83 FR 29092 - Certain Tapered Roller Bearings From the Republic of Korea: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 121 (June 22, 2018)

Page Range29092-29094
FR Document2018-13447

The Department of Commerce (Commerce) determines that imports of certain tapered roller bearings (TRBs) from the Republic of Korea (Korea) for the period of investigation (POI) of April 1, 2016 through March 31, 2017, are being, or are likely to be, sold in the United States at less than fair value (LTFV).

Federal Register, Volume 83 Issue 121 (Friday, June 22, 2018)
[Federal Register Volume 83, Number 121 (Friday, June 22, 2018)]
[Notices]
[Pages 29092-29094]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13447]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-894]


Certain Tapered Roller Bearings From the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of certain tapered roller bearings (TRBs) from the Republic of Korea 
(Korea) for the period of investigation (POI) of April 1, 2016 through 
March 31, 2017, are being, or are likely to be, sold in the United 
States at less than fair value (LTFV).

DATES: Applicable June 22, 2018.

FOR FURTHER INFORMATION CONTACT: Blaine Wiltse and Manuel Rey, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-6345 and (202) 482-5518, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 2, 2018, Commerce published the Preliminary 
Determination of sales at LTFV of TRBs from Korea.\1\ A summary of the 
events that occurred since Commerce published the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the Issues and 
Decision Memorandum, which is adopted by this notice.\2\
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    \1\ See Certain Tapered Roller Bearings from the Republic of 
Korea: Preliminary Affirmative Determination of Sales at Less-Than-
Fair-Value, Postponement of Final Determination, and Extension of 
Provisional Measures, 83 FR 4901 (February 2, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum, 
``Decision Memorandum for the Preliminary Determination in the Less-
Than-Fair-Value Investigation of Certain Tapered Roller Bearings 
from the Republic of Korea,'' (Preliminary Decision Memorandum).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Certain Tapered Roller Bearings from the Republic 
of Korea,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is TRBs from Korea. For a 
full description of the scope of this investigation, see the ``Scope of 
the Investigation'' in Appendix I of this notice.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum 
accompanying this notice. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice as Appendix II. 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 https://access.trade.gov, 
and it is available to all parties in the Central Records Unit, Room B-
8024 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/frn/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as 
amended, (the Act) from February through April 2018, we conducted 
verification of the sales and cost information submitted by Iljin Group 
\3\ and Schaeffler Korea Corporation (Schaeffler) (collectively, the 
respondents) for use in our final determination. We used standard 
verification procedures, including an examination of relevant 
accounting and production records, and original source documents 
provided by the respondents.\4\
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    \3\ Iljin Group is the name used for the collapsed-entity 
comprised of the following three affiliated companies: Bearing Art 
Corporation, Iljin Bearing Corporation, and Iljin Global 
Corporation.
    \4\ For discussion of our verification findings, see the 
following memoranda: Memorandum, ``Verification of Iljin USA 
Corporation in the Antidumping Duty Investigation of Certain Tapered 
Roller Bearings from the Republic of Korea,'' dated April 24, 2018; 
Memorandum, ``Verification of the Sales Response of Schaeffler Group 
U.S.A., Inc. in the Antidumping Duty Investigation of Tapered Roller 
Bearings from Korea,'' dated April 25, 2018; Memorandum, 
``Verification of the Cost Response of Bearing Art Corporation in 
the Less-than-Fair-Value Investigation of Tapered Roller Bearings 
from the Republic of Korea,'' dated May 2, 2018; Memorandum, 
``Verification of the Cost Response of Schaeffler Korea Corporation 
and Schaeffler Group USA Inc., (`Schaeffler') in the Antidumping 
Duty Investigation of Tapered Roller Bearings from Korea,'' dated 
May 3, 2018; Memorandum, ``Verification of Bearing Art Corporation 
in the Antidumping Duty Investigation of Certain Tapered Roller 
Bearings from the Republic of Korea,'' dated May 9, 2018; 
Memorandum, ``Verification of Iljin Bearing Corporation in the 
Antidumping Duty Investigation of Certain Tapered Roller Bearings 
from the Republic of Korea,'' dated May 10, 2018; and Memorandum, 
``Verification of the Sales Response of Schaeffler Korea Corporation 
in the Antidumping Duty Investigation of Tapered Roller Bearings 
from Korea,'' dated May 10, 2018.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
each of the respondents. For a discussion of these changes, see the 
``Margin Calculations'' section of the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
shall be equal to the weighted average of the estimated weighted-
average dumping margins established for exporters and producers 
individually examined, excluding rates that are zero, de minimis or 
determined entirely under section 776 of the Act. For the final 
determination, Commerce calculated the ``all others'' rate based on a 
weighted average of Iljin Group's and Schaeffler's margins using 
publicly-ranged quantities of their sales of subject merchandise.\5\
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    \5\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated weighted-average 
dumping margins calculated for the examined respondents weighted 
using each respondent's actual U.S. sale quantity; (B) a simple 
average of the estimated weighted-average dumping margins calculated 
for the examined respondents; and (C) a weighted-average of the 
estimated weighted-average dumping margins calculated for the 
examined respondents using each respondent's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all-other producers and exporters. 
See Ball Bearings and Parts Thereof from France, Germany, Italy, 
Japan, and the United Kingdom: Final Results of Antidumping Duty 
Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data is 
available, pursuant to the above-described process, Commerce based 
the all-others rate on the publicly ranged sales data of the 
mandatory respondents. For a complete analysis of the data, see 
Memorandum, ``Calculation of the All-Others Rate for the Final 
Determination in the Less-Than-Fair-Value Investigation of Certain 
Tapered Roller Bearings from the Republic of Korea,'' dated June 18, 
2018.

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[[Page 29093]]

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Bearing Art Corporation, Iljin Bearing Corporation, Iljin           8.21
 Global Corporation (collectively, Iljin Group).............
Schaeffler Korea Corporation................................       52.44
All Others..................................................       30.25
------------------------------------------------------------------------

Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of TRBs from Korea, 
as described in Appendix I of this notice, which are entered, or 
withdrawn from warehouse, for consumption on or after February 2, 2018, 
the date of publication in the Federal Register of the affirmative 
Preliminary Determination. Further, we will instruct CBP to require a 
cash deposit equal to the estimated weighted-average dumping margins 
indicated in the chart above.\6\ These suspension of liquidation 
instructions will remain in effect until further notice.
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    \6\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
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, or sales (or the likelihood of 
sales) for importation of TRBs from Korea no later than 45 days after 
this final determination. If the ITC determines that such injury does 
not exist, this proceeding will be terminated and all cash deposits 
will be refunded or canceled. If the ITC determines that such injury 
does exist, Commerce will issue an antidumping duty order directing CBP 
to assess, upon further instruction by Commerce, antidumping duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). 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 an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR 
351.210(c).

    Dated: June 18, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation is certain tapered roller 
bearings. The scope covers all tapered roller bearings with a 
nominal outside cup diameter of eight inches and under, regardless 
of type of steel used to produce the bearing, whether of inch or 
metric size, and whether the tapered roller bearing is a thrust 
bearing or not. Certain tapered roller bearings include: Finished 
cup and cone assemblies entering as a set, finished cone assemblies 
entering separately, and finished parts (cups, cones, and tapered 
rollers). Certain tapered roller bearings are sold individually as a 
set (cup and cone assembly), as a cone assembly, as a finished cup, 
or packaged as a kit with one or several tapered roller bearings, a 
seal, and grease. The scope of the investigation includes finished 
rollers and finished cones that have not been assembled with rollers 
and a cage. Certain tapered roller bearings can be a single row or 
multiple rows (e.g., two- or four-row), and a cup can handle a 
single cone assembly or multiple cone assemblies.
    Finished cups, cones, and rollers differ from unfinished cups, 
cones, and rollers in that they have undergone further processing 
after heat treatment, including, but not limited to, final 
machining, grinding, and/or polishing. Mere heat treatment of a cup, 
cone, or roller (without any further processing after heat 
treatment) does not render the cup, cone, or roller a finished part 
for the purpose of this investigation. Finished tapered roller 
bearing parts are understood to mean parts which, at the time of 
importation, are ready for assembly (if further assembly is 
required) and require no further finishing or fabrication, such as 
grinding, lathing, machining, polishing, heat treatment, etc. 
Finished parts may require grease, bolting, and/or pressing as part 
of final assembly, and the requirement that these processes be 
performed, subsequent to importation, does not remove an otherwise 
finished tapered roller bearing from the scope.
    Tapered roller bearings that have a nominal outer cup diameter 
of eight inches and under that may be used in wheel hub units, rail 
bearings, or other housed bearings, but entered separately, are 
included in the scope to the same extent as described above. All 
tapered roller bearings meeting the written description above, and 
not otherwise excluded, are included, regardless of coating.
    Excluded from the scope of this investigation are:
    (1) Unfinished parts of tapered roller bearings (cups, cones, 
and tapered rollers);
    (2) cages, whether finished or unfinished;
    (3) the non-tapered roller bearing components of subject kits 
(e.g., grease, seal); and
    (4) tapered roller bearing wheel hub units, rail bearings, and 
other housed tapered roller bearings (flange, take up cartridges, 
and hanger units incorporating tapered rollers).
    Tapered roller bearings subject to this investigation are 
primarily classifiable under subheadings 8482.20.0040, 8482.20.0061, 
8482.20.0070, 8482.20.0081, 8482.91.0050, 8482.99.1550, and 
8482.99.1580 of the Harmonized Tariff Schedule of the United States 
(HTSUS).\7\ Parts may also enter under

[[Page 29094]]

8482.99.4500. While the HTSUS subheadings are provided for 
convenience and for customs purposes, the written description of the 
subject merchandise is dispositive.
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    \7\ Prior to July 2016, products entering under 8482.20.0061 
entered under 8482.20.0060, products entering under 8482.20.0081 
entered under 8482.20.0080, and products entering under 8482.99.1550 
entered under 8482.99.1540.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Margin Calculations
V. Discussion of the Issues
    1. Allegation of a Particular Market Situation (PMS) in Korea
    2. Affiliation With Hyundai Motor Company (HMC)
    3. Using New Prototype Sales in the Calculation of Normal Value 
(NV) and U.S. Price
    4. Reclassifying Certain Prototype Sales as Export Price (EP)
    5. Post-Sale Price Adjustments
    6. Constructed Export Price (CEP) Offset
    7. Calculating Financial Expenses
    8. Applying Partial Adverse Facts Available (AFA) to Direct 
Material Costs
    9. Unreported Home Market Sales
    10. Level of Trade (LOT) and CEP Offset
    11. Home Market Rebates
    12. Home Market Billing Adjustments
    13. U.S. Movement Expenses in Korea
    14. U.S. Movement Expenses in the United States
    15. U.S. Warehousing Expenses
    16. Calculation of U.S. Duties
    17. U.S. Billing Adjustments
    18. Rebates Granted on U.S. Sales
    19. Borrowing Rate for U.S. Credit Expenses
    20. Classifying Certain Sales as EP
    21. Calculating Financial Expenses
    22. Commerce's Schedule for Submitting Case Briefs
VI. Recommendation

[FR Doc. 2018-13447 Filed 6-21-18; 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
DatesApplicable June 22, 2018.
ContactBlaine Wiltse and Manuel Rey, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6345 and (202) 482-5518, respectively.
FR Citation83 FR 29092 

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