[Federal Register: April 1, 2008 (Volume 73, Number 63)]
[Notices]               
[Page 17318-17323]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap08-34]                         

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

A-570-932

 
Steel Threaded Rod from the People's Republic of China: 
Initiation of Antidumping Duty Investigation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: April 1, 2008.

FOR FURTHER INFORMATION CONTACT: Juanita H. Chen, AD/CVD Operations, 
China/NME Group, SEC Office, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: 202-482-1904.

INITIATION OF INVESTIGATION:

The Petition

    On March 5, 2008, the Department of Commerce (``Department'') 
received a petition concerning imports of steel threaded rod from the 
People's Republic of China (``PRC''), filed in proper form by Vulcan 
Threaded Products, Inc. (``Petitioner''). See Petition for the 
Imposition of Antidumping Duties on Certain Steel Threaded Rod from the 
People's Republic of China, filed March 5, 2008 (``Petition''). On 
March 7, and March 14, 2008, the Department issued requests for 
additional information and clarification of certain areas of the 
Petition. Based on the Department's requests, Petitioner filed 
additional information on March 12, 2008 (``Supplement to the 
Petition''), and on March 18, 2008 (``Second Supplement'').
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (``Act''), Petitioner alleges that imports of steel threaded 
rod from the PRC are being, or are likely to be, sold in the United 
States at less than fair value (``LTFV''), within the meaning of 
section 731 of the Act, and that the domestic industry is materially 
injured or threatened with material injury by reason of such imports.
    The Department finds that Petitioner may file this Petition on 
behalf of the domestic industry because Petitioner is an interested 
party as defined in section 771(9)(C) of the Act, and has demonstrated 
sufficient industry support with respect to the antidumping duty 
investigation. See ``Determination of Industry Support for the 
Petition'' section, infra.

[[Page 17319]]

Period of Investigation

    The period of investigation (``POI'') is July 1, 2007, through 
December 31, 2007. See 19 C.F.R. 351.204(b)(1).

Scope of Investigation

    The merchandise covered by this investigation is steel threaded 
rod. Steel threaded rod is certain threaded rod, bar, or studs, of 
carbon quality steel, having a solid, circular cross section, of any 
diameter, in any straight length, that have been forged, turned, cold-
drawn, cold-rolled, machine straightened, or otherwise cold-finished, 
and into which threaded grooves have been applied. In addition, the 
steel threaded rod, bar, or studs subject to this investigation are 
non-headed and threaded along greater than 25 percent of their total 
length. A variety of finishes or coatings, such as plain oil finish as 
a temporary rust protectant, zinc coating (i.e., galvanized, whether by 
electroplating or hot-dipping), paint, and other similar finishes and 
coatings, may be applied to the merchandise.
    Included in the scope of this investigation are steel threaded rod, 
bar, or studs, in which: (1) iron predominates, by weight, over each of 
the other contained elements; (2) the carbon content is 2 percent or 
less, by weight; and (3) none of the elements listed below exceeds the 
quantity, by weight, respectively indicated:
     1.80 percent of manganese, or
     1.50 percent of silicon, or
     1.00 percent of copper, or
     0.50 percent of aluminum, or
     1.25 percent of chromium, or
     0.30 percent of cobalt, or
     0.40 percent of lead, or
     1.25 percent of nickel, or
     0.30 percent of tungsten, or
     0.012 percent of boron, or
     0.10 percent of molybdenum, or
     0.10 percent of niobium, or
     0.41 percent of titanium, or
     0.15 percent of vanadium, or
     0.15 percent of zirconium.
    Steel threaded rod is currently classifiable under subheading 
7318.15.5060 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). Although the HTSUS subheading is provided for convenience 
and customs purposes, the written description of the merchandise is 
dispositive.
    Excluded from the scope of the investigation are: (a) threaded rod, 
bar, or studs which are threaded only on one or both ends and the 
threading covers 25 percent or less of the total length; and (b) 
threaded rod, bar, or studs made to American Society for Testing and 
Materials (``ASTM'') A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 
Grade B16, or ASTM A320 Grade L7.

Comments on Scope of Investigation

    During review of the Petition, the Department discussed the scope 
with Petitioner to ensure that the scope is an accurate reflection of 
the products for which the domestic industry is seeking relief. In 
addition, as discussed in the preamble to the Department's regulations, 
the Department is setting aside a period of time for interested parties 
to raise issues regarding product coverage. See Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997). 
The Department encourages all interested parties to submit such 
comments to the Department by April 15, 2008. Comments should be 
addressed to Import Administration's APO/Dockets Unit, Room 1870, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230, attention Juanita Chen, room 4003. The period of 
scope consultations is intended to provide the Department with ample 
opportunity to consider all comments and to consult with parties prior 
to the issuance of the preliminary determination.

Comments on Product Characteristics for Antidumping Duty Questionnaire

    The Department is requesting comments from interested parties 
regarding the appropriate physical characteristics of steel threaded 
rod to be reported in response to the Department's antidumping 
questionnaire. This information will be used to identify the key 
physical characteristics of the subject merchandise in order for any 
respondents to report more accurately the relevant factors of 
production, as well as develop appropriate product reporting criteria, 
in accordance with the Department's non-market economy (``NME'') 
methodology, as described in the ``Normal Value'' section, infra.
    Interested parties may provide any information or comments that 
they believe are relevant to the development of an accurate listing of 
physical characteristics. Specifically, interested parties may provide 
comments as to which characteristics are appropriate to use as: 1) 
general product characteristics; and 2) product reporting criteria. The 
Department notes that it is not always appropriate to use all product 
characteristics as product reporting criteria. While there may be some 
physical product characteristics that manufacturers use to describe 
steel threaded rod, it may be that only a select few product 
characteristics take into account meaningful physical characteristics 
of steel threaded rod.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaire, the 
Department must receive non-proprietary comments at the above-
referenced address by April 15, 2008, and receive rebuttal comments by 
April 25, 2008.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (``ITC''), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United 
States, 688 F. Supp. 639, 644

[[Page 17320]]

(CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 
919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Thus, the reference point from which the 
domestic like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, Petitioner does not offer 
a definition of domestic like product distinct from the scope of the 
investigation. Based on the Department's analysis of the information 
submitted on the record, the Department has determined that steel 
threaded rod constitutes a single domestic like product and the 
Department has analyzed industry support in terms of that domestic like 
product. For a discussion of the domestic like product analysis in this 
case, see ``Antidumping Duty Investigation Initiation Checklist: Steel 
Threaded Rod from the People's Republic of China'' (``Initiation 
Checklist''), at Attachment II (Industry Support), on file in the 
Central Records Unit, Room 1117 of the main Department of Commerce 
building.
    The Department's review of the data provided in the Petition, 
supplemental submissions, and other information readily available to 
the Department indicates that Petitioner has established industry 
support. First, the Petition establishes support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, the Department is 
not required to take further action in order to evaluate industry 
support (e.g., polling). See Section 732(c)(4)(D) of the Act. Second, 
the domestic producers have met the statutory criteria for industry 
support under 732(c)(4)(A)(i) because the domestic producers (or 
workers) who support the Petition account for at least 25 percent of 
the total production of the domestic like product. Finally, the 
domestic producers have met the statutory criteria for industry support 
under 732(c)(4)(A)(ii) because the domestic producers (or workers) who 
support the Petition account for more than 50 percent of the production 
of the domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petition. Accordingly, 
the Department determines that the Petition was filed on behalf of the 
domestic industry within the meaning of section 732(b)(1) of the Act. 
See Initiation Checklist, at Attachment II.
    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because it is an interested party as defined 
in section 771(9)(C) of the Act and it has demonstrated sufficient 
industry support with respect to the antidumping investigation that it 
is requesting the Department initiate. See Initiation Checklist, at 
Attachment II.

Allegations and Evidence of Material Retardation and of Material Injury 
and Causation

    Petitioner alleges that the U.S. industry producing the domestic 
like product is being materially injured by reason of the imports of 
the subject merchandise sold at less than normal value (``NV''). 
Petitioner contends that the industry's injured condition is 
illustrated by the reduced market share, reduced production, and 
capacity utilization, reduced shipments, increased inventory, 
underselling and price depressing and suppressing effects, lost revenue 
and sales, reduced employment, a decline in financial performance, and 
an increase in import penetration. The Department has assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, and causation, and the Department determines that 
these allegations are properly supported by adequate evidence and meet 
the statutory requirements for initiation. See Initiation Checklist, at 
Attachment III.

Allegation of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at LTFV 
upon which the Department based its decision to initiate this 
investigation of imports of steel threaded rod from the PRC. The 
sources of data for the deductions and adjustments relating to the U.S. 
price and the factors of production are also discussed in the 
checklist. See Initiation Checklist. Should the need arise to use any 
of this information as facts available under section 776 of the Act in 
the preliminary or final determinations, the Department will reexamine 
the information and revise the margin calculations, if appropriate.

Export Price

    Petitioner relied on 24 price quotes on three steel threaded rod 
products from the PRC offered for sale to the U.S. customer during the 
POI. See Petition, at 30 and Exhibits 22 and 23; Supplement to the 
Petition, at Exhibit G; Second Supplement at Exhibit C. Petitioner 
deducted from the prices the costs associated with exporting and 
delivering the product, including ocean freight, U.S. inland freight 
costs, and distributor markup. See Initiation Checklist. Petitioner 
also deducted discounts, when applicable. See Initiation Checklist. 
Petitioner calculated the freight charges and distributor mark-up based 
on its own industry knowledge and experience. See Petition, at Exhibits 
22; Supplement to the Petition, at Exhibit G; Second Supplement, at 
Exhibit C.

Normal Value

    Petitioner notes that the Department's long-standing treatment of 
the PRC as an NME country remains in effect until revoked by the 
Department, and notes that no such revocation determination has been 
made to date. See Petition, at 27. The Department has previously 
examined the PRC's market status and determined that NME status should 
continue for the PRC. See Memorandum from the Office of Policy to David 
M. Spooner, Assistant Secretary for Import Administration, regarding 
The People's Republic of China Status as a Non-Market Economy, dated 
May 15, 2006 (available online at http://ia.ita.doc.gov/download /prc-
nme-status/prc-nme-status-memo.pdf). In addition, in recent 
investigations, the Department has continued to determine that the PRC 
is an NME country. See Final Determination of Sales at Less Than Fair 
Value and Partial Affirmative Determination of Critical Circumstances: 
Certain Polyester Staple Fiber from the People's Republic of China, 72 
FR 19690 (April 19, 2007); Final Determination of Sales at Less Than 
Fair Value: Certain Activated Carbon from the People's Republic of 
China, 72 FR 9508 (March 2, 2007).
    In accordance with section 771(18)(C)(i) of the Act, the 
presumption of NME status remains in effect until revoked by the 
Department. The presumption of NME status for the PRC has not been 
revoked by the Department and, therefore, remains in effect for 
purposes of the initiation of this investigation. Accordingly, the NV 
of the product is appropriately based on factors of production valued 
in a surrogate market economy country, in accordance with section 
773(c) of the Act. In the course of this investigation, all parties 
will have the opportunity to provide relevant information related to 
the issues of the PRC's NME status and the granting of separate rates 
to individual exporters.
    Petitioner argues that India is the appropriate surrogate country 
for the

[[Page 17321]]

PRC, because it is a market-economy country at a comparable level of 
economic development, its surrogate data is available and reliable, and 
it is a significant producer of steel threaded rod. See Petition, at 
27-28. Petitioner asserts that other potential surrogate countries are 
not known manufacturers of steel threaded rod. See Petition, at 28; 
Initiation Checklist. Based on the information provided by Petitioner, 
the Department believes that the use of India as a surrogate country is 
appropriate for purposes of initiation. However, after initiation of 
the investigation, interested parties will have the opportunity to 
submit comments regarding surrogate country selection and, pursuant to 
19 C.F.R. 351.301(c)(3)(i), will be provided an opportunity to submit 
publicly available information to value factors of production within 40 
days after the date of publication of the preliminary determination.
    Petitioner calculated NVs and dumping margins for each of the U.S. 
prices, discussed above, using the Department's NME methodology as 
required by 19 C.F.R. 351.202(b)(7)(i)(C) and 19 C.F.R. 351.408. 
Petitioner calculated NVs based on its own consumption rates for 
producing steel threaded rod in 2007. See Initiation Checklist. 
Petitioner states that its production experience is representative of 
the production process used in the PRC because all of the material 
inputs and processing must be virtually identical, and are unlikely to 
be materially different for a Chinese producer of steel threaded rod. 
See Supplement to the Petition, at 9.
    Petitioner valued the factors of production on reasonably 
available, public surrogate country data, including India statistics 
from the World Trade Atlas, public information from the website of the 
Joint Plant Committee, an Indian institution that collects data on the 
Indian iron and steel industry, and Key World Energy Statistics 2003, 
published by the International Energy Agency, as adjusted and used by 
the Department in the twelfth administrative review of fresh garlic 
from the PRC. See Initiation Checklist. Where Petitioner was unable to 
find input prices contemporaneous with the POI, Petitioner adjusted for 
inflation using the wholesale price index for India, as published in 
``International Financial Statistics'' by the International Monetary 
Fund. See Petition, at 29 and Exhibit 20. For purposes of initiation, 
the Department determines that the surrogate values used by Petitioner 
are reasonably available and, thus, acceptable for purposes of 
initiation.
    Petitioner based factory overhead expenses, selling, general and 
administrative expenses, and profit, on data from Lakshmi Precision 
Screws Limited (``Lakshmi''), an Indian manufacturer of fasteners, for 
the fiscal year ending March 31, 2007. See Petition, at Exhibit 21. The 
Department has previously relied on Lakshmi's data for other 
antidumping investigation initiations and finds Petitioner's use of 
Lakshmi's financial ratios appropriate for purposes of initiation. See 
Initiation Checklist; see also Steel Wire Garment Hangers from the PRC: 
AD Investigation Initiation Checklist (September 10, 2007); and Steel 
Nails from the PRC: AD Investigation Initiation Checklist (July 9, 
2007). However, the Department has made minor modifications, as 
appropriate, to the surrogate financial ratios as calculated by 
Petitioner. See Initiation Checklist, at Attachment V.

Fair Value Comparisons

    Based on the data provided by Petitioner, as adjusted by the 
Department, there is reason to believe that imports of steel threaded 
rod from the PRC are being, or are likely to be, sold in the United 
States at LTFV. Based on comparisons of export price to NV, calculated 
in accordance with section 773(c) of the Act, the estimated dumping 
margins for steel threaded rod range from 36.17 percent to 659.26 
percent. See Initiation Checklist, at Attachment V.

Initiation of Antidumping Investigations

    Based upon the examination of the Petition on steel threaded rod 
from the PRC, the Department finds that the Petition meets the 
requirements of section 732 of the Act. Therefore, the Department is 
initiating an antidumping duty investigation to determine whether 
imports of steel threaded rod from the PRC are being, or are likely to 
be, sold in the United States at LTFV. In accordance with section 
733(b)(1)(A) of the Act, unless postponed, the Department will make its 
preliminary determination no later than 140 days after the date of this 
initiation.

Separate Rates

    In order to obtain separate-rate status in NME investigations, 
exporters and producers must submit a separate-rate status application. 
See Policy Bulletin 05.1: Separate-Rates Practice and Application of 
Combination Rates in Antidumping Investigations involving Non-Market 
Economy Countries (April 5, 2005)(``Separate Rates/Combination Rates 
Bulletin''), available on the Department's website at http://
ia.ita.doc.gov/policy/bull05-1.pdf. The specific requirements for 
submitting the separate-rate application in this investigation are 
outlined in detail in the application itself, available on the 
Department's website at http://ia.ita.doc.gov/ia-highlights-and-
news.html on the date of publication of this initiation notice in the 
Federal Register. The separate rate-application will be due on June 2, 
2008.

NME Respondent Selection and Quantity and Value Questionnaire

    The Department will request quantity and value information from all 
known exporters and producers identified in the Petition and Supplement 
to the Petition. The quantity and value data received from NME 
exporters/producers will be used as the basis to select the mandatory 
respondents.
    The Department requires that the respondents submit a response to 
both the quantity and value questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. See Circular Welded Austenitic 
Stainless Pressure Pipe from the People's Republic of China: Initiation 
of Antidumping Duty Investigation, 73 FR 10221, 10225 (February 26, 
2008); and Initiation of Antidumping Duty Investigation: Certain Artist 
Canvas From the People's Republic of China, 70 FR 21996, 21999 (April 
28, 2005). Appendix I of this notice contains the quantity and value 
questionnaire that must be submitted by all NME exporters/producers no 
later than April 22, 2008. In addition, the Department will post the 
quantity and value questionnaire along with the filing instructions on 
the Import Administration website, at http://ia.ita.doc.gov/ia-
highlights-and-news.html. The Department will send the quantity and 
value questionnaire to those PRC companies identified in the Petition, 
at Exhibit 6, and in the Supplement to the Petition, at Exhibit B.

Use of Combination Rates in an NME Investigation

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in this 
investigation. The Separate Rates/Combination Rates Bulletin states:
    {w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that

[[Page 17322]]

one rate is calculated for the exporter and all of the producers which 
supplied subject merchandise to it during the period of investigation. 
This practice applies both to mandatory respondents receiving an 
individually calculated separate rate as well as the pool of non-
investigated firms receiving the weighted-average of the individually 
calculated rates. This practice is referred to as the application of 
``combination rates'' because such rates apply to specific combinations 
of exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the firm 
in question and produced by a firm that supplied the exporter during 
the period of investigation.
See Separate Rates/Combination Rates Bulletin, at 6.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 C.F.R. 
351.202(f), copies of the public version of the Petition have been 
provided to the representatives of the Government of the PRC. Because 
of the particularly large number of exporters and producers identified 
in the Petition, the Department considers the service of the public 
version of the Petition to the foreign exporters/producers satisfied by 
the delivery of a public version to the Government of the PRC, 
consistent with 19 C.F.R. 351.203(c)(2).

U.S. International Trade Commission Notification

    The Department has notified the ITC of its initiation, as required 
by section 732(d) of the Act.

Preliminary Determination by the International Trade Commission

    The ITC will preliminarily determine, no later than April 21, 2008, 
whether there is a reasonable indication that the U.S. industry is 
materially injured or threatened with material injury by imports of 
steel threaded rod from the PRC. A negative ITC determination with 
respect to the investigation will result in the investigation being 
terminated; otherwise, this investigation will proceed according to 
statutory and regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: March 25, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix I

Where it is not practicable to examine all known exporters/producers of 
subject merchandise, section 777A(c)(2) of the Tariff Act of 1930, as 
amended, permits us to investigate 1) a sample of exporters, producers, 
or types of products that is statistically valid based on the 
information available at the time of selection, or 2) exporters and 
producers accounting for the largest volume and value of the subject 
merchandise that can reasonably be examined.
In the chart below, please provide the total quantity and total value 
of all your sales of merchandise covered by the scope of this 
investigation (see ``Scope of Investigation'' section of this notice), 
produced in the PRC, and exported/shipped to the United States during 
the period July 1, 2007, through December 31, 2007.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                           Market                               Total Quantity in Pieces            Terms of Sale                   Total Value
--------------------------------------------------------------------------------------------------------------------------------------------------------
United States..............................................  .............................  .............................  .............................
1. Export Price Sales......................................  .............................  .............................  .............................
2. a. Exporter Name........................................  .............................  .............................  .............................
 b. Address................................................  .............................  .............................  .............................
 c. Contact................................................  .............................  .............................  .............................
 d. Phone No...............................................  .............................  .............................  .............................
 e. Fax No.................................................  .............................  .............................  .............................
3. Constructed Export Price Sales..........................  .............................  .............................  .............................
4. Further Manufactured....................................  .............................  .............................  .............................
Total Sales................................................  .............................  .............................  .............................
--------------------------------------------------------------------------------------------------------------------------------------------------------

Total Quantity:

     Please report quantity on a metric ton basis. If any 
conversions were used, please provide the conversion formula and 
source.

Terms of Sales:

     Please report all sales on the same terms (e.g., free on 
board at port of export).

Total Value:

     All sales values should be reported in U.S. dollars. 
Please indicate any exchange rates used and their respective dates and 
sources.

Export Price Sales:

     Generally, a U.S. sale is classified as an export price 
sale when the first sale to an unaffiliated customer occurs before 
importation into the United States.
     Please include any sales exported by your company directly 
to the United States.
     Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that the 
merchandise was destined to be resold to the United States.
     If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were subsequently 
exported by an affiliated exporter to the United States.
     Please do not include any sales of subject merchandise 
manufactured in Hong Kong in your figures.

Constructed Export Price Sales:

     Generally, a U.S. sale is classified as a constructed 
export price sale when the first sale to an unaffiliated customer 
occurs after importation. However, if the first sale to the 
unaffiliated customer is made by a person in the United States 
affiliated with the foreign exporter, constructed export price applies 
even if the sale occurs prior to importation.
     Please include any sales exported by your company directly 
to the United States;
     Please include any sales exported by your company to a 
third-country market economy reseller where you had knowledge that the 
merchandise was destined to be resold to the United States.
     If you are a producer of subject merchandise, please 
include any sales manufactured by your company that were subsequently 
exported by an affiliated exporter to

[[Page 17323]]

the United States.
     Please do not include any sales of subject merchandise 
manufactured in Hong Kong in your figures.

Further Manufactured:

     Sales of further manufactured or assembled (including re-
packaged) merchandise is merchandise that undergoes further manufacture 
or assembly in the United States before being sold to the first 
unaffiliated customer.
     Further manufacture or assembly costs include amounts 
incurred for direct materials, labor and overhead, plus amounts for 
general and administrative expense, interest expense, and additional 
packing expense incurred in the country of further manufacture, as well 
as all costs involved in moving the product from the U.S. port of entry 
to the further manufacturer.
[FR Doc. E8-6712 Filed 3-31-08; 8:45 am]

BILLING CODE 3510-DS-S