Titanium Sponge From Japan; Final Results of Antidumping Duty Administrative Review and Revocation in Part of the Antidumping Duty Order

DEPARTMENT OF COMMERCE

[A-588-020]

Titanium Sponge From Japan; Final Results of Antidumping Duty

Administrative Review and Revocation in Part of the Antidumping Duty

Order

AGENCY: International Trade Administration, Import Administration,

Department of Commerce.

ACTION: Notice of final results of antidumping duty administrative

review and revocation in part of the antidumping duty order.

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SUMMARY: On November 30, 1993, the Department of Commerce published the

preliminary results of its administrative review of the antidumping

duty order on titanium sponge from Japan and its intent to revoke the

order in part. We have now completed this review and found no dumping

margin for Showa Denko K.K. (Showa) during the period November 1, 1991

to October 31, 1992. We also determine that Showa has met the

requirements for revocation.

EFFECTIVE DATE: May 2, 1994.

FOR FURTHER INFORMATION CONTACT: Cameron Cardozo or Maria MacKay,

Office of Countervailing Compliance, Import Administration,

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

Street and Constitution Avenue NW., Washington, DC 20230; telephone:

(202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

On November 30, 1993, the Department of Commerce (the Department)

published in the Federal Register (58 FR 63,155) the preliminary

results of its administrative review of the antidumping duty order on

titanium sponge from Japan (49 FR 47,053; November 30, 1984). The

Department has now completed this administrative review in accordance

with section 751(a) of the Tariff Act of 1930, as amended (the Act).

Scope of Review

Imports covered by the review are shipments of unwrought titanium

sponge. Titanium sponge is a porous, brittle metal which has a high

strength-to-weight ratio and is highly ductile. It is an intermediate

product used to produce titanium ingots, slabs, billets, plates, and

sheets. During the review period, such merchandise was classified under

subheading 8108.10.50.10 of the Harmonized Tariff Schedule (HTS). The

HTS number is provided for convenience and customs purposes. The

written description remains dispositive.

The review covers one manufacturer/exporter of the subject

merchandise to the United States, Showa, and the period November 1,

1991 through October 31, 1992.

Analysis of Comments Received

We gave interested parties an opportunity to comment on the

preliminary results. We received a written comment from the respondent,

Showa.

Comment 1: Respondent argues that the Department should use Showa's

reported general and administrative (G&A) expenses in its calculation

of constructed value. Instead, in its preliminary results of review,

the Department allocated Showa's, the parent company, G&A costs to

Showa Titanium (STIC) based on the ratio of Showa's equity ownership in

STIC to Showa's total equity. The respondent maintains that its

methodology for calculating G&A expense in this review is in accordance

with its books and records, and is consistent with Showa's reporting in

previous review periods. Moreover, in both the fourth and fifth

reviews, the Department specifically rejected petitioner's arguments

that Showa's reported G&A expense should be recalculated. However,

should the Department choose to reverse its position and reject Showa's

internal allocation methodology, it should allocate Showa's

headquarters G&A based on cost of goods sold, following the

Department's established allocation methodology.

Department's Position: The respondent's submitted G&A costs

included STIC's G&A expenses and a portion of Showa parent company G&A

expenses allocated to STIC based on a formula used in its ordinary

course of business. As a result, we recalculated constructed value

utilizing Showa's submitted G&A allocation methodology, which had no

effect on the margin.

Final Results of Review

As a result of our comparison of United States price to foreign

market value, as discussed in the preliminary results of this review,

we determine the dumping margin to be:

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Margin

Manufacturer/exporter Time period (percent)

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Showa Denko K.K...................... 11/1/91-10/31/92 Zero (0).

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Based on information submitted by Showa during this and two

previous reviews (See Final Results of Antidumping Duty Administrative

Review on Titanium Sponge from Japan (58 FR 18,202; April 8, 1993), and

Final Results of Antidumping Duty Administrative Review on Titanium

Sponge from Japan (57 FR 9,688; March 20, 1992)), we further determine

that Showa has met the requirements for revocation set forth in

sections 353.25(a) and 353.25(b) of the Department's regulations. Showa

has demonstrated three consecutive years of sales at not less than

foreign market value and has submitted the required certifications. On

the basis of no sales at less than foreign market value for a period of

three consecutive years, an agreement by Showa to immediate

reinstatement of the order if it should make such sales in the future,

and the lack of any indication to the contrary, the Department

concludes that Showa is not likely to sell subject merchandise at less

than foreign market value in the future. Therefore, the Department is

revoking the order with respect to Showa.

The Department will instruct the Customs Service to liquidate,

without regard to antidumping duties, all shipments of this merchandise

entered by Showa on or after November 1, 1991 and on or before October

31, 1992. The Department also will instruct Customs to terminate

suspension of liquidation and to cease collecting cash deposits with

regard to Showa.

Further, the following deposit requirements will be effective upon

publication of the notice of final results of administrative review for

all shipments of the subject merchandise, entered, or withdrawn from

warehouse, for consumption on or after the publication date, as

provided by section 751(a)(1) of the Act: (1) no cash deposit will be

required for the reviewed company; (2) for previously reviewed or

investigated companies not listed above, the cash deposit rate will

continue to be the company-specific rate published for the most recent

period; (3) if the exporter is not a firm covered in this review, a

prior review, or the original less-than-fair-value (LTFV)

investigation, but the manufacturer is, the cash deposit rate will be

the rate established for the most recent period for the manufacturer of

the merchandise; and (4) the cash deposit rate for all other

manufacturers or exporters will be 28.25 percent, the ``all others''

rate established in the final notice of LTFV investigation by the

Department, as amended (50 FR 32,459, August 12, 1985), in accordance

with the decisions of the Court of International Trade (CIT) in Floral

Trade Council v. United States, Slip Op. 93-79 (CIT May 25, 1993), and

Federal-Mogul Corporation v. United States, Slip Op. 93-83, (CIT May

25, 1993).

These deposit requirements, when imposed, shall remain in effect

until publication of the final results of the next administrative

review.

This notice also serves as a final reminder to importers of their

responsibility under 19 CFR 353.26 to file a certificate regarding the

reimbursement of antidumping duties prior to liquidation of the

relevant entries during the review period. Failure to comply with this

requirement could result in the Secretary's presumption that

reimbursement of antidumping duties occurred and the subsequent

assessment of double antidumping duties.

This administrative review and notice are in accordance with

section 751(a)(1) of the Act (19 U.S.C. 1675(a)(1)) and sections 353.22

and 353.25(c) of the Department's regulations.

Dated: February 23, 1994.

Joseph A. Spectrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-4774 Filed 3-1-94; 8:45 am]

BILLING CODE 3510-DS-P