[Federal Register Volume 60, Number 83 (Monday, May 1, 1995)]
[Notices]
[Pages 21065-21067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10647]



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DEPARTMENT OF COMMERCE

International Trade Administration
[A-570-843]


Initiation of Antidumping Duty Investigation: Bicycles From the 
People's Republic of China

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

EFFECTIVE DATE: May 1, 1995.

FOR FURTHER INFORMATION CONTACT: Shawn Thompson or Cameron Werker at 
(202) 482-1776 or (202) 482-3874, Office of Antidumping Investigations, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

Initiation of Investigation

The Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA).

The Petition

    On April 5, 1995, the Department of Commerce (the Department) 
received a petition filed in proper form by Huffy Bicycle Company, 
Murray Ohio Manufacturing Co., and Roadmaster Corporation (the 
petitioners), three U.S. producers of bicycles. Supplements to the 
petition were filed on April 20 and 24, 1995.
    In accordance with section 732(b) of the Act, the petitioners 
allege that imports of bicycles from the People's Republic of China 
(PRC) are being, or are likely to be, sold in the United States at less 
than fair value within the meaning of section 731 of the Act, and that 
such imports are materially injuring, or threatening material injury 
to, a U.S. industry.
    The petitioners state that they have standing to file the petition 
because they are interested parties, as defined under section 771(9)(C) 
of the Act. [[Page 21066]] 

Determination of Industry Support for the Petition

    Section 732(c) of the Act, as amended by the URAA, requires that 
the Department determine, prior to the initiation of an investigation, 
that a minimum percentage of the domestic industry supports an 
antidumping petition. A petition meets those minimum requirements if 
(1) domestic producers or workers who support the petition account for 
at least 25 percent of the total production of the domestic like 
product; and (2) those domestic producers or workers expressing support 
account for more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition.
    A review of production data provided in the petition reveals that 
the petitioners, three known domestic producers of the domestic like 
product as defined in the petition, account for more than 25 percent of 
the total production of the domestic like product and for more than 50 
percent of that produced by companies expressing support for, or 
opposition to, the petition. Accordingly, the Department determines 
that this petition is supported by the domestic industry.

Scope of the Investigation

    The product covered by this investigation is bicycles of all types, 
whether assembled or unassembled, complete or incomplete, finished or 
unfinished, including industrial bicycles, tandems, recumbents, and 
folding bicycles. For purposes of this investigation, the following 
terms are defined as follows irrespective of any different definition 
that may be found in Customs rulings, U.S. Customs law, or the 
Harmonized Tariff Schedule of the United States (HTSUS): (1) The term 
``unassembled'' means fully or partially unassembled or disassembled; 
(2) the term ``incomplete'' means lacking one or more parts or 
components with which the complete bicycle is intended to be equipped; 
and (3) the term ``unfinished'' means wholly or partially unpainted or 
lacking decals or other essentially aesthetic material. Specifically, 
this investigation is intended to cover: (1) Any assembled complete 
bicycle, whether finished or unfinished; (2) any unassembled complete 
bicycle, if shipped in a single shipment, regardless of how it is 
packed and whether it is finished or unfinished; and (3) any incomplete 
bicycle, defined for purposes of this investigation as a frame and fork 
set, assembled or unassembled, finished or unfinished, and imported in 
the same shipment with any two of the following components, whether or 
not assembled together with the frame and fork set: (a) The rear wheel; 
(b) the front wheel; (c) a rear derailleur; (d) a front derailleur; (e) 
any one caliper or cantilever brake; (f) an integrated brake lever and 
shifter, or separate brake lever and click stick lever; (g) crankset; 
(h) handlebars, with or without a stem; (i) chain; (j) pedals; and (k) 
seat (saddle), with or without seat post and seat pin.
    The scope of this investigation is not intended to cover bicycle 
parts except to the extent that they are attached to or in the same 
shipment as an unassembled complete bicycle or an incomplete bicycle, 
as defined above.
    Complete bicycles are classifiable under subheadings 8712.00.15, 
8712.00.25, 8712.00.35, 8712.00.44, and 8712.00.48 of the 1995 HTSUS. 
Incomplete bicycles, as defined above, may be classified for tariff 
purposes under any of the aforementioned HTSUS subheadings covering 
complete bicycles or under HTSUS subheadings 8714.91.20-8714.99.80, 
inclusive (covering various bicycle parts). The HTSUS subheadings are 
provided for convenience and customs purposes. The written description 
of the scope of this investigation is dispositive.

Export Price and Normal Value

    Export price was based on retail prices observed in the United 
States in mid-1994. The petitioners adjusted the starting prices for 
retail gross margin, the importer's selling expenses (used as a 
surrogate for importer's mark-up), foreign inland freight, CIF movement 
charges, and U.S. customs duty.
    The petitioners assert that the PRC is a non-market economy (NME) 
within the meaning of sections 771(18) of the Act and in accordance 
with section 773(c) of the Act. Accordingly, the normal value of the 
product should be based on the producer's factors of production, valued 
in a surrogate market economy country. In previous investigations, the 
Department has determined that the PRC is an NME, and the presumption 
of NME status continues for the initiation of this investigation. See, 
e.g., Final Determination of Sales at Less Than Fair Value: Pure 
Magnesium and Alloy Magnesium from the People's Republic of China, 60 
FR 16437 (March 30, 1995).
    It is our practice in NME cases to construct normal value from the 
factors of production of those factories that produced bicycles sold to 
the United States during the period of investigation.
    In the course of this investigation, all parties will have the 
opportunity to provide relevant information related to the issues of 
the PRC's NME status and the granting of separate rates to individual 
exporters. See, e.g., Final Determination of Sales at Less Than Fair 
Value: Silicon Carbide from the PRC, 59 FR 22585 (May 2, 1994).
    The petitioners based the PRC producers' factors of production 
(i.e., raw materials, labor, and energy) for bicycles on research 
conducted by a private consulting firm in the PRC. The petitioners 
valued these factors, where possible, on a publicly available published 
Indonesian government survey of the bicycle manufacturing and/or 
bicycle component industries in Indonesia, the surrogate country 
selected. Indonesia was selected as the surrogate country because (1) 
its level of economic development is comparable to that of the PRC, and 
(2) it is a significant producer of bicycles.
    For each of the bicycle models used in the fair value comparisons, 
certain components are imported from the market-economy countries where 
they are produced. In those instances, the petitioners valued the 
components in question based on the F.O.B. foreign port prices that the 
petitioners pay, as they state their prices are equal to or less than 
the prices paid by any other bicycle manufacturer in the world.
    The petitioners also based factory overhead, and selling, general, 
and administrative expenses on data published by the Indonesian 
government on the bicycle manufacturing industry.
    The petitioners based profit on a publicly available published 
study of the Indonesian bicycle industry.
    Based on a comparison of the export prices to the factors of 
production, the average calculated dumping margin is 74.95 percent.

Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of bicycles from the PRC are being, or likely to 
be, sold at less than fair value. If it becomes necessary at a later 
date to consider the petition as a source of facts available, we may 
review the calculations.

Initiation of Investigation

    We have examined the petition on bicycles and have found that it 
meets the requirements of section 732 of the Act, including the 
requirements concerning the material injury or threat of material 
injury to the domestic producers of a domestic like product by reason 
of the complained-of imports, [[Page 21067]] allegedly sold at less 
than fair value. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of bicycles from the PRC are 
being, or are likely to be, sold in the United States at less than fair 
value. Unless extended, we will make our preliminary determination by 
September 12, 1995.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, copies of the 
public version of the petition have been provided to the 
representatives of the PRC.

ITC Notification

    We have notified the International Trade Commission (ITC) of our 
initiation, as required by section 732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will determine by May 22, 1995, whether there is a 
reasonable indication that imports of bicycles from the PRC are causing 
material injury, or threaten to cause material injury to, a U.S. 
industry. A negative ITC determination will result in the investigation 
being terminated; otherwise, this investigation will proceed according 
to statutory and regulatory time limits.
    This notice is published pursuant to section 732(c)(2) of the Act.

    Dated: April 25, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-10647 Filed 4-28-95; 8:45 am]
BILLING CODE 3510-DS-P