Initiation of Antidumping Duty Investigation: Certain Partial- Extension Steel Drawer Slides With Rollers From the People's Republic of China (PRC)

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-839]

Initiation of Antidumping Duty Investigation: Certain Partial-

Extension Steel Drawer Slides With Rollers From the People's Republic

of China (PRC)

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: November 28, 1994.

FOR FURTHER INFORMATION CONTACT: Michelle A. Frederick or John

Brinkmann, Office of Antidumping Investigations, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street and Constitution Avenue, N.W., Washington, D.C. 20230;

telephone: (202) 482-0186 or (202) 482-5288, respectively.

INITIATION OF INVESTIGATION:

The Petition

On October 31, 1994, we received a petition filed in proper form

from Hardware Designers, Inc. (the petitioner). At the request of the

Department of Commerce (the Department), the petitioner filed

supplements to support and clarify the petition's data on November 16

and 18, 1994. In accordance with 19 CFR 353.12, the petitioner alleges

that certain partial-extension steel drawer slides with rollers (drawer

slides) are being, or are likely to be, sold in the United States at

less than fair value within the meaning of section 731 of the Tariff

Act of 1930, as amended (the Act), and that these imports are

materially injuring, or threaten material injury to, a U.S. industry.

The petitioner states that it has standing to file the petition

because it is an interested party, as defined under section 771(9)(C)

of the Act, and because the petition is filed on behalf of the U.S.

industry producing the product subject to this investigation. If any

interested party, as described under paragraphs (C), (D), (E), or (F)

of section 771(9) of the Act, wishes to register support for, or

opposition to, this petition, such party should file a written

notification with the Assistant Secretary for Import Administration.

Scope of Investigation

The subject merchandise in this investigation is certain partial-

extension steel drawer slides of any length with rollers. A drawer

slide is composed of two separate drawer slide rails. Each rail has

screw holes and an attached polymer roller. The polymer roller may or

may not have ball bearings. The subject drawer slides come in two

models: European or Low-Profile and Over-Under or High-Profile. The

former model has two opposing rails that provide one channel along

which both rollers move and the latter has two opposing rails that

provide two channels, one for each roller. For both models of drawer

slides, the two opposing rails differ slightly in shape depending on

whether the rail is to be affixed to the side of a cabinet or the side

of a drawer. A rail may also feature a flange for affixing to or

aligning along the bottom of a drawer.

Drawer slides may be packaged in an assembly pack with two drawer

slides; that is, four rails with their attached rollers, or in an

assembly pack with one drawer slide; that is, two rails with their

attached rollers; or individually; as a drawer slide rail with its

attached roller. An assembly pack may or may not contain a packet of

screws.

Not included in the scope of this investigation are linear ball

bearing steel drawer slides (with ball bearing in a linear plane

between the steel elements of the slide), roller bearing drawer slides

(with roller bearings in the wheel), metal box drawer slides (slides

built into the side of a metal or aluminum drawer), full extension

drawer slides (with more than four rails per pair), and industrial

slides (customized, high-precision slides without polymer rollers).

The subject merchandise is currently classifiable under subheading

8302.42.30 of the Harmonized Tariff Schedule of the United States

(HTSUS). It may also be classified under 9403.90.80. Although the HTSUS

subheadings are provided for convenience and customs purposes, our

written description of the scope of this proceeding is dispositive.

United States Price and Foreign Market Value

The petitioner based United States Price (USP) on a January 1994

price quotation obtained for a set of 14-inch drawer slides. The terms

of the price quotation were CIF New York. In calculating USP, the

petitioner deducted amounts for foreign inland freight, ocean freight,

and marine insurance.

The petitioner contends that the PRC is a non-market economy (NME)

country within the meaning of section 771(18)(A) of the Act. The

Department has determined in all previous investigations that the PRC

is an NME, and the presumption of NME status continues for purposes of

initiation of this investigation. See e.g., Final Determination of

Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR

51168 (October 7, 1994).

In accordance with section 773(c) of the Act, foreign market value

in NME cases is based on NME producers' factors of production, valued

in a market economy country. Consistent with Department practice absent

evidence that the PRC government determines which of its factories

shall produce for export to the United States, we intend, for purposes

of this investigation, to base FMV only on those factories that

produced drawer slides sold to the United States during the period of

investigation (POI).

In the course of this investigation, parties will have the

opportunity to address this NME designation and provide relevant

information and argument related to the issues of the PRC's NME status

and granting of separate rates to individual exporters. In addition,

parties will have the opportunity in this investigation to submit

comments on whether FMV should be based on prices or costs in the PRC

consistent with section 773(c)(1)(B) of the Act. See Amendment to Final

Determination of Sales at Less Than Fair Value and Amendment to

Antidumping Duty Order: Chrome-Plated Lug Nuts from the People's

Republic of China, 57 FR 15052 (April 24, 1992).

The petitioner calculated FMV on the basis of the valuation of the

factors of production. The petitioner, claiming that its production

process is similar to the Chinese production process, based the factors

of production on its own experience. The factors of production were

valued, where possible, on publicly available published information

pertaining to India. The petitioner argues that India is a country at a

comparable level of economic development to the PRC and that India is a

significant producer of comparable merchandise, thus meeting the

requirements of section 773(c)(4) of the Act. For purposes of this

initiation, we have accepted India as an appropriate surrogate country

selection.

Where Indian values were not available, the petitioner valued the

factors of production using either a ratio based on its own experience

or its own costs.

In accordance with section 773(c)(1)(B) of the Act, the

petitioner's FMV consisted of the sum of values assigned to materials,

labor, energy, overhead and selling, general and administrative (SG&A)

expenses. Certain of these factor values were adjusted for inflation.

Pursuant to section 773(e)(1) of the Act, the petitioner added to the

cost of manufacturing (COM), overhead and SG&A expenses, the statutory

minimum of eight percent for profit.

Based on our analysis of the petition and subsequent amendments, we

have made certain adjustments to the petitioner's FMV calculation as

follows:

(1) We disallowed all factors valued using the petitioner's own

costs;

(2) We recalculated factory overhead and SG&A expenses to account

for certain energy and inventory expenses excluded from the

petitioner's calculation of COM;

(3) We disallowed an amount included by the petitioner for scrap

loss because this cost was already included in the cost of steel.

Fair Value Comparisons

Based on a comparison of USP and FMV, the petitioner's alleged

dumping margin, as revised by the Department, is 55.69 percent.

Initiation of Investigation

Pursuant to section 732(c) of the Act, the Department must

determine, within 20 days after a petition is filed, whether a petition

sets forth an allegation necessary for the initiation of an antidumping

duty investigation, and whether the petition contains information

reasonably available to the petitioner supporting the allegation.

We have examined the petition for drawer slides from the PRC, as

amended, and have found that it meets the requirements of section

732(b) of the Act. Therefore, we are initiating an antidumping duty

investigation to determine whether imports of drawer slides from the

PRC are being, or are likely to be, sold in the United States at less

than fair value. If this investigation proceeds normally, we will make

our preliminary determination by April 9, 1995.

International Trade Commission (ITC) Notification

Section 732(d) of the Act requires us to notify the ITC of this

action and we have done so.

Preliminary Determinations by the ITC

The ITC will determine by December 15, 1994, whether there is a

reasonable indication that imports of drawer slides from the PRC are

materially injuring, or threaten material injury to, a U.S. industry.

Pursuant to section 733(a) of the Act, a negative ITC determination

will result in the investigation being terminated; otherwise, the

investigation will proceed according to statutory and regulatory time

limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: November 21, 1994.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 94-29237 Filed 11-25-94; 8:45 am]

BILLING CODE 3510-DS-P