[Federal Register Volume 60, Number 239 (Wednesday, December 13, 1995)]
[Notices]
[Pages 64016-64018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30276]



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DEPARTMENT OF COMMERCE
International Trade Administration


Amendment to Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination: Bicycles From the 
People's Republic of China

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

EFFECTIVE DATE: December 13, 1995.

FOR FURTHER INFORMATION CONTACT: James Terpstra or Katherine Johnson, 
Office of Antidumping Investigations, U.S. Department of Commerce, 14th 
and Constitution Avenue, NW., Washington, DC 20230; telephone (202) 
482-3965 or (202) 482-4929, respectively.

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 Rounds Agreements Act (URAA).

Scope of 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 
definitions apply 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, finished or 
unfinished, whether or not assembled together with a fork, and imported 
in the same shipment with any two of the following components: (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 

[[Page 64017]]
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.

Case History

    On November 1, 1995 (60 FR 56567, November 9, 1995), the Department 
of Commerce (``the Department'') made its affirmative preliminary 
determination of sales at less than fair value in the above-referenced 
investigation. On November 7, 1994, we disclosed our calculations for 
the preliminary determination to counsel for petitioners, counsel for 
Bo-An Bike (Shenzhen) Co., Ltd. (``Bo-An''); CATIC Bicycle Co., Ltd. 
(``CATIC''); China Bicycle Co. (Holdings) Ltd. (``CBC''); Giant China 
Co., Ltd. (``Giant''); Hua Chin Bicycle (S.Z.) Co., Ltd. (``Hua 
Chin''); Merida Bicycle (Shenzhen) Co., Ltd. (``Merida''); Shenzhen 
Overlord Bicycle Co., Ltd. (``Overlord''); and Universal Cycle 
Corporation (Guangzhou) (``UCC''), and counsel for Shun Lu Bicycle 
Company (``Chitech''), respondents in this investigation.
    On November 9 and 20, 1995, respondents alleged that ministerial 
errors had occurred in the calculations and requested that these errors 
be corrected and an amended preliminary determination be issued 
reflecting these corrections. As discussed below, we find that most of 
these errors constitute ministerial errors within the meaning of 19 CFR 
353.28(d) (hereinafter ``ministerial errors'').
    For all companies, we miscalculated factory overhead in three ways: 
(1) We mistakenly used cumulative depreciation instead yearly 
depreciation; (2) we inadvertently included factory overhead, packing 
and certain SG&A expenses in the denominator of the calculation; and 
(3) we misapplied the calculation formula to one company's financial 
statements.
    For CATIC and CBC, we inadvertently double-counted the value of 
certain components. For Hua Chin, we miscalculated the factor valuation 
for one component. For Merida, we miscalculated brokerage expenses and 
double-counted certain other expenses. For Universal, we miscalculated 
packing.
    In preparing the recalculations for the ministerial errors 
described above, we noted several minor unintentional errors in the 
programming for Bo-An, CBC, Hua Chin, and UCC. These constitute 
ministerial errors within the meaning of 19 CFR 353.28(d). Although not 
noted by other parties, we are correcting these errors for those 
companies whose calculations we are already revising. (See memorandum 
from The Team to Barbara R. Stafford dated November 29, 1995.)

Amendment of Preliminary Determination

    The Department has stated that it will amend a preliminary 
determination only to correct for significant ministerial errors (i.e., 
corrections that result in a difference of 5 absolute percentage points 
and that are at least 25 percent greater or less than the preliminary 
margin, and corrections resulting in a margin of zero or de minimis). 
(See Notice of Amended Preliminary Determination of Sales at Less than 
Fair Value: Disposable Lighters from the People's Republic of China, 60 
FR 9008 (February 16, 1995), Notice of Amended Preliminary 
Determination of Sales at Less than Fair Value: Fresh Cut Roses from 
Colombia, 59 FR 51554 (October 12, 1994), and Amendment to Preliminary 
Determination of Sales at Less than Fair Value: Sweaters Wholly or in 
Chief Weight of Man-Made Fiber from Hong Kong, 55 FR 19289 (May 9, 
1990).)
    Given the facts of this investigation, as noted above, the 
Department hereby amends its preliminary determination to correct for 
the ministerial errors involved for Hua Chin, Merida, Overlord, and 
UCC, since the correction of the ministerial errors results in de 
minimis or zero margins for those companies.
    We are not amending the preliminary margins of Chitech and CBC 
because the corrections of the ministerial errors do not result in a 
difference of five absolute percentage points from the preliminary 
margin rates, nor do they result in de minimis margins.
    Finally, we are not amending the preliminary margins of Bo-An, 
CATIC, and Giant because those companies were preliminarily found not 
to be selling at less than fair value. (See memorandum from The Team to 
Barbara R. Stafford dated November 29, 1995, for a detailed discussion 
of the ministerial error allegations and the Department's analysis). 
The revised estimated margins are as follows:

------------------------------------------------------------------------
                                               Weighted-average margin  
      Manufacturer/producer/exporter                 percentage         
------------------------------------------------------------------------
Bo-An.....................................  0.00.                       
CATIC.....................................  0.00.                       
Giant.....................................  0.00.                       
Hua Chin..................................  1.56 (de minimis).          
Merida....................................  0.00.                       
CBC.......................................  5.69.                       
Overlord..................................  1.54 (de minimis).          
Chitech...................................  5.29.                       
UCC.......................................  0.55 (de minimis).          
PRC-Wide Rate.............................  61.67.                      
------------------------------------------------------------------------

    The PRC-Wide rate applies to all entries of subject merchandise 
except for entries from exporters/factories that are identified 
individually above.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct the U.S. Customs Service to continue to require a cash 
deposit or posting of a bond for all entries of subject merchandise 
from the PRC for CBC and Chitech that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The Department will direct the U.S. 
Customs Service to terminate suspension of liquidation for Merida, 
Overlord, UCC, and Hua Chin. Furthermore, any entries by Merida, 
Overlord, UCC, and Hua Chin which were suspended as a result of the 
preliminary determination will be liquidated. The ``PRC-Wide'' rate 
established in the preliminary determination remains the same. The 
suspension of liquidation will remain in effect until further notice.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of the amended preliminary determination.

Postponement of Final Determination

    On November 6 and 9, 1995, respondents representing a significant 
proportion of exports to the United States of subject merchandise 
requested a 60-day postponement of the final determination, in 
accordance with 19 U.S.C. section 1673d(a)(2) and 19 CFR 353.20(b). 
Pursuant to 19 CFR 353.20(b), because our preliminary determination is 
affirmative, and no compelling reasons for denial exist, we are 
postponing the date of the final determination. Because of the federal 
government shutdown, the date of the final determination will be 
extended by an additional six days, the number of days of the shutdown, 
to March 29, 1996.
    The deadline for interested parties to submit additional publicly 
available information concerning surrogate values is February 13, 1996. 
Rebuttal comments on this information must be submitted no later than 
February 23, 1996.
    The revised deadlines for submitting case briefs and rebuttal 
briefs are March 1, 1996, and March 8, 1996, 

[[Page 64018]]
respectively. On November 20, 1995, petitioners requested that a 
hearing be held. At this time the hearing is scheduled for March 12, 
1996, the time and place to be determined, at the U.S. Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230. Parties should confirm by telephone the time, date, and place of 
the hearing 48 hours before the scheduled time.
    This notice is published pursuant to section 733(f) of the Act and 
19 CFR 353.15(a)(4).

    Dated: December 4, 1995.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 95-30276 Filed 12-12-95; 8:45 am]
BILLING CODE 3510-DS-P