81 FR 75039 - Certain Iron Mechanical Transfer Drive Components From Canada: Final Affirmative Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 209 (October 28, 2016)

Page Range75039-75042
FR Document2016-26106

The Department of Commerce (the ``Department'') determines that certain iron mechanical transfer drive components (``IMTDCs'') from Canada are being, or likely to be, sold in the United States at less than fair value (``LTFV''). Baldor Electric Company Canada (``Baldor'') is the sole mandatory respondent in this investigation. The period of investigation (``POI'') is October 1, 2014, through September 30, 2015. The final estimated dumping margins of sales at LTFV are shown in the ``Final Determination'' section of this notice.

Federal Register, Volume 81 Issue 209 (Friday, October 28, 2016)
[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75039-75042]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26106]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-122-856]


Certain Iron Mechanical Transfer Drive Components From Canada: 
Final Affirmative Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the ``Department'') determines 
that certain iron mechanical transfer drive components (``IMTDCs'') 
from Canada are being, or likely to be, sold in the United States at 
less than fair value (``LTFV''). Baldor Electric Company Canada 
(``Baldor'') is the sole mandatory respondent in this investigation. 
The period of investigation (``POI'') is October 1, 2014, through 
September 30, 2015. The final estimated dumping margins of sales at 
LTFV are shown in the ``Final Determination'' section of this notice.

DATES: Effective October 28, 2016.

FOR FURTHER INFORMATION CONTACT: Stephen Bailey or Robert Bolling, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-0193 or (202) 
482-3434, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 8, 2016, the Department published its preliminary 
affirmative determination of sales at LTFV in the investigation of 
IMTDCs from Canada.\1\ We invited interested parties to comment on our 
preliminary determination. We received comments from TB Wood's Inc. 
(``Petitioner'') and did not receive rebuttal comments or a request for 
a hearing. Additionally, we received scope comments for this 
investigation (see Scope Comments below).
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    \1\ See Certain Iron Mechanical Transfer Drive Components from 
Canada: Affirmative Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 81 FR 36887 
(June 8, 2016) (``Preliminary Determination'').
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    A full discussion of the issues raised by parties for this final 
determination may be found in the Issues and Decision Memorandum.\2\ 
The Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (``ACCESS''). 
ACCESS is available to registered users at http://access.trade.gov and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov. The signed and electronic versions of 
the Issues and

[[Page 75040]]

Decision Memorandum are identical in content.
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    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, regarding ``Certain Iron Mechanical 
Transfer Drive Components from Canada: Issues and Decision 
Memorandum for the Final Determination of Sales at Less-Than-Fair-
Value,'' dated concurrently with this notice (``Issues and Decision 
Memorandum'').
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Scope of the Investigation

    The merchandise covered by this investigation are iron mechanical 
transfer drive components. For a complete description of the scope of 
the investigation, see Appendix I to this notice.

Scope Comments

    Since the Preliminary Determination, Petitioner, as well as 
interested parties Caterpillar Inc., Carrier Corporation, Dahua Machine 
Manufacturing Co. Ltd., General Motors Corporation, Kohler Co., Mercury 
Marine, Otis Elevator Company, Speed Solutions International Inc., ZF 
Services, LLC, and Vibracoustic North America LP, commented on the 
scope of this investigation, as well as the companion IMTDCs LTFV 
investigation from the People's Republic of China (the ``PRC'') and 
IMTDCs countervailing duty investigation from the PRC. The Department 
reviewed these comments and has accepted and incorporated into the 
scope of these investigations Petitioner's exclusion for certain 
flywheels with a permanently attached outer ring gear and for certain 
parts of torsional vibration dampers. For further discussion, see the 
``Final Scope Decision Memorandum.'' \3\ The scope in Appendix I 
reflects the final modified scope language.
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    \3\ See Memorandum from Abdelali Elouaradia, Director, Office 
IV, Antidumping and Countervailing Duty Operations, to Gary 
Taverman, Associate Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, regarding ``Antidumping Duty 
Investigations of Certain Iron Mechanical Transfer Drive Components 
from Canada and the People's Republic of China and Countervailing 
Duty Investigation of Certain Iron Mechanical Transfer Drive 
Components from the People's Republic of China: Scope Decision 
Memorandum for the Final Determinations,'' (``Final Scope Decision 
Memorandum'') dated concurrently with this final determination.
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Analysis of Comments Received

    All issues raised in the case brief that was submitted by 
Petitioner in this investigation are addressed in the Issues and 
Decision Memorandum accompanying this notice, and which is hereby 
adopted by this notice. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice at Appendix II.

Final Determination

    As discussed in the Issues and Decision Memorandum, we made no 
changes to our preliminary affirmative LTFV determination. Therefore, 
for the final determination, we continue to determine that the 
following estimated dumping margins exist for the following producers 
or exporters for the period October 1, 2014, through September 30, 
2015.

------------------------------------------------------------------------
                                                              Dumping
                    Exporter/producer                         margin
                                                             (percent)
------------------------------------------------------------------------
Baldor Electric Company Canada..........................          191.34
All-Others..............................................          100.47
------------------------------------------------------------------------

All-Others Rate

    Section 735(c)(5)(A) of the Tariff Act of 1930, as amended (``the 
Act''), provides that the estimated ``all-others'' rate shall be an 
amount equal to the weighted average of the estimated weighted-average 
dumping margins established for exporters and producers individually 
investigated, excluding any zero or de minimis margins, and any margins 
determined entirely under section 776 of the Act. In cases in which no 
weighted-average dumping margins besides zero, de minimis, or those 
determined entirely under section 776 of the Act have been established 
for individually investigated entities, in accordance with section 
735(c)(5)(B) of the Act, the Department may use ``any reasonable 
method'' to determine the ``all-others'' rate. Because the margin for 
Baldor, the sole mandatory respondent, is calculated entirely under 
section 776 of the Act, we continue to rely on a simple average of the 
margins in the Petition, upon which the Department initiated this 
investigation, in determining the ``all-others'' rate.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (``CBP'') to continue the 
suspension of liquidation of all entries of IMTDCs from Canada, as 
described in the ``Scope of the Investigation'' section, which were 
entered, or withdrawn from warehouse, for consumption on or after June 
8, 2016, the date of publication of the Preliminary Determination. CBP 
shall require a cash deposit equal to the estimated amount by which the 
normal value exceeds the U.S. price as shown above. These instructions 
suspending liquidation will remain in effect until further notice.

Disclosure

    We described the calculations used to determine the estimated 
dumping margins based on adverse facts available, in the Preliminary 
Determination. We made no changes to our calculations since the 
Preliminary Determination. Thus, no additional disclosure of 
calculations is necessary for this final determination.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (``ITC'') of our final affirmative 
determination of sales at LTFV. Because the final determination in the 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of IMTDCs from 
Canada no later than 45 days after our final determination. If the ITC 
determines that such injury does not exist, this 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 appropriate 
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 Administrative Protective Orders

    This notice serves as a reminder to the parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APOs in accordance with 19 CFR 351.305. Timely written 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 APOs is a sanctionable violation.
    We are issuing and publishing this determination in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: October 21, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are iron mechanical 
transfer drive components, whether finished or unfinished (i.e., 
blanks or castings). Subject iron mechanical transfer drive 
components are in the form of wheels or cylinders with a center bore 
hole that may have one or more grooves or teeth in their outer 
circumference that

[[Page 75041]]

guide or mesh with a flat or ribbed belt or like device and are 
often referred to as sheaves, pulleys, flywheels, flat pulleys, 
idlers, conveyer pulleys, synchronous sheaves, and timing pulleys. 
The products covered by this investigation also include bushings, 
which are iron mechanical transfer drive components in the form of a 
cylinder and which fit into the bore holes of other mechanical 
transfer drive components to lock them into drive shafts by means of 
elements such as teeth, bolts, or screws.
    Iron mechanical transfer drive components subject to this 
investigation are those not less than 4.00 inches (101 mm) in the 
maximum nominal outer diameter.
    Unfinished iron mechanical transfer drive components (i.e., 
blanks or castings) possess the approximate shape of the finished 
iron mechanical transfer drive component and have not yet been 
machined to final specification after the initial casting, forging 
or like operations. These machining processes may include cutting, 
punching, notching, boring, threading, mitering, or chamfering.
    Subject merchandise includes iron mechanical transfer drive 
components as defined above that have been finished or machined in a 
third country, including but not limited to finishing/machining 
processes such as cutting, punching, notching, boring, threading, 
mitering, or chamfering, or any other processing that would not 
otherwise remove the merchandise from the scope of this 
investigation if performed in the country of manufacture of the iron 
mechanical transfer drive components.
    Subject iron mechanical transfer drive components are covered by 
the scope of this investigation regardless of width, design, or iron 
type (e.g., gray, white, or ductile iron). Subject iron mechanical 
transfer drive components are covered by the scope of this 
investigation regardless of whether they have non-iron attachments 
or parts and regardless of whether they are entered with other 
mechanical transfer drive components or as part of a mechanical 
transfer drive assembly (which typically includes one or more of the 
iron mechanical transfer drive components identified above, and 
which may also include other parts such as a belt, coupling and/or 
shaft). When entered as a mechanical transfer drive assembly, only 
the iron components that meet the physical description of covered 
merchandise are covered merchandise, not the other components in the 
mechanical transfer drive assembly (e.g., belt, coupling, shaft). 
However, the scope excludes flywheels with a ring gear permanently 
attached onto the outer diameter. A ring gear is a steel ring with 
convex external teeth cut or machined into the outer diameter, and 
where the diameter of the ring exceeds 200 mm and does not exceed 
2,244.3 mm.
    For purposes of this investigation, a covered product is of 
``iron'' where the article has a carbon content of 1.7 percent by 
weight or above, regardless of the presence and amount of additional 
alloying elements.
    Excluded from the scope are finished torsional vibration dampers 
(TVDs). A finished TVD is an engine component composed of three 
separate components: An inner ring, a rubber ring and an outer ring. 
The inner ring is an iron wheel or cylinder with a bore hole to fit 
a crank shaft which forms a seal to prevent leakage of oil from the 
engine. The rubber ring is a dampening medium between the inner and 
outer rings that effectively reduces the torsional vibration. The 
outer ring, which may be made of materials other than iron, may or 
may not have grooves in its outer circumference. To constitute a 
finished excluded TVD, the product must be composed of each of the 
three parts identified above and the three parts must be permanently 
affixed to one another such that both the inner ring and the outer 
ring are permanently affixed to the rubber ring. A finished TVD is 
excluded only if it meets the physical description provided above; 
merchandise that otherwise meets the description of the scope and 
does not satisfy the physical description of excluded finished TVDs 
above is still covered by the scope of this investigation regardless 
of end use or identification as a TVD.
    Also excluded from the scope are certain TVD inner rings. To 
constitute an excluded TVD inner ring, the product must have each of 
the following characteristics: (1) A single continuous curve forming 
a protrusion or indentation on outer surface, also known as a sine 
lock, with a height or depth not less than 1.5 millimeters and not 
exceeding 4.0 millimeters and with a width of at least 10 
millimeters as measured across the sine lock from one edge of the 
curve to the other; \4\ (2) a face width of the outer diameter of 
greater than or equal to 20 millimeters but less than or equal to 80 
millimeters; (3) an outside diameter greater than or equal to 101 
millimeters but less than or equal to 300 millimeters; and (4) a 
weight not exceeding 7 kilograms. A TVD inner ring is excluded only 
if it meets the physical description provided above; merchandise 
that otherwise meets the description of the scope and does not 
satisfy the physical description of excluded TVD inner rings is 
still covered by the scope of this investigation regardless of end 
use or identification as a TVD inner ring.
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    \4\ The edges of the sine lock curve are defined as the points 
where the surface of the inner ring is no longer parallel to the 
plane formed by the inner surface of the bore hole that attaches the 
ring to the crankshaft.
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    The scope also excludes light-duty, fixed-pitch, non-synchronous 
sheaves (``excludable LDFPN sheaves'') with each of the following 
characteristics: Made from grey iron designated as ASTM (North 
American specification) Grade 30 or lower, GB/T (Chinese 
specification) Grade HT200 or lower, DIN (German specification) GG 
20 or lower, or EN (European specification) EN-GJL 200 or lower; 
having no more than two grooves; having a maximum face width of no 
more than 1.75 inches, where the face width is the width of the part 
at its outside diameter; having a maximum outside diameter of not 
more than 18.75 inches; and having no teeth on the outside or datum 
diameter. Excludable LDFPN sheaves must also either have a maximum 
straight bore size of 1.6875 inches with a maximum hub diameter of 
2.875 inches; or else have a tapered bore measuring 1.625 inches at 
the large end, a maximum hub diameter of 3.50 inches, a length 
through tapered bore of 1.0 inches, exactly two tapped holes that 
are 180 degrees apart, and a 2.0- inch bolt circle on the face of 
the hub. Excludable LDFPN sheaves more than 6.75 inches in outside 
diameter must also have an arm or spoke construction.\5\ Further, 
excludable LDFPN sheaves must have a groove profile as indicated in 
the table below:
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    \5\ An arm or spoke construction is where arms or spokes 
(typically 3 to 6) connect the outside diameter of the sheave with 
the hub of the sheave. This is in contrast to a block construction 
(in which the material between the hub and the outside diameter is 
solid with a uniform thickness that is the same thickness as the hub 
of the sheave) or a web construction (in which the material between 
the hub and the outside diameter is solid but is thinner than at the 
hub of the sheave).

----------------------------------------------------------------------------------------------------------------
                                                                        Top width
                                                                      range of each  Maximum height     Angle
          Size (belt profile)                 Outside diameter           groove         (inches)       ([deg])
                                                                        (inches)
----------------------------------------------------------------------------------------------------------------
MA/AK (A, 3L, 4L)......................  <=5.45 in.................     0.484-0.499           0.531           34
MA/AK (A, 3L, 4L)......................  >5.45 in. but <=18.75 in..     0.499-0.509           0.531           38
MB/BK (A, B, 4L, 5L)...................  <=7.40 in.................     0.607-0.618           0.632           34
MB/BK (A, B, 4L, 5L)...................  >7.40 in. but <=18.75 in..     0.620-0.631           0.635           38
----------------------------------------------------------------------------------------------------------------

    In addition to the above characteristics, excludable LDFPN 
sheaves must also have a maximum weight (pounds-per-piece) as 
follows: For excludable LDFPN sheaves with one groove and an outside 
diameter of greater than 4.0 inches but less than or equal to 8.0 
inches, the maximum weight is 4.7 pounds; for excludable LDFPN 
sheaves with two grooves and an outside diameter of greater than 4.0 
inches but less than or equal to 8.0 inches, the maximum weight is 
8.5 pounds; for excludable LDFPN sheaves with one groove and an 
outside diameter of greater than 8.0 inches but less than or equal 
to 12.0 inches, the maximum weight is 8.5 pounds;

[[Page 75042]]

for excludable LDFPN sheaves with two grooves and an outside 
diameter of greater than 8.0 inches but less than or equal to 12.0 
inches, the maximum weight is 15.0 pounds; for excludable LDFPN 
sheaves with one groove and an outside diameter of greater than 12.0 
inches but less than or equal to 15.0 inches, the maximum weight is 
13.3 pounds; for excludable LDFPN sheaves with two grooves and an 
outside diameter of greater than 12.0 inches but less than or equal 
to 15.0 inches, the maximum weight is 17.5 pounds; for excludable 
LDFPN sheaves with one groove and an outside diameter of greater 
than 15.0 inches but less than or equal to 18.75 inches, the maximum 
weight is 16.5 pounds; and for excludable LDFPN sheaves with two 
grooves and an outside diameter of greater than 15.0 inches but less 
than or equal to 18.75 inches, the maximum weight is 26.5 pounds.
    The scope also excludes light-duty, variable-pitch, non-
synchronous sheaves with each of the following characteristics: Made 
from grey iron designated as ASTM (North American specification) 
Grade 30 or lower, GB/T (Chinese specification) Grade HT200 or 
lower, DIN (German specification) GG 20 or lower, or EN (European 
specification) EN-GJL 200 or lower; having no more than 2 grooves; 
having a maximum overall width of less than 2.25 inches with a 
single groove, or of 3.25 inches or less with two grooves; having a 
maximum outside diameter of not more than 7.5 inches; having a 
maximum bore size of 1.625 inches; having either one or two 
identical, internally-threaded (i.e., with threads on the inside 
diameter), adjustable (rotating) flange(s) on an externally-threaded 
hub (i.e., with threads on the outside diameter) that enable(s) the 
width (opening) of the groove to be changed; and having no teeth on 
the outside or datum diameter.
    The scope also excludes certain IMTDC bushings. An IMTDC bushing 
is excluded only if it has a tapered angle of greater than or equal 
to 10 degrees, where the angle is measured between one outside 
tapered surface and the directly opposing outside tapered surface.
    The merchandise covered by this investigation is currently 
classifiable under Harmonized Tariff Schedule of the United States 
(``HTSUS'') subheadings 8483.30.8090, 8483.50.6000, 8483.50.9040, 
8483.50.9080, 8483.90.3000, 8483.90.8080. Covered merchandise may 
also enter under the following HTSUS subheadings: 7325.10.0080, 
7325.99.1000, 7326.19.0010, 7326.19.0080, 8431.31.0040, 
8431.31.0060, 8431.39.0010, 8431.39.0050, 8431.39.0070, 
8431.39.0080, and 8483.50.4000. These HTSUS subheadings are provided 
for convenience and customs purposes. The written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Discussion of the Issues:
    Comment 1: Adverse Facts Available
    Comment 2: All-Others Rate
V. Recommendation

[FR Doc. 2016-26106 Filed 10-27-16; 8:45 am]
BILLING CODE 3510-DS-P


Current View
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 October 28, 2016.
ContactStephen Bailey or Robert Bolling, AD/ CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-0193 or (202) 482-3434, respectively.
FR Citation81 FR 75039 

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