[Federal Register Volume 70, Number 181 (Tuesday, September 20, 2005)]
[Notices]
[Pages 55107-55109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18715]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-846]


Brake Rotors From the People's Republic of China: Preliminary 
Results of Antidumping Duty Changed Circumstances Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is currently 
conducting a changed circumstances review of the antidumping duty order 
on brake rotors from the People's Republic of China (``PRC''). We have 
preliminarily determined that Shandong Huanri Group Co., Ltd. (``Huanri 
Group'') is the successor-in-interest to Shandong Huanri Group General 
Company (``Huanri Group General'') for purposes of determining 
antidumping liability.
    Interested parties are invited to comment on these preliminary 
results. The Department will issue the final results of this 
antidumping duty changed circumstances review not later than November 
7, 2005, as the Department plans to issue the final results of this 
changed circumstance review at the same time as the final results of 
the concurrent administrative review.

EFFECTIVE DATE: September 20, 2005.

FOR FURTHER INFORMATION CONTACT: Catherine Bertrand or Carrie Blozy, 
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-
3207 or (202) 482-5403, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 28, 2004, Huanri Group requested that the Department 
determine that it is the successor-in-interest to Huanri Group General 
for purposes of determining antidumping liability. On December 13, 
2004, the Department initiated a changed circumstances review of Huanri 
Group's claim that it is the successor-of-interest to Huanri Group 
General. See Brake Rotors from the People's Republic of China: Notice 
of Initiation of Changed Circumstances Review, 69 FR 75508 (December 
17, 2004).
    On February 2, 2005, the Department issued a supplemental 
questionnaire to Huanri Group. On February 23, 2005, Huanri Group 
submitted a supplemental questionnaire response. On March 26, 2005, the 
Department verified the information submitted by the Huanri Group to 
support its successorship claim at Huanri's Group's office in Laizhou, 
China. See Verification Report, dated June 17, 2005 (``Verification 
Report'').

Scope of the Order

    The products covered by the order are brake rotors made of gray 
cast iron, whether finished, semifinished, or unfinished, ranging in 
diameter from 8 to 16 inches (20.32 to 40.64 centimeters) and in weight 
from 8 to 45 pounds (3.63 to 20.41 kilograms). The size parameters 
(weight and dimension) of the brake rotors limit their use to the 
following types of motor vehicles: automobiles, all-terrain vehicles, 
vans, recreational vehicles under ``one ton and a half,'' and light 
trucks designated as ``one ton and a half.''
    Finished brake rotors are those that are ready for sale and 
installation without any further operations. Semi-finished rotors are 
those rotors which have undergone some drilling and on which the 
surface is not entirely smooth. Unfinished rotors are those which have 
undergone some grinding or turning.
    These brake rotors are for motor vehicles and do not contain in the 
casting a logo of an original equipment manufacturer (``OEM'') which 
produces vehicles sold in the United States (e.g., General Motors, 
Ford, Chrysler, Honda, Toyota, and Volvo). Brake rotors covered in this 
review are not certified by OEM producers of vehicles sold in the 
United States. The scope also includes composite brake rotors that are 
made of gray cast iron which contain a steel plate but otherwise meet 
the above criteria. Excluded from the scope of the review are brake 
rotors made of gray cast iron, whether finished, semifinished, or 
unfinished, with a diameter less than 8 inches or greater than 16 
inches (less than 20.32 centimeters or greater than 40.64

[[Page 55108]]

centimeters) and a weight less than 8 pounds or greater than 45 pounds 
(less than 3.63 kilograms or greater than 20.41 kilograms).
    Brake rotors are classifiable under subheading 8708.39.5010 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheading is provided for convenience and customs purposes, 
the written description of the scope of the order is dispositive.

Preliminary Results

    The Department is currently conducting an administrative review 
regarding Huanri Group General. In the preliminary results of the 
administrative review, the Department preliminarily determined that 
Huanri Group General did not demonstrate that it was entitled to a 
separate rate under the Department's test. See Brake Rotors From the 
People's Republic of China: Preliminary Results and Partial Rescission 
of the Seventh Administrative Review and Preliminary Results of the 
Eleventh New Shipper Review, 70 FR 24382 (May 9, 2005). The final 
results of the administrative review are due on November 7, 2005. The 
Department will issue the final results of this changed circumstance 
review at the same time as the concurrent administrative review as both 
segments involve the company at issue. The separate rate issue will be 
decided in the context of the administrative review. However, the final 
results of the administrative review with respect to separate rates 
will be incorporated into the changed circumstance review final. The 
Department's decision in this changed circumstance preliminary results 
will focus solely on the successor-in-interest issue discussed below.
    In its February 23, 2005, supplemental questionnaire response, 
Huanri Group provided documentation to support further its claim that 
effective June 9, 2004, it received approval from the local bureau to 
change its name to ``Shandong Huanri Group General Company.'' The 
company stated that the reason for the name change was based on the 
shareholders' decision to change the legal structure of the company 
from a collectively owned company to a limited liability company. 
Specifically, this documentation consisted of: (1) shareholders' 
meeting minutes detailing the company's reasoning for the name change; 
(2) Notice of Advanced Approval to Enterprise Name; (3) approval for 
the name change application; and (4) Huanri Group's business license 
issued on June 9, 2004 (see Exhibit 1 of the February 23, 2005, 
supplemental questionnaire response).
    In its responses to the Department's supplemental questionnaires, 
Huanri Group also provided information in support of its statements 
that all personnel, operations, and facilities remain essentially 
unchanged as a result of changing the name of the company. The 
Department verified this information, and found that the managers, 
production facilities, equipment, suppliers, operations, and customer 
base remained unchanged after the name change.
    In making such a successor-in-interest determination, the 
Department examines several factors including, but not limited to, 
changes in: (1) management; (2) production facilities; (3) supplier 
relationships; and (4) customer base. See, e.g., Brass Sheet and Strip 
from Canada: Final Results of Antidumping Duty Administrative Review, 
57 FR 20460 (May 13, 1992). While no single factor or combination of 
these factors will necessarily provide a dispositive indication of a 
successor-in-interest relationship, the Department will generally 
consider the new company to be the successor to the previous company if 
the new company's resulting operation is not materially dissimilar to 
that of its predecessor. See, e.g., Industrial Phosphoric Acid from 
Israel: Final Results of Changed Circumstances Review, 59 FR 6944 
(February 14, 1994); Canadian Brass, and Fresh and Chilled Atlantic 
Salmon from Norway: Initiation and Preliminary Results of Changed 
Circumstances Antidumping Duty Administrative Review, 63 FR 50880 
(September 23, 1998). Thus, if the evidence demonstrates that, with 
respect to the production and sale of the subject merchandise, the new 
company operates as the same business entity as the former company, the 
Department will accord the new company the same antidumping treatment 
as its predecessor.
    Data placed on the record and verified by the Department indicates 
that Huanri Group has the same management, production facilities, 
customer base, and supplier relationships as Huanri Group General. At 
verification, the Department examined the issue of whether the two 
companies had the same management. The Department examined payroll 
records and appointment records before and after the name change. The 
Department found that there were no changes in the paid employees and 
that three of the five board members remained the same after the name 
change. See Verification Report at 9. The Department examined the 
production and sales activities at verification as well. The Department 
found that there were no changes in equipment or facilities after the 
name change. See Verification Report at 10. At verification, the 
Department also analyzed whether the suppliers were the same before and 
after the name change. The Department examined purchase entries and the 
material sub-ledger and found that there was no significant change in 
the names of the suppliers before and after the name change. See 
Verification Report at 11. The Department also analyzed whether the 
customer base was the same before and after the name change by 
examining the sales sub-ledger and invoices from selected months. The 
Department found that Huanri General continued to sell subject 
merchandise to two of its five U.S. customers. Id.
    We find that there were no significant changes to the management, 
production facilities, supplier relationships and customer base after 
the name change. Further, we find that the operations of Huanri Group 
are essentially the same as Huanri Group General. Therefore, for the 
reasons stated above, we preliminarily determine that Huanri Group 
should receive the same antidumping duty treatment with respect to 
brake rotors as the former entity Huanri Group General.
    If these preliminary results are adopted in our final results of 
this changed circumstances review, we will instruct the U.S. Customs 
and Border Protection (``CBP'') to assign Huanri Group the antidumping 
duty cash deposit rate applicable to Huanri Group General. The cash 
deposit determination from this changed circumstances review will apply 
to all entries of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this changed circumstances review. This deposit rate 
shall remain in effect until publication of the final results of the 
next administrative review in which Huanri Group participates.
    Any interested party may request a hearing within 30 days of 
publication of this notice. Any hearing, if requested, will be held no 
later than 40 days after the date of publication of this notice, or the 
first workday thereafter. Interested parties who wish to request a 
hearing or to participate if one is requested, must submit a written 
request to the Assistant Secretary for Import Administration, Room B-
099. Requests should contain: (1) the party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. See 19 CFR 351.310(c).

[[Page 55109]]

    Issues raised in the hearing will be limited to those raised in 
case briefs and rebuttal briefs. Case briefs from interested parties 
may be submitted not later than 30 days after publication of this 
notice. Rebuttal briefs, limited to the issues raised in the case 
briefs, may be filed not later than five days after the submission of 
case briefs. Parties who submit case briefs or rebuttal briefs in this 
proceeding are requested to submit with each argument (1) a statement 
of the issue and (2) a brief summary of the argument. Parties are 
encouraged to provide a summary of the arguments not exceeding five 
pages and a table of statutes, regulations, and cases cited.
    The Department will publish the final results of this changed 
circumstances review, including the results of its analysis of issues 
raised in any written comments, not later than November 7, 2005.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(b)(1) and 777(i)(1) of the Act and 19 CFR 
351.216.

    Dated: September 14, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-18715 Filed 9-19-05; 8:45 am]
BILLING CODE 3510-DS-S