Large Power Transformers From Italy; Preliminary Results of Antidumping Duty Administrative Review

DEPARTMENT OF COMMERCE

[A-475-031]

Large Power Transformers From Italy; Preliminary Results of

Antidumping Duty Administrative Review

AGENCY: International Trade Administration/Import Administration,

Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to a request by the petitioner, the Department of

Commerce is conducting an administrative review of the antidumping

finding on large power transformers from Italy. The review covers

exports of one manufacturer of this merchandise to the United States

during the period from June 1, 1992, through May 31, 1993. As a result

of the review, the Department has preliminarily determined that no

dumping margins exist for the respondent. Interested parties are

invited to comment on these preliminary results.

EFFECTIVE DATE: April 7, 1994.

FOR FURTHER INFORMATION CONTACT: Joseph Hanley or Michael R. Rill,

Office of Antidumping Compliance, International Trade Administration,

U.S. Department of Commerce, Washington, DC 20230; telephone: (202)

482-4733.

SUPPLEMENTARY INFORMATION:

Background

On June 7, 1993, the Department of Commerce (the Department)

published a notice of ``Opportunity to Request Administrative Review''

(58 FR 31941). The petitioner requested this administrative review on

June 28, 1993. We initiated the review on July 21, 1993 (58 FR 39007),

covering the period June 1, 1992, through May 31, 1993. The Department

is conducting this review in accordance with section 751 of the Tariff

Act of 1930, as amended (the Tariff Act).

Scope of the Review

Imports covered by the review are shipments of large power

transformers (LPTs); that is, all types of transformers rated 10,000

kVA (kilovolt-amperes) or above, by whatever name designated, used in

the generation, transmission, distribution, and utilization of electric

power. The term ``transformers'' includes, but is not limited to, shunt

reactors, autotransformers, rectifier transformers, and power rectifier

transformers. Not included are combination units, commonly known as

rectiformers, if the entire integrated assembly is imported in the same

shipment and entered on the same entry and the assembly has been

ordered and invoiced as a unit, without a separate price for the

transformer portion of the assembly. This merchandise is currently

classifiable under the Harmonized Tariff Schedule (HTS) item numbers

8504.22.00, 8504.23.00, 8504.34.33, 8504.40.00, and 8504.50.00. The HTS

item numbers are provided for convenience and Customs purposes. The

written description remains dispositive.

The review covers one manufacturer/exporter of transformers, Tamini

Costruzioni Elettromeccaniche (Tamini), during the period June 1, 1992,

through May 31, 1993.

United States Price

In calculating U.S. price (USP), the Department used purchase price

as defined in section 772(b) of the Tariff Act. We calculated purchase

price based on the packed price to the U.S. customer. We made

adjustments to USP for transportation expenses to the Italian port and

duty drawback.

Foreign Market Value

For the purposes of the preliminary results, we determined that,

due to the highly customized nature of the products under review, the

LPTs sold in the United States could not reasonably be compared to any

other LPTs sold by Tamini. Therefore, in accordance with section

773(a)(2) of the Tariff Act, we calculated foreign market value based

on constructed value of the model sold in the United States.

In accordance with section 773(e) of the Tariff Act, the

constructed value includes the costs of materials and fabrication,

general expenses, profit, and packing for shipment to the United

States. Home market selling expenses were used pursuant to section

773(e)(1)(B) of the Tariff Act. Since the profit submitted by Tamini

exceeded the statutory eight percent profit, we applied the submitted

profit to the cost of production.

We made circumstance of sale adjustments for differences in credit

expenses, warranty expenses and direct bank charges. Since commissions

were granted only in the home market, we offset the commission

adjustment by adding U.S. indirect selling expenses to the constructed

value.

Preliminary Results of Review

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

market value, we preliminarily determine that a weighted-average margin

of zero percent exists for sales of LPTs made to the United States by

Tamini during the period June 1, 1992 through May 31, 1993.

Parties to this proceeding may request disclosure within 5 days of

publication of this notice and may request a hearing within 10 days of

publication. Any hearing, if requested, will be held 44 days after the

date of publication or the first business day thereafter. Case briefs

and/or written comments from interested parties may be submitted not

later than 30 days after the date of publication of this notice.

Rebuttal briefs and rebuttals to written comments, limited to issues

raised in those comments, may be filed not later than 37 days after the

date of publication of this notice. Service of all briefs and written

comments shall be in accordance with 19 CFR 353.38(e). The Department

will publish the final results of the administrative review, including

the results of its analysis of any such comments or hearing.

The Department shall determine, and the Customs Service shall

assess, antidumping duties on all appropriate entries. The Department

will issue appropriate appraisement instructions directly to the

Customs Service upon completion of this review.

Furthermore, the following deposit requirements will be effective

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

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

final results of this administrative review, as provided by section

751(a)(1) of the Tariff Act:

(1) The cash deposit rate for Tamini will be the rate established

in the final results of this administrative review;

(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.

The cash deposit rate for all other manufacturers or exporters will

be 92.47 percent. On May 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, 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 proceedings governed by antidumping duty orders as the

``all others'' rate for cash deposits in all current and future

administrative reviews. In proceedings governed by antidumping

findings, unless we are able to ascertain the ``all others'' rate from

the Treasury LTFV investigation, the Department has determined that it

is appropriate to adopt the ``new shipper'' rate established in the

first final results of administrative review published by the

Department (or that rate as amended for correction of clerical errors

or as a result of litigation) as the ``all others'' rate for the

purposes of establishing cash deposits in all current and future

administrative reviews.

Because this proceeding is governed by an antidumping finding, and

we are unable to ascertain the ``all others'' rate from the Treasury

LTFV investigation, the Department has determined that it is

appropriate to adopt the ``new shipper'' rate of 92.47 percent

established in the first final results published by the Department in

the Federal Register on August 6, 1984, (49 FR 31313).

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 preliminary 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 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(c)(5).

Dated: March 31, 1994.

Paul L. Joffe,

Deputy Assistant Secretary for Import Administration.

[FR Doc. 94-8380 Filed 4-6-94; 8:45 am]

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