Initiation of Antidumping Duty Investigation: Needle Bearing Wire From Japan

DEPARTMENT OF COMMERCE

[A-588-842]

Initiation of Antidumping Duty Investigation: Needle Bearing Wire

From Japan

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: March 13, 1997.

FOR FURTHER INFORMATION CONTACT: Beth Graham at (202) 482-4105 or

Kristin Mowry at (202) 482-3798, Office of AD/CVD Enforcement I, Import

Administration, International Trade Administration, U.S. Department of

Commerce, 14th Street and Constitution Avenue, N.W., Washington, DC

20230.

Initiation of Investigation

The Applicable Statute

Unless otherwise indicated, all citations to the statute are

references to the provisions effective January 1, 1995, the effective

date of the amendments made to the Tariff Act of 1930 (the Act) by the

Uruguay Round Agreements Act (URAA).

The Petition

On February 14, 1997, the Department of Commerce (''the

Department'') received a petition, filed, in proper form, by E.C.D.,

Inc., of Hillside, New Jersey (''the petitioner''). On February 21 and

24, 1997, E.C.D., Inc., provided supplemental information concerning

assertions made in its petition.

In accordance with section 732(b) of the Act, the petitioner

alleges that imports of needle bearing wire are being, or are likely to

be, sold in the United States at less than their fair value within the

meaning of section 731 of the Act, and that such imports are materially

injuring, or threatening material injury to, an industry in the United

States.

The petitioner states that it has standing to file the petition

because it is an interested party, as defined in section 771(9)(C) of

the Act.

Scope of the Investigation

The scope of this investigation consists of 52100 (SAE (Society of

American Engineers) standard)) steel needle bearing wire in a diameter

range of .047 inches (i.e., 1.19 mm.) up to and including .218 inches

(i.e., 5.54 mm.) supplied in coils. All needle bearing wire is

generally the same in chemistry and is specifically designed to meet

specifications designated by automobile and other manufacturers to be

used in engine parts, and brake assemblies. The needle bearing wire

imported from Japan, covered by this investigation is classifiable

under headings 7229.90.5030 and 7229.90.5050 of the Harmonized Tariff

Schedule of the United States (HTS). Although the HTS headings are

provided for convenience and customs purposes, our written description

of the scope of this investigation is dispositive.

Determination of Industry Support for the Petition

Section 732(b)(1) of the Act requires that petitions be filed on

behalf of the domestic industry. Section 732(c)(4)(A) of the Act

provides that a petition meets this requirement if the domestic

producers or workers who support the petition account for (1) at least

25 percent of the total production of the domestic like product; and

(2) more than 50 percent of the production of the domestic like product

produced by that portion of the industry expressing support for, or

opposition to, the petition.

A review of the industry support data provided in the petition and

other production information readily available to the Department

indicates that the petitioner and those expressing support for the

petition account for more than 50 percent of the total production of

the domestic like product and for more than 50 percent of that produced

by companies expressing support for, or opposition to, the petition.

The Department received no expressions of opposition to the petition

from any interested party. Accordingly, the Department determines that

this petition is supported by the domestic industry.

[[Page 11825]]

Export Price and Normal Value

The petitioner based the export price on quotes for 1997 delivered

prices. Petitioner combined the per metric ton prices for needle

bearing wire with two different diameters in order to provide an

average export price. Petitioner adjusted these prices for the costs of

inland freight, insurance, handling fees, ocean freight, brokerage,

packaging, and international fees.

Petitioner based normal value on Japanese delivered home market

prices. Petitioner combined the prices for needle bearing wire with two

different diameters in order to provide a comparable value to the

average export price.

We find the petitioner's averaging of the export price and home

market prices to be inappropriate because the range of diameters

differed in the two markets. Instead, for purposes of this initiation,

we have revised the calculation to compare the home market and export

prices of needle bearing wire with the closest diameter (i.e., the home

market prices of 2.0 mm. diameter wire to the export price of 2.1 mm.

diameter wire). We also adjusted the home market price for Japanese

inland freight and made arithmetic changes to the export price for

certain movement charges. (Our adjustments to the calculations are

outlined in a memorandum to the file, dated March 6, 1997.)

Based on comparisons of the export price to normal value, the

estimated dumping margin for needle bearing wire from Japan is 40.67

percent.

Fair Value Comparisons

Based on the information provided by the petitioner, there is

reason to believe that needle bearing wire from Japan is likely to be

sold at less than fair value. If it becomes necessary at a later date

to consider the petition as a source of facts available under section

776 of the Act, we may further review the margin calculation in the

petition.

Initiation of Investigation

We have examined the petition on needle bearing wire and have found

that it meets the requirements of section 732 of the Act, including the

requirements concerning allegations of material injury or threat of

material injury to the domestic producers of a domestic like product by

reason of the complained-of imports, allegedly sold at less than fair

value. Therefore, we are initiating an antidumping duty investigation

to determine whether needle bearing wire from Japan is being, or is

likely to be, sold in the United States at less than fair value. Unless

extended, we will make our preliminary determination by July 24, 1997.

Distribution of Copies of the Petition

In accordance with section 732(b)(3)(A) of the Act, a copy of the

public version of the petition has been provided to the representatives

of the Government of Japan. We will attempt to provide a copy of the

public version of the petition to each exporter of needle bearing wire

named in the petition.

International Trade Commission Notification

We have notified the ITC of our initiation, as required by section

732(d) of the Act.

Preliminary Determinations by the ITC

The ITC will determine by March 31, 1997, whether there is a

reasonable indication that imports of needle bearing wire from Japan

are causing material injury, or threatening to cause material injury,

to a U.S. industry. A negative ITC determination will result in the

investigation being terminated; otherwise, the investigation will

proceed according to statutory and regulatory time limits.

Dated: March 6, 1997.

Robert S. LaRussa,

Acting Assistant Secretary for Import Administration.

[FR Doc. 97-6384 Filed 3-12-97; 8:45 am]

BILLING CODE 3510-DS-P