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Federal Register / Vol. 70, No.

249 / Thursday, December 29, 2005 / Notices 77121

is the development and testing, in and the prepared statements of the Case History
controlled settings, of a variety of witnesses, will be made available on the On May 3, 2005, the Department of
artificial floating marsh system designs Commission’s Web site ( Commerce (‘‘Department’’) received a
along with testing and optimization of in advance of the hearings. petition on imports of diamond
plant growth and establishment. The Interested members of the public may sawblades from the People’s Republic of
second phase consists of field testing submit written testimony on the subject China (‘‘PRC’’) and the Republic of
advanced designs of artificial floating of the hearing in the form of comments, Korea (‘‘Korea’’) from the Diamond
marsh systems in selected marsh pursuant to the Commission’s request Sawblade Manufacturers’ Coalition
settings. for comments. See 70 FR 28902 (May (‘‘Petitioner’’) on behalf of the domestic
The Notice of Finding of No 19, 2005). Members of the public will industry and workers producing
Significant Impact (FONSI) has been not be provided with an opportunity to diamond sawblades. This investigation
forwarded to the Environmental make oral remarks at the hearing. was initiated on June 21, 2005. See
Protection Agency and to various The AMC is holding this hearing Initiation of Antidumping Duty
federal, state, and local agencies and pursuant to its authorizing statute. Investigations: Diamond Sawblades and
interested parties. A limited number of Antitrust Modernization Commission Parts Thereof from the People’s
copies of the FONSI are available to fill Act of 2002, Public Law No. 107–273, Republic of China and the Republic of
single copy requests at the above section 11057(a), 116 Stat. 1758, 1858. Korea, 70 FR 35625 (June 21, 2005)
address. Basic data collected during the (‘‘Initiation Notice’’). Additionally, in
Dated: December 22, 2005.
environmental assessment are on file the Initiation Notice, the Department
and may be reviewed by contacting By direction of the Antitrust
Modernization Commission. notified parties that it would apply a
Donald W. Gohmert. new process by which exporters and
No administrative action on Andrew J. Heimert,
Executive Director & General Counsel, producers may obtain separate–rate
implementation of the proposal will be
Antitrust Modernization Commission. status in non–market economy (‘‘NME’’)
taken until 30 days after the date of this
[FR Doc. 05–24566 Filed 12–28–05; 8:45 am] investigations. The new process requires
publication in the Federal Register.
exporters and producers to submit a
Donald W. Gohmert, separate–rate status application. See
State Conservationist. Policy Bulletin 05.1: Separate–Rates
[FR Doc. E5–8005 Filed 12–28–05; 8:45 am] Practice and Application of
BILLING CODE 3410–16–P DEPARTMENT OF COMMERCE Combination Rates in Antidumping
Investigations involving Non–Market
International Trade Administration Economy Countries, (April 5, 2005),
ANTITRUST MODERNIZATION (‘‘Policy Bulletin 05.1’’) available at
COMMISSION (A–570–900) However, the
standard for eligibility for a separate rate
Notice of Public Hearings Preliminary Determination of Sales at (which is whether a firm can
Less Than Fair Value, Postponement demonstrate an absence of both de jure
AGENCY: Antitrust Modernization and de facto governmental control over
Commission. of Final Determination, and Preliminary
Partial Determination of Critical its export activities) has not changed.
ACTION: Notice of public hearings. Since the initiation of this investigation
Circumstances: Diamond Sawblades
SUMMARY: The Antitrust Modernization and Parts Thereof from the People’s the following events have occurred.
Republic of China The Department set aside a period for
Commission will hold a public hearing
all interested parties to raise issues
on January 19, 2006. The topic of the
AGENCY: Import Administration, regarding product coverage. Between
hearing is an Economists’ Roundtable
International Trade Administration, September 16, 2005, and November 23,
on U.S. Merger Enforcement.
Department of Commerce. 2005, Petitioner, Ehwa Diamond
DATES: January 19, 2006, 1 p.m. to 4
EFFECTIVE DATE: December 29, 2005. Industrial Co., Ltd. (‘‘Ehwa’’), and
p.m. Interested members of the public Diamax Industries, Inc., filed comments
may attend. Registration is not required. SUMMARY: We preliminarily determine
that diamond sawblades and parts and rebuttal comments proposing
ADDRESSES: Federal Trade Commission, clarifications to the scope of this
Conference Center, 601 New Jersey thereof (‘‘diamond sawblades’’) from the
People’s Republic of China (‘‘PRC’’) are investigation.
Avenue, NW., Washington, DC. On June 21, 2005, the Department
being, or are likely to be, sold in the
FOR FURTHER INFORMATION CONTACT: requested quantity and value (‘‘Q&V’’)
United States at less than fair value
Andrew J. Heimert, Executive Director & information from a total of twenty–three
(‘‘LTFV’’), as provided in section 733 of
General Counsel, Antitrust companies that Petitioner identified as
the Tariff Act of 1930, as amended (‘‘the
Modernization Commission: telephone: potential producers and/or exporters of
Act’’). The estimated margins of sales at
(202) 233–0701; e-mail: diamond sawblades from the PRC. Also
LTFV are shown in the ‘‘Preliminary
Mr. Heimert is also the Designated on June 21, 2005, the Department sent
Determination’’ section of this notice.
Federal Officer (DFO) for the Antitrust a letter requesting Q&V information to
Modernization Commission. FOR FURTHER INFORMATION CONTACT: the China Bureau of Fair Trade for
SUPPLEMENTARY INFORMATION: The Catherine Bertrand or Anya Naschak, Imports & Exports (‘‘BOFT’’) of the
purpose of these hearings is for the AD/CVD Operations, Office 9, Import Ministry of Commerce (‘‘MOFCOM’’)
Antitrust Modernization Commission to Administration, International Trade requesting that BOFT transmit the letter
take testimony and receive evidence Administration, U.S. Department of to all companies who manufacture and
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regarding Merger Enforcement. The Commerce, 14th Street and Constitution export subject merchandise to the
hearing will be in the format of a Avenue, NW, Washington, DC, 20230; United States, or produce the subject
moderated roundtable discussion of telephone: (202)482–3207 or 482–6375, merchandise for the companies who
economists. Materials relating to the respectively. were engaged in exporting the subject
hearing, including a list of witnesses SUPPLEMENTARY INFORMATION: merchandise to the United States during

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77122 Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices

the POI. For a complete list of all parties Department received comments from full deficiency letter, though these
from which the Department requested BGY, Bosun, Hebei Jikai, Petitioner, applicants received general guidelines
Q&V information, see Memorandum to Shinhan Diamond Industrial Co., Ltd upon which the Department would
James C. Doyle, Director, AD/CVD and SH Trading Inc. (collectively review their applications. On August 22,
Operations, Office 9, from Carrie Blozy, ‘‘Shinhan’’), and Ehwa Diamond 2005, the Department received re–filings
Program Manager, AD/CVD Operations, Industrial Co., Ltd. (‘‘Ehwa’’). On from the twenty applicants to which the
Office 9: Selection of Respondents for August 5, 2005, the Department released Department sent either deficiency or
the Antidumping Investigation of the product characteristics and model guidelines letters, and an additional
Diamond Sawblades and Parts Thereof match criteria to be used in the four applications. For a complete list of
from the People’s Republic of China, designation of CONNUMs to be assigned all applications received, see
dated July 19, 2005 (‘‘Respondent the subject merchandise. Memorandum to James C. Doyle,
Selection Memo’’). Between July 5, On August 8, 2005, the Department Director, AD/CVD Operations, Office 9,
2005, and July 15, 2005, the Department informed parties of an error in one of from Carrie Blozy, Program Manager,
received Q&V responses from twenty– the model match fields, and corrected AD/CVD Operations, Office 9:
five interested parties. For a list of the the mistake. Antidumping Investigation of Diamond
parties that responded to the On July 26, 2005, the Department Sawblades and Parts Thereof from the
Department’s Q&V letter, see invited interested parties to comment on People’s Republic of China: Deficient
Respondent Selection Memo. The the Department’s surrogate country Separate Rate Applications, dated
Department did not receive any type of selection and/or significant production October 12, 2005 (‘‘Deficient
communication from BOFT regarding its in the potential surrogate countries and Applications Memo’’), at Attachment 1.
request for Q&V information. See to submit publicly available information On September 22, 2005 and September
Respondent Selection Memo. to value the factors of production. On 23, 2005, the Department informed the
On July 18, 2005, the United States August 16, 2005, we received comments seventeen applicants whose
International Trade Commission (‘‘ITC’’) regarding the selection of a surrogate applications were considered complete
issued its affirmative preliminary country from Petitioner. No other by the sixty–day deadline established by
determination that there is a reasonable interested parties commented on the the application (‘‘Separate Rate
indication that an industry in the selection of a surrogate country. For a Applicants’’), that they would be
United States is materially injured or detailed discussion of the selection of considered for a separate rate,1 and
threatened with material injury by the surrogate country, see ‘‘Surrogate requested that they file the addendum
reason of imports from the PRC of Country’’ section below, and the required by the application. See Letter
diamond sawblades. The ITC’s Memorandum to the File through James to All Interested Parties from James C.
determination was published in the C. Doyle, Director, AD/CVD Operations, Doyle, Director, AD/CVD Operations,
Federal Register on July 29, 2005. See Office 9, from Carrie Blozy, Program Office 9, dated September 22, 2005
Investigation Nos. 731–TA–1093 Manager, AD/CVD Operations, Office 9: (‘‘Addendum Letter’’); Memorandum to
(Preliminary), Diamond Sawblades and Antidumping Duty Investigation of the File from Candice Weck, Case
Parts Thereof from China and Korea, 70 Diamond Sawblades and Parts Thereof Analyst: Investigation of Diamond
FR 43903 (July 29, 2005). from the People’s Republic of China: Sawblades and Parts Thereof from the
On July 19, 2005, the Department Selection of a Surrogate Country dated People’s Republic of China: Separate
selected Bosun Tools Group Co., Ltd. December 20, 2005 (‘‘Surrogate Country Rate Applications, dated September 23,
(‘‘Bosun’’), Beijing Gang Yan Diamond Memo’’). 2005. On October 12, 2005, the
Product Company (‘‘BGY’’), Hebei Jikai On November 15, 2005, Petitioner, Department informed six companies
Industrial Group Co. Ltd. (‘‘Hebei BGY, Bosun, and Hebei Jikai submitted that submitted applications of the
Jikai’’), and Saint–Gobain Abrasives comments on surrogate information reasons their applications were
(Shanghai) Co., Ltd. (‘‘Saint Gobain’’) as with which to value the factors of considered incomplete for purposes of a
mandatory respondents in this production in this proceeding. separate rates analysis. See Deficient
investigation. See Respondent Selection Petitioner filed additional comments on Applications Memo.
Memo. December 1, 2005, and December 2, On July 28, 2005, the Department
On July 21, 2005, the Department 2005, December 5, 2005, December 14, issued its Sections A, C, D, and E,
determined that India, Indonesia, Sri 2005, and December 16, 2005. Bosun questionnaire to Bosun, BGY, Hebei
Lanka, the Philippines, and Egypt are filed additional comments on December Jikai, and Saint Gobain. On September
countries comparable to the PRC in 1, 2005, and December 6, 2005. The 1, 2005, the Department received a letter
terms of economic development. See Department was unable to take into from Saint Gobain, informing the
Memorandum from Ron Lorentzen, account the comments submitted by Department that Saint Gobain would not
Acting Director, Office of Policy, to Petitioner on December 14, 2005, and be responding to the Department’s
Carrie Blozy, Program Manager, China/ December 16, 2005, because they were request for information in this
NME Group, Office 9: Antidumping filed less than one week before the investigation, and accordingly would
Investigation of Diamond Sawblades preliminary determination.
and Parts Thereof from the People’s On July 21, 2005, we received 1 Danyang NYCL Tools Manufacturing Co., Ltd.,

Republic of China (PRC): Request for a separate rate applications from sixteen Danyang Youhe Manufacturing Co. Ltd., Fujian
Quanzhou Wanlong Stone Co. Ltd., Guilin Tebon
List of Surrogate Countries, dated July companies, including one mandatory Superhard Material Co. Ltd., Huzhou Gu Import &
21, 2005 (‘‘Office of Policy Surrogate respondent, Hebei Jikai. On August 12, Export Co., Ltd, Jiangsu Fengtai Diamond Tools
Countries Memorandum’’). 2005, the Department notified these Manufacturing Co. Ltd., Jiangyin LIKN Industry Co.
On July 14, 2005, the Department firms that their applications were Ltd., Quanzhou Zhongzhi Diamond Tool Co., Ltd.,
Rizhao Hein Saw Co. Ltd., Shanghai Deda Industry
requested comments from all interested incomplete or otherwise deficient. Four
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& Trading Co. Ltd., Sichuan Huili Tools Co., Weihai

parties on proposed product additional companies received Xiangguang Mechanical Industrail Co., Ltd., Wuhan
characteristics and model match criteria notification on August 12, 2005, that, as Wanbang Laser Diamond Tools Company, Ltd.,
to be used in the designation of control their applications were not filed by the Xiamen ZL Diamond Tools Co. Ltd., Zhejiang Tea
Import & Export Co. Ltd., Zhejiang Wanli Tools
numbers (‘‘CONNUMs’’) to be assigned thirty–day deadline set forth in the Group Co., Ltd. (‘‘Wanli’’), and Zhenjiang Inter-
to the subject merchandise. The application, they would not receive a China Import & Export Co., Ltd.

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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices 77123

not be filing questionnaire responses. postponement of a final determination less than 0.025 inches, or with a
The Department issued supplemental be accompanied by a request for an thickness greater than 1.1 inches, are
questionnaires to Bosun, BGY, and extension of the provisional measures excluded from the scope of the
Hebei Jikai between September and from a four–month period to not more investigation. Circular steel plates that
December 2005, and received responses than six months. have a cutting edge of non–diamond
between September and December 2005. On December 19, 2005, Bosun material, such as external teeth that
On September 2, 2005, and September requested that, in the event of an protrude from the outer diameter of the
8, 2005, Petitioner requested that the affirmative preliminary determination plate, whether or not finished, are
Department select additional mandatory in this investigation, the Department excluded from the scope of this
respondents in this investigation. The postpone its final determination by 60 investigation. Diamond sawblade cores
Department informed Petitioner on days until 135 days after the publication with a Rockwell C hardness of less than
September 14, 2005, that no additional of the preliminary determination. 25 are excluded from the scope of the
companies would be selected as Additionally, Bosun requested that the investigation. Diamond sawblades and/
mandatory respondents. See Letter from Department extend the provisional or diamond segment(s) with diamonds
Carrie Blozy, Program Manager, AD/ measures under Section 733(d) of the that predominantly have a mesh size
CVD Operations, Office 9, to Daniel Act. Accordingly, because we have number greater than 240 (such as 250 or
Pickard of Wiley Rein and Fielding, made an affirmative preliminary 260) are excluded from the scope of the
counsel for Petitioner, dated September determination and the requesting parties investigation.
14, 2005. account for a significant proportion of Merchandise subject to this
On September 26, 2005, Petitioner the exports of the subject merchandise, investigation is typically imported
made a timely request pursuant to 19 pursuant to 735(a)(2) of the Act, we under heading 8202.39.00.00 of the
CFR § 351.205(e) for a fifty–day have postponed the final determination Harmonized Tariff Schedule of the
postponement of the preliminary until no later than 135 days after the United States (‘‘HTSUS’’). When
determination, until December 20, 2005. date of publication of the preliminary packaged together as a set for retail sale
On October 13, 2005, the Department determination and are extending the with an item that is separately classified
published a postponement of the provisional measures accordingly. under headings 8202 to 8205 of the
preliminary antidumping duty HTSUS, diamond sawblades or parts
determination on diamond sawblades Period of Investigation
thereof may be imported under heading
from the PRC. See Notice of The POI is October 1, 2004, through 8206.00.00.00 of the HTSUS. The tariff
Postponement of Preliminary March 31, 2005. This period classifications are provided for
Determinations of Antidumping Duty corresponds to the two most recent convenience and U.S. Customs and
Investigations: Diamond Sawblades and fiscal quarters prior to the month of the Border Protection purposes; however,
Parts Thereof from the People’s filing of the petition (May 3, 2005). See the written description of the scope of
Republic of China (A–570–900) and the 19 CFR 351.204(b)(1). this investigation is dispositive.
Republic of Korea (A–580–855), 70 FR Scope of Investigation
59719 (October 13, 2005). Scope Comments
On November 21, 2005, Petitioner The products covered by this As described in the preamble to our
alleged that there is a reasonable basis investigation are all finished circular regulations (see Antidumping Duties;
to believe or suspect critical sawblades, whether slotted or not, with Countervailing Duties, 62 FR 27296,
circumstances exist with respect to the a working part that is comprised of a 27323 (May 19, 1997)), we set aside a
antidumping investigation of diamond diamond segment or segments, and period of time for parties to raise issues
sawblades from the PRC. On November parts thereof, regardless of specification regarding product coverage and
22, 2005, the Department issued or size, except as specifically excluded encouraged all parties to submit
questionnaires requesting data for below. Within the scope of this comments within 20 calendar days of
monthly exports to the United States investigation are semifinished diamond publication of the Initiation Notice.
from January 2002 through October sawblades, including diamond sawblade The Department received numerous
2005 from Bosun, BGY, and Hebei Jikai, cores and diamond sawblade segments. scope comments from a variety of
and received responses on November Diamond sawblade cores are circular interested parties. As part of this
30, and December 2, 2005, from Bosun, steel plates, whether or not attached to process, the Department has fully
BGY, and Hebei Jikai. See Critical non–steel plates, with slots. Diamond summarized and addressed all of the
Circumstances section, below. sawblade cores are manufactured comments received to date in a
principally, but not exclusively, from memorandum to the file. See
Postponement of Final Determination alloy steel. A diamond sawblade Memorandum to Stephen J. Claeys from
Section 735(a) of the Act provides that segment consists of a mixture of Thomas F. Futtner, Acting Office
a final determination may be postponed diamonds (whether natural or synthetic, Director: Antidumping Investigation of
until no later than 135 days after the and regardless of the quantity of Certain Diamond Sawblades and Parts
date of the publication of the diamonds) and metal powders Thereof from the Republic of Korea and
preliminary determination if, in the (including, but not limited to, iron, the People’s Republic of China:
event of an affirmative preliminary cobalt, nickel, tungsten carbide) that are Consideration of Scope Exclusion and
determination, a request for such formed together into a solid shape (from Clarification Requests, dated December
postponement is made by exporters who generally, but not limited to, a heating 20, 2005 (‘‘Scope Memorandum’’).
account for a significant proportion of and pressing process). For this preliminary determination,
exports of the subject merchandise or, in Sawblades with diamonds directly the Department has determined not to
the event of a negative preliminary attached to the core with a resin or revise the scope of the investigation.
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determination, a request for such electroplated bond, which thereby do

postponement is made by the not contain a diamond segment, are not Selection of Respondents
Petitioners. The Department’s included within the scope of the Section 777A(c)(1) of the Act directs
regulations at 19 CFR 351.210(e)(2) investigation. Diamond sawblades and/ the Department to calculate individual
require that requests by respondents for or sawblade cores with a thickness of weighted–average dumping margins for

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77124 Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices

each known exporter and producer of history of dumping and material injury there have been massive imports of the
the subject merchandise. Section by reason of dumped imports in the subject merchandise over a relatively
777A(c)(2) of the Act gives the United States or elsewhere of the subject short period for the respondents, the
Department discretion, when faced with merchandise; or (ii) the person by Separate Rate Applicants, and the PRC–
a large number of exporters/producers, whom, or for whose account, the wide entity. See Critical Circumstance
to limit its examination to a reasonable merchandise was imported knew or Memo at Attachment I. We find that
number of such companies if it is not should have known that the exporter importers, exporters, or producers knew
practicable to examine all companies. was selling the subject merchandise at or should have known an antidumping
Where it is not practicable to examine less than its fair value and that there case was pending on diamond
all known producers/exporters of was likely to be material injury by sawblades imports from the PRC by the
subject merchandise, this provision reason of such sales; and (B) there have date of the filing of the petition in May
permits the Department to investigate been massive imports of the subject 2005 and relied on a period of six
either (A) a sample of exporters, merchandise over a relatively short months as the period for comparison in
producers, or types of products that is period. Section 351.206(h)(1) of the preliminarily determining whether
statistically valid based on the Department’s regulations provides that, imports of the subject merchandise have
information available to the Department in determining whether imports of the been massive.
at the time of selection or (B) exporters/ subject merchandise have been Therefore, given the analysis
producers accounting for the largest ‘‘massive,’’ the Department normally summarized above, and described in
volume of the merchandise under will examine: (i) the volume and value more detail in the Critical
investigation that can reasonably be of the imports; (ii) seasonal trends; and Circumstances Memo, we preliminarily
examined. After consideration of the (iii) the share of domestic consumption determine that critical circumstances
complexities expected to arise in this accounted for by the imports. In exist for imports of diamond sawblades
proceeding and the resources available addition, section 351.206(h)(2) of the from Bosun and the PRC–wide entity.
to it, the Department determined that it Department’s regulations provides that However, we do not find that critical
was not practicable in this investigation an increase in imports of 15 percent circumstances exist for the Separate
to examine all known producers/ during the ‘‘relatively short period’’ of Rates Applicants, BGY, or Hebei Jikai.
exporters of subject merchandise. time may be considered ‘‘massive.’’ We will make a final determination
Instead, we limited our examination to Section 351.206(i) of the Department’s concerning critical circumstances for all
the four exporters accounting for the regulations defines ‘‘relatively short producers/ exporters of subject
largest volume of shipments of the period’’ as normally being the period merchandise from the PRC when we
subject merchandise to the United beginning on the date the proceeding make our final dumping determinations
States during the POI pursuant to begins (i.e., the date the petition is filed) in this investigation, which will be 135
section 777A(c)(2)(B) of the Act. Bosun, and ending at least three months later. days after the date of the publication of
BGY, Hebei Jikai, and Saint Gobain, the The regulations also provide, however, the preliminary determination.
exporters accounting for the largest that if the Department finds that Non–Market-Economy Country
volume of exports to the United States, importers, exporters, or producers had
account for a significant percentage of reason to believe, at some time prior to For purposes of initiation, Petitioner
all exports of the subject merchandise the beginning of the proceeding, that a submitted LTFV analyses for the PRC as
from the PRC during the POI and were proceeding was likely, the Department a non–market economy. See Initiation
selected as mandatory respondents. See may consider a period of not less than Notice 70 FR at 35627. In every case
Respondent Selection Memo at 3. three months from that earlier time. conducted by the Department involving
As discussed in detail in the Critical the PRC, the PRC has been treated as an
Critical Circumstances Circumstances Memo, the Department NME country. In accordance with
On November 21, 2005, Petitioner preliminarily finds that there is a section 771(18)(C)(i) of the Act, any
alleged that there is a reasonable basis reasonable basis to believe or suspect determination that a foreign country is
to believe or suspect critical that the importer knew or should have an NME country shall remain in effect
circumstances exist with respect to the known that there was likely to be until revoked by the administering
antidumping investigations of diamond material injury by means of sales at authority. See Tapered Roller Bearings
sawblades and parts thereof from the LTFV of subject merchandise from the and Parts Thereof, Finished and
PRC. On November 30, 2005, and PRC exported by Bosun and the PRC– Unfinished, (‘‘TRBs’’) From the People’s
December 2, 2005, Bosun, BGY, and wide entity. See Memorandum to Republic of China: Preliminary Results
Hebei Jikai submitted information on Stephen Claeys, Deputy Assistant 2001–2002 Administrative Review and
their exports from January 2002 through Secretary, AD/CVD Operations from Partial Rescission of Review, 68 FR 7500
October 2005 as requested by the James C. Doyle, Director, AD/CVD (February 14, 2003), unchanged in Final
Department. In accordance with 19 Operations, Office 9: Antidumping Duty Results of 2001–2002 Administrative
C.F.R. 351.206(c)(2)(i), because Investigation of Diamond Sawblades Review: TRBs from the People’s
Petitioner submitted critical and Parts Thereof from the People’s Republic of China, 68 FR 70488
circumstances allegations more than 20 Republic of China: Preliminary (December 18, 2003). No party has
days before the scheduled date of the Affirmative Determination of Critical challenged the designation of the PRC as
preliminary determination, the Circumstances (‘‘Critical Circumstance an NME country in this investigation.
Department must issue preliminary Memo’’). The Department has found Therefore, we have treated the PRC as
critical circumstances determinations preliminary margins of more than 25% an NME country for purposes of this
not later than the date of the for export price sales and more than preliminary determination.
preliminary determination. 15% for constructed export price sales
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Section 733(e)(1) of the Act provides for Bosun and the PRC–wide entity. See Surrogate Country
that the Department will preliminarily Critical Circumstances Memo at When the Department is investigating
determine that critical circumstances Attachment at II. imports from an NME, section 773(c)(1)
exist if there is a reasonable basis to For the reasons set forth in the Critical of the Act directs it to base normal
believe or suspect that: (A)(i) there is a Circumstances Memo, we also find that value, in most circumstances, on the

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NME producer’s factors of production value the FOP within 40 days after the preliminarily find that BGY, HXF, and
valued in a surrogate market–economy date of publication of the preliminary AT&M meet these criteria. Nothing in
country or countries considered to be determination. this determination conflicts with the
appropriate by the Department. In language of section 773(c) of the Act.
accordance with section 773(c)(4) of the Accordingly, the Department should
Act, in valuing the factors of Based on the evidence on the record include all of the AT&M Group’s sales
production, the Department shall in this investigation, we preliminarily to the first U.S. unaffiliated customer
utilize, to the extent possible, the prices find that BGY is affiliated with and factors of production in its margin
or costs of factors of production in one Advanced Technology & Materials Co., calculation analysis. However, the
or more market–economy countries that Ltd. (‘‘AT&M’’), and Yichang HXF Department does not currently have this
are at a level of economic development Circular Saw Industrial Co., Ltd information on the record of the
comparable to that of the NME country (‘‘HXF’’) (collectively with respondent, proceeding. Therefore, the Department
and are significant producers of the ‘‘AT&M Group’’) pursuant to will request this information from the
comparable merchandise. The sources sections 771(33)(E), (F), and (G) of the AT&M Group after the issuance of this
of the surrogate values we have used in Act. For a detailed discussion of our preliminary determination. Due to the
this investigation are discussed under analysis, see Memorandum to the File proprietary nature of the information
the normal value section below. from Anya Naschak through Carrie with respect to these affiliations, this
On August 16, 2005, the Department Blozy, Program Manager, AD/CVD information cannot be discussed herein.
received comments from Petitioner on Operations, Office 9, to James C. Doyle, See BGY Affiliation Memo for a further
the appropriate surrogate country for Office Director, AD/CVD Operations, discussion of this issue.
valuing the factors of production Office 9: Affiliation and Treatment as a In addition, we preliminarily find that
(‘‘FOP’’). Petitioner argued that India is Single Entity of Beijing Gang Yan Gang Yan Diamond Products, Inc.
the most appropriate surrogate country Diamond Product Company, Advanced (‘‘GYDP’’), is affiliated with BGY,
in this investigation because India is at Technology & Materials Co., Ltd., and pursuant to section 771(33)(E) of the
a comparable level of economic Yichang HXF Circular Saw Industrial Act. In addition, the Department
development with the PRC based on the Co., Ltd.; Affiliation of Gang Yan preliminarily finds that GYDP, SANC
Department’s repeated use of India as a Diamond Products, Inc. and Beijing Materials, Inc. (‘‘SANC’’), and Cliff
surrogate. Petitioner also provided Gang Yan Diamond Product Company; (Tianjin) International, Ltd. (‘‘Cliff’’) are
evidence demonstrating that India is a and Affiliation of Gang Yan Diamond affiliated with each other pursuant to
significant producer of identical and Products, Inc., SANC Materials, Inc., sections 771(33)(B), (E), and (F) of the
comparable merchandise. Additionally, and Cliff (Tianjin) International, Ltd., Act. Due to the proprietary nature of the
Petitioner contends that India provides dated December 20, 2005 (‘‘BGY information with respect to these
publicly available information on which Affiliation Memo’’). In addition, based affiliations, this information cannot be
to base surrogate values. See Surrogate on the evidence presented in BGY’s discussed herein. See BGY Affiliation
Country Memo for a complete questionnaire responses, we Memo for a further discussion of this
description of Petitioner’s surrogate preliminarily find that the AT&M Group issue.
country arguments. should be treated as a single entity for
As detailed in the Surrogate Country the purposes of the antidumping duty Separate Rates
Memo, the Department has investigation of diamond sawblades In proceedings involving NME
preliminarily selected India as the from the PRC. This finding is based on countries, the Department has a
surrogate country on the basis that: (1) the determination that BGY, HXF, and rebuttable presumption that all
it is a significant producer of AT&M are affiliated, that BGY and HXF companies within the country are
comparable merchandise; (2) it is at a are both producers of ‘‘identical subject to government control and thus
similar level of economic development products,’’ and no retooling would be should be assessed a single antidumping
pursuant to 733(c)(4) of the Act; and (3) necessary in order to ‘‘restructure duty rate. It is the Department’s policy
we have reliable data from India that we manufacturing priorities,’’ and there is to assign all exporters of merchandise
can use to value the FOP. See Surrogate significant potential for manipulation of subject to investigation in an NME
Country Memo. Thus, we have price or production between the parties. country this single rate unless an
calculated normal value using Indian See 19 C.F.R. Sec. 351.401(f)(1); see also exporter can demonstrate that it is
prices when available and appropriate BGY Affiliation Memo for a discussion sufficiently independent so as to be
to value the FOP of the diamond of the proprietary aspects of this entitled to a separate rate. Bosun, BGY,
sawblade producers. We have obtained relationship. With respect to the Hebei Jikai, and the Separate Rate
and relied upon publicly available criterion of significant potential for Applicants have provided company–
information wherever possible. See manipulation of price or production, we specific information to demonstrate that
Memorandum to the File from Catherine note that the Department normally they operate independently of de jure
Betrand, through Carrie Blozy, Program considers three criteria: (i) the level of and de facto government control, and
Manager, AD/CVD Operations, Office 9, common ownership; (ii) the extent to therefore satisfy the standards for the
and James C. Doyle, Director, AD/CVD which managerial employees or board assignment of a separate rate. One
Operations, Office 9: Diamond members of one firm sit on the board of mandatory respondent, Saint Gobain,
Sawblades and Parts Thereof from the directors of an affiliated firm; and (iii) has not responded to the Department’s
People’s Republic of China: Surrogate whether operations are intertwined, requests for information nor requested a
Values for the Preliminary such as through the sharing of sales separate rate in this investigation.
Determination, dated December 20, information, involvement in production Six companies that filed applications
2005 (‘‘Factor Value Memo’’). and pricing decisions, the sharing of that were incomplete by the sixty–day
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In accordance with 19 CFR facilities or employees, or significant deadline have not been considered for a
351.301(c)(3)(i), for the final transactions between the affiliated separate rate. The separate rate
determination in an antidumping producers. See 19 C.F.R. Sec. application for this investigation (see
investigation, interested parties may 351.401(f)(2). Based on the information explains that all
submit publicly available information to on the record of this proceeding, we applications are due sixty calendar days

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after publication of the initiation notice, To establish whether a firm is negotiate and sign contracts and other
and the Department will not consider sufficiently independent from agreements; (3) whether the respondent
applications that remain incomplete by government control of its export has autonomy from the government in
the deadline, which in this case was activities to be entitled to a separate making decisions regarding the
August 22, 2005.2 The Department’s rate, the Department analyzes each selection of management; and (4)
separate rates application also states, entity exporting the subject whether the respondent retains the
‘‘applicants must individually complete merchandise under a test arising from proceeds of its export sales and makes
and submit this form with all the the Notice of Final Determination of independent decisions regarding
required supporting documentation by Sales at Less Than Fair Value: Sparklers disposition of profits or financing of
sixty calendar days after the date of from the People’s Republic of China, 56 losses. See Silicon Carbide, 59 FR at
publication of the initiation notice of FR 20588 (May 6, 1991) (‘‘Sparklers’’), 22586–87; see also Notice of Final
this investigation and applies equally to as amplified by Notice of Final Determination of Sales at Less Than
NME–owned and wholly market– Determination of Sales at Less Than Fair Value: Furfuryl Alcohol From the
economy owned firms for completing Fair Value: Silicon Carbide from the People’s Republic of China, 60 FR
the applicable provisions of the People’s Republic of China, 59 FR 22585 22544, 22545 (May 8, 1995). The
application and for submitting the (May 2, 1994) (‘‘Silicon Carbide’’). In Department has determined that an
required supporting documentation accordance with the separate–rates analysis of de facto control is critical in
{and} the Department will not consider criteria, the Department assigns separate determining whether respondents are,
applications that remain incomplete by rates in NME cases only if respondents in fact, subject to a degree of
the deadline.’’ See Separate Rate can demonstrate the absence of both de governmental control which would
Application at 3. The application jure and de facto governmental control preclude the Department from assigning
further instructs, ‘‘the Department only over export activities. separate rates.
accepts applications that are completed 1. Absence of De Jure Control With respect to BGY, Petitioner argues
in full and submitted with all the that BGY should not be granted a
required supporting documentation The Department considers the
following de jure criteria in determining separate rate because it is owned and
filed timely and in proper form.’’3 See controlled by the PRC government.
Separate Rate Application at 4. whether an individual company may be
granted a separate rate: (1) an absence of Specifically, Petitioner argues in its
Therefore, the six applications that were September 2, 2005, submission that
restrictive stipulations associated with
not completed in full by the sixty–day BGY is controlled by its parent
an individual exporter’s business and
deadline have not been considered for a company, Advanced Technology and
export licenses; (2) any legislative
separate rate. See Deficient Applications Materials Co., Ltd. (‘‘AT&M’’), which in
enactments decentralizing control of
Memo. turn is owned and controlled by the
companies; and (3) other formal
We have considered whether each PRC government. Petitioner argues that
measures by the government
PRC company that submitted a complete AT&M’s controlling stockholder, the
decentralizing control of companies. See
application is eligible for a separate rate. Central Iron & Steel Research Institute
Sparklers, 56 FR at 20589.
The Department’s separate–rate test is The evidence provided by Bosun, (‘‘CISRI’’), is wholly owned and
not concerned, in general, with BGY, Hebei Jikai, and the separate rate controlled by the State–Owned Assets
macroeconomic/border–type controls, applicants supports a preliminary Supervision and Administration
e.g., export licenses, quotas, and finding of de jure absence of Commission of the State Council
minimum export prices, particularly if governmental control based on the (‘‘SASAC’’), and that both BGY and
these controls are imposed to prevent following: 1) an absence of restrictive AT&M have significant ties to CISRI
dumping. The test focuses, rather, on stipulations associated with the (including common board and
controls over the investment, pricing, individual exporter’s business and management between AT&M and
and output decision–making process at export licenses; 2) the applicable CISRI), and thus a de facto control
the individual firm level. See Certain legislative enactments decentralizing relationship between SASAC, CISRI,
Cut–to-Length Carbon Steel Plate from control of the companies; and 3) any AT&M, and BGY exists. Petitioner has
Ukraine: Final Determination of Sales at other formal measures by the placed on the record AT&M’s financial
Less than Fair Value, 62 FR 61754, government decentralizing control of statements, which it argues further
61757 (November 19, 1997), and companies. See Memorandum to James supports the conclusion that AT&M is
Tapered Roller Bearings and Parts C. Doyle, Director, AD/CVD Operations, de facto controlled by SASAC. See
Thereof, Finished and Unfinished, from Office 9, through Carrie Blozy, Program Petitioner’s September 2, 2005,
the People’s Republic of China: Final Manager, AD/CVD Operations, Office 9: submission at 6–7 and Exhibit 7.
Results of Antidumping Duty Antidumping Duty Investigation of Petitioner further argues that SASAC
Administrative Review, 62 FR 61276, Diamond Sawblades and Parts Thereof has authority to appoint and remove top
61279 (November 17, 1997). from the People’s Republic of China: management of companies that it
Separate Rates Memorandum, dated supervises, including CISRI. Citing
2 This was the first business day after August 20,
December 20, 2005 (‘‘Separate Rates Coalition for the Preservation of
2005. See section 351.303(b) of the Department’s
regulations. Memo’’). American Brake Drum and Rotor
3 We note that the separate rate application Aftermarket Manufacturers v. United
requires wholly market-economy owned companies 2. Absence of De Facto Control States, 318 F. Supp. 2d 1305, 1312 (CIT
to provide information marked with an asterisk, Typically the Department considers 2004), Petitioner argues that BGY’s
pertaining to the firm’s eligibility for separate rates
consideration based on having sold subject
four factors in evaluating whether each ultimate ownership by the PRC
merchandise during the POI and support the firm’s respondent is subject to de facto government is sufficient grounds to
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claim that it is in fact wholly owned by a market- governmental control of its export deny BGY a separate rate. Additionally,
economy entity. Firms claiming to be wholly functions: (1) whether the export prices Petitioner argues that the PRC
market-economy owned companies that submit
applications without these required elements have
are set by or are subject to the approval government has de facto control over
also been considered incomplete. See Separate of a governmental agency; (2) whether BGY. Petitioner notes that BGY’s
Rates Application at 3. the respondent has authority to management is appointed by its

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president of the board, who is also the In its November 30, 2005, submission, proceeds of its export sales and makes
president of AT&M, and that these Petitioner reiterates its arguments of independent decisions regarding
appointments were made in effect by September 2, 2005, and argues that BGY disposition of profits or financing of
AT&M. Further, Petitioner argues that has provided incomplete responses to losses. In the instant case, BGY has
AT&M controls BGY’s export activities the Department to obscure the control certified in its response to Section A of
and income from BGY’s export sales. exercised by the PRC government. the Department’s questionnaire, dated
See Petitioner’s September 2, 2005, Petitioner further argues that BGY has August 25, 2005 (‘‘BGY’s Section A’’),
letter at 8–9. Petitioner asserts that not appropriately demonstrated the de at 9 that its export prices are neither set
because AT&M is controlled by the PRC facto absence of government control, by nor subject to the approval of a
government (which Petitioner argues and that ownership by ‘‘all the people’’ government agency. Further, BGY has
includes SASAC and CISRI), and in and of itself is not sufficient grounds placed on the record a number of
because AT&M controls BGY, BGY on which to grant BGY a separate rate. documents that demonstrate a de facto
should be deemed controlled by the Petitioner further argues that the absence of government control,
PRC government and ineligible for a Department’s determinations to grant a including emails between its general
separate rate by reason of de facto separate rate to companies owned by manager and unaffiliated U.S. customers
control. ‘‘all the people’’ have been predicated regarding price negotiation on U.S.
BGY argues that if the Department upon these companies establishing de sales, and documents demonstrating
were to find that BGY should not be facto independence (i.e., ability to set independent negotiation of contracts for
granted a separate rate it would be a their own export prices, negotiate purchases of raw materials (see BGY’s
departure from past practice, as AT&M contracts, distribute profit, etc.), which Supp A at Exhibit SA–7). In addition,
is a publicly–held company, whose Petitioner argues BGY has failed to do. BGY also placed on the record, in BGY’s
majority owner, CISRI, is a corporate See Petitioner’s November 30, 2005, Section A and BGY’s Supp A,
entity owned by ‘‘all the people,’’ a submission at 6–11. Petitioner argues documentation that both BGY and
designation consistently found by the that the record evidence shows that AT&M select their own management
Department to be eligible for a separate BGY is owned and controlled by and boards of directors, demonstrating
rate. SASAC, which has the authority to hire that BGY and AT&M have autonomy
BGY argues in its Supplemental and fire management and order asset over the selection of management. See
Section A response dated September 20, sales and acquisitions, and that SASAC BGY Section A at Exhibits A–8 and A–
2005, submission (‘‘BGY’s Supp A’’) is an agency of the PRC central 9 and BGY Supp A at Exhibit SA–6.
that in Silicon Carbide the Department government. Petitioner maintains that BGY has also provided financial
determined that ownership ‘‘by all the SASAC maintains full control over 200 statements and board resolution
people’’ is not sufficient in and of itself Chinese companies, including CISRI, minutes regarding the distribution of
to a determination that a company under the direct supervision of the State profit by both BGY and AT&M. See BGY
should not receive a separate rate, and Council. Petitioner placed a number of Supp A at Exhibits SA–5 and SA–8.
that the Department has found documents on the record, which it Although Petitioner has stated that
companies owned by ‘‘all the people’’ argues demonstrates the power of SASAC has the authority to hire and fire
were not subject to de jure or de facto SASAC over the companies under its management and order asset sales and
government control in numerous cases. jurisdiction. Petitioner argues that acquisitions at CISRI, it has provided no
In support, BGY cites Tapered Roller AT&M is a state–owned company and evidence on the record of this
Bearings and Parts Thereof, Finished that BGY conceded that it is ultimately proceeding that SASAC had the ability
and Unfinished, From the People’s controlled by SASAC through CISRI and to exercise such control over AT&M and
Republic of China; Final Results of AT&M, and therefore BGY should be BGY during the POI. Specifically, we
Antidumping Duty Administrative denied a separate rate based on both a note that the documentation on the
Review and Revocation in Part of de jure and de facto control by a state record in this review demonstrates that
Antidumping Duty Order, 62 FR 6189 entity, SASAC. BGY has independence with respect to
(February 11, 1997), Notice of Both BGY and Petitioner submitted the setting of export prices and
Preliminary Determination of Sales at additional comments on this issue on negotiation of contracts. Therefore, the
Less Than Fair Value: Certain Hot– December 13, 2005, and December 14, Department preliminarily finds that
Rolled Carbon Steel Flat Products From 2005, respectively. However, the BGY has both de jure and de facto
the People’s Republic of China, 66 FR Department did not have sufficient time control over its export activities.
22183 (May 3, 2001). BGY argues that in to analyze this information for this However, the Department will carefully
Notice of Preliminary Determination of preliminary determination. Therefore, examine the issue of BGY’s and AT&M’s
Sales at Less Than Fair Value: Foundry the Department will further analyze the independence with respect to its export
Coke From the People’s Republic of additional information for the final activities at verification. In addition, the
China, 66 FR 13885 (March 8, 2001), the determination. Department intends to collect additional
Department found that the companies at As noted above, the Department information with respect to these issues
issue should be granted a separate rate, considers four factors in evaluating after the issuance of this preliminary
even though the government owned whether each respondent is subject to determination.
three of the companies. BGY further de facto governmental control of its We determine that, for Bosun, BGY,
argues that the Department has found export functions: (1) whether the export Hebei Jikai, and the Separate Rate
companies subject to export controls to prices are set by or are subject to the Applicants, the evidence on the record
be eligible for a separate rate, and that approval of a governmental agency; (2) supports a preliminary finding of de
BGY is not subject to the decision in whether the respondent has authority to facto absence of governmental control
Brake Drums and Brake Rotors from the negotiate and sign contracts and other based on record statements and
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PRC, 62 FR 9160 (February 28, 2005), as agreements; (3) whether the respondent supporting documentation showing the
BGY has independent management has autonomy from the government in following: 1) each exporter sets its own
control and has made a claim of making decisions regarding the export prices independent of the
independence from government control. selection of management; and (4) government and without the approval of
See BGY’s Supp A submission at 3–5. whether the respondent retains the a government authority; 2) each exporter

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retains the proceeds from its sales and than those indicated in the response to Information on the record of this
makes independent decisions regarding our request for Q&V information. See investigation indicates that the PRC–
disposition of profits or financing of Respondent Selection Memorandum. wide entity was non–responsive.
losses; 3) each exporter has the We issued our request for Q&V Certain companies did not respond to
authority to negotiate and sign contracts information to twenty–three known our request for Q&V information and
and other agreements; and 4) each Chinese exporters of the subject Saint Gobain, one of the largest
exporter has autonomy from the merchandise and BOFT and MOFCOM,4 exporters of the merchandise under
government regarding the selection of and received twenty–five Q&V investigation,6 did not respond to the
management. responses. We did not receive Q&V Department’s questionnaire. As a result,
Therefore, the evidence placed on the responses from thirteen of the pursuant to section 776(a)(2)(A) of the
record of this investigation by Bosun, companies to which we sent our request Act, we find that the use of facts
BGY, Hebei Jikai, and the Separate Rate for Q&V information (see Respondent available is appropriate to determine the
Applicants demonstrate an absence of Selection Memo). We also received PRC–wide rate. See Preliminary
de jure and de facto government control seventeen unsolicited Q&V Determination of Sales at Less Than
with respect to each of the exporter’s questionnaires.5 Information on the Fair Value, Affirmative Preliminary
exports of the merchandise under record of this investigation indicates Determination of Critical Circumstances
investigation, in accordance with the that there are numerous producers/ and Postponement of Final
criteria identified in Sparklers and exporters of diamond sawblades in the Determination: Certain Frozen Fish
Silicon Carbide. As a result, for the PRC. Based upon our knowledge of the Fillets from the Socialist Republic of
purposes of this preliminary volume of imports of subject Vietnam, 68 FR 4986 (January 31, 2003),
determination, we have granted merchandise from the PRC (see unchanged in Final Determination of
separate, company–specific rates to Initiation Notice), information on the Sales at Less Than Fair Value and
Bosun, BGY, and Hebei Jikai, and record indicates that the companies Affirmative Critical Circumstances:
granted the Separate Rate Applicants a which responded to the Q&V Certain Frozen Fish Fillets from the
weight–averaged margin. For a full questionnaire, the Separate Rates Socialist Republic of Vietnam, 68 FR
discussion of this issue, see Separate Applicants, Bosun, BGY, and Hebei 37116 (June 23, 2003).
Rates Memo. Jikai do not account for all imports into Section 776(b) of the Act provides
The Department has, as discussed the United States from the PRC. that, in selecting from among the facts
above in the ‘‘Affiliation’’ section, Although all exporters, including the otherwise available, the Department
determined that BGY, AT&M, and HXF, mandatory respondent Saint Gobain, may employ an adverse inference if an
shall be treated as a single entity, the were given an opportunity to provide interested party fails to cooperate by not
AT&M Group. With respect to the Q&V information, not all exporters acting to the best of its ability to comply
AT&M Group, as discussed above, the provided a response to the Department’s with requests for information. See Final
Department has determined that BGY Q&V letter or, in the case of Saint Determination of Sales at Less Than
has demonstrated de jure and de facto Gobain, to the Department’s Fair Value: Certain Cold–Rolled Flat–
absence of government control with antidumping duty questionnaire. Rolled Carbon–Quality Steel Products
respect to its export activities and will Further, the Government of the PRC did from the Russian Federation, 65 FR
preliminarily be granted a separate rate. not respond to the Department’s 5510, 5518 (February 4, 2000). See also
HXF submitted a separate rate questionnaire. Therefore, the ‘‘Statement of Administrative Action’’
application, though the Department Department determines preliminarily accompanying the URAA, H.R. Rep. No.
found HXF’s application as submitted, that there were PRC exporters of the 103–316, 870 (1994) (‘‘SAA’’). We find
contained substantial deficiencies and subject merchandise during the POI that, because the PRC–wide entity did
did not consider HXF for a separate rate from PRC producers/exporters that did not respond to our request for
in this investigation. See Deficient not respond to the Department’s request information, it has failed to cooperate to
Applications Memo. As a result, the for information. We have treated these the best of its ability. Therefore, the
Department is not able to make a PRC producers/exporters as part of the Department preliminarily finds that, in
determination with respect to HXF’s PRC–wide entity because they did not selecting from among the facts available,
export activities at this time. However, qualify for a separate rate. an adverse inference is appropriate.
because the Department has found that Section 776(a)(2) of the Act provides Further, section 776(b) of the Act
HXF should be properly considered part that, if an interested party (A) withholds authorizes the Department to use as
of a single entity with BGY, which has information that has been requested by adverse facts available (‘‘AFA’’)
been preliminarily granted a separate the Department, (B) fails to provide such information derived from the petition,
rate, and because the Department has information in a timely manner or in the the final determination from the LTFV
knowledge that HXF may have exported form or manner requested, subject to investigation, a previous administrative
or caused to be exported subject subsections 782(c)(1) and (e) of the Act, review, or any other information placed
merchandise during the POI (see HXF’s (C) significantly impedes a proceeding on the record. In selecting a rate for
Application), the Department has under the antidumping statute, or (D) adverse facts available, the Department
preliminarily determined to request provides such information but the selects a rate that is sufficiently adverse
additional and clarifying information information cannot be verified, the ‘‘as to effectuate the purpose of the facts
with respect to HXF’s de jure and de Department shall, subject to subsection available rule to induce respondents to
facto independence from government 782(d) of the Act, use facts otherwise provide the Department with complete
control with respect to its export available in reaching the applicable and accurate information in a timely
activities, after the issuance of this determination. manner.’’ See Final Determination of
preliminary determination. Sales at Less Than Fair Value: Static
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4 For a list of companies to which the Department

Random Access Memory
The PRC–Wide Rate sent its request for Q&V information, see Semiconductors from Taiwan, 63 FR
Respondent Selection Memo at 1.
The Department has data that indicate 5 For a list of companies from which the 8909, 8932 (February 23, 1998). It is the
there were more exporters of diamond Department received Q&V information, see
sawblades from the PRC during the POI Respondent Selection Memo at Attachment 1. 6 See Respondent Selection Memo.

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Department’s practice to select, as AFA, practicable, examine the reliability and for the Separate Rates Applicants based
the higher of the (a) highest margin relevance of the information used. on the rates we calculated for Bosun and
alleged in the petition, or (b) the highest Petitioner’s methodology for Hebei Jikai, the companies for which the
calculated rate of any respondent in the calculating the export price and normal Department calculated an antidumping
investigation. See Final Determination value in the petition is discussed in the duty margin for this preliminary
of Sales at Less Than Fair Value: Certain initiation notice. See Initiation Notice, determination, excluding any rates that
Cold–Rolled Carbon Quality Steel 70 FR at 35627–35628. To corroborate are zero, de minimis, or based entirely
Products from the People’s Republic of the AFA margin selected, we compared on AFA. Companies receiving this rate
China, 65 FR 34660 (May 21, 2000) and that margin to the margins we found for are identified by name in the
accompanying Issues and Decision the respondents. ‘‘Suspension of Liquidation’’ section of
Memorandum, at ‘‘Facts Available.’’ In As discussed in the Memorandum to this notice.
the instant investigation, as AFA, we the File regarding the corroboration of
the AFA rate, dated December 20, 2005, Date of Sale
have assigned to the PRC–wide entity a
margin based on information in the we found that the margin of 164.09 Section 351.401(i) of the Department’s
petition, because the margin derived percent has probative value. See regulations state that, ‘‘in identifying the
from the petition is higher than the Memorandum to the File through Carrie date of sale of the subject merchandise
calculated margins for the selected Blozy, Program Manager, AD/CVD or foreign like product, the Secretary
respondents. In this case, we have Operations, Office 9: Corroboration of normally will use the date of invoice, as
applied the petition rate of 164.09 the PRC–Wide Facts Available Rate for recorded in the exporter or producer’s
percent. the Preliminary Determination in the records kept in the normal course of
Antidumping Duty Investigation of business.’’ However, the Secretary may
Corroboration Diamond Sawblades and parts thereof use a date other than the date of invoice
Section 776(c) of the Act requires that, from the People’s Republic of China, if the Secretary is satisfied that a
when the Department relies on dated December 20, 2005, different date better reflects the date on
secondary information rather than on (‘‘Corroboration Memo’’). Accordingly, which the exporter or producer
information obtained in the course of an we find that the rate of 164.09 percent establishes the material terms of sale.
investigation as facts available, it must, is corroborated within the meaning of See 19 CFR 351.401(i); See also Allied
to the extent practicable, corroborate section 776(c) of the Act. Tube and Conduit Corp. v. United
Consequently, we are applying 164.09 States, 132 F. Supp. 2d 1087, 1090–1093
that information from independent
as the single antidumping rate to the (CIT 2001) (‘‘Allied Tube’’). The date of
sources reasonably at its disposal.7 The
PRC–wide entity, including Saint sale is generally the date on which the
SAA also states that the independent
Gobain and the companies that parties agree upon all substantive terms
sources may include published price
submitted incomplete separate rate of the sale. This normally includes the
lists, official import statistics and
applications. The PRC–wide rate applies price, quantity, delivery terms and
customs data, and information obtained
to all entries of the merchandise under payment terms. In order to simplify the
from interested parties during the
investigation except for entries from determination of date of sale for both
particular investigation. See id.
Bosun, BGY, Hebei Jikai, and the the respondent and the Department and
The SAA also clarifies that Separate Rate Applicants. in accordance with 19 CFR 351.401(i),
‘‘corroborate’’ means that the The Department will consider all the date of sale will normally be the
Department will satisfy itself that the margins on the record at the time of the date of the invoice, as recorded in the
secondary information to be used has final determination for the purpose of exporter’s or producer’s records kept in
probative value. See SAA at 870. As determining the most appropriate AFA the ordinary course of business, unless
noted in Tapered Roller Bearings and rate for the PRC–wide entity. See satisfactory evidence is presented that
Parts Thereof, Finished and Unfinished, Preliminary Determination of Sales at the exporter or producer establishes the
from Japan, and Tapered Roller Less Than Fair Value: Saccharin from material terms of sale on some other
Bearings, Four Inches or Less in Outside the People’s Republic of China, 67 FR date. In other words, the date of the
Diameter, and Components Thereof, 79049, 79054 (December 27, 2002), invoice is the presumptive date of sale,
from Japan; Preliminary Results of unchanged in Final Determination of although this presumption may be
Antidumping Duty Administrative Sales at Less Than Fair Value: overcome. For instance, in Final
Reviews and Partial Termination of Saccharin From the People’s Republic of Determination of Sales at Less Than
Administrative Reviews, 61 FR 57391, China, 68 FR 27530 (May 20, 2003). Fair Value: Polyvinyl Alcohol from
57392 (November 6, 1996), unchanged Taiwan, 61 FR 14067 (March 29, 1996),
in Final Results of Antidumping Duty Margin for the Separate Rate the Department used the date of the
Administrative Reviews and Applicants purchase order as the date of sale
Termination in Part: Tapered Roller The Department received timely and because the terms of sale were
Bearings and Parts Thereof, Finished complete separate rates applications established at that point.
and Unfinished, From Japan, and from the Separate Rates Applicants, After examining the questionnaire
Tapered Roller Bearings, Four Inches or who are all exporters of diamond responses and the sales documentation
Less in Outside Diameter, and sawblades from the PRC, which were that Bosun, BGY, and Hebei Jikai placed
Components Thereof, From Japan, 62 not selected as mandatory respondents on the record, we preliminarily
FR 11825 (March 13, 2005), to in this investigation. Through the determine that invoice date is the most
corroborate secondary information, the evidence in their applications, these appropriate date of sale for Bosun, BGY,
Department will, to the extent companies have demonstrated their and Hebei Jikai. BGY and Hebei Jikai do
eligibility for a separate rate, as not dispute that invoice date is the
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7 Secondary information is described in the SAA discussed above in the ‘‘Separate Rates’’ appropriate date of sale, and the
as ‘‘information derived from the petition that gave section and in the Separate Rates Memo. information on the record supports this
rise to the investigation or review, the final
determination concerning subject merchandise, or
Consistent with the Department’s contention. Bosun, however, claims that
any previous review under section 751 concerning practice, as the separate rate, we have the purchase order date is the most
the subject merchandise.’’ See SAA at 870. established a weight–averaged margin appropriate date of sale. Bosun has

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requested that the Department use the contractual tolerance levels ‘‘suggested first unaffiliated customer in the United
purchase order date, because it argues sufficient possibility of changes in States. Where applicable, we deducted
that the terms of sale do not change after material terms of sale so as to render foreign movement expenses, foreign
the purchase order is issued. The Commerce’s date of sale determination brokerage and handling expenses, and
Department finds that based on the supported by substantial evidence.’’ international freight expenses from the
information on the record, Bosun has Allied Tube 132 F. Supp. 2d at 1092. starting price (gross unit price), in
not rebutted the presumption that Further, the CIT found that a ‘‘party accordance with section 772(c) of the
invoice date is the appropriate date of seeking to establish a date of sale other Act. In addition, for certain sales by
sale. See Preliminary Determination of than invoice date bears the burden of BGY where BGY demonstrated that its
Sales at Less Than Fair Value: producing sufficient evidence to ’satisfy’ U.S. customer reimbursed it for portions
Saccharin From the People’s Republic of the Department that ’a different date of airfreight expenses, the Department
China, 67 FR 79054 (December 27, better reflects the date on which the added these revenue amounts to U.S.
2005). This conclusion is based on the exporter or producer establishes the price. Further, the Department found
following four reasons. material terms of sale.’’’ See id. that BGY incorrectly reported its
First, in its Supplemental Section C Therefore, the Department finds that movement expenses on certain EP sales.
Response dated November 1, 2005 Bosun has not rebutted the regulatory For those sales where BGY incorrectly
(‘‘Bosun Supp C’’), Bosun states ‘‘in presumption that the more appropriate reported in its database movement
cases in which any of the sales terms date of sale for Bosun is the sales expenses, the Department adjusted the
change after the initial date of the invoice date. reported amounts to comport with
purchase order, the date of the purchase BGY’s narrative explanation.
order does not change to the date of the Fair Value Comparisons Where foreign movement,
change in the sales term.’’ See Bosun To determine whether sales of international ocean freight, or
Supp C at 15. The purchase order date diamond sawblades to the United States international airfreight, was provided by
therefore does not reflect the date upon by Bosun, BGY, and Hebei Jikai were PRC service providers or paid for in
which the material terms of sale are made at less than fair value, we Renminbi (‘‘RMB’’), we valued these
ultimately established. Second, Bosun compared export price (‘‘EP’’) or services using surrogate values (see
also notes ‘‘during the POI, there were constructed export price (‘‘CEP’’) to ‘‘Factors of Production’’ section below
a few instances’’ in which the per–unit normal value (‘‘NV’’), as described in for further discussion).
purchase price changed after the the ‘‘U.S. Price,’’ and ‘‘Normal Value’’ Constructed Export Price
purchase order was issued by the U.S. sections of this notice. We compared NV
customer. Ibid. at 15–16. Third, Bosun to weighted–average EPs and CEPs in BGY states in BGY’s Section A at 13
has explained that for some purchases accordance with section 777A(d)(1) of and in BGY’s Supp A at 1 that it does
by some customers, an actual purchase the Act. not act as the exporter of record on U.S.
order is not actually issued. There is As noted above, with respect to BGY, sales transactions through its affiliated
consequently no documentary evidence the Department has, as discussed above company, GYDP, and that on these sales
from the U.S. customer, other than the in the ‘‘Affiliation’’ section, determined Cliff acts as the exporter of record. BGY
invoice date, to indicate the date upon that BGY, AT&M, and HXF shall be also states that Cliff has no role in the
which the terms of sale were ultimately treated as a single entity, the AT&M transaction other than as an export
established. See Bosun Supp C at 10. facilitator for GYDP and does not make
Group. The Department has received
Finally, Bosun has also explained, sales, negotiate terms, or have any
and analyzed information from BGY
‘‘the purchase order date is the date that commercial role in the sales of subject
with respect to its U.S. sales and FOPs.
the U.S. customers’ purchase {orders The Department has also received and
merchandise. See BGY’s Supp A at 1.
were} entered into Bosun’s As an initial matter, the Department is
analyzed FOPs for BGY’s affiliated core concerned with information placed on
computerized sales order tracking supplier. Based on HXF’s Application,
system.’’ See Bosun’s Section C the record by BGY in its supplemental
the Department has knowledge that HXF questionnaire dated December 5, 2005,
Response dated September 20, 2005 may also have acted as the exporter on
(‘‘Bosun C’’) at 1. While Bosun has also which indicates that, contrary to BGY’s
sales of subject merchandise to the statements in its prior submissions,
explained that the terms of sale are United States. Because HXF is part of
typically entered into its computerized GYDP issues purchase orders to Cliff,
the single entity, the AT&M Group, any rather than to BGY, and BGY issues
sales order tracking system on the day
exports to the United States that HXF invoices and is paid by Cliff, which in
that the purchase order is received,
may have exported, or caused to be turn issues invoices and receives
there is no evidence that the receipt date
exported, are subject merchandise. payment from GYDP. However, because
and the entry date are the same.
Therefore, the Department will request BGY has placed on the record
Moreover, Bosun has also noted that in
that HXF provide U.S. sales information documentation indicating that BGY
some instances, the date can differ by at
following the issuance of this negotiates the practical terms of sale
least one business day.
preliminary determination. with GYDP (see BGY’s Supp A at
The Department therefore
preliminarily finds that there were U.S. Price Exhibit SA–7), the Department has
changes in the essential terms of sale preliminarily finds that BGY sold
Export Price merchandise to its affiliated company
after the issuance of the purchase order.
Further, we also find that there were For Hebei Jikai, and certain sales by GYDP, and these sales are classifiable as
instances where Bosun did not have BGY, we based U.S. price on EP in CEP sales. Therefore, for these sales, we
actual purchase orders for certain accordance with section 772(a) of the calculated CEP in accordance with
customers. See Bosun Supplemental Act, because the first sale to an section 772(b) of the Act, because we
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Section C Response dated November 1, unaffiliated purchaser was made prior preliminarily find these sales were
2005 at 10. to importation, and CEP was not made on behalf of the PRC–based
In Allied Tube the Court of otherwise warranted by the facts on the company by its U.S. affiliate to
International Trade (‘‘CIT’’) held that record. We calculated EP based on the unaffiliated purchasers. However, the
the existence of one sale beyond packed price from the exporter to the Department will closely examine this

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issue at verification to determine if BGY customer, and has reported no such Republic of China: Beijing Gang Yan
was in fact acting as the seller of freight for these observations due to the Diamond Product Company (‘‘BGY’’),
merchandise sold by GYDP during the burden associated with allocating these dated December 20, 2005 (‘‘BGY
POI, or if in fact these sales should be expenses. Therefore, for this Analysis Memo’’); and Memorandum to
more properly classified as sales made preliminary determination the The File from Candice Kenney Weck,
by Cliff to GYDP. Department has not assessed this freight Case Analyst: Program Analysis for the
The Department notes that Cliff has expense for those observations. Further, Final Results of Antidumping Duty
not applied for a separate rate. In the the Department finds that BGY Investigation of Diamond Sawblades
Department’s September 6, 2005, incorrectly reported its movement and Parts Thereof from the People’s
Supplemental Section A Questionnaire expenses on certain CEP sales, based on Republic of China: Hebei Jikai Industrial
(‘‘DOC Supp A’’), the Department noted the reported terms of sale. For those Group Co. Ltd. (‘‘Hebei Jikai’’), dated
that ‘‘the Department has determined sales where BGY incorrectly reported in December 20, 2005 (‘‘Hebei Jikai
that it will assign specific exporter– its database movement expenses, the Analysis Memo’’).
producer ‘‘combination rates’’ to both Department adjusted the reported
mandatory respondents and non– Normal Value
amounts to comport with BGY’s
investigated NME exporters that meet narrative explanation of the terms of Section 773(c)(1) of the Act provides
the Department’s criteria for separate sale. BGY reported that it grants billing that the Department shall determine the
rate status in investigations.’’ See Policy adjustments and other discounts on a NV using a factors–of-production
Bulletin 5.1 ( The case–by-case basis. Accordingly, the methodology if the merchandise is
Department’s separate rate application Department has subtracted these exported from an NME and the
specifically states, ‘‘Each applicant must discounts from the gross unit price, information does not permit the
submit a separate individual application where appropriate. calculation of NV using home–market
regardless of any common ownership or In accordance with section 772(d)(1) prices, third–country prices, or
affiliation between firms and regardless of the Act, we also deducted those constructed value under section 773(a)
of foreign ownership.’’ See Separate selling expenses associated with of the Act. The Department bases NV on
Rate Application for Diamond economic activities occurring in the the FOP because the presence of
Sawblades and Parts Thereof from the United States. For Bosun, we deducted government controls on various aspects
People’s Republic of China (http:// commissions, inventory carrying costs, of non–market economies renders price Cliff has not placed on credit expenses, warranty expenses, and comparisons and the calculation of
the record any documentation that indirect selling expenses. We also made production costs invalid under the
would cause the Department to find that an adjustment for profit in accordance Department’s normal methodologies.
it qualifies for a separate rate. Therefore, with section 772(d)(3) of the Act. For Factor Methodology
the Department preliminarily finds that BGY we deducted commissions,
Cliff is appropriately considered part of inventory carrying costs, credit Respondents Bosun and BGY reported
the PRC–wide entity, and finds that expenses, interest revenue, warranty that they purchased a small quantity of
exports of subject merchandise made by expenses, and indirect selling expenses, cores from PRC suppliers that were used
Cliff should be considered as made by and made an adjustment for profit in in the production of the finished
the PRC–wide entity, and will apply the accordance with section 772(d)(3) of the diamond sawblades exported to the
PRC–wide rate for merchandise Act. United States. In their original
exported by Cliff. See Separate Rates Where foreign movement expenses, questionnaire responses, where the core
section above for a discussion of the international movement expenses, or was purchased, Bosun and BGY
PRC–wide entity and the PRC–wide U.S. movement expenses were provided reported the usage of the intermediate
rate. by PRC service providers or paid for in input. In our supplemental
For sales by Bosun, we calculated CEP Renminbi, we valued these services questionnaires, we requested that Bosun
in accordance with section 772(b) of the using surrogate values (see ‘‘Factors of and BGY report their suppliers’ inputs
Act, because certain sales were made on Production’’ section below for further into producing the purchased cores.
behalf of the PRC–based company by its discussion). For those expenses that Bosun provided this information for
U.S. affiliate to unaffiliated purchasers. were provided by a market–economy certain of its core suppliers and BGY
For BGY’s and Bosun’s sales classified provider and paid for in market– provided the core factors from its single
as CEP sales, we based CEP on packed, economy currency, we used the core supplier.8 Bosun has argued that
delivered or ex–warehouse prices to the reported expense. the Department should rely on the
first unaffiliated purchaser in the United Due to the proprietary nature of suppliers’ cores factors whereas BGY
States. Where appropriate, we made certain adjustments to U.S. price, for a has argued that it is inappropriate for
deductions from the starting price (gross detailed description of all adjustments the Department to use such data as a
unit price) for foreign movement made to U.S. price for each company, matter of law and practice.
expenses, international movement see Memorandum to the File from John Respondents have reported that the
expenses, and U.S. movement expenses, D. A. LaRose, Case Analyst: Program purchased cores are utilized in the
in accordance with section 772(c)(2)(A) Analysis for the Final Results of production of the finished diamond
of the Act. Antidumping Duty Investigation of sawblades (i.e., not sold as is to the
Bosun reported that it grants early Diamond Sawblades and Parts Thereof United States). Therefore, in this
payment, quantity, and other discounts from the People’s Republic of China: instance we find that the purchased core
on a case–by-case basis. Accordingly, Bosun Tools Group Co., Ltd. (‘‘Bosun’’), is properly treated as an input into the
the Department has subtracted these dated December 20, 2005 (‘‘Bosun finished product rather than as subject
discounts from the gross unit price, Analysis Memo’’); Memorandum to the merchandise itself. The Department’s
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where appropriate. File from Anya Naschak, Senior Case normal practice is to apply a surrogate
BGY reported that it is reimbursed on Analyst: Program Analysis for the Final
8 Other of Bosun’s core suppliers are affiliated
certain terms of sale by its customers for Results of Antidumping Duty with Bosun through stock ownership of Bosun’s
the full amount of inland freight Investigation of Diamond Sawblades owners. For information on BGY’s core supplier,
expenses from the warehouse to the and Parts Thereof from the People’s see BGY Affiliation Memo.

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value to a purchased factor unless it filed FOP databases covering a fifteen– practice, we used data from the Indian
finds that the supplier is the same entity month period inclusive of the POI. Import Statistics in order to calculate
as the respondent. In such a case, the These fifteen–month FOP databases surrogate values for the mandatory
Department will rely on the factors of provide factors of production data for respondents’ material inputs. In
the supplier.9 the vast majority of the CONNUMs sold selecting the best available information
Bosun has reported it is affiliated with by Bosun during the POI. For the for valuing FOP in accordance with
certain of its core suppliers. However, valuation of the factors of production, section 773(c)(1) of the Act, the
the percentage of cores purchased from the Department has therefore Department’s practice is to select, to the
the affiliated supplier(s) to total cores determined to use the fifteen–month extent practicable, surrogate values
consumed by Bosun is insignificant. As FOP database provided by Bosun. For which are non–export average values,
recently articulated in an administrative the CONNUMs for which FOPs are not most contemporaneous with the POI,
review of Polyvinyl Alcohol, one of the included in the fifteen–month FOP product–specific, and tax–exclusive.
Department’s exceptions to relying on database, the Department has assigned See e.g., Notice of Preliminary
the reported factors of production for an FOPs for similar subject merchandise Determination of Sales at Less Than
input is where the percentage of the that was produced by Bosun in the Fair Value, Negative Preliminary
self–produced input accounts for a fifteen–month FOP, as neutral facts Determination of Critical Circumstances
small or insignificant share of the total available.10 In assigning FOPs, the and Postponement of Final
output and the Department recognizes Department relied on the first three Determination: Certain Frozen and
that the increased accuracy in its overall product characteristics of the CONNUM Canned Warmwater Shrimp From the
calculations that would result from (physical form of the product as sold, Socialist Republic of Vietnam, 69 FR
valuing (separately) each of those factors the diameter of the finished sawblade, 42672, 42682 (July 16, 2004), unchanged
may be so small so as to not justify the and the type of attachment used to in Final Determination of Sales at Less
burden of doing so. Accordingly, in attach segments to the core) to identify Than Fair Value: Certain Frozen and
such a case the Department will value unique product groupings. The Canned Warmwater Shrimp from the
the intermediate input. See Polyvinyl Department determined that the first Socialist Republic of Vietnam, 69 FR
Alcohol, 70 FR at 67438 (citing Notice three product groupings were most 71005 (December 8, 2004). The record
of Final Determination of Sales at Less appropriate because 1) the first shows that data in the Indian Import
Than Fair Value: Polyvinyl Alcohol characteristics are the most important, Statistics represents import data that is
from the People’s Republic of China, 68 and 2) three characteristics are the contemporaneous with the POI,
FR 47358 (August 11, 2003)). We find greatest number of distinct product–specific, and tax–exclusive.
that this exception also applies where characteristics which would provide Where we could not obtain publicly
the level of purchases is small or FOPs for 100 percent of the CONNUMs available information contemporaneous
insignificant, as in this case where the which had missing FOPs. The to the POI with which to value factors,
level of purchases from Bosun’s Department then calculated a weighted– we adjusted the surrogate values using,
affiliated supplier(s) is insignificant average of the FOPs for each product where appropriate, the Indian
when compared to the additional grouping and assigned the product– Wholesale Price Index (‘‘WPI’’) as
burden on the Department and parties group weighted–average FOPs to published in the International Financial
associated with analyzing the factors of CONNUMs where no FOPs were Statistics of the International Monetary
production from this supplier, and reported by Bosun. See Bosun Analysis Fund.
where limited accuracy is gained. Memo.
Furthermore, with regard to the
Therefore, we find that it is appropriate Factor Valuations Indian import–based surrogate values,
to value the purchased core from we have disregarded import prices that
affiliated supplier(s) as an intermediate In accordance with section 773(c) of
the Act, we calculated NV based on FOP we have reason to believe or suspect
input. Accordingly, for purposes of this may be subsidized. We have reason to
preliminary determination we are data reported by respondents for the
POI. To calculate NV, we multiplied the believe or suspect that prices of inputs
valuing all of Bosun’s purchased cores from Indonesia, South Korea, and
using a surrogate value. reported per–unit factor–consumption
rates by publicly available surrogate Thailand may have been subsidized. We
With respect to BGY, the Department
values. In selecting the surrogate values, have found in other proceedings that
is unable to discuss issues related to its
we considered the quality, specificity, these countries maintain broadly
core supplier in this notice due to the
and contemporaneity of the data. As available, non–industry-specific export
proprietary nature of this information.
appropriate, we adjusted input prices by subsidies and, therefore, it is reasonable
Therefore, for a discussion of this issue,
including freight costs to make them to infer that all exports to all markets
see BGY Analysis Memo.
delivered prices. Specifically, we added from these countries may be subsidized.
During the POI, Bosun did not have
to Indian import surrogate values a See Amended Final Determination of
production of all types of merchandise
surrogate freight cost using the shorter Sales at Less than Fair Value:
for which it had POI sales.
of the reported distance from the Automotive Replacement Glass
Consequently, the FOP databases filed
domestic supplier to the factory or the Windshields from the People’s Republic
by Bosun that cover the six–month POI
distance from the nearest seaport to the of China, 67 FR 11670 (March 15, 2002);
do not contain factors of production for
factory where appropriate. This see also Notice of Final Determination
a number of CONNUMs sold by Bosun
adjustment is in accordance with the of Sales at Less Than Fair Value and
during the POI. Bosun, therefore, also
Court of Appeals for the Federal Negative Final Determination of Critical
9 See e.g., Certain Preserved Mushrooms From the Circuit’s decision in Sigma Corp. v. Circumstances: Certain Color Television
People’s Republic of China: Final Results and Final United States, 117 F. 3d 1401, 1407– Receivers From the People’s Republic of
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Rescission, in Part, of Antidumping Duty 1408 (Fed. Cir. 1997). China, 69 FR 20594 (April 16, 2004)
Administrative Review, 70 FR 54361 (September 14, For this preliminary determination, in (‘‘CTVs from the PRC’’). We are also
2005) and accompanying Issues and Decision
Memorandum at Comment 9 (where the Department accordance with the Department’s directed by the legislative history not to
determined to treat the Jiufa Group as a single conduct a formal investigation to ensure
entity). 10 See section 776(a)(1) of the Act. that such prices are not subsidized. See

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H.R. Rep. 100–576 at 590 (1988). Rather, ‘‘inside industrial areas’’ usage category overall average rate for the POI. See
Congress directed the Department to and 193 for the ‘‘outside industrial Factor Value Memo.
base its decision on information that is areas’’ usage category. Because the value To value marine insurance, the
available to it at the time it makes its was not contemporaneous with the POI, Department obtained a price quote from
determination. Therefore, we have not we adjusted the rate for inflation. See
used prices from these countries in Factor Value Memo. insurance.html, a market–economy
calculating the Indian import–based We used Indian transport information provider of marine insurance. See
surrogate values. in order to value the freight–in cost of Factor Value Memo. To value
Certain of BGY’s inputs into the the raw materials. The Department international seafreight, the Department
production of the merchandise under determined the best available obtained price quotes from http://
investigation were purchased from information for valuing truck freight to
market economy suppliers and paid for be from This source appmanager/, a market–economy
in market economy currencies. For two provides daily rates from six major provider of international freight
inputs all purchases were made from a points of origin to five destinations in services. See Factor Value Memo. To
market economy supplier and paid in a India during the POI. The Department value international airfreight, the
market economy currency, and the obtained a price quote on the first day Department obtained price quotes from
Department has therefore used the of each month of the POI from each Hong Kong to the United States from
weight–averaged POI price experienced point of origin to each destination and DHL. See Factor Value Memo. To value
by BGY for these inputs. We used the averaged the data accordingly. See factory overhead, selling, general, and
market economy prices experienced by Factor Value Memo. To value rail administrative expenses, and profit, we
BGY when the inputs were obtained freight, the Department used an average used the Reserve Bank of India
from a market economy, paid for in a of rail freight prices based on the publication Reserve Bank of India
market economy currency, and were a publicly available freight rates reported Bulletin, August 2005. See Factor Value
significant portion of the total purchases by the official website of the Indian Memo for a full discussion of the
of that input. Ministry of Railways at calculation of the ratios from these data.
The Department used the Indian Currency Conversion
Import Statistics to value the raw
freightrates/freightlcharges.htm. The
material and packing material inputs We made currency conversions into
Department used an average of the
that Bosun, BGY, and Hebei Jikai used U.S. dollars, in accordance with section
price–per-kilogram rates for classes 190
to produce the subject merchandise 773A(a) of the Act, based on the
and 200 based on the freight distances
during the POI, except where listed exchange rates in effect on the dates of
between cities. As the prices were
below. For a detailed description of all the U.S. sales as certified by the Federal
surrogate values used for respondents, denoted in quintals, the Department
divided the price by 100 to derive a Reserve Bank.
see Factor Value Memo.
To value electricity, the Department value in Rupees per kilogram. Verification
used rates from Key World Energy Consistent with the calculation of As provided in section 782(i)(1) of the
Statistics 2003, published by the inland truck freight, the Department Act, we intend to verify the information
International Energy Agency. Because used the same freight distances used in upon which we will rely in making our
these data were not contemporaneous to the calculation of inland truck freight, final determination.
the POI, we adjusted for inflation using as reported by to
WPI. See Factor Value Memo. derive a value in Rupees per kilogram Combination Rates
For direct, indirect, and packing per kilometer. See Factor Value Memo. In the Initiation Notice, the
labor, consistent with 19 CFR The Department used two sources to Department stated that it would
351.408(c)(3), we used the PRC calculate a surrogate value for domestic calculate combination rates for certain
regression–based wage rate as reported brokerage expenses. The Department respondents that are eligible for a
on Import Administration’s home page, averaged December 2003–November separate rate in this investigation. See
Import Library, Expected Wages of 2004 data contained in Essar Steel’s Initiation Notice, 70 FR 35625, 35629.
Selected NME Countries, revised in February 28, 2005, public version This change in practice is described in
November 2005, response submitted in the AD Policy Bulletin 05.1, available at http://
wages/index.html. The source of these administrative review of Hot–Rolled The Policy Bulletin 05.1,
wage–rate data on the Import Carbon Steel Flat Products from India states:
Administration’s web site is the with October 2002–September 2003 data ‘‘[w]hile continuing the practice of
Yearbook of Labour Statistics 2002, ILO contained in Pidilite Industries’ March assigning separate rates only to
(Geneva: 2002), Chapter 5B: Wages in 9, 2004, public version response exporters, all separate rates that the
Manufacturing. Because this regression– submitted in the AD investigation of Department will now assign in its
based wage rate does not separate the Carbazole Violet Pigment 23 from India NME investigations will be specific
labor rates into different skill levels or (see Notice of Final Determination of to those producers that supplied the
types of labor, we have applied the same Sales at Less Than Fair Value: exporter during the period of
wage rate to all skill levels and types of Carbazole Violet Pigment 23 From investigation. Note, however, that
labor reported by the respondent. See India, 69 FR 67306 (November 17, one rate is calculated for the
Factor Value Memo. 2004)). The brokerage expense data exporter and all of the producers
The Department valued water using reported by Essar Steel and Pidilite which supplied subject
data from the Maharashtra Industrial Industries in their public versions is merchandise to it during the period
Development Corporation ranged data. The Department first of investigation. This practice
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( since it includes a derived an average per–unit amount applies both to mandatory
wide range of industrial water tariffs. from each source. Then the Department respondents receiving an
This source provides 386 industrial adjusted each average rate for inflation. individually calculated separate
water rates within the Maharashtra Finally, the Department averaged the rate as well as the pool of non–
province from June 2003: 193 for the two per–unit amounts to derive an investigated firms receiving the

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weighted–average of the or more producers. The cash– the period of investigation.’’ See
individually calculated rates. This deposit rate assigned to an exporter Policy Bulletin 05.1, at page 6.
practice is referred to as the will apply only to merchandise
Preliminary Determination
application of ‘‘combination rates’’ both exported by the firm in
because such rates apply to specific question and produced by a firm The weighted–average dumping
combinations of exporters and one that supplied the exporter during margins are as follows:
Exporter Producer Deposit Rate

Beijing Gang Yan Diamond Products Company ....................... Beijing Gang Yan Diamond Products Company 0.11 %
Bosun Tools Group Co., Ltd. ..................................................... Bosun Tools Group Co., Ltd. 16.34%
Hebei Jikai Industrial Group Co., Ltd. ....................................... Hebei Jikai Industrial Group Co., Ltd. 10.07%
Danyang NYCL Tools Manufacturing Co., Ltd. ......................... Danyang NYCL Tools Manufacturing Co., Ltd. 14.96%
Danyang Youhe Manufacturing Co. Ltd. ................................... Danyang Youhe Manufacturing Co. Ltd. 14.96%
Fujian Quanzhou Wanlong Stone Co., Ltd. .............................. Fujian Quanzhou Wanlong Stone Co., Ltd. 14.96%
Guilin Tebon Superhard Material Co., Ltd. ............................... Guilin Tebon Superhard Material Co., Ltd. 14.96%
Huzhou Gu’s Import & Export Co., Ltd. .................................... Danyang Aurui Hardware Products Co., Ltd. 14.96%
Jiangsu Fengtai Diamond Tool Manufacture Co. Ltd. .............. Jiangsu Fengtai Diamond Tool Manufacture Co. Ltd. 14.96%
Jiangyin LIKN Industry Co., Ltd. ................................................ Jiangsu Fengtai Diamond Tool Manufacture Co., Ltd. 14.96%
Jiangyin LIKN Industry Co., Ltd. ................................................ Wuhan Wanbang Laser Diamond Tools Co. 14.96%
Quanzhou Zhongzhi Diamond Tool Co., Ltd ............................. Quanzhou Zhongzhi Diamond Tool Co., Ltd. 14.96%
Rizhao Hein Saw Co., Ltd. ........................................................ Rizhao Hein Saw Co., Ltd. 14.96%
Shanghai Deda Industry & Trading Co. Ltd. ............................. Hua Da Superabrasive Tools Technology Co., Ltd. 14.96%
Sichuan Huili Tools Co. ............................................................. Chengdu Huifeng Diamond Tools Co., Ltd. 14.96%
Sichuan Huili Tools Co. ............................................................. Sichuan Huili Tools Co. 14.96%
Weihai Xiangguang Mechanical Industrial Co., Ltd. ................. Weihai Xiangguang Mechanical Industrial Co., Ltd. 14.96%
Wuhan Wanbang Laser Diamond Tools Company, Ltd. .......... Wuhan Wanbang Laser Diamond Tools Company, Ltd. 14.96%
Xiamen ZL Diamond Tools Co., Ltd. ......................................... Xiamen ZL Diamond Tools Co., Ltd. 14.96%
Zhenjiang Inter– ......................................................................... China Import & Export Co., Ltd.Danyang Weiwang 14.96%
Tools Manufacturing Co., Ltd.
Zhejiang Tea Import & Export Co., Ltd. .................................... Danyang Dida Diamond Tools Manufacturing Co., Ltd. 14.96%
Zhejiang Tea Import & Export Co., Ltd. .................................... Danyang Tsunda Diamond Tools Co., Ltd. 14.96%
Zhejiang Tea Import & Export Co., Ltd. .................................... Wuxi Lianhua Superhard Material Tools Co., Ltd. 14.96%
Zhejiang Wanli Tools Group Co., Ltd. ....................................... Zhejiang Wanli Super–hard Materials Co., Ltd. 14.96%
PRC–Wide Rate ........................................................................ .......................................................................................... 164.09%

Disclosure diamond sawblades that are entered, or Public Comment

We will disclose the calculations withdrawn from warehouse, for
consumption that are exported by the Case briefs or other written comments
performed within five days of the date may be submitted to the Assistant
of publication of this notice to parties in Separate Rates Applicants and Hebei
Jikai, on or after the date of publication Secretary for Import Administration no
this proceeding in accordance with 19 later than seven days after the date of
CFR 351.224(b). of this preliminary determination in the
the final verification report is issued in
Federal Register. CBP shall require a
Suspension of Liquidation this proceeding and rebuttal briefs
cash deposit or posting of a bond equal
In accordance with section 733(d) of limited to issues raised in case briefs no
to the estimated preliminary dumping
the Act, we will instruct U.S. Customs later than five days after the deadline
margins, where applicable, as published date for case briefs. A list of authorities
and Border Protection (‘‘CBP’’) to in the Federal Register. This suspension
suspend liquidation of all entries of used and an executive summary of
of liquidation will remain in effect until issues should accompany any briefs
diamond sawblades from the PRC from further notice.
Bosun and the PRC–wide entity that are submitted to the Department. This
entered, or withdrawn from warehouse, International Trade Commission summary should be limited to five pages
for consumption on or after 90 days Notification total, including footnotes.
prior to the date of publication in the In accordance with section 774 of the
Federal Register of our preliminary In accordance with section 733(f) of Act, we will hold a public hearing, if
determination of sales at LTFV. The the Act, we have notified the ITC of our requested, to afford interested parties an
Department does not require any cash preliminary affirmative determination of opportunity to comment on arguments
deposit or posting of a bond for this sales at less than fair value. Section raised in case or rebuttal briefs. If a
preliminary determination for BGY. 735(b)(2) of the Act requires the ITC to request for a hearing is made, we intend
Accordingly, we will not direct CBP to make its final determination as to to hold the hearing three days after the
suspend liquidation of any entries of whether the domestic industry in the deadline of submission of rebuttal briefs
diamond sawblades from the PRC that United States is materially injured, or at the U.S. Department of Commerce,
are exported by BGY and entered, or threatened with material injury, by 14th Street and Constitution Ave, NW,
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withdrawn from warehouse, for reason of imports of diamond Washington, DC 20230, at a time and
consumption on or after the date of sawblades, or sales (or the likelihood of location to be determined. Parties
publication of this notice in the Federal sales) for importation, of the subject should confirm by telephone the date,
Register. We will also instruct CBP to merchandise within 45 days of our final time, and location of the hearing two
suspend liquidation of entries of determination. days before the scheduled date.

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Federal Register / Vol. 70, No. 249 / Thursday, December 29, 2005 / Notices 77135

Interested parties who wish to request later than 135 days after the date of Cryor, Import Compliance Specialist,
a hearing, or to participate if one is publication of this preliminary through Mark Manning, Acting Program
requested, must submit a written determination in the Federal Register. Manager, Regarding ‘‘Investigation of
request to the Assistant Secretary for EFFECTIVE DATE: December 29, 2005. Diamond Sawblades and Parts Thereof
Import Administration, U.S. Department FOR FURTHER INFORMATION CONTACT: from the Republic of Korea; Release of
of Commerce, Room 1870, within 30 Mark Manning or Maisha Cryor, AD/ Mini-section A Questionnaires,’’ dated
days after the date of publication of this CVD Operations, Office 4, Import June 23, 2005. On June 30, 2005, and
notice. See 19 CFR 351.310(c). Requests Administration, International Trade July 6, 2005, respectively, the
should contain the party’s name, Administration, U.S. Department of Department received timely Q&V
address, and telephone number, the Commerce, 14th Street and Constitution responses from seven Korean producers/
number of participants, and a list of the Avenue, NW, Washington, DC 20230; exporters of DSB. See Memorandum to
issues to be discussed. At the hearing, telephone: (202) 482–5253 or (202) 482– the File, from Maisha Cryor, Import
each party may make an affirmative 5831, respectively. Compliance Specialist, through Mark
presentation only on issues raised in SUPPLEMENTARY INFORMATION: Manning, Acting Program Manager,
that party’s case brief and may make Regarding ‘‘Investigation of Diamond
rebuttal presentations only on Preliminary Determination Sawblades and Parts Thereof from the
arguments included in that party’s We preliminarily determine that DSB Republic of Korea; Mini-section A
rebuttal brief. from Korea are being, or are likely to be, Questionnaire Response Status,’’ dated
We will make our final determination sold in the United States at LTFV, as July 15, 2005.
no later than 135 days after the date of provided in section 733 of the Act. The On July 14, 2005, the International
publication of this preliminary estimated margins of sales at LTFV are Trade Commission (ITC) preliminarily
determination, pursuant to section shown in the ‘‘Suspension of determined that there is a reasonable
735(a)(2) of the Act. Liquidation’’ section of this notice. In indication that an industry in the
This determination is issued and addition, we preliminarily determine United States is materially injured by
published in accordance with sections that there is not a reasonable basis to reason of DSB imported from Korea that
733(f) and 777(i)(1) of the Act. believe or suspect that critical are alleged to be sold in the United
Dated: December 20, 2005. circumstances exist with respect to the States at LTFV. See ITC Investigation
Stephen J. Claeys,
subject merchandise exported from No. 731–TA–1093.
Korea. The critical circumstances On July 14, 2005, the Department
Acting Assistant Secretary for Import
analysis for the preliminary issued its proposed draft product
determination is discussed below under characteristics and model match criteria
[FR Doc. 05–24627 Filed 12–28–05; 8:45 am]
the section ‘‘Critical Circumstances.’’ to the seven Korean producers/exporters
Background of DSB who submitted timely Q&V
information. See ‘‘Letter to All
Since the initiation of this Interested Parties, Regarding Product
DEPARTMENT OF COMMERCE investigation (see Initiation of Characteristics and Model Match
Antidumping Duty Investigations: Criteria for the Antidumping
International Trade Administration
Diamond Sawblades and Parts Thereof Investigation of Diamond Sawblades
[A–580–855] from the People’s Republic of China and and Parts Thereof from the Republic of
the Republic of Korea, 70 FR 35625 Korea,’’ dated July 14, 2005. After
Notice of Preliminary Determination of (June 21, 2005) (Initiation Notice)), the setting aside a period of time for all
Sales at Less Than Fair Value, following events have occurred. interested parties to provide comments
Postponement of Final Determination, The Department set aside a period for on the proposed product characteristics
and Negative Preliminary Critical all interested parties to raise issues and model match criteria, the
Circumstances Determination: regarding product coverage of the scope
Department received comments from
Diamond Sawblades and Parts Thereof of the investigation. See Initiation
Ehwa, Shinhan Diamond Industrial Co.,
from the Republic of Korea Notice, at 70 FR 35626. On September
Ltd. (Shinhan) and the petitioner on
16, 2005, and October 6, 2005, Ehwa
AGENCY: Import Administration, July 22, 2005. On July 29, 2005, Ehwa,
Diamond Industrial Co., Ltd. (Ehwa)
International Trade Administration, Shinhan and the petitioner submitted
submitted comments on product
Department of Commerce. rebuttal comments.
coverage. The petitioner1 submitted
SUMMARY: We preliminarily determine On July 20, 2005, the Department
rebuttal comments in September 2005,
that diamond sawblades and parts selected Ehwa, Shinhan and BK
October 2005, and November 2005. On
thereof (DSB) from the Republic of Diamond Products (BK Diamond)
November 23, 2005, Diamax Industries
Korea (Korea) are being, or are likely to (collectively, the respondents), as
Inc. (Diamax) also submitted comments
be, sold in the United States at less than mandatory respondents in this
on product coverage. See ‘‘Scope
fair value (LTFV), as provided in section investigation. See Memorandum from
Comments’’ section below.
733(b) of the Tariff Act of 1930, as Maisha Cryor, Analyst, to Holly A.
On June 23, 2005, and June 29, 2005,
amended (the Act). In addition, we Kuga, Senior Office Director, ‘‘Selection
respectively, the Department requested
preliminarily determine that there is not of Respondents for the Antidumping
quantity and value (Q&V) information
a reasonable basis to believe or suspect Duty Investigation of Diamond
from a total of thirteen producers of DSB
that critical circumstances exist with Sawblades and Parts Thereof from the
in Korea. The Korean DSB producers
respect to the subject merchandise Republic of Korea,’’ dated July 20, 2005
from which Q&V information was
exported from Korea. (Respondent Selection Memorandum),
requested were identified in the
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Interested parties are invited to on file in the Central Records Unit

Petition, as well as other sources. See
comment on this preliminary (CRU), Room B–099 of the main
Memorandum to the File, from Maisha
determination. Because we are Commerce building.
postponing the final determination, we 1 The petitioner in this investigation is the On July 20, 2005, the Department
will make our final determination not Diamond Sawblade Manufacturers’ Coalition. issued sections A–E of its antidumping

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