Large Power Transformers From Italy; Preliminary Results of Antidumping Administrative Reviews

DEPARTMENT OF COMMERCE

[A-475-031]

Large Power Transformers From Italy; Preliminary Results of

Antidumping Administrative Reviews

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

ACTION: Notice of preliminary results of antidumping duty

administrative review.

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SUMMARY: In response to requests by the petitioner, ABB Power T&D Co.,

Inc. (ABB), and by Tamini Costruzioni Elettromeccaniche (Tamini), a

manufacturer/exporter of transformers, the Department of Commerce (the

Department) is conducting an administrative review of the antidumping

finding on large power transformers from Italy.

The review covers exports of subject merchandise by Tamini to the

United States during the period from June 1, 1993, through May 31,

1994. As a result of the review, the Department has preliminarily

determined that Tamini did not make sales at prices below foreign

market value (FMV). Interested parties are invited to comment on these

preliminary results.

EFFECTIVE DATE: October 2, 1995.

FOR FURTHER INFORMATION CONTACT: Andrea Chu, Kris Campbell, 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, 1994, the Department published a notice of ``Opportunity

to Request Administrative Review'' (59 FR 29411). ABB and Tamini

requested administrative reviews on June 29, 1994, and June 30, 1994,

respectively. We initiated the review on July 15, 1994 (59 FR 36160),

covering the period June 1, 1993, through May 31, 1994. 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 shipments of transformers by Tamini during the

period June 1, 1993, through May 31, 1994.

Applicable Statute and Regulations

Unless otherwise indicated, all citations to the statute and to the

Department's regulations are references to the provisions as they

existed on December 31, 1994.

Verification

In accordance with section 776 of the Act, we conducted a

verification of the information submitted by Tamini to the Department

at Tamini's headquarters in Melegnano, Italy, from May 22-26, 1995.

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 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

[[Page 51456]]

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, direct bank charges, warranty expenses, and technical service

expenses. 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. Based on information contained in

Tamini's questionnaire responses and on our verification of this

information, we have determined that Tamini did not report all of its

U.S. indirect selling expenses. Therefore, we offset the full amount of

the commission adjustment as best information available.

Preliminary Results of Review

As a result of our comparison of USP 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, 1993 through May 31, 1994.

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 must 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; (4) the cash deposit

rate for all other manufacturers or exporters will be 92.47 percent,

which is the ``new shipper'' rate established in the first final

results of review of this finding. See Large Power Transformers from

Italy: Notice of Final Results of Administrative Review, 49 FR 31313

(August 6, 1984). For a further explanation of our policy concerning

the cash deposit rate in this case, see Large Power Transformers from

Italy: Notice of Final Results of Administrative Review, 59 FR 48851

(September 23, 1994). 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: September 20, 1995.

Paul L. Joffe,

Deputy Assistant Secretary for Import Administration.

[FR Doc. 95-24435 Filed 9-29-95; 8:45 am]

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