81_FR_4272 81 FR 4256 - Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Results of Antidumping Duty Administrative Review and Notice of Amended Final Results of Antidumping Duty Administrative; 2008-2009

81 FR 4256 - Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Results of Antidumping Duty Administrative Review and Notice of Amended Final Results of Antidumping Duty Administrative; 2008-2009

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 16 (January 26, 2016)

Page Range4256-4258
FR Document2016-01509

On December 21, 2015, the United States Court of International Trade (``CIT'' or ``Court'') issued its final judgment \1\ sustaining the Department of Commerce's (the ``Department'') final results of redetermination \2\ issued pursuant to the CIT's remand order in Peer Bearing Co.-Changshan v. United States, 986 F. Supp. 2d 1389 (CIT 2014) (``CPZ 08-09 II''), with respect to the Department's final results \3\ of the twenty-second administrative review of the antidumping duty order on tapered roller bearings and parts thereof, finished and unfinished (``TRBs''), from People's Republic of China (``PRC''). Consistent with the decision of the United States Court of Appeals for the Federal Circuit (``CAFC'') in Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (``Timken''), as clarified by Diamond Sawblades Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010) (``Diamond Sawblades''), the Department is notifying the public that the final judgment in this case is not in harmony with the Department's Final Results and is amending the Final Results with respect to the dumping margins determined for Peer Bearing Company- Changshan and Changshan Peer Bearing Co., Ltd.\4\ ---------------------------------------------------------------------------

Federal Register, Volume 81 Issue 16 (Tuesday, January 26, 2016)
[Federal Register Volume 81, Number 16 (Tuesday, January 26, 2016)]
[Notices]
[Pages 4256-4258]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01509]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-601]


Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Notice of Court 
Decision Not in Harmony With Final Results of Antidumping Duty 
Administrative Review and Notice of Amended Final Results of 
Antidumping Duty Administrative; 2008-2009

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: On December 21, 2015, the United States Court of International 
Trade (``CIT'' or ``Court'') issued its final judgment \1\ sustaining 
the Department of Commerce's (the ``Department'') final results of 
redetermination \2\ issued pursuant to the CIT's remand order in Peer 
Bearing Co.-Changshan v. United States, 986 F. Supp. 2d 1389 (CIT 2014) 
(``CPZ 08-09 II''), with respect to the Department's final results \3\ 
of the twenty-second administrative review of the antidumping duty 
order on tapered roller bearings and parts thereof, finished and 
unfinished (``TRBs''), from People's Republic of China (``PRC''). 
Consistent with the decision of the United States Court of Appeals for 
the Federal Circuit (``CAFC'') in Timken Co. v. United States, 893 F.2d 
337 (Fed. Cir. 1990) (``Timken''), as clarified by Diamond Sawblades 
Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010) 
(``Diamond Sawblades''), the Department is notifying the public that 
the final judgment in this case is not in harmony with the Department's 
Final Results and is amending the Final Results with respect to the 
dumping margins determined for Peer Bearing Company- Changshan and 
Changshan Peer Bearing Co., Ltd.\4\
---------------------------------------------------------------------------

    \1\ See, Peer Bearing Company--Changshan v. United States, 
Consol. Court No. 11-00022, Slip Op. 15-143 (CIT 2015) (``CPZ 08-09 
III''), and accompanying judgment order.
    \2\ See Final Results of Redetermination Pursuant to Court 
Remand, Peer Bearing Company--Changshan v. United States, Consol. 
Court No. 11-00022, Slip Op. 14-62 (CIT 2014) (``Second Remand 
Redetermination'').
    \3\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Final Results of 
the 2008-2009 Antidumping Duty Administrative Review, 76 FR 3086 
(January 19, 2011) (``Final Results'') and accompanying Issues and 
Decision Memorandum (``IDM'').
    \4\ Prior to September 11, 2008, Peer Bearing Company-Changshan 
was majority-owned by the Spungen family (``PBCD/CPZ''). On 
September 11, 2008, two and a half months into the period of review 
(``POR''), PBCD/CPZ, the sole respondent in the prior 2007-2008 POR, 
and its Illinois-based U.S. sales affiliate, Peer Bearing Company 
(``PBCD/Peer'') (collectively, ``PBCD''), were each purchased by 
certain companies owned by SKF. In the underlying review, we found 
that the post-acquisition respondent was not the successor-in-
interest to the pre-acquisition respondent and, thus, were each 
legally distinct entities for the purposes of this antidumping duty 
(``AD'') review. The post-acquisition respondent is referred to as 
the SKF-owned Changshan Peer Bearing Company, Ltd. (``SKF/CPZ'') and 
its Illinois-based affiliate is referred to as Peer Bearing Company 
(``SKF/Peer'') (collectively ``SKF''). For ease of reference, the 
two respondents are referred to by their collective names ``PBCD'' 
and ``SKF'' throughout this document. For the purpose of generally 
referencing the physical facilities in question during the POR in 
its entirety, without consideration of ownership, the Changshan-
based TRB production facility is referred to as ``CPZ'' and the 
Illinois-based U.S. sales affiliate is referred to as ``Peer.''

---------------------------------------------------------------------------
DATES: Effective Date: December 31, 2015.

FOR FURTHER INFORMATION CONTACT: Keith A. Haynes, Office III, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-5139.

SUPPLEMENTARY INFORMATION: On December 21, 2012, the Court issued its 
initial opinion and remanded the Final Results, ordering that the 
Department: (1) redetermine the surrogate value (``SV'') applied to 
PBCD/CPZ's input of bearing-quality steel bar; (2) reconsider its 
determination to calculate the normal value (``NV'') of subject 
merchandise that was imported by PBCD/Peer prior to its acquisition by 
SKF, but sold by SKF/Peer subsequent to the acquisition, using SKF/
CPZ's factors of production (``FOPs''); and (3) reconsider, and modify 
as appropriate, its determination of the country of

[[Page 4257]]

origin of TRBs that were finished, and assembled in Thailand from TRB 
component parts both finished (i.e., cups and cones) and unfinished 
(i.e., rollers and cages) initially produced in and subsequently 
exported from the PRC.\5\
---------------------------------------------------------------------------

    \5\ See Peer Bearing Company-Changshan v. United States, 884 F. 
Supp. 2d 1313 (CIT 2012) (``CPZ 08-09 I'').
---------------------------------------------------------------------------

    In the First Remand Redetermination,\6\ pursuant to CPZ 08-09 I, 
the Department: (1) determined that Thai import data under Harmonized 
Tariff Schedule subheading 7228.30.90 are the best available 
information on the record with which to value PBCD/CPZ's bearing-
quality steel bar inputs, and adjusted the margin program accordingly; 
and (2) re-calculated the weighted-average dumping margin for SKF so 
that PBCD/CPZ's FOPs (not SKF/CPZ's FOPs) were used to determine the NV 
of SKF/Peer's post-acquisition sales of pre-acquisition inventory.\7\ 
With respect to the Court's directive to reconsider the country of 
origin finding from the Final Results and modify its determination, as 
necessary, the Department reconsidered its determination in its 
entirety, applying its established criteria for determining whether 
merchandise is substantially transformed in another country. The 
Department expanded upon and further supported the existing findings as 
to the physical/chemical properties/essential character,\8\ nature/
sophistication of processing,\9\ level of investment,\10\ and cost of 
production (``COP'')/value-added,\11\ finding that these factors 
continued to support an overall finding that the third-country 
processing was not substantial so as to confer Thai origin. Consistent 
with the Court's remand order, the Department also discussed and 
further explained the relevance of the class-kind/scope \12\ and 
ultimate use \13\ criteria used in the underlying analysis. The 
Department did not ``reach a determination as to whether circumvention 
has occurred or may occur and, thus, {found{time}  that this element 
{did{time}  not preclude or support a finding of substantial 
transformation.'' \14\ Based on the totality of circumstances, the 
Department determined in the First Remand Redetermination that:
---------------------------------------------------------------------------

    \6\ See Final Results of Redetermination Pursuant to Remand, 
Consol. Court No. 11-00022, Slip Op. 12-125 (CIT 2012), dated May 
13, 2013 (``First Remand Redetermination'').
    \7\ See First Remand Redetermination at 36-40.
    \8\ Id., at 16-20.
    \9\ Id., at 13-15.
    \10\ Id., at 26-32.
    \11\ Id., at 20-26.
    \12\ Id., at 10-13.
    \13\ Id., at 34-35.
    \14\ Id., at 34.

    {T{time} he Thai processing does not substantially transform the 
TRB parts and that the TRBs remain of PRC-origin. The nature and 
sophistication of processing indicate that the finishing processes 
in Thailand serve only to further refine the cup and cone's finished 
measurements, polish the raceway, and assemble the components 
together. The physical/chemical properties and essential component 
are imparted in the PRC, with the properties added in Thailand 
marginal in comparison. The COP/value added in Thailand is 
insignificant when compared to the COP of the finished TRB. The 
level of investment in Thailand was not as significant as the 
investment in the PRC. The ultimate use of TRB parts and final, 
finished TRBs is the same. These factors weigh in favor of a finding 
that the TRBs which are finished in Thailand are of PRC-origin. The 
class or kind/scope criterion is not determinative to our finding, 
although the fact that the upstream product is within the same class 
or kind and scope as the downstream product is relevant to our 
country-of-origin determination.\15\
---------------------------------------------------------------------------

    \15\ Id., at 35-36.

    On June 10, 2014, the CIT issued CPZ 08-09 II, in which it 
sustained the Department's re-determined SV for bearing-quality steel 
bar. However, the Court remanded, for a second time, the Department's 
country of origin determination.\16\ Specifically, the Court found that 
``the method and criteria applied in the Remand Redetermination caused 
Commerce to ignore critical record evidence'' and that ``the record 
lacked substantial evidence to support the ultimate finding Commerce 
reached in the {First{time}  Remand Redetermination.''\17\ The Court 
further noted that the product at issue (i.e., merchandise completed or 
assembled in a third country, Thailand) was ``of a type Congress 
contemplated would be the subject of an anti-circumvention inquiry, 
without actually conducting such an inquiry.''\18\ In so doing, the 
Court found that the Department ``exceeded its authority to interpret, 
without expanding, the scope language'' of the TRBs order.\19\ Finally, 
though the Court held that the Department provided adequate reasoning 
for using PBCD/CPZ's FOP data to calculate the NV for pre-acquisition 
PBCD/CPZ-produced merchandise subsequently sold by SKF/Peer during the 
post-acquisition portion of the POR in the First Remand 
Redetermination, the Court remanded for further explanation the 
Department's use of PBCD/CPZ's FOP data from the twenty-second POR, 
rather than PBCD/CPZ's FOP data from the prior POR.\20\
---------------------------------------------------------------------------

    \16\ See CPZ 08-09 II, 986 F. Supp. 2d at 1414.
    \17\ Id., at 1406.
    \18\ Id., at 1402-03.
    \19\ Id., at 1406.
    \20\ Id.
---------------------------------------------------------------------------

    In compliance with the Court's instructions, the Department under 
protest re-determined the country of origin for certain merchandise 
under review, and revised the dumping margin calculations to exclude 
U.S. sales of TRBs further processed in Thailand, finding those TRBs to 
be Thai-origin.\21\ In particular, the Department explained that it 
``did not conduct a circumvention analysis pursuant to section 781(b) 
of the {Tariff Act of 1930, as amended (``the Act''){time} '' and thus 
could not ``find that the TRBs in question are of Chinse origin.''\22\ 
With respect to the remaining issue on remand, the Department explained 
that it is consistent with section 773(c)(4) of the Act, to use 
production data from the POR in which the merchandise is sold, because 
this best reflects the producer's production experience from the period 
in which the Department is determining the margin of dumping; 
therefore, the Department did not find that PBCD/CPZ's FOP data from 
the prior POR is a more accurate reflection of PBCD's production of 
merchandise sold by SKF during the POR.\23\ Therefore, to determine the 
margin for SKF/Peer's sales of merchandise produced by PBCD/CPZ, the 
Department continued to use PBCD/CPZ's POR-contemporaneous FOPs to 
calculate NV. Along with the SV changes sustained in CPZ 08-09 II, the 
Department calculated weighted-average dumping margins for PBCD of 
21.65 percent and SKF of 19.45 percent.\24\
---------------------------------------------------------------------------

    \21\ See Second Remand Redetermination at 8.
    \22\ Id.
    \23\ Id, at 12-13.
    \24\ Id., at 17.
---------------------------------------------------------------------------

    On December 21, 2015, the CIT issued its decision in CPZ 08-09 III, 
in which it sustained the Department's Second Remand Redetermination. 
Specifically, the Court sustained the Department's decision regarding 
selection of the FOP data used to value post-acquisition sales of pre-
acquisition inventory.\25\ Furthermore, with respect to the country of 
origin finding, the Court concluded that the Department reached an 
ultimate determination that is supported by substantial evidence on the 
record that accords with a reasonable, rather than expansive, 
interpretation of the scope of the antidumping duty order. The Court 
found that the Department's analysis presented in the Second Remand 
Redetermination, although suffering from some flaws in the 
interpretation of the Court's holding in CPZ 08-09 II, was

[[Page 4258]]

sufficient to allow the Court to sustain the Department's ultimate 
determination.\26\
---------------------------------------------------------------------------

    \25\ See CPZ 08-09 III, at 7.
    \26\ Id., at 15-19.
---------------------------------------------------------------------------

Timken Notice

    In its decision in Timken, 893 F.2d at 341, as clarified by Diamond 
Sawblades, the CAFC held that, pursuant to section 516A(e) of the Act, 
the Department must publish a notice of a court decision that is not 
``in harmony'' with a Department determination and must suspend 
liquidation of entries pending a ``conclusive'' court decision. The 
CIT's December 21, 2015, judgment in this case constitutes a final 
court decision that is not in harmony with the Department's Final 
Results. This notice is published in fulfillment of the publication 
requirements of Timken.

Amended Final Results

    As a result, of the Court's final decision with respect to this 
case, the Department is amending the Final Results with respect to 
PBCD/SKF and SKF/CPZ in this case. The revised weighted-average dumping 
margins for the June 1, 2008, through May 31, 2009, period of review 
are as follows:

------------------------------------------------------------------------
                                                           Final percent
                        Exporter                              margin
------------------------------------------------------------------------
Peer Bearing Company--Changshan (Spungen-owned, PBCD)...           21.65
Changshan Peer Bearing Company, Ltd. (SKF-owned, SKF)...           19.45
------------------------------------------------------------------------

    The Department will continue the suspension of liquidation of the 
subject merchandise pending the expiration of the period of appeal or, 
if appealed, pending a final and conclusive court decision. In the 
event the Court's ruling is not appealed or, if appealed, upheld by the 
CAFC, the Department will instruct U.S. Customs and Border Protection 
to assess antidumping duties on unliquidated entries of subject 
merchandise exported by the above listed exporters at the rate listed 
above.

Cash Deposit Requirements

    Since the Final Results, the Department has established a new cash 
deposit rate for SKF/CPZ.\27\ Therefore, the cash deposit rate for SKF 
does not need to be updated as a result of these amended final results.
---------------------------------------------------------------------------

    \27\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From the People's Republic of China: Final Results of 
the Antidumping Duty Administrative Review and Final Results of the 
New Shipper Review; 2012-2013, 80 FR 4244 (January 27, 2015).
---------------------------------------------------------------------------

    Since the Final Results, the Department has not established a new 
cash deposit rate for PBCD/CPZ. However, as explained above, in 
September 2008, PBCD/CPZ was acquired by AB SKF, and the Department 
determined via a successor-in-interest analysis that SKF/CPZ was not 
its successor in interest. As a consequence, PBCD/CPZ effectively no 
longer exists, and its cash deposit rate does not need to be updated as 
a result of these amended final results.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(e), 751(a)(1), and 777(i)(1) of the Act.

    Dated: January 13, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-01509 Filed 1-25-16; 8:45 am]
BILLING CODE P



                                                  4256                          Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices

                                                  DATES:   Effective Date: January 26, 2016.              18, 2016), in alignment with the                       the antidumping duty order on tapered
                                                  FOR FURTHER INFORMATION CONTACT:                        deadlines of the other investigations of               roller bearings and parts thereof,
                                                  Andrew Medley at (202) 482–4987,                        corrosion-resistant steel from the                     finished and unfinished (‘‘TRBs’’), from
                                                  Antidumping and Countervailing Duty                     People’s Republic of China, India, Italy,              People’s Republic of China (‘‘PRC’’).
                                                  Operations, Enforcement and                             and Korea.4 Accordingly, we will issue                 Consistent with the decision of the
                                                  Compliance, International Trade                         our final determination no later than                  United States Court of Appeals for the
                                                  Administration, U.S. Department of                      135 days after the date of publication of              Federal Circuit (‘‘CAFC’’) in Timken Co.
                                                  Commerce, 14th Street and Constitution                  the Preliminary Determination.                         v. United States, 893 F.2d 337 (Fed. Cir.
                                                  Avenue NW., Washington, DC 20230.                         This notice is issued and published                  1990) (‘‘Timken’’), as clarified by
                                                  SUPPLEMENTARY INFORMATION: On June                      pursuant to section 735(a)(2)(B) of the                Diamond Sawblades Mfrs. Coalition v.
                                                  30, 2015, the Department published a                    Act and 19 CFR 351.210(g).                             United States, 626 F.3d 1374 (Fed. Cir.
                                                  notice of initiation of the LTFV                          Dated: January 13, 2016.
                                                                                                                                                                 2010) (‘‘Diamond Sawblades’’), the
                                                  investigations of certain corrosion-                                                                           Department is notifying the public that
                                                                                                          Paul Piquado,
                                                  resistant steel from Italy, India, the                                                                         the final judgment in this case is not in
                                                                                                          Assistant Secretary for Enforcement and                harmony with the Department’s Final
                                                  People’s Republic of China, Korea, and                  Compliance.
                                                  Taiwan.1 The period of investigation is                                                                        Results and is amending the Final
                                                                                                          [FR Doc. 2016–01566 Filed 1–25–16; 8:45 am]
                                                  April 1, 2014, through March 31, 2015.                                                                         Results with respect to the dumping
                                                                                                          BILLING CODE 3510–DS–P                                 margins determined for Peer Bearing
                                                  On January 4, 2016, the Department
                                                  published its negative Preliminary                                                                             Company– Changshan and Changshan
                                                  Determination in the LTFV investigation                                                                        Peer Bearing Co., Ltd.4
                                                                                                          DEPARTMENT OF COMMERCE
                                                  of corrosion-resistant steel from                                                                              DATES: Effective Date: December 31,
                                                  Taiwan.2 On December 28, 2015, AK                       International Trade Administration                     2015.
                                                  Steel Corporation, with the concurrence                                                                        FOR FURTHER INFORMATION CONTACT:
                                                  of ArcelorMittal USA LLC, Nucor                         [A–570–601]
                                                                                                                                                                 Keith A. Haynes, Office III, Enforcement
                                                  Corporation, Steel Dynamics Inc.,                                                                              and Compliance, International Trade
                                                                                                          Tapered Roller Bearings and Parts
                                                  California Steel Industries, and United                                                                        Administration, U.S. Department of
                                                                                                          Thereof, Finished and Unfinished,
                                                  States Steel Corporation (collectively                                                                         Commerce, 14th Street and Constitution
                                                                                                          From the People’s Republic of China:
                                                  ‘‘Petitioners’’), requested that the                                                                           Avenue NW., Washington, DC 20230;
                                                                                                          Notice of Court Decision Not in
                                                  Department postpone its final                                                                                  telephone: (202) 482–5139.
                                                                                                          Harmony With Final Results of
                                                  determination to align with the                                                                                SUPPLEMENTARY INFORMATION: On
                                                                                                          Antidumping Duty Administrative
                                                  deadlines of the other investigations of                                                                       December 21, 2012, the Court issued its
                                                                                                          Review and Notice of Amended Final
                                                  corrosion-resistant steel from the                                                                             initial opinion and remanded the Final
                                                                                                          Results of Antidumping Duty
                                                  People’s Republic of China, India, Italy,                                                                      Results, ordering that the Department:
                                                                                                          Administrative; 2008–2009
                                                  and Korea.3                                                                                                    (1) redetermine the surrogate value
                                                  Postponement of Final Determination                     AGENCY:  Enforcement and Compliance,                   (‘‘SV’’) applied to PBCD/CPZ’s input of
                                                                                                          International Trade Administration,                    bearing-quality steel bar; (2) reconsider
                                                    Section 735(a)(2)(B) of the Tariff Act                Department of Commerce.
                                                  of 1930, as amended (‘‘the Act’’), and 19                                                                      its determination to calculate the
                                                                                                          SUMMARY: On December 21, 2015, the                     normal value (‘‘NV’’) of subject
                                                  CFR 351.210(b)(2)(i), provide that a final              United States Court of International
                                                  determination may be postponed until                                                                           merchandise that was imported by
                                                                                                          Trade (‘‘CIT’’ or ‘‘Court’’) issued its final          PBCD/Peer prior to its acquisition by
                                                  not later than 135 days after the date of               judgment 1 sustaining the Department of
                                                  the publication of the preliminary                                                                             SKF, but sold by SKF/Peer subsequent
                                                                                                          Commerce’s (the ‘‘Department’’) final                  to the acquisition, using SKF/CPZ’s
                                                  determination if, in the event of a                     results of redetermination 2 issued
                                                  negative preliminary determination, a                                                                          factors of production (‘‘FOPs’’); and (3)
                                                                                                          pursuant to the CIT’s remand order in                  reconsider, and modify as appropriate,
                                                  request for such postponement is made                   Peer Bearing Co.-Changshan v. United
                                                  by the petitioner. In accordance with                                                                          its determination of the country of
                                                                                                          States, 986 F. Supp. 2d 1389 (CIT 2014)
                                                  section 735(a)(2)(B) of the Act and 19                  (‘‘CPZ 08–09 II’’), with respect to the                   4 Prior to September 11, 2008, Peer Bearing
                                                  CFR 351.210(b)(2)(i), because (1) our                   Department’s final results 3 of the                    Company-Changshan was majority-owned by the
                                                  preliminary determination was negative;                 twenty-second administrative review of                 Spungen family (‘‘PBCD/CPZ’’). On September 11,
                                                  (2) the request was made by Petitioners;                                                                       2008, two and a half months into the period of
                                                  and (3) no compelling reasons for denial                   4 See, e.g., Certain Corrosion-Resistant Steel
                                                                                                                                                                 review (‘‘POR’’), PBCD/CPZ, the sole respondent in
                                                                                                                                                                 the prior 2007–2008 POR, and its Illinois-based U.S.
                                                  exist, we are postponing the final                      Products From Italy: Preliminary Affirmative           sales affiliate, Peer Bearing Company (‘‘PBCD/
                                                  determination until no later than 135                   Determination of Sales at Less Than Fair Value and     Peer’’) (collectively, ‘‘PBCD’’), were each purchased
                                                                                                          Postponement of Final Determination, 81 FR 69
                                                  days after the publication of the                       (January 4, 2016), and accompanying Preliminary
                                                                                                                                                                 by certain companies owned by SKF. In the
                                                  Preliminary Determination (i.e., to May                                                                        underlying review, we found that the post-
                                                                                                          Decision Memorandum.                                   acquisition respondent was not the successor-in-
                                                                                                             1 See, Peer Bearing Company—Changshan v.
                                                                                                                                                                 interest to the pre-acquisition respondent and, thus,
                                                     1 See Certain Corrosion-Resistant Steel Products     United States, Consol. Court No. 11–00022, Slip        were each legally distinct entities for the purposes
                                                  From Italy, India, the People’s Republic of China,      Op. 15–143 (CIT 2015) (‘‘CPZ 08–09 III’’), and         of this antidumping duty (‘‘AD’’) review. The post-
                                                  the Republic of Korea, and Taiwan: Initiation of        accompanying judgment order.                           acquisition respondent is referred to as the SKF-
                                                  Less-Than-Fair-Value Investigations, 80 FR 37228           2 See Final Results of Redetermination Pursuant
                                                                                                                                                                 owned Changshan Peer Bearing Company, Ltd.
                                                  (June 30, 2015).                                        to Court Remand, Peer Bearing Company—                 (‘‘SKF/CPZ’’) and its Illinois-based affiliate is
                                                     2 See Certain Corrosion-Resistant Steel Products     Changshan v. United States, Consol. Court No. 11–      referred to as Peer Bearing Company (‘‘SKF/Peer’’)
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  from Taiwan: Negative Preliminary Determination         00022, Slip Op. 14–62 (CIT 2014) (‘‘Second Remand      (collectively ‘‘SKF’’). For ease of reference, the two
                                                  of Sales at Less Than Fair Value, 81 FR 72 (January     Redetermination’’).                                    respondents are referred to by their collective
                                                  4, 2016), and accompanying Preliminary Decision            3 See Tapered Roller Bearings and Parts Thereof,    names ‘‘PBCD’’ and ‘‘SKF’’ throughout this
                                                  Memorandum (‘‘Preliminary Determination’’).             Finished and Unfinished, From the People’s             document. For the purpose of generally referencing
                                                     3 See the letter from AK Steel Corporation           Republic of China: Final Results of the 2008–2009      the physical facilities in question during the POR
                                                  entitled, ‘‘Certain Corrosion-Resistant Steel           Antidumping Duty Administrative Review, 76 FR          in its entirety, without consideration of ownership,
                                                  Products From Taiwan: Request For Postponement          3086 (January 19, 2011) (‘‘Final Results’’) and        the Changshan-based TRB production facility is
                                                  Of The Final Determination,’’ dated December 28,        accompanying Issues and Decision Memorandum            referred to as ‘‘CPZ’’ and the Illinois-based U.S.
                                                  2015.                                                   (‘‘IDM’’).                                             sales affiliate is referred to as ‘‘Peer.’’



                                             VerDate Sep<11>2014   21:57 Jan 25, 2016   Jkt 238001   PO 00000   Frm 00012   Fmt 4703   Sfmt 4703   E:\FR\FM\26JAN1.SGM   26JAN1


                                                                                Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices                                                     4257

                                                  origin of TRBs that were finished, and                  determined in the First Remand                         rather than PBCD/CPZ’s FOP data from
                                                  assembled in Thailand from TRB                          Redetermination that:                                  the prior POR.20
                                                  component parts both finished (i.e.,                       {T}he Thai processing does not                         In compliance with the Court’s
                                                  cups and cones) and unfinished (i.e.,                   substantially transform the TRB parts and              instructions, the Department under
                                                  rollers and cages) initially produced in                that the TRBs remain of PRC-origin. The                protest re-determined the country of
                                                  and subsequently exported from the                      nature and sophistication of processing                origin for certain merchandise under
                                                  PRC.5                                                   indicate that the finishing processes in               review, and revised the dumping margin
                                                     In the First Remand                                  Thailand serve only to further refine the cup          calculations to exclude U.S. sales of
                                                                                                          and cone’s finished measurements, polish the           TRBs further processed in Thailand,
                                                  Redetermination,6 pursuant to CPZ 08–                   raceway, and assemble the components
                                                  09 I, the Department: (1) determined                                                                           finding those TRBs to be Thai-origin.21
                                                                                                          together. The physical/chemical properties
                                                  that Thai import data under                             and essential component are imparted in the            In particular, the Department explained
                                                  Harmonized Tariff Schedule subheading                   PRC, with the properties added in Thailand             that it ‘‘did not conduct a circumvention
                                                  7228.30.90 are the best available                       marginal in comparison. The COP/value                  analysis pursuant to section 781(b) of
                                                  information on the record with which to                 added in Thailand is insignificant when                the {Tariff Act of 1930, as amended
                                                  value PBCD/CPZ’s bearing-quality steel                  compared to the COP of the finished TRB.               (‘‘the Act’’)}’’ and thus could not ‘‘find
                                                  bar inputs, and adjusted the margin                     The level of investment in Thailand was not            that the TRBs in question are of Chinse
                                                                                                          as significant as the investment in the PRC.           origin.’’22 With respect to the remaining
                                                  program accordingly; and (2) re-                        The ultimate use of TRB parts and final,
                                                  calculated the weighted-average                         finished TRBs is the same. These factors
                                                                                                                                                                 issue on remand, the Department
                                                  dumping margin for SKF so that PBCD/                    weigh in favor of a finding that the TRBs              explained that it is consistent with
                                                  CPZ’s FOPs (not SKF/CPZ’s FOPs) were                    which are finished in Thailand are of PRC-             section 773(c)(4) of the Act, to use
                                                  used to determine the NV of SKF/Peer’s                  origin. The class or kind/scope criterion is           production data from the POR in which
                                                  post-acquisition sales of pre-acquisition               not determinative to our finding, although             the merchandise is sold, because this
                                                  inventory.7 With respect to the Court’s                 the fact that the upstream product is within           best reflects the producer’s production
                                                                                                          the same class or kind and scope as the                experience from the period in which the
                                                  directive to reconsider the country of                  downstream product is relevant to our
                                                  origin finding from the Final Results                                                                          Department is determining the margin
                                                                                                          country-of-origin determination.15
                                                  and modify its determination, as                                                                               of dumping; therefore, the Department
                                                  necessary, the Department reconsidered                     On June 10, 2014, the CIT issued CPZ                did not find that PBCD/CPZ’s FOP data
                                                  its determination in its entirety,                      08–09 II, in which it sustained the                    from the prior POR is a more accurate
                                                  applying its established criteria for                   Department’s re-determined SV for                      reflection of PBCD’s production of
                                                  determining whether merchandise is                      bearing-quality steel bar. However, the                merchandise sold by SKF during the
                                                  substantially transformed in another                    Court remanded, for a second time, the                 POR.23 Therefore, to determine the
                                                  country. The Department expanded                        Department’s country of origin                         margin for SKF/Peer’s sales of
                                                  upon and further supported the existing                 determination.16 Specifically, the Court               merchandise produced by PBCD/CPZ,
                                                  findings as to the physical/chemical                    found that ‘‘the method and criteria                   the Department continued to use PBCD/
                                                  properties/essential character,8 nature/                applied in the Remand Redetermination                  CPZ’s POR-contemporaneous FOPs to
                                                  sophistication of processing,9 level of                 caused Commerce to ignore critical                     calculate NV. Along with the SV
                                                  investment,10 and cost of production                    record evidence’’ and that ‘‘the record                changes sustained in CPZ 08–09 II, the
                                                  (‘‘COP’’)/value-added,11 finding that                   lacked substantial evidence to support                 Department calculated weighted-average
                                                  these factors continued to support an                   the ultimate finding Commerce reached                  dumping margins for PBCD of 21.65
                                                  overall finding that the third-country                  in the {First} Remand                                  percent and SKF of 19.45 percent.24
                                                  processing was not substantial so as to                 Redetermination.’’17 The Court further                    On December 21, 2015, the CIT issued
                                                  confer Thai origin. Consistent with the                 noted that the product at issue (i.e.,                 its decision in CPZ 08–09 III, in which
                                                  Court’s remand order, the Department                    merchandise completed or assembled in                  it sustained the Department’s Second
                                                  also discussed and further explained the                a third country, Thailand) was ‘‘of a                  Remand Redetermination. Specifically,
                                                  relevance of the class-kind/scope 12 and                type Congress contemplated would be                    the Court sustained the Department’s
                                                  ultimate use 13 criteria used in the                    the subject of an anti-circumvention                   decision regarding selection of the FOP
                                                  underlying analysis. The Department                     inquiry, without actually conducting                   data used to value post-acquisition sales
                                                  did not ‘‘reach a determination as to                   such an inquiry.’’18 In so doing, the                  of pre-acquisition inventory.25
                                                  whether circumvention has occurred or                   Court found that the Department                        Furthermore, with respect to the
                                                  may occur and, thus, {found} that this                  ‘‘exceeded its authority to interpret,                 country of origin finding, the Court
                                                  element {did} not preclude or support                   without expanding, the scope language’’                concluded that the Department reached
                                                  a finding of substantial                                of the TRBs order.19 Finally, though the               an ultimate determination that is
                                                  transformation.’’ 14 Based on the totality              Court held that the Department                         supported by substantial evidence on
                                                  of circumstances, the Department                        provided adequate reasoning for using                  the record that accords with a
                                                                                                          PBCD/CPZ’s FOP data to calculate the                   reasonable, rather than expansive,
                                                    5 See Peer Bearing Company-Changshan v. United
                                                                                                          NV for pre-acquisition PBCD/CPZ-                       interpretation of the scope of the
                                                  States, 884 F. Supp. 2d 1313 (CIT 2012) (‘‘CPZ 08–      produced merchandise subsequently                      antidumping duty order. The Court
                                                  09 I’’).                                                sold by SKF/Peer during the post-                      found that the Department’s analysis
                                                    6 See Final Results of Redetermination Pursuant
                                                                                                          acquisition portion of the POR in the                  presented in the Second Remand
                                                  to Remand, Consol. Court No. 11–00022, Slip Op.         First Remand Redetermination, the
                                                  12–125 (CIT 2012), dated May 13, 2013 (‘‘First
                                                                                                                                                                 Redetermination, although suffering
                                                  Remand Redetermination’’).                              Court remanded for further explanation                 from some flaws in the interpretation of
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                    7 See First Remand Redetermination at 36–40.          the Department’s use of PBCD/CPZ’s                     the Court’s holding in CPZ 08–09 II, was
                                                    8 Id., at 16–20.                                      FOP data from the twenty-second POR,
                                                    9 Id., at 13–15.                                                                                               20 Id.
                                                    10 Id., at 26–32.                                       15 Id., at 35–36.                                      21 See    Second Remand Redetermination at 8.
                                                    11 Id., at 20–26.                                       16 See CPZ 08–09 II, 986 F. Supp. 2d at 1414.          22 Id.
                                                    12 Id., at 10–13.                                       17 Id., at 1406.                                       23 Id,at 12–13.
                                                    13 Id., at 34–35.                                       18 Id., at 1402–03.                                    24 Id.,at 17.
                                                    14 Id., at 34.                                          19 Id., at 1406.                                       25 See CPZ 08–09 III, at 7.




                                             VerDate Sep<11>2014   21:57 Jan 25, 2016   Jkt 238001   PO 00000   Frm 00013   Fmt 4703   Sfmt 4703   E:\FR\FM\26JAN1.SGM       26JAN1


                                                  4258                           Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices

                                                  sufficient to allow the Court to sustain                   Since the Final Results, the                         DATES:   Electronic applications must be
                                                  the Department’s ultimate                                Department has not established a new                   received no later than 11:59 p.m.
                                                  determination.26                                         cash deposit rate for PBCD/CPZ.                        Eastern Time on April 25, 2016. Paper
                                                                                                           However, as explained above, in                        applications will not be accepted.
                                                  Timken Notice
                                                                                                           September 2008, PBCD/CPZ was                           Applications received after the deadline
                                                     In its decision in Timken, 893 F.2d at                acquired by AB SKF, and the                            will not be reviewed or considered. The
                                                  341, as clarified by Diamond Sawblades,                  Department determined via a successor-                 approximate start date for awards under
                                                  the CAFC held that, pursuant to section                  in-interest analysis that SKF/CPZ was                  this notice and the corresponding FFO
                                                  516A(e) of the Act, the Department must                  not its successor in interest. As a                    is expected to be October 1, 2016.
                                                  publish a notice of a court decision that                consequence, PBCD/CPZ effectively no                      When developing your submission
                                                  is not ‘‘in harmony’’ with a Department                  longer exists, and its cash deposit rate               timeline, please keep in mind that (1) all
                                                  determination and must suspend                           does not need to be updated as a result                applicants are required to have a current
                                                  liquidation of entries pending a                         of these amended final results.                        registration in the System for Award
                                                  ‘‘conclusive’’ court decision. The CIT’s                                                                        Management (SAM.gov); (2) the free
                                                                                                           Notification to Interested Parties                     annual registration process in the
                                                  December 21, 2015, judgment in this
                                                  case constitutes a final court decision                    This notice is issued and published in               electronic System for Award
                                                  that is not in harmony with the                          accordance with sections 516A(e),                      Management (SAM.gov) may take
                                                  Department’s Final Results. This notice                  751(a)(1), and 777(i)(1) of the Act.                   between three and five business days, or
                                                  is published in fulfillment of the                         Dated: January 13, 2016.                             as long as more than two weeks; and (3)
                                                  publication requirements of Timken.                      Paul Piquado,                                          electronic applicants are required to
                                                                                                                                                                  have a current registration in
                                                  Amended Final Results                                    Assistant Secretary for Enforcement and
                                                                                                           Compliance.                                            Grants.gov; and (4) applicants will
                                                    As a result, of the Court’s final                                                                             receive a series of email messages from
                                                                                                           [FR Doc. 2016–01509 Filed 1–25–16; 8:45 am]
                                                  decision with respect to this case, the                                                                         Grants.gov over a period of up to two
                                                                                                           BILLING CODE P
                                                  Department is amending the Final                                                                                business days before learning whether a
                                                  Results with respect to PBCD/SKF and                                                                            Federal agency’s electronic system has
                                                  SKF/CPZ in this case. The revised                        DEPARTMENT OF COMMERCE                                 received its application. Please note that
                                                  weighted-average dumping margins for                                                                            a federal assistance award cannot be
                                                  the June 1, 2008, through May 31, 2009,                  National Institute of Standards and                    issued if the designated recipient’s
                                                  period of review are as follows:                         Technology                                             registration in the System for Award
                                                                                                                                                                  Management (SAM.gov) is not current at
                                                                                         Final percent     [Docket Number: 150302201–6024–02]                     the time of the award.
                                                              Exporter                      margin                                                                ADDRESSES: Applications must be
                                                                                                           Award Competitions for Hollings                        submitted electronically through
                                                  Peer Bearing Company—                                    Manufacturing Extension Partnership
                                                    Changshan (Spungen-                                                                                           www.grants.gov. NIST will not accept
                                                                                                           (MEP) Centers in the States of                         applications submitted by mail,
                                                    owned, PBCD) ..................               21.65    Alabama, Arkansas, California,
                                                  Changshan Peer Bearing                                                                                          facsimile, or by email.
                                                                                                           Georgia, Louisiana, Massachusetts,
                                                    Company, Ltd. (SKF-                                                                                           FOR FURTHER INFORMATION CONTACT:
                                                    owned, SKF) .....................             19.45    Missouri, Montana, Ohio,
                                                                                                                                                                  Administrative, budget, cost-sharing,
                                                                                                           Pennsylvania, Puerto Rico, Utah and
                                                                                                                                                                  and eligibility questions and other
                                                                                                           Vermont
                                                     The Department will continue the                                                                             programmatic questions should be
                                                  suspension of liquidation of the subject                 AGENCY: National Institute of Standards                directed to Diane Henderson at Tel:
                                                  merchandise pending the expiration of                    and Technology (NIST), United States                   (301) 975–5105; Email: mepffo@nist.gov;
                                                  the period of appeal or, if appealed,                    Department of Commerce (DoC).                          Fax: (301) 963–6556. Grants Rules and
                                                  pending a final and conclusive court                     ACTION: Notice of funding availability.                Regulation questions should be
                                                  decision. In the event the Court’s ruling                                                                       addressed to: Michael Teske, Grants
                                                  is not appealed or, if appealed, upheld                  SUMMARY:   NIST invites applications                   Management Division, National Institute
                                                  by the CAFC, the Department will                         from eligible organizations in                         of Standards and Technology, 100
                                                  instruct U.S. Customs and Border                         connection with NIST’s funding up to                   Bureau Drive, Stop 1650, Gaithersburg,
                                                  Protection to assess antidumping duties                  thirteen (13) separate MEP cooperative                 MD 20899–1650; Tel: (301) 975–6358;
                                                  on unliquidated entries of subject                       agreements for the operation of an MEP                 Email: michael.teske@nist.gov; Fax:
                                                  merchandise exported by the above                        Center in the designated States’ service               (301) 975–6368. For technical assistance
                                                  listed exporters at the rate listed above.               areas and in the funding amounts                       with Grants.gov submissions contact
                                                                                                           identified in the corresponding Federal                Christopher Hunton at Tel: (301) 975–
                                                  Cash Deposit Requirements
                                                                                                           Funding Opportunity (FFO). NIST                        5718; Email: grants.gov@nist.gov; Fax:
                                                    Since the Final Results, the                           anticipates awarding one (1) cooperative               (301) 975–8884. Questions submitted to
                                                  Department has established a new cash                    agreement for each of the identified                   NIST/MEP may be posted as part of an
                                                  deposit rate for SKF/CPZ.27 Therefore,                   States. The objective of the MEP Center                FAQ document, which will be
                                                  the cash deposit rate for SKF does not                   Program is to provide manufacturing                    periodically updated on the MEP Web
                                                  need to be updated as a result of these                  extension services to primarily small                  site at http://nist.gov/mep/ffo-state-
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  amended final results.                                   and medium-sized manufacturers                         competitions-03.cfm.
                                                                                                           within the States designated in the                    SUPPLEMENTARY INFORMATION:
                                                    26 Id.,
                                                          at 15–19.                                        corresponding FFO. The selected                           Electronic access: Applicants are
                                                    27 SeeTapered Roller Bearings and Parts Thereof,       organization will become part of the                   strongly encouraged to read the
                                                  Finished and Unfinished, From the People’s               MEP national system of extension                       corresponding FFO announcement
                                                  Republic of China: Final Results of the
                                                  Antidumping Duty Administrative Review and
                                                                                                           service providers, currently located                   available at www.grants.gov for
                                                  Final Results of the New Shipper Review; 2012–           throughout the United States and Puerto                complete information about this
                                                  2013, 80 FR 4244 (January 27, 2015).                     Rico.                                                  program, including all program


                                             VerDate Sep<11>2014    21:57 Jan 25, 2016   Jkt 238001   PO 00000   Frm 00014   Fmt 4703   Sfmt 4703   E:\FR\FM\26JAN1.SGM   26JAN1



Document Created: 2018-02-02 12:38:28
Document Modified: 2018-02-02 12:38:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective Date: December 31, 2015.
ContactKeith A. Haynes, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-5139.
FR Citation81 FR 4256 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR