTS item numbers: 
8708.30.5090, 8708.40.7500, 8708.50.7900, 8708.50.8900, 8708.50.9150, 
8708.50.9900, 8708.80.6590, 8708.94.75, 8708.95.2000, 8708.99.5500, 
8708.99.68, and 8708.99.8180.
    Although the HTSUS item numbers above are provided for convenience 
and customs purposes, written descriptions of the scope of these orders 
remain dispositive.
    For a listing of scope determinations which pertain to the order on 
ball bearings and parts thereof, see the Scope Determination Memorandum 
(Scope Memorandum) from the Antifriction Bearings Team to Laurie 
Parkhill, dated March 2, 2006. The Scope Memorandum is on file in the 
Central Records Unit (CRU), main Commerce building, Room B-099, in the 
General Issues record (A-100-001) for the 2004/2005 administrative 
reviews of the orders on antifriction bearings.

Initiation of Changed-Circumstances Reviews

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), the Department will conduct a changed-circumstances review 
upon receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty order which shows changed 
circumstances sufficient to warrant a review of the order. Although SKF 
Italy, SKF UK, Somecat, and SNFA UK assert that conduct of changed-
circumstances reviews for the Italy and United Kingdom proceedings 
would be premature, we disagree and determine that the information 
submitted demonstrates changed circumstances sufficient to warrant 
reviews of the antidumping duty orders on ball bearings and parts 
thereof from Italy and the United Kingdom. For example, SKF Italy and 
Somecat acknowledge a degree of overlapping production and state that, 
in instances where both utilize a common supplier, attempts have been 
made to renegotiate prices based on their combined purchasing power. 
Further, SKF UK's and SNFA UK's statement that a plan to relocate SNFA 
UK's production facilities is being developed indicates that production 
planning and production management decisions may have changed as a 
result of AB SKF's purchase of SNFA. Finally, SKF Italy, SKF UK, 
Somecat, and SNFA UK state that SNFA Group management now reports to 
SKF Group management. Accordingly, we cannot conclude, as requested by 
SNFA UK and SKF UK, that SNFA UK is not the successor-in-interest to 
SKF UK nor is SKF UK the successor-in-interest to the pre-acquisition 
SNFA UK. Similarly, we cannot conclude, as requested by Somecat and SKF 
Italy, that Somecat is not the successor-in-interest to SKF Italy nor 
is SKF Italy a successor-in-interest to the pre-acquisition Somecat. 
Therefore, in accordance with section 751(b)(1) of the Act, the 
Department is initiating changed-circumstances

[[Page 10645]]

reviews of the antidumping duty orders on ball bearings and parts 
thereof from Italy and the United Kingdom.
    Therefore, in accordance with 19 CFR 351.221(b)(2) and (4) and 19 
CFR 351.221(c)(3)(i), we will issue questionnaires requesting factual 
information for the reviews and will publish a notice of preliminary 
results of the antidumping duty changed-circumstances reviews in the 
Federal Register. The notice will set forth the factual and legal 
conclusions upon which our preliminary results are based. Pursuant to 
19 CFR 351.221(b)(4)(ii), interested parties will have an opportunity 
to comment on the preliminary results of the reviews. During the course 
of these antidumping duty changed-circumstances reviews, we will not 
change the cash-deposit requirements for the subject merchandise. The 
cash-deposit rates will be altered, if warranted, pursuant only to the 
final results of these reviews.
    This notice of initiation is in accordance with section 751(b)(1) 
of the Act and (d), and 19 CFR 351.221(b)(1).

    Dated: March 5, 2007.
Stephen J. Claeys,
Deputy Assistant Secretary for Import Administration.
[FR Doc. E7-4290 Filed 3-8-07; 8:45 am]
BILLING CODE 3510-DS-S