Amendment to Preliminary Determination of Sales at Less Than Fair Value: Disposable Lighters From the People's Republic of China

DEPARTMENT OF COMMERCE

[A-570-834]

Amendment to Preliminary Determination of Sales at Less Than Fair

Value: Disposable Lighters From the People's Republic of China

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: February 16, 1995.

FOR FURTHER INFORMATION CONTACT: Julie Anne Osgood or Todd Hansen,

Office of Countervailing Investigations, U.S. Department of Commerce,

Room B099, 14th and Constitution Avenue, NW., Washington, DC 20230;

telephone (202) 482-0167 and 482-1276, respectively.

Scope of Investigation

The products covered by this investigation are disposable pocket

lighters, whether or not refillable, whose fuel is butane, isobutane,

propane, or other liquefied hydrocarbon, or a [[Page 9009]] mixture

containing any of these, whose vapor pressure at 75 degrees Fahrenheit

(24 degrees Celsius) exceeds a gauge pressure of 15 pounds per square

inch. Non-refillable pocket lighters are imported under subheading

9613.10.0000 of the Harmonized Tariff Schedule of the United States

(``HTSUS''). Refillable, disposable pocket lighters would be imported

under subheading 9613.20.0000. Although the HTSUS subheadings are

provided for convenience and Customs purposes, our written description

of the scope of this proceeding is dispositive.

Case History

On December 5, 1994 (59 FR 64191, December 13, 1994), the

Department of Commerce (``the Department'') made its affirmative

preliminary determination of sales at less than fair value in the

above-referenced investigation. On December 8, 1994, we disclosed our

calculations for the preliminary determination to counsel for PolyCity

Industrial Ltd. (``PolyCity''), a respondent in this investigation.

On December 13, 1994, counsel for PolyCity alleged that ministerial

errors had occurred in the calculations and requested that these errors

be corrected and an amended preliminary determination be issued

reflecting these corrections. On December 16, 1994, petitioners

submitted comments regarding PolyCity's ministerial error allegations.

On January 10, 1995, counsel for PolyCity again requested that the

Department amend the preliminary determination to correct for

ministerial errors.

PolyCity alleged that for a particular U.S. sale, the Department

made its first ministerial error when it used an incorrect value for

ocean freight in the calculation of U.S. price. Rather than use the

figure reported in its supplemental response, PolyCity argues that the

Department erred when it used the figure provided on the computer

diskette accompanying the response. According to PolyCity, the

narrative portion of the response rather than the spreadsheet provided

on diskette contained the correct value for ocean freight. We disagree

that this constitutes a ministerial error. Rather, we believe that this

issue should be addressed at verification where the correct value for

ocean freight can be established.

The second ministerial error alleged by counsel for PolyCity

involved the calculation of transportation costs for the various

components used in the production of disposable lighters. According to

PolyCity, the Department used the inland freight figures reported in

PolyCity's supplemental response incorrectly. Rather than using the

reported inland freight as transportation costs per unit of measure

(i.e., cost per kilogram), the Department erred in treating the inland

freight costs as transportation costs per component. PolyCity maintains

that in order to obtain the transportation cost per lighter associated

with each item, the Department should have multiplied the reported

freight price for that item by the quantity of the item used in

producing a lighter. Based on these comments and the Department's own

analysis, we found that a significant ministerial error had been made.

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. References to the Proposed Regulations,

are provided solely for further explanation of the Department's AD

practice with respect to amended preliminary determinations. Although

the Department has withdrawn the particular rulemaking proceeding

pursuant to which the Proposed Regulations were issued, the subject

matter of these regulations is being considered in connection with an

ongoing rulemaking proceeding which, among other things, is intended to

conform the Department's regulations to the Uruguay Round Agreements

Act. See 60 FR 80 (January 3, 1995).

Amendment of Preliminary Determination

It is not our normal practice to amend preliminary determinations

since these determinations only establish estimated margins, which are

subject to verification, and which may change in the final

determination. However, the Department has stated that it will amend a

preliminary determination to correct for significant ministerial

errors. (See Proposed Rules and Notice of Amended Preliminary

Determination of Sales at Less than Fair Value: Fresh Cut Roses from

Colombia, 59 FR 51554 (October 12, 1994) and Amendment to Preliminary

Determination of Sales at Less than Fair Value: Sweaters Wholly or in

Chief Weight of Man-Made Fiber from Hong Kong, 55 FR 19289 (May 9,

1990).) Given the facts of this investigation, as noted above, the

Department hereby amends its preliminary determination to correct for

the ministerial error involved. The revised estimated margin for

PolyCity is 39.37%.

Suspension of Liquidation

In accordance with section 733(d)(2) of the Act, the Department

will direct the U.S. Customs Service to continue to require a cash

deposit or posting of a bond for all entries of subject merchandise

from the PRC for all respondents, as set forth in the original

preliminary determination, and for PolyCity, at the newly calculated

rate, that are entered, or withdrawn from warehouse, for consumption on

or after the date of publication of this notice in the Federal

Register. The suspension of liquidation will remain in effect until

further notice.

ITC Notification

In accordance with section 733(f) of the Act, we have notified the

ITC of the amended preliminary determination. If our final

determination is affirmative, the ITC will determine whether imports of

the subject merchandise are materially injuring, or threaten material

injury to, the U.S. industry within 45 days after our final

determination.

This notice is published pursuant to section 733(f) of the Act and

19 CFR 353.13(a)(4).

Dated: February 9, 1995.

Susan G. Esserman,

Assistant Secretary for Import Administration.

[FR Doc. 95-3961 Filed 2-15-95; 8:45 am]

BILLING CODE 3510-DS-P