[Federal Register Volume 74, Number 49 (Monday, March 16, 2009)]
[Notices]
[Pages 11081-11082]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5665]



[[Page 11081]]

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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-846


Brake Rotors from the People's Republic of China: Notice of 
Amended Final Results of Administrative ReviewSales at Less Than Fair 
Value and Antidumping Duty Order Pursuant to Court Decision

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

EFFECTIVE DATE: March 16, 2009.

FOR FURTHER INFORMATION CONTACT: Paul Walker, AD/CVD Operations, Office 
9, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: 202- 482-0413.

SUPPLEMENTARY INFORMATION:

Background

    This matter arose from a challenge to the Final Results issued by 
the Department of Commerce (``Department'') for the period of review 
(``POR'') April 1, 2004,4 through Marchy 31, 20055.\1\ See Brake Rotors 
from the People's Republic of China: Final Results and Partial 
Rescission of the 2004/2005 Administrative Review and Notice of 
Rescission of 2004/2005 New Shipper Review, 71 FR 66304 (November 14, 
2006) (``Final Results''). Following publication of the Final Results, 
the Respondents\2\ filed a lawsuit with the Court of International 
Trade (``CIT'') challenging the Department's Final Results. The 
Respondents contested several aspects of the Final Results, including 
the Department's surrogate valuation for steel scrap.
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    \1\ We note that the Court of International Trade cited an 
incorrect period of review (``POR'') of April 1, 2005, through May 
31, 2006 in its decision. See Laizhou Auto Brake Equipment Company, 
et. al. v. United States, Court No. 06-00430, Slip Op. 08-120 (CIT 
November 5, 2008) (``Laizhou II''). The CIT corrected this error on 
February 20, 2009. See Laizhou II Errata, dated February 20, 2009.
    \2\ The Respondents referenced here are Longkou Haimeng 
Machinery Co., Ltd., Hongfa Machinery (Dalian) Co., Ltd., Laizhou 
Auto Brake Equipment Co., Ltd., Laizhou City Luqi Machinery Co., 
Ltd., Laizhou Hongda Auto Replacement Parts Co., Ltd., and Qingdao 
Gren (Group) Co.
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    On June 26, 2008, the CIT directed the Department to: 1) explain 
whether the rejected rotors, casting strands/handles, etc., 
reintroduced into the production process should be properly accounted 
for in the factor of production ``STLSCRAP''; 2) address the issue of 
the composition of the predominant scrap used in the production 
process; 3) address respondents' argument that the Department should be 
solely focusing on the type of scrap the Respondents reported in the 
factor field ``STLSCRAP''; and 4) explain whether the Department has in 
fact reassessed its position in subsequent reviews as to the proper 
harmonized tariff schedule (``HTS'') classification of the Respondents' 
scrap. See Laizhou Auto Brake Equipment Company, et. al. v. United 
States, Court No. 06-00430, Slip Op. 08-71 (CIT June 26, 2008) 
(``Laizhou I''), at 17-18. Pursuant to the CIT's remand instructions, 
we reexamined the record and determined that the best available 
information on the record with which to value steel scrap is HTS 
7204.49.00 (other ferrous waste and scrap (``ferrous scrap'')), rather 
than HTS 7204.10.00 (waste and scrap of cast iron (``cast iron 
scrap'')) which was used in the Final Results.
    The Department released the Draft Results of Redetermination 
Pursuant to Court Remand to interested parties on September 8, 2008. No 
party submitted comments. On September 24, 2008, the Department filed 
its final results of redetermination pursuant to Laizhou I with the 
CIT. See Final Results of Redetermination Pursuant to Court Remand, 
Court No. 06-00430 (September 24, 2008) (``Final Redetermination''). In 
responding to the CIT's questions and reassessing the record evidence, 
we have determined it appropriate to value steel scrap using HTS 
7204.49.00 (ferrous scrap), instead of the previously selected value, 
HTS 7204.10.00 (cast iron scrap). We note that respondents reported 
purchasing steel scrap that is captured under HTS 7204.49.00, and there 
is no record evidence which contradicts this assertion. The Department 
valued HTS 7204.49.00 using publicly available Indian import statistics 
for the POR from the World Trade Atlas (``WTA'').\3\ Thus, the 
Department revised, as appropriate, the remanded steel scrap surrogate 
value selection components of the margin calculations of Longkou 
Haimeng Machinery Co., Ltd. and Hongfa Machinery (Dalian) Co., Ltd. The 
Department also revised the ``sample rate'' applicable to the non-
mandatory respondents separate from the PRC-wide entity who are parties 
to this litigation: Laizhou Auto Brake Equipment Co., Ltd.; Laizhou 
City Luqi Machinery Co., Ltd.; Laizhou Hongda Auto Replacement Parts 
Co., Ltd.; and Qingdao Gren (Group) Co.\4\ On November 5, 2008, the CIT 
sustained all aspects of the remand redetermination made by the 
Department pursuant to the CIT's remand of the Final Results. See 
Laizhou II.
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    \3\ WTA is published by Global Trade Information Services, Inc., 
which is a secondary electronic source based upon the publication, 
Monthly Statistics of the Foreign Trade of India, Volume II: 
Imports. See http://www.gtis.com/wta.htm.
    \4\ For the sample rate calculation which includes other 
mandatory respondents, please see Memo to the File, through Scot T. 
Fullerton, Program Manager, Office 9, from Toni Dach, International 
Trade Compliance Analyst, Office 9, Regarding ``Calculation of the 
`Sample Rate' for the Draft Redetermination of the 2004/2005 
Administrative Review of Brake Rotors from the People's Republic of 
China,'' dated September 8, 2008.
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    On November 21, 2008, consistent with the decision in Timken Co. v. 
United States, 893 F.2d 337 (Fed. Cir. 1990), the Department notified 
the public that the Court's decision was not in harmony with the 
Department's final results. See Brake Rotors Timken Notice. See Brake 
Rotors from the People's Republic of China: Notice of Court Decision 
Not In Harmony With Final Results of Administrative Review, 73 FR 70618 
(November 21, 2008) Brake Rotors from the People's Republic of China: 
Notice of Court Decision Not In Harmony With Final Results of 
Administrative Review, 73 FR 70618 (November 21, 2008). No party 
appealed the CIT's decision. As there is now a final and conclusive 
court decision in this case, we are amending our Final Results.

Amended Final Results

    As the litigation in this case has concluded, the Department is 
amending the Final Results to reflect the results of our remand 
determination. The revised dumping margins for the order on brake 
rotors in the amended final results areis as follows:

------------------------------------------------------------------------
                      Exporter                              Margin
------------------------------------------------------------------------
Hongfa Machinery (Dalian) Co........................  0.01% (de minimis)
Laizhou Auto Brake Equipment Company................               6.20%
Laizhou Luqi Machinery Co., Ltd.....................               6.20%
Laizhou Hongda Auto Replacement Parts Co., Ltd......               6.20%
Longkou Haimeng Machinery Co., Ltd..................  0.01% (de minimis)
Qingdao Gren (Group) Co.............................               6.20%
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    The Department intends to issue instructions to U.S. Customs and 
Border Protection (``CBP'') fifteen days after publication of this 
notice, to revise the cash deposit rates for the companiesy listed 
above, effective as of the publication date of this notice. In 
addition, we will also instruct CBP to

[[Page 11082]]

liquidate all entries at the appropriate rates.
    This notice is published in accordance with sections 751(a)(1) and 
777(i) of the Tariff Act of 1930, as amended.

    Dated: March 4, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
[FR Doc. E9-5665 Filed 3-13-09; 8:45 am]
BILLING CODE 3510-DS-S