[Federal Register Volume 63, Number 95 (Monday, May 18, 1998)]
[Notices]
[Pages 27262-27264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13136]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-570-506]


Porcelain-on-Steel Cooking Ware From the People's Republic of 
China; Final Results of Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce

ACTION: Notice of final results of antidumping duty administrative 
review

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SUMMARY: On January 9, 1998, the Department of Commerce published its 
preliminary results of administrative review of the antidumping duty 
order on porcelain-on-steel cooking ware from the People's Republic of 
China for the period December 1, 1995, through November 30, 1996 (63 FR 
1434). The Department of Commerce has now completed this administrative 
review in accordance with section 751(a) of the Tariff Act of 1930. For 
information on the assessment of antidumping duties for each reviewed 
company, and for all non-reviewed companies, see the Final Results of 
Review section of this notice.

EFFECTIVE DATE: May 18, 1998.

FOR FURTHER INFORMATION CONTACT: Lorenza Olivas or Russell Morris, 
Office of CVD/AD Enforcement VI, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington D.C. 20230; telephone: (202) 482-
2786.

SUPPLEMENTARY INFORMATION:

Background

    On January 9, 1998, the Department of Commerce published in the 
Federal Register its preliminary results of administrative review of 
the antidumping duty order on porcelain-on-steel cooking ware from the 
People's Republic of China for the period December 1, 1995, through 
November 30, 1996 (63 FR 1434). Pursuant to 19 CFR Sec. 353.22(a), this 
review covers only producers or exporters of the subject merchandise 
for which a review was

[[Page 27263]]

specifically requested. Accordingly, this review covers Clover 
Enamelware Enterprise, Ltd. of China (Clover), a manufacturer/exporter, 
and its third-country reseller, Lucky Enamelware Factory Ltd., in Hong 
Kong (Lucky).
    We invited interested parties to comment on the preliminary 
results. Our review of the record has not led us to change our findings 
from the preliminary results.

Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions as of January 1, 1995, the effective date 
of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act. In addition, unless otherwise indicated, 
all citations to the Department of Commerce's (the Department) 
regulations are to 19 CFR Part 353.

Scope of the Review

    Imports covered by this review are shipments of porcelain-on-steel 
(POS) cooking ware, including tea kettles, which do not have self-
contained electric heating elements. All of the foregoing are 
constructed of steel and are enameled or glazed with vitreous glasses. 
The merchandise is currently classifiable under the Harmonized Tariff 
Schedule (HTS) item 7323.94.00. HTS items numbers are provided for 
convenience and Customs purposes. The written description of the scope 
remains dispositive.

Verification

    We verified the questionnaire responses submitted by Clover and 
Lucky, using standard verification procedures, including on-site 
inspection of the manufacturer's facilities, the examination of 
relevant sales and financial records, and selection of original 
documentation containing relevant information, as provided in section 
782(i) of the Act. Our verification results are outlined in the public 
versions of the verification reports, which are on file in the Central 
Records Unit (Room B-099 of the Main Commerce Building).

Affiliated Parties

    Clover is two-thirds owned by Lucky and, therefore, Lucky holds 
controlling interest in Clover. Due to Lucky's ownership interest in 
Clover, and the fact that the same individual is the general manager at 
both companies, we consider Clover and Lucky to be affiliated parties 
pursuant to section 771(33) of the Act. As such, and consistent with 
prior reviews of this order, we are assigning Clover and Lucky a single 
dumping margin. See Porcelain-on-Steel Cooking Ware from the People's 
Republic of China; Final Results of Antidumping Administrative Review, 
62 FR 32758 (June 17, 1997). No new information or evidence of changed 
circumstances has been submitted in this proceeding to warrant 
reconsideration of this finding.

Separate Rates Analysis

    Lucky is located outside the People's Republic of China (PRC) and 
there is no PRC ownership of the company. Therefore, we determine that 
no separate rates analysis is required for this third-country reseller 
because it is beyond the jurisdiction of the PRC government. See Final 
Determination of Sales at Less Than Fair Value; Disposable Pocket 
Lighters from the People's Republic of China (60 FR 22359, 22361; May 
5, 1995). Clover is partially owned by a PRC government company and, 
therefore, a separate rates analysis is necessary to determine whether 
this manufacturer/exporter is independent from government control.
    To establish whether a company is sufficiently independent to be 
entitled to a separate rate, the Department analyzes each exporting 
entity under the test established in the Final Determination of Sales 
at Less Than Fair Value: Sparklers from the People's Republic of China, 
56 FR 20588 (May 6, 1991) (Sparklers), as amplified in Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994) (Silicon 
Carbide). Under this policy, exporters in non-market-economy (NME) 
countries are entitled to separate, company-specific margins when they 
can demonstrate an absence of government control, both in law (de jure) 
and in fact (de facto), with respect to exports.

1. Absence of De Jure Control

    Evidence supporting, though not requiring, a finding of de jure 
absence of government control includes: (1) An absence of restrictive 
stipulations associated with an individual exporter's business and 
export licenses; (2) any legislative enactments decentralizing control 
of companies; and (3) any other formal measures by the government 
decentralizing control of companies. Clover's submissions pertaining to 
legislative enactments and the terms of its Enterprise Legal Person 
Operation License demonstrate the absence of de jure control. (See 
Memorandum from Kelly Parkhill to Barbara E. Tillman, dated December 9, 
1997, ``Separate Rate Analysis for Assignment of Separate Rate for 
Clover/Lucky in the 1995-1996 Administrative Review of POS Cooking Ware 
from the People's Republic of China'' (Separate Rate Memorandum), which 
is a public document on file in the Central Records Unit. No new 
information or evidence of changed circumstances has been submitted in 
this proceeding to warrant reconsideration of this finding.

2. Absence of De Facto Control

    De facto absence of government control with respect to exports is 
based on four criteria: (1) whether the export prices are set by or 
subject to the approval of a government authority; (2) whether each 
exporter retains the proceeds from its sales and makes independent 
decisions regarding the disposition of profits and financing of losses; 
(3) whether each exporter has autonomy in making decisions regarding 
the selection of management; and (4) whether each exporter has the 
authority to negotiate and sign contracts. See Silicon Carbide at 
22587.
    With respect to de facto absence of government control, the 
information submitted by Clover in the questionnaire response indicates 
the following: (1) no government entity exercises control over its 
export prices; (2) it negotiates contracts without guidance from any 
governmental entities or organizations; (3) it makes its own personnel 
decisions; and (4) it retains the proceeds of its export sales, 
utilizing profits to provide dividends to shareholders. In addition, it 
has the authority to seek out loans at market interest rates. This 
information supports the finding that there is de facto absence of 
governmental control of export functions. No new information or 
evidence of changed circumstances has been submitted in this proceeding 
to warrant reconsideration of this finding.

Final Results of the Review

    We invited interested parties to comment on our preliminary 
results. We received no comments, and the final results do not differ 
from the preliminary results. As a result of our review, we determine 
the dumping margin for Clover Enamelware Enterprise/Lucky Enamelware 
Factory to be 0.81 percent for the period December 1, 1995 through 
November 30, 1996.
    The Department shall determine, and the U.S. Customs Service shall 
assess, antidumping duties on all appropriate entries. For assessment 
purposes, we intend to calculate importer-specific assessment rates. 
The Department will issue appraisement instructions on each exporter 
directly to the U.S. Customs Service. Furthermore, the following

[[Page 27264]]

deposit rates will be effective upon publication of this notice of 
final results of review for all shipments of POS cooking ware from the 
PRC 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 Clover/Lucky, which has a separate rate, the cash deposit 
rate will be the company-specific rate, which is 0.81 percent, 
established in the final results of this administrative review; (2) for 
all other PRC exporters, the cash deposit rate will be the PRC-wide 
rate, which is 66.65 percent (the margin of 66.65 percent continues to 
be the PRC-wide rate because no companies representing the PRC entity 
were reviewed); (3) the cash deposit rates for non-PRC exporters of 
subject merchandise from the PRC will be the rates applicable to the 
PRC supplier of that exporter. These rates shall remain in effect until 
publication of the final results of the next administrative review.

Notification to Interested Parties

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 353.26 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 notice also serves as a reminder to parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 353.34(d)(1). 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 the terms of an APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i) of the Act (19 U.S.C. 1675(a)(1); 19 
U.S.C. 1677f (i)) and 19 CFR 353.22.

    Dated: May 8, 1998.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 98-13136 Filed 5-15-98; 8:45 am]
BILLING CODE 3510-DS-P