```

[Federal Register Volume 75, Number 190 (Friday, October 1, 2010)]
[Notices]
[Pages 60725-60730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24720]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-964]

Seamless Refined Copper Pipe and Tube From the People's Republic 
of China: Final Determination of Sales at Less Than Fair Value

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

DATES: Effective Date: October 1, 2010.

SUMMARY: On May 12, 2010, the Department of Commerce (the 
``Department'') published its preliminary determination of sales at 
less than fair value (``LTFV'') in the antidumping duty investigation 
of seamless refined copper pipe and tube (``copper pipe and tube'') 
from the People's Republic of China (``PRC'').\1\ The Department 
invited interested parties to comment on the Preliminary Determination. 
Based on the Department's analysis of the comments received, the 
Department has made changes from the Preliminary Determination. The 
Department determines that copper pipe and tube from the PRC is being, 
or is likely to be, sold in the United States at LTFV as provided in 
section 735 of the Tariff Act of 1930, as amended (the ``Act''). The 
final dumping margins for this investigation are listed in the ``Final 
Determination'' section below.
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    \1\ See Seamless Refined Copper Pipe and Tube from the People's 
Republic of China: Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 75 FR 26716 (May 
12, 2010) (``Preliminary Determination'').

FOR FURTHER INFORMATION CONTACT: Karine Gziryan or Shawn Higgins, AD/
CVD Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
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4081 and (202) 482-0679, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published its Preliminary Determination of sales at 
LTFV and postponement of the final determination on May 12, 2010.
    Between May 24, 2010, and June 1, 2010, the Department conducted 
verification of mandatory respondents Golden Dragon Precise Copper Tube 
Group, Inc. (``Golden Dragon'') and Zhejiang Hailiang Co., Ltd., 
Shanghai Hailiang Copper Co., Ltd., and Hong Kong Hailiang Metal 
Trading Limited (collectively, the ``Hailiang Group'').\2\
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    \2\ See the ``Verification'' section below.
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    Cerro Flow Products, Inc., KobeWieland Copper Products, LLC, 
Mueller Copper Tube Company, Inc. (collectively, ``Petitioners''), 
Golden Dragon, and the Hailiang Group submitted case briefs on July 2, 
2010.\3\ On July 9, 2010, Petitioners, Golden Dragon, and the Hailiang 
Group filed rebuttal briefs.\4\ The Department conducted a public 
hearing on August 4, 2010.
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    \3\ See Letter from Petitioners to the Secretary of Commerce, 
``Seamless Refined Copper Pipe and Tube from the People's Republic 
of China; Investigation; Case Brief of Petitioners'' (July 2, 2010); 
Letter from Golden Dragon to the Secretary of Commerce, ``Seamless 
Refined Copper Pipe and Tube from the People's Republic of China'' 
(July 2, 2010); Letter from the Hailiang Group to the Secretary of 
Commerce, ``Seamless Refined Copper Pipe & Tube from the People's 
Republic of China: The Hailiang Group--Administrative Case Brief'' 
(July 2, 2010).
    \4\ See Letter from Petitioners to the Secretary of Commerce, 
``Seamless Refined Copper Pipe and Tube from the People's Republic 
of China; Investigation; Rebuttal Brief of Petitioners'' (July 9, 
2010); Letter from Golden Dragon to the Secretary of Commerce, 
``Seamless Refined Copper Pipe and Tube from the People's Republic 
of China'' (July 9, 2010); Letter from the Hailiang Group to the 
Secretary of Commerce, ``Seamless Refined Copper Pipe & Tube from 
the People's Republic of China: Rebuttal Brief of the Hailiang 
Group'' (July 9, 2010).
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    On August 3, 2010, the Department notified parties that as a result 
of the recent decision in Dorbest Ltd. v. United States, 604 F.3d 1363 
(Fed. Cir. 2010) (``Dorbest''), issued by the United States Court of 
Appeals for the Federal Circuit (``CAFC'') on May 14, 2010, the 
Department would be reconsidering its valuation of the labor wage rate 
in this investigation. The Department placed export data on the record 
of the investigation and gave parties an opportunity to comment on the 
narrow issue of the labor wage value in light of the CAFC's 
decision.\5\ On August 9, 2010, Petitioners and Golden Dragon submitted 
comments regarding the wage rate issue.\6\
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    \5\ See Memorandum from Shawn Higgins, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4, ``Antidumping Duty 
Investigation of Seamless Refined Copper Pipe and Tube from the 
People's Republic of China: Wage Data'' (August 3, 2010).
    \6\ See Letter from Petitioners to the Secretary of Commerce, 
``Seamless Refined Copper Pipe and Tube from China; Petitioners' 
Comments on the Surrogate Value for Labor'' (August 9, 2010); Letter 
from Golden Dragon to the Secretary of Commerce, ``Seamless Refined 
Copper Pipe and Tube from the People's Republic of China: Golden 
Dragon Precise Copper Tube Group, Inc.'' (August 9, 2010).
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Period of Investigation

    The period of investigation (``POI'') is January 1, 2009, through 
June 30, 2009. This period corresponds to the two most recent fiscal 
quarters prior to the month

[[Page 60726]]

of the filing of the petition (i.e., September, 2009).\7\
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    \7\ See 19 CFR 351.204(b)(1).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation, as well as comments received pursuant to the 
Department's requests, are addressed in the Issues and Decision 
Memorandum.\8\ A list of the issues which parties raised and to which 
the Department responds in the Issues and Decision Memorandum is 
attached to this notice as Appendix I. The Issues and Decision 
Memorandum is a public document that is on file in the Central Records 
Unit, Room 7046 of the main Commerce building and accessible at http://trade.gov/ia. The paper copy and electronic version of the memorandum 
are identical in content.
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    \8\ See Memorandum from Susan H. Kuhbach, Acting Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration, ``Issues and Decision Memorandum for the 
Final Determination in the Antidumping Duty Investigation of 
Seamless Refined Copper Pipe and Tube from the People's Republic of 
China'' (September 24, 2010) (``Issues and Decision Memorandum'').
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Changes Since the Preliminary Determination

Changes Applicable to Multiple Companies

    1. Pursuant to Dorbest, the Department calculated an hourly wage 
rate by averaging earnings and/or wages in countries that are 
economically comparable to the PRC and that are significant producers 
of comparable merchandise.\9\
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    \9\ See Issues and Decision Memorandum at Comment 1; Memorandum 
to the File from Shawn Higgins, International Trade Compliance 
Analyst, AD/CVD Operations, Office 4, ``Investigation of Seamless 
Refined Copper Pipe and Tube from the People's Republic of China: 
Final Surrogate Value Memorandum,'' (September 24, 2010) (``Final 
Surrogate Value Memorandum'') at 2, Attachment 3.
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    2. The Department made several adjustments to the calculations of 
the surrogate financial ratios.\10\
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    \10\ See Issues and Decision Memorandum at Comment 2; Final 
Surrogate Value Memorandum at 2, Attachment 4.
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Changes Specific to Golden Dragon

    1. The Department treated Golden Dragon's copper cathode purchases 
from a certain PRC supplier as market economy purchases.\11\
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    \11\ See Issues and Decision Memorandum at Comment 4; Memorandum 
from Shawn Higgins, International Trade Compliance Analyst, AD/CVD 
Operations, Office 4, to the File, ``Seamless Refined Copper Pipe 
and Tube from the People's Republic of China: Final Analysis 
Memorandum for Golden Dragon Precise Copper Tube Group, Inc.'' 
(September 24, 2010) (``Golden Dragon's Final Analysis Memorandum'') 
at 1-2, Attachment 1.
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    2. In accordance with section 777A(a)(2) of the Act and 19 CFR 
351.413, the Department declined to make certain adjustments to the 
calculation of indirect U.S. selling expenses for salaries paid to two 
employees of Golden Dragon who worked in the United States during the 
POI because these adjustments are insignificant in relation to the 
price of the merchandise.\12\
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    \12\ See Issues and Decision Memorandum at Comment 8; Golden 
Dragon's Final Analysis Memorandum at 2, Attachment 3.
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    3. The Department revised the reported wall thickness for one 
control number (``CONNUM'').\13\
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    \13\ See Memorandum from Shawn Higgins, International Trade 
Compliance Analyst, AD/CVD Operations, Office 4, to the File, 
``Antidumping Duty Investigation of Seamless Refined Copper Pipe and 
Tube from the People's Republic of China: Verification of the 
Questionnaire Responses of Golden Dragon Precise Copper Tube Group, 
Inc.'' (June 15, 2010) (``Golden Dragon's Verification Report'') at 
3; Golden Dragon's Final Analysis Memorandum at 2.
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    4. The Department revised the reported electricity consumption to 
account for indirect consumption of electricity.\14\
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    \14\ Id.
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    5. The Department revised the reported indirect labor to account 
for previously unreported labor hours.\15\
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    \15\ Id.
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    6. The Department revised the reported water consumption to reflect 
the water consumption calculated in Golden Dragon's cost 
reconciliation.\16\
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    \16\ See Golden Dragon's Verification Report at 3; Golden 
Dragon's Final Analysis Memorandum at 3.
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    7. The Department revised the reported direct labor and electricity 
consumption to reflect the correct production quantities at all stages 
of the production process.\17\
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    \17\ See Golden Dragon's Verification Report at 2, 29; Golden 
Dragon's Final Analysis Memorandum at 3.
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    8. The Department revised the reported electricity consumption to 
reflect the correct allocation of electricity to the different inner 
grooved tubes (``IGT'') based on the IGT forming processing stage 
consumption that corresponds to each type of IGT.\18\
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    \18\ See Issues and Decision Memorandum at Comment 9; Golden 
Dragon's Final Analysis Memorandum at 3.
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    9. The Department adjusted the reported electricity and direct 
labor consumption for a particular CONNUM to reflect the lower 
electricity and direct labor usage rates for a nine millimeter (mm) IGT 
product instead of the higher rates for a seven mm product.\19\
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    \19\ Id.
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    10. The Department revised the reported consumption of plastic 
plugs, wood boards, rubber plugs, and paper pads to reflect the weights 
measured by the Department during verification.\20\
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    \20\ See Golden Dragon's Verification Report at 33; Golden 
Dragon's Final Analysis Memorandum at 3.
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    11. The Department revised the distances between Golden Dragon and 
several of its suppliers.\21\
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    \21\ See Golden Dragon's Verification Report at 32; Golden 
Dragon's Final Analysis Memorandum at 3-4, Attachment 4.
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    12. The Department revised the distances between Golden Dragon and 
several seaports, including the nearest seaport.\22\
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    \22\ Id.
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    13. The Department revised the gross unit price of eight invoices 
in which the sales amount recorded in the U.S. sales database was less 
than the sales amount recorded in the records of the U.S. sales 
staff.\23\
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    \23\ See Golden Dragon's Verification Report at 2, 18; Golden 
Dragon's Final Analysis Memorandum at 4.
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    14. The Department revised the reported international freight 
amount to include a security fee that was not reported in the U.S. 
sales database.\24\
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    \24\ See Golden Dragon's Verification Report at 2, 22; Golden 
Dragon's Final Analysis Memorandum at 4.
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    15. The Department revised the credit period over which the 
reported credit expenses are based from the period between the date of 
sale and the payment date to the period between the date of shipment 
and the payment date.\25\
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    \25\ See Golden Dragon's Verification Report at 2, 22-23; Golden 
Dragon's Final Analysis Memorandum at 4.
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Changes Specific to the Hailiang Group

    1. The Department determined that the Hailiang Group has failed to 
cooperate because it has not acted to the best of its ability to comply 
with the Department's requests to provide factors of production 
(``FOP'') on a product-group specific basis. Therefore, pursuant to 
section 776(b) of the Act, the Department has found that, in selecting 
from among the facts otherwise available (``FA''), an adverse inference 
is appropriate for the Hailiang Group.\26\
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    \26\ See Issues and Decision Memorandum at Comment 12; 
Memorandum from Karine Gziryan, International Trade Compliance 
Analyst, AD/CVD Operations, Office 4, to the File, ``Seamless 
Refined Copper Pipe and Tube from the People's Republic of China: 
Final Analysis Memorandum for the Hailiang Group'' (September 24, 
2010) (``Hailiang Group's Final Analysis Memorandum'') at 2.
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    2. The Department revised the weighted-average per-unit FOP for 
water to include the FOP for water reported on a cubic meter per 
kilogram basis.\27\
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    \27\ See Issues and Decision Memorandum at Comment 13; Hailiang 
Group's Final Analysis Memorandum at 2.

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[[Page 60727]]

    3. The Department revised the weighted-average per-unit FOP for 
wooden crate.\28\
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    \28\ See Issues and Decision Memorandum at Comment 14; Hailiang 
Group's Final Analysis Memorandum at 3.
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    4. The Department revised its normal value calculation to include 
carbon soot, scale-like graphite, hydrogen, and mold oils as direct 
materials.\29\
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    \29\ See Issues and Decision Memorandum at Comment 15; Hailiang 
Group's Final Analysis Memorandum at 3.
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    5. The Department revised its normal value calculation to exclude 
polythene, colorant, and anti-aging master batch.\30\
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    \30\ Id.
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    6. The Department revised its normal value calculation to include 
nitrogen, kerosene and charcoal as direct inputs.\31\
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    \31\ See Issues and Decision Memorandum at Comment 15; Hailiang 
Group's Final Analysis Memorandum at 4.
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    7. The Department revised its normal value calculation to include 
the labor hours reported in the two additional indirect labor fields 
from the Hailiang Group's post-verification sales database.\32\
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    \32\ See Issues and Decision Memorandum at Comment 17; Hailiang 
Group's Final Analysis Memorandum at 4.
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    8. The Department incorporated all changes from the Hailiang 
Group's minor corrections in the final calculation of the Hailiang 
Group's antidumping margin.\33\
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    \33\ See Issues and Decision Memorandum at Comment 18; Hailiang 
Group's Final Analysis Memorandum at 4.
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Scope of Investigation

    For the purpose of this investigation, the products covered are all 
seamless circular refined copper pipes and tubes, including redraw 
hollows, greater than or equal to 6 inches (152.4 mm) in length and 
measuring less than 12.130 inches (308.102 mm) (actual) in outside 
diameter (``OD''), regardless of wall thickness, bore (e.g., smooth, 
enhanced with inner grooves or ridges), manufacturing process (e.g., 
hot finished, cold-drawn, annealed), outer surface (e.g., plain or 
enhanced with grooves, ridges, fins, or gills), end finish (e.g., plain 
end, swaged end, flared end, expanded end, crimped end, threaded), 
coating (e.g., plastic, paint), insulation, attachments (e.g., plain, 
capped, plugged, with compression or other fitting), or physical 
configuration (e.g., straight, coiled, bent, wound on spools).
    The scope of this investigation covers, but is not limited to, 
seamless refined copper pipe and tube produced or comparable to the 
American Society for Testing and Materials (``ASTM'') ASTM-B42, ASTM-
B68, ASTM-B75, ASTM-B88, ASTM-B88M, ASTM-B188, ASTM-B251, ASTM-B251M, 
ASTM-B280, ASTM-B302, ASTM-B306, ASTM-359, ASTM-B743, ASTM-B819, and 
ASTM-B903 specifications and meeting the physical parameters described 
therein. Also included within the scope of this investigation are all 
sets of covered products, including ``line sets'' of seamless refined 
copper tubes (with or without fittings or insulation) suitable for 
connecting an outdoor air conditioner or heat pump to an indoor 
evaporator unit. The phrase ``all sets of covered products'' denotes 
any combination of items put up for sale that is comprised of 
merchandise subject to the scope.
    ``Refined copper'' is defined as: (1) Metal containing at least 
99.85 percent by weight of copper; or (2) metal containing at least 
97.5 percent by weight of copper, provided that the content by weight 
of any other element does not exceed the following limits:

------------------------------------------------------------------------
                                                       Limiting content
                       Element                         percent by weight
------------------------------------------------------------------------
Ag--Silver..........................................                0.25
As--Arsenic.........................................                0.5
Cd--Cadmium.........................................                1.3
Cr--Chromium........................................                1.4
Mg--Magnesium.......................................                0.8
Pb--Lead............................................                1.5
S--Sulfur...........................................                0.7
Sn--Tin.............................................                0.8
Te--Tellurium.......................................                0.8
Zn--Zinc............................................                1.0
Zr--Zirconium.......................................                0.3
Other elements (each)...............................                0.3
------------------------------------------------------------------------

    Excluded from the scope of this investigation are all seamless 
circular hollows of refined copper less than 12 inches in length whose 
OD (actual) exceeds its length. The products subject to this 
investigation are currently classifiable under subheadings 7411.10.1030 
and 7411.10.1090 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). Products subject to this investigation may also enter 
under HTSUS subheadings 7407.10.1500, 7419.99.5050, 8415.90.8065, and 
8415.90.8085. Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the scope 
of this investigation is dispositive.

Scope Comments

    The Department has not received comments on the scope of this 
investigation since the publication of the Preliminary Determination.

Verification

    As provided in section 782(i) of the Act, the Department verified 
the information submitted by Golden Dragon and the Hailiang Group for 
use in the final determination. The Department used standard 
verification procedures including examination of relevant accounting 
and production records and original source documents provided by the 
respondents.\34\
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    \34\ See Memorandum from Robert Bolling, Program Manager, AD/CVD 
Operations, Office 4, to the File, ``Verification of the Sales and 
Factors Responses of Zhejiang Hailiang Co., Ltd.; Shanghai Hailiang 
Co., Ltd.; and Hong Kong Hailiang Co., Ltd. in the Antidumping 
Investigation of Seamless Refined Copper Pipe and Tube from the 
People's Republic of China'' (June 18, 2010); Memorandum from Shawn 
Higgins, International Trade Compliance Analyst, AD/CVD Operations, 
Office 4, to the File, ``Antidumping Duty Investigation of Seamless 
Refined Copper Pipe and Tube from the People's Republic of China: 
Verification of the Questionnaire Responses of Golden Dragon Precise 
Copper Tube Group, Inc.'' (June 15, 2010).
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Non-Market Economy Treatment

    The Department considers the PRC to be a non-market economy 
(``NME'') country.\35\ In accordance with section 771(18)(C)(i) of the 
Act, any determination that a foreign country is an NME country shall 
remain in effect until revoked by the administering authority. No party 
has challenged the designation of the PRC as an NME country in this 
investigation. Therefore, the Department continues to treat the PRC as 
an NME country for purposes of this final determination.
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    \35\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination: Coated Free 
Sheet Paper from the People's Republic of China, 72 FR 30758, 30760 
(June 4, 2007), unchanged in Final Determination of Sales at Less 
Than Fair Value: Coated Free Sheet Paper from the People's Republic 
of China, 72 FR 60632 (October 25, 2007).
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Surrogate Country

    In the Preliminary Determination, the Department stated that it 
selected India as the appropriate surrogate country to use in this 
investigation for the following reasons: (1) It is a significant 
producer of comparable merchandise; (2) it is at a similar level of 
economic development pursuant to section 773(c)(4) of the Act; and (3) 
the Department has reliable data from India that it can use to value 
the FOPs.\36\ The Department received no comments on this issue after 
the Preliminary Determination and the Department has not made changes 
to its findings with respect to the selection of a surrogate country 
for the final determination.
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    \36\ See Preliminary Determination, 75 FR at 26719.
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Separate Rates

    In proceedings involving NME countries, the Department holds a 
rebuttable presumption that all companies within the country are 
subject to government control and, thus,

[[Page 60728]]

should be assessed a single antidumping duty rate. It is the 
Department's policy to assign all exporters of subject merchandise in 
an NME country this single rate unless an exporter can demonstrate that 
it is sufficiently independent so as to be entitled to a separate 
rate.\37\
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    \37\ See Notice of Final Determination of Sales at Less Than 
Fair Value: Sparklers from the People's Republic of China, 56 FR 
20588 (May 6, 1991), as further developed in Notice of Final 
Determination of Sales at Less Than Fair Value: Silicon Carbide from 
the People's Republic of China, 59 FR 22585 (May 2, 1994).
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    In the Preliminary Determination, the Department found that the 
following companies demonstrated eligibility for separate-rate status: 
Luvata Tube (Zhongshan) Ltd.; Ningbo Jintian Copper Tube Co. Ltd.; 
Zhejiang Naile Copper Co., Ltd.; Zhejiang Jiahe Pipes Inc.; and Luvata 
Alltop (Zhongshan) Ltd. (collectively, the ``Separate Rate 
Applicants'').\38\ Since the publication of the Preliminary 
Determination, no party has commented on the eligibility of the 
Separate Rate Applicants for separate-rate status. For the final 
determination, the Department continues to find that the evidence 
placed on the record of this investigation by the Separate Rate 
Applicants demonstrates both de jure and de facto absence of government 
control with respect to each company's respective exports of the 
merchandise under investigation. Thus, the Department continues to find 
that the Separate Rate Applicants are eligible for separate-rate 
status.
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    \38\ See Preliminary Determination, 75 FR at 26720.
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    The separate rate is determined based on the estimated weighted-
average dumping margins established for exporters and producers 
individually investigated, excluding zero and de minimis margins or 
margins based entirely on adverse facts available (``AFA'').\39\ In 
this investigation both mandatory respondents, Golden Dragon and the 
Hailiang Group, have estimated weighted-average dumping margins which 
are above de minimis and which are not based on total AFA. Therefore, 
because there are only two relevant weighted-average dumping margins 
for this final determination and because using a weighted average risks 
disclosure of business proprietary information, the separate rate is a 
simple-average of these two values, which is 36.05 percent.\40\
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    \39\ See section 735(c)(5)(A) of the Act.
    \40\ See Steel Wire Garment Hangers from the People's Republic 
of China: Final Determination of Sales at Less Than Fair Value, 73 
FR 47587, 47591 (August 14, 2008).
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Use of FA and AFA

    Section 776(a) of the Act provides that the Department shall apply 
FA if (1) necessary information is not on the record, or (2) an 
interested party or any other person (A) withholds information that has 
been requested, (B) fails to provide information within the deadlines 
established, or in the form and manner requested by the Department, 
subject to subsections (c)(1) and (e) of section 782 of the Act, (C) 
significantly impedes a proceeding, or (D) provides information that 
cannot be verified as provided by section 782(i) of the Act.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying FA when a party has failed to 
cooperate by not acting to the best of its ability to comply with a 
request for information. Such an adverse inference may include reliance 
on information derived from the petition, the final determination, a 
previous administrative review, or other information placed on the 
record.

Hailiang Group

    In the Preliminary Determination, the Department determined, 
pursuant to section 776(a)(1) and (2)(B) of the Act, that it was 
appropriate to base the Hailiang Group's preliminary dumping margin, in 
part, on FA because (1) the Hailiang Group's own information on the 
record indicates that it had the ability to report its FOPs on a 
product-group specific basis,\41\ and (2) the Hailiang Group continued 
to report FOP values that are identical for all CONNUMs, despite the 
Department's multiple requests to provide this data on a more specific 
basis.\42\ On April 29, 2010, the Department issued a questionnaire 
that requested the Hailiang Group to report product-specific FOPs for 
different production stages and, if the Hailiang Group believed that 
this were not possible, to comment on the product-group specific 
processing yields that are on the record of this investigation. 
However, the Hailiang Group neither reported product-specific FOPs for 
different production stages nor explained why these product-group 
specific processing yields are incorrect and cannot be applied in the 
calculation of product-group specific FOPs.\43\ The Hailiang Group had 
multiple opportunities both before and after the Preliminary 
Determination to explain why the cumulative yields that were calculated 
by Petitioners and used in the Preliminary Determination were flawed 
and could not be used in the final determination. The Hailiang Group, 
however, did not provide such an explanation.
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    \41\ See Letter from the Hailiang Group to the Secretary of 
Commerce, ``Certain Seamless Refined Copper Pipe & Tube from the 
People's Republic of China: Supplemental Section D Questionnaire 
Response of Hailiang Group'' (March 19, 2010) at Exhibit 6; Letter 
from the Hailiang Group to the Secretary of Commerce, ``Certain 
Seamless Refined Copper Pipe & Tube from the People's Republic of 
China: Supplemental Section D Questionnaire Response of Hailiang 
Group'' (April 12, 2010) at Exhibit 12.
    \42\ See Letter from Robert Bolling, Program Manager, AD/CVD 
Operations, Office 4, to the Hailiang Group, ``Sections C&D Third 
Supplemental Questionnaire'' (April 28, 2010) at 2-3; Letter from 
Robert Bolling, Program Manager, AD/CVD Operations, Office 4, to the 
Hailiang Group, ``Sections C&D Second Supplemental Questionnaire'' 
(March 29, 2010) at 5; Letter from Robert Bolling, Program Manager, 
AD/CVD Operations, Office 4, to the Hailiang Group, ``Sections C&D 
Supplemental Questionnaire'' (February 26, 2010) at 8-9; Letter from 
Robert Bolling, Program Manager, AD/CVD Operations, Office 4, to 
Zhejiang Hailiang, ``Antidumping Duty Investigation of Seamless 
Refined Copper Pipe and Tube from the People's Republic of China: 
Request for Information'' (December 4, 2009) at D-2.
    \43\ See Letter from the Hailiang Group to the Secretary of 
Commerce, ``Certain Seamless Refined Copper Pipe and Tube from the 
People's Republic of China: Third Supplemental Section D 
Questionnaire & Part 1 of Post-Preliminary FOP Response of Hailiang 
Group'' (May 11, 2010); Letter from the Hailiang Group to the 
Secretary of Commerce, ``Certain Seamless Refined Copper Pipe and 
Tube from China: Part 2 of Post-Preliminary FOP Response of the 
Hailiang Group'' (May 14, 2010).
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    Because the Hailiang Group has continued to report FOP values that 
are identical for all CONNUMs, despite the Department's multiple 
requests to provide this data on a more specific basis, all the 
information necessary for the Department to calculate an accurate 
dumping margin for the Hailiang Group is not on the record and 
available for use in the final determination. Since the Hailiang Group 
did not provide the requested FOPs on a product-group specific basis, 
this necessary information was not available on the record and, 
therefore, the Department has determined, pursuant to section 776(a)(1) 
and (2)(B) of the Act, that it continues to be appropriate to base the 
Hailiang Group's dumping margin, in part, on FA. Furthermore, the 
Department determines that the Hailiang Group has failed to cooperate 
because the Hailiang Group has not acted to the best of its ability to 
comply with the Department's requests both before and after the 
Preliminary Determination to provide FOPs on a product-group specific 
basis or to explain why the cumulative yields calculated by Petitioners 
and used in the Preliminary Determination could not be used in the 
final determination. Therefore, pursuant to section 776(b) of the Act, 
the Department finds that, in

[[Page 60729]]

selecting from among FA, an adverse inference is appropriate for the 
Hailiang Group.\44\
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    \44\ See Issues and Decision Memorandum at Comment 12; Hailiang 
Group's Final Analysis Memorandum at 6.
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PRC-Wide Entity

    In the Preliminary Determination, the Department determimined that 
certain PRC exporters/producers did not respond to the Department's 
requests for information.\45\ Thus, the Department treated these PRC 
exporters/producers as part of the PRC-wide entity and found that the 
PRC-wide entity did not respond to our requests for information.\46\ No 
additional information was placed on the record with respect to any of 
these companies after the Preliminary Determination. Since the PRC-wide 
entity did not provide the Department with requested information, 
pursuant to section 776(a)(2)(A) of the Act, the Department continues 
to find it appropriate to base the PRC-wide rate on FA.
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    \45\ See Preliminary Determination, 75 FR at 26722.
    \46\ Id.
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    The Department determines that, because the PRC-wide entity did not 
respond to our requests for information, the PRC-wide entity has failed 
to cooperate to the best of its ability. Therefore, pursuant to section 
776(b) of the Act, the Department finds that, in selecting from among 
the FA, an adverse inference is appropriate for the PRC-wide entity.
    Because the Department begins with the presumption that all 
companies within an NME country are subject to government control, and 
because only Separate Rate Applicants have overcome that presumption, 
the Department is applying a single antidumping rate (i.e., the PRC-
wide entity rate) to all other exporters of subject merchandise from 
the PRC. Such companies did not demonstrate entitlement to a separate 
rate.\47\ The PRC-wide entity rate applies to all entries of subject 
merchandise except for entries from Golden Dragon, the Hailiang Group, 
and the Separate Rate Applicants.
---------------------------------------------------------------------------

    \47\ See, e.g., Synthetic Indigo From the People's Republic of 
China; Notice of Final Determination of Sales at Less Than Fair 
Value, 65 FR 25706 (May 3, 2000).
---------------------------------------------------------------------------

Selection of the AFA Rate for the PRC-Wide Entity

    In selecting a rate for AFA, the Department selects a rate that is 
sufficiently adverse ``as to effectuate the purpose of the facts 
available rule to induce respondents to provide the Department with 
complete and accurate information in a timely manner.'' \48\ Further, 
it is the Department's practice to select a rate that ensures ``that 
the party does not obtain a more favorable result by failing to 
cooperate than if it had cooperated fully.'' \49\ It is the 
Department's practice to select, as AFA, the higher of the (a) highest 
margin alleged in the petition, or (b) the highest calculated rate of 
any respondent in the investigation.\50\ In the instant investigation, 
as AFA, the Department has assigned to the PRC-wide entity the highest 
rate on the record of this proceeding, which is the 60.85 percent 
weighted-average margin calculated for the Hailiang Group.\51\ The 
Department determines that this information is the most appropriate 
from the available sources to effectuate the purposes of AFA.
---------------------------------------------------------------------------

    \48\ See Notice of Final Determination of Sales at Less Than 
Fair Value: Static Random Access Memory Semiconductors From Taiwan, 
63 FR 8909, 8932 (February 23, 1998).
    \49\ See Brake Rotors From the People's Republic of China: Final 
Results and Partial Rescission of the Seventh Administrative Review; 
Final Results of the Eleventh New Shipper Review, 70 FR 69937, 69939 
(November 18, 2005) (quoting the Statement of Administrative Action 
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d 
Cong., 2d Session at 870 (1994)).
    \50\ See Final Determination of Sales at Less Than Fair Value: 
Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products From 
The People's Republic of China, 65 FR 34660 (May 31, 2000) and 
accompanying Issues and Decision Memorandum at ``Facts Available.''
    \51\ See Hailiang Group's Final Analysis Memorandum at 1, 
Attachment III.
---------------------------------------------------------------------------

    The dumping margin for the PRC-wide entity applies to all entries 
of the merchandise under investigation except for entries of 
merchandise under investigation from the exporter/manufacturer 
combinations listed in the chart in the ``Final Determination'' section 
below.

Combination Rates

    In the Initiation Notice, the Department stated that it would 
calculate combination rates for certain respondents that are eligible 
for a separate rate in this investigation.\52\ This practice is 
described in Policy Bulletin 05.1, available at http://www.trade.gov/ia.
---------------------------------------------------------------------------

    \52\ See Seamless Refined Copper Pipe and Tube From the People's 
Republic of China and Mexico: Initiation of Antidumping Duty 
Investigations, 74 FR 55194, 55199 (October 27, 2009) (``Initiation 
Notice'').
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Final Determination

    The Department determines that the following dumping margins exist 
for the period January 1, 2009 through June 30, 2009:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
             Exporter                       Producer            percent
                                                                margin
------------------------------------------------------------------------
Golden Dragon Precise Copper Tube  Golden Dragon Precise           11.25
 Group, Inc.                        Copper Tube Group, Inc.
Zhejiang Hailiang Co., Ltd.; Hong  Zhejiang Hailiang Co.,          60.85
 Kong Hailiang Metal Trading.       Ltd.; Shanghai Hailiang
                                    Copper Co., Ltd.
 Limited; Shanghai Hailiang
 Copper Co., Ltd
Zhejiang Naile Copper Co., Ltd...  Zhejiang Naile Copper           36.05
                                    Co., Ltd.
Zhejiang Jiahe Pipes Inc.........  Zhejiang Jiahe Pipes Inc.       36.05
Luvata Tube (Zhongshan) Ltd......  Luvata Tube (Zhongshan)         36.05
                                    Ltd.
Luvata Tube (Zhongshan) Ltd......  Luvata Alltop (Zhongshan)       36.05
                                    Ltd.
Luvata Alltop (Zhongshan) Ltd....  Luvata Alltop (Zhongshan)       36.05
                                    Ltd.
Ningbo Jintian Copper Tube Co.     Ningbo Jintian Copper           36.05
 Ltd.                               Tube Co. Ltd.
PRC-Wide Entity..................  PRC-Wide Entity..........       60.85
------------------------------------------------------------------------

Disclosure

    The Department will disclose the calculations performed within five 
days of the date of publication of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).

Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to continue 
to

[[Page 60730]]

suspend liquidation of all entries of copper pipe and tube from the 
PRC, as described in the ``Scope of Investigation'' section, entered, 
or withdrawn from warehouse, for consumption on or after May 12, 2010, 
the date of publication of the Preliminary Determination in the Federal 
Register. The Department will instruct CBP to require a cash deposit or 
the posting of a bond equal to the weighted-average amount by which the 
normal value exceeds U.S. price, as indicated above.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, the Department has 
notified the International Trade Commission (``ITC'') of the final 
affirmative determination of sales at LTFV. As the Department's final 
determination is affirmative, in accordance with section 735(b)(2) of 
the Act, within 45 days the ITC will determine whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of the subject merchandise. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated and all securities posted will 
be refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
CBP to assess, upon further instruction by the Department, antidumping 
duties on all imports of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding APO

    This notice also serves as a reminder to the parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305. Timely notification of return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and the 
terms of an APO is a sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: September 24, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I

Issues for Final Determination

Comment 1: Whether the Department should revise its labor rate 
calculation.
Comment 2: Whether the Department should revise its calculation of 
the surrogate financial ratios.
Comment 3: Whether the Department should issue cash deposit 
instructions that contain ad valorem rates or specific rates.

Issues Specific to Golden Dragon Precise Copper Tube Group, Inc.

Comment 4: Whether the Department should treat copper cathode 
purchases by Golden Dragon from a certain supplier in the Peoples's 
Republic of China as non-market economy purchases.
Comment 5: Whether the Department should recalculate Golden Dragon's 
copper cathode cost based on the bonded and general trade copper 
cathode purchases during the period of investigation.
Comment 6: Whether the Department should revise the surrogate value 
for plywood batten consumed by Golden Dragon.
Comment 7: Whether the Department should consider solvent consumed 
by Golden Dragon to be a direct material input.
Comment 8: Whether the Department should include salaries paid to 
two employees of Golden Dragon who worked in the United States 
during the period of investigation as indirect U.S. selling 
expenses.
Comment 9: Whether the Department should adjust the factor of 
production for electricity for 7 mm and 9 mm inner-grooved tube 
products.
Comment 10: Whether the Department should make certain minor 
corrections.

Issues Specific to Zhejiang Hailiang Co., Ltd., Shanghai Hailiang 
Copper Co., Ltd., and Hong Kong Hailiang Metal Trading Limited

Comment 11: Whether to use facts available with regard to the 
Hailiang Group's line set sales.
Comment 12: Whether to use of facts available with regard to the 
Hailiang Group's factors of production.
Comment 13: Whether to correct the water usage factor of production 
used in the Preliminary Determination.
Comment 14: Whether the Department should accept the post-
preliminary correction of the consumption of Shanghai Hailiang's 
wooden crates.
Comment 15: Whether to continue considering certain raw materials as 
factors of production or exclude them from the calculation of the 
Hailiang Group's normal value.
Comment 16: Whether to continue using the actual weight reported by 
the Hailiang Group in its United States sales database.
Comment 17: Whether to include two additional categories of indirect 
labor as labor inputs.
Comment 18: Whether the Department should make certain minor 
corrections.

[FR Doc. 2010-24720 Filed 9-30-10; 8:45 am]
BILLING CODE 3510-DS-P
```