[Federal Register Volume 66, Number 101 (Thursday, May 24, 2001)]
[Notices]
[Pages 28728-28731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13166]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-868]


Initiation of Antidumping Duty Investigation: Folding Metal 
Tables and Folding Metal Chairs From the People's Republic of China

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

EFFECTIVE DATE: May 24, 2001.

FOR FURTHER INFORMATION CONTACT: Helen Kramer or Steve Bezirganian, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-0405 or (202) 482-1131, 
respectively.

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 27, 2001, the Department of Commerce (``the Department'') 
received a petition filed in proper form by Meco Corporation 
(``petitioner''). On May 10 and May 16, 2001, petitioner submitted 
clarifications of the petition. The petitioner is a producer of folding 
metal tables and chairs. In accordance with section 732(b) of the Act, 
the petitioner alleges that imports of folding metal tables and folding 
metal chairs 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

[[Page 28729]]

within the meaning of section 731 of the Act, and that such imports are 
materially injuring, or threatening material injury to, the U.S. 
industry.
    The petitioner is the sole domestic producer of folding metal 
tables and accounts for over 25 percent of domestic production of 
folding metal chairs, as defined in the petition. The petitioner has 
standing to file the petition because it is an interested party, as 
defined under section 771(9)(C) of the Act, with respect to the subject 
merchandise.

Determination of Industry Support for the Petition

    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers of a domestic like product. Thus, when determining the degree 
of industry support, the statute directs the Department to look to 
producers and workers who produce the domestic like product. The 
International Trade Commission (ITC), which is responsible for 
determining whether ``the domestic industry'' has been injured, must 
also determine what constitutes a domestic like product in order to 
define the industry. While both the Department and the ITC must apply 
the same statutory definition regarding the domestic like product 
(section 771(10) of the Act), they do so for different purposes and 
pursuant to separate and distinct authority. In addition, the 
Department's determination is subject to limitations of time and 
information. Although this may result in different definitions of the 
like product, such differences do not render the decision of either 
agency contrary to the law.\1\
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    \1\ See Algoma Steel Corp. Ltd., v. United States, 688 F. Supp. 
639, 642-44 (CIT 1988); High Information Content Flat Panel Displays 
and Display Glass from Japan: Final Determination; Rescission of 
Investigation and Partial Dismissal of Petition, 56 FR 32376, 32380-
81 (July 16, 1991).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Thus, the reference point from which the 
domestic like product analysis begins is ``the article subject to an 
investigation,'' i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition.
    The petition covers folding metal tables and folding metal chairs 
as defined in the Scope of the Investigation section, below, and 
alleges that this constitutes a single class or kind of merchandise. 
The petitioner defines the domestic like product as the class or kind 
of merchandise covered by the scope of the investigation. The 
Department has no basis on the record at this time to find the 
petitioner's definition of the domestic like product to be inaccurate. 
The Department, therefore, has adopted the domestic like product 
definition set forth in the petition for the purposes of initiation. 
However, the Department will take into account any comments submitted 
by parties in connection with this issue during the course of the 
proceeding, and revisit the issue, if appropriate.
    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (1) At least 
25 percent of the total production of the domestic like product; and 
(2) 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. Finally, section 732(c)(4)(D) of the Act 
provides that if the petition does not establish support of domestic 
producers or workers accounting for more than 50 percent of the total 
production of the domestic like product, the administering agency 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    In this case, the Department has determined that the petition (and 
subsequent amendments) contain adequate evidence of industry support; 
therefore, polling is unnecessary. See Initiation Checklist at 
Attachment III on Industry Support. Petitioner claims that it is the 
sole U.S. producer of the folding metal chairs within the domestic like 
product and that it, along with five other companies are the U.S. 
manufacturers of the folding metal chairs within the domestic like 
product. To estimate total domestic production of folding tables and 
chairs, the petitioners relied on actual production information for 
itself and two other producers and estimated production volumes for the 
three remaining producers. The Department confirmed the reasonableness 
of petitioner's estimates through direct calls to the other members of 
the domestic industry. See Memorandum to the File from Helen M. Kramer, 
May 17, 2001. Based on this information, we have concluded that the 
petition has support from producers representing more than 50 percent 
of U.S. production of folding tables and chairs.
    We note that the data we collected for purposes of determining 
industry support included separate data for folding metal tables as 
compared to folding metal chairs. We further note that these data 
plainly indicate that, even if the Department were to treat folding 
metal tables as a separate domestic like product from folding metal 
chairs, there would still be adequate domestic industry support for 
each like product category. See Initiation Checklist at Attachment III 
on Industry Support.

Scope of the Investigation

    The merchandise subject to this investigation consists of assembled 
and unassembled folding tables and folding chairs made primarily or 
exclusively from steel or other metal, as described below:
    (1) Assembled and unassembled folding tables made primarily or 
exclusively from steel or other metal (``folding metal tables''). 
Folding metal tables include square, round, rectangular, and any other 
shapes with legs affixed with rivets, welds, or any other type of 
fastener, and which are made most commonly, but not exclusively, with a 
hardboard top covered with vinyl or fabric. Folding metal tables have 
legs that mechanically fold independently of one another, and not as a 
set. The subject merchandise is commonly, but not exclusively, packed 
singly, in multiple packs of the same item, or in five piece sets 
consisting of four chairs and one table. Specifically excluded from the 
scope of folding metal tables are the following:
    <bullet> Lawn furniture;
    <bullet> Trays commonly referred to as ``TV trays'';
    <bullet> Side tables;
    <bullet> Child-sized tables;
    <bullet> Portable counter sets consisting of rectangular tables 36" 
high and matching stools; and
    <bullet> Banquet tables. A banquet table is a rectangular table 
with a plastic or laminated wood table top approximately 28" to 36" 
wide by 48" to 96" long and with a set of folding legs at each end of 
the table. One set of legs is composed of two individual legs that are 
affixed together by one or more cross-braces using welds or fastening 
hardware. In contrast, folding metal tables have legs that mechanically 
fold independently of one another, and not as a set.
    (2) Assembled and unassembled folding chairs made primarily or 
exclusively from steel or other metal (``folding metal chairs''). 
Folding metal chairs include chairs with one or more cross-braces, 
regardless of shape or size, affixed to the front and/or rear legs with

[[Page 28730]]

rivets, welds or any other type of fastener. Folding metal chairs 
include: those that are made solely of steel or other metal; those that 
have a back pad, a seat pad, or both a back pad and a seat pad; and 
those that have seats or backs made of plastic or other materials. The 
subject merchandise is commonly, but not exclusively, packed singly, in 
multiple packs of the same item, or in five piece sets consisting of 
four chairs and one table. Specifically excluded from the scope of 
folding metal chairs are the following:
    <bullet> Folding metal chairs with a wooden back or seat, or both;
    <bullet> Lawn furniture;
    <bullet> Stools;
    <bullet> Chairs with arms; and
    <bullet> Child-sized chairs.
    The subject merchandise is currently classifiable under subheadings 
9401710010, 9401710030, 9401790045, 9401790050, 9403200010 and 
9403200030 of the HTSUS. Although the HTSUS subheadings are provided 
for convenience and U.S. Customs Service purposes, the Department's 
written description of the merchandise is dispositive.
    As discussed in the preamble to the Department's regulations (62 FR 
27323), we are setting aside a period for parties to raise issues 
regarding product coverage. The Department encourages all parties to 
submit such comments by June 6, 2001. Comments should be addressed to 
Import Administration's Central Records Unit at Room 1870, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230, Attention: Helen M. Kramer. The period of scope 
consultations is intended to provide the Department with ample 
opportunity to consider all comments and consult with parties prior to 
the issuance of the preliminary determinations.

Export Price and Normal Value

    The following are descriptions of the allegations of sales at less 
than fair value upon which our decision to initiate is based. 
Petitioner has provided separate margin calculations for folding metal 
chairs and folding metal tables. Should the need arise to use any of 
this information in our preliminary or final determinations, we will 
re-examine the information and may revise the margin calculations, if 
appropriate.

Export Price

    The petitioner based export prices on quotations during the period 
of investigation (POI) from two Chinese producers of folding metal 
chairs and five-piece sets consisting of a folding metal table and four 
folding metal chairs. The price quotes were FOB Chinese port. 
Petitioner estimated the export prices for tables using the price 
offered for complete sets. Petitioner allocated the price for the set 
to the individual components on the basis of relative normal value. The 
petitioner did not deduct an amount from these prices for 
transportation from the plant to the port.

Normal Value

    The petitioner asserts that the PRC is a nonmarket economy country 
(NME) within the meaning of section 771(18) of the Act. Thus, pursuant 
to section 773(c) of the Act and in accordance with the Department's 
usual practice with respect to NMEs, the normal value of the products 
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 these investigations. 
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 calculate normal value based on 
the factors of production of those factories that produced subject 
merchandise 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 NME status 
of the PRC and the assignment 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 petitioner based the factors of production (i.e., raw 
materials, labor, and energy) for the subject merchandise on its own 
experience, claiming that its production process is similar to that of 
the Chinese producers. Based on information petitioner obtained from 
Chinese producers of the subject merchandise during visits to their 
factories, petitioner states that they are sourcing cold-rolled carbon 
steel flat products from Taiwan as the major material input. Petitioner 
used the average unit value of Chinese imports from Taiwan of certain 
types of cold-rolled carbon steel flat products during the POI for the 
major material input. Remaining material inputs were valued by the 
petitioner, where possible, using Indian import data for the period 
April through December 1998, adjusted to eliminate imports from NME 
countries and very low quantity imports, and adjusted for inflation. 
Utility inputs were valued using published data for India, adjusted for 
inflation. India is an acceptable surrogate country because its level 
of economic development is comparable to that of the PRC and it is a 
producer of the subject merchandise. Lacking information on the 
distances required to transport inputs to the Chinese factories, 
petitioner used 0.5 percent of the input value to estimate 
transportation of the direct materials from the supplier or port to the 
plant.
    Based on comparisons of export price to the factors of production, 
the calculated dumping margins ranged from 21.31 percent to 82.46 
percent. See Initiation Checklist at Attachment I.

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of folding metal tables and folding metal chairs 
from the PRC are being, or are likely to be, sold at less than fair 
value.

Allegations and Evidence of Material Injury and Causation

    The petition alleges that the U.S. industry producing the domestic 
like product is being materially injured, or is threatened with 
material injury, by reason of the individual and cumulated imports of 
the subject merchandise sold at less than NV. The petitioner contends 
that the industry's injured condition is evident in the declining 
trends in employment, net operating profits, net sales volumes, profit-
to-sales ratios, and capacity utilization. The allegations of injury 
and causation are supported by relevant evidence including lost sales 
and pricing information. We have assessed the allegations and 
supporting evidence regarding material injury and causation, and have 
determined that these allegations are properly supported by accurate 
and adequate evidence and meet the statutory requirements for 
initiation (see Initiation Checklist at Attachment II Re: Material 
Injury).

Initiation of Investigation

    We have examined the petition on folding metal tables and chairs 
and have found that it meets the requirements of section 732 of the 
Act, including the requirements concerning allegations of the material 
injury or threat of material injury to the domestic producers of 
domestic like products by reason of imports allegedly sold at less than 
fair value. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of folding metal tables and 
folding metal chairs from the PRC are being, or are likely to be, sold 
in the United States at less than

[[Page 28731]]

fair value. Unless the investigation is extended, we will make our 
preliminary determination by October 4, 2001.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public version of the petition and the clarifications to the petition 
has been provided to the representatives of the government of the PRC.

International Trade Commission (ITC) Notification

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

Preliminary Determinations by the ITC

    The ITC will determine by June 11, 2001, whether there is a 
reasonable indication that imports of folding metal tables and folding 
metal chairs from the PRC are causing material injury, or threatening 
to cause material injury, to a U.S. industry. A negative ITC 
determination will result in termination of the investigation. 
Otherwise, the investigation will proceed according to statutory and 
regulatory time limits.
    This notice is published pursuant to section 777(i) of the Act.

    Dated: May 17, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 01-13166 Filed 5-23-01; 8:45 am]
BILLING CODE 3510-DS-P