3.5 Inch Microdisks and Coated Media Thereof From Japan; Final Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

[A-588-802]

3.5 Inch Microdisks and Coated Media Thereof From Japan; Final

Results of Antidumping Duty Administrative Review

AGENCY: Import Administration/International Trade Administration

Department of Commerce.

ACTION: Notice of final results of antidumping duty administrative

review.

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

preliminary results of its administrative review of the antidumping

duty order on 3.5 inch microdisks and coated media thereof (microdisks)

from Japan. The review covers one manufacturer/exporter of this

merchandise to the United States, Hitachi Maxell, Ltd. (HML), and the

period April 1, 1992 through March 31, 1993.

We gave interested parties an opportunity to comment on the

preliminary results. Based on our analysis of comments received, we

have changed the final results from those presented in our preliminary

results of review.

EFFECTIVE DATE: March 23, 1994.

FOR FURTHER INFORMATION CONTACT: Arthur N. DuBois or Thomas F. Futtner,

Office of Antidumping Compliance, International Trade Administration,

U.S. Department of Commerce, 14th and Constitution Avenue NW.,

Washington, DC 20230, telephone: (202) 482-6312/3814.

SUPPLEMENTARY INFORMATION:

Background

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

published in the Federal Register (58 FR 69339) the preliminary results

of its administrative review of the antidumping duty order on

microdisks (54 FR 13406, April 3, 1989). The Department has now

completed that administrative review in accordance with section 751 of

the Tariff Act of 1930, as amended (the Tariff Act), and 19 CFR 353.22.

Scope of the Review

Imports covered by the review are shipments of 3.5 inch microdisks

and coated media thereof from Japan, currently classifiable under

Harmonized Tariff Schedule (HTS) item number 8523.20.0000. The HTS item

number is provided for convenience and for Customs purposes only. The

written descriptions remain dispositive.

A 3.5 inch microdisk is a tested or untested magnetically coated

polyester disk with a steel hub enclosed in a hard plastic jacket.

These microdisks are used to record and store encoded digital computer

information for access by a 3.5 inch floppy disk drive. The 3.5 inch

microdisk includes single-sided, double-sided, or high-density formats.

The 3.5 inch microdisk is intended for use specifically in a 3.5 inch

floppy disk drive.

Coated media is the flexible recording material used in the

finished microdisk. Media consists of a polyester base film to which a

coating of magnetically charged particles is bonded.

This review covers one Japanese manufacturer/exporter of this

merchandise to the United States, HML, and the period April 1, 1992

through March 31, 1993.

Analysis of Comments Received

The Department gave interested parties an opportunity to comment on

the preliminary results of this administrative review as provided by

section 353.38 of the Commerce Regulations. We received comments from

the respondent, HML. We have corrected the clerical errors noted by the

respondents, and have addressed them specifically in this notice.

Comment 1: HML commented that rebates and discounts should not be

included in constructed value because they are price adjustments and

not expenses. It cites Antifriction Bearings (Other than Tapered Roller

Bearings) and Parts Thereof from The Federal Republic of Germany, Final

Results of Antidumping Duty Administrative Review (55 FR 31692, 31732,

July 11, 1991), as an example of the Department's practice.

Department's Position: We agree. Our preliminary analysis

memorandum may have made it seem as if we included rebates and

discounts in constructed value. However, we did not include rebates and

discounts in our preliminary constructed value calculation because it

is not our policy to do so. Therefore, no change in our calculations

was necessary.

Comment 2: HML commented that in comparing U.S. sales to

constructed value, the Department made an error regarding home market

inventory carrying costs of coated media. HML asserts that the

Department should include these costs when determining the total amount

of home market indirect expenses to deduct from constructed value just

as it did in calculating the deduction from home market prices.

Department's Position: We agree. It was our intention as we stated

in our preliminary notice that inventory carrying costs be included in

the pool of indirect home market selling expenses.

Therefore, we have corrected our calculations. In accordance with

our practice, we have limited the adjustment to constructed value of

home market indirect expenses to the amount of indirect expenses HML

incurred on its exporter's sales price transactions.

Comment 3: HML pointed out two clerical errors in the model match

table used in the computer program which caused no matching FMV sales

to be found for two of the models sold in the United States.

Department's Position: We agree and have corrected the our

calculations accordingly.

Final Results of the Review

As a result of this administrative review, the Department

determines that the following margin exists for the period April 1,

1992, through March 31, 1993:

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Margin

Manufacturer/producer/exporter percent

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HML........................................................... 0.96

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The Department will instruct the U.S. Customs Service to assess

antidumping duties on all appropriate entries. The Department will

issue appraisement instructions directly to the Customs Service.

Furthermore, the following deposit requirements will be effective

upon publication of these final results of this 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 Tariff Act: (1) For subject

merchandise exported by HML, a cash deposit of 0.96 percent; (2) For

subject merchandise exported by manufacturers or exporters not covered

in this review, but covered in previous reviews or the original less-

than-fair-value (LTFV) investigation, a cash deposit based on the most

recently published rate in a final result or determination for which

the manufacturer or exporter received a company-specific rate; (3) If

the exporter is not a firm covered in this review, a prior review, or

the original 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) If neither the

exporter nor the manufacturer is a firm covered in these or any

previous review reviews conducted by the Department, the cash deposit

rate will be 42.85 percent, the ``all other'' rate established in the

LTFV investigation, as discussed below.

On March 25, 1993, the Court of International Trade (CIT), in

Floral Trade Council v. United States, Slip Op. 93-79, and Federal-

Mogul Corporation v. United States, Slip Op. 93-83, decided that once

an ``all others'' rate is established for a company, it can only be

changed through an administrative review.

The Department has determined that in order to implement these

decisions, it is appropriate to reinstate the original ``all others''

rate from the LTFV investigation (or that rate as amended for

correction of clerical errors or as a result of litigation) in a

proceeding governed by an antidumping duty order.

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 this 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 notice also serves as a reminder to parties subject to

administrative protective orders (APOs) of their responsibility

concerning the return or destruction of proprietary information

disclosed under APO in accordance with 19 CFR 353.34(d). Timely written

notification of return/destruction of APO materials or conversion to

judicial protective order is hereby requested. Failure to comply with

the regulations and the terms of APO is a sanctionable violation.

This administrative review and notice are in accordance with

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

353.22.

Dated: March 10, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-6846 Filed 3-22-94; 8:45 am]

BILLING CODE 3510-05-P