[Federal Register Volume 71, Number 43 (Monday, March 6, 2006)]
[Notices]
[Pages 11189-11190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-2134]
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DEPARTMENT OF COMMERCE
International Trade Administration
Antidumping Proceedings: Calculation of the Weighted Average
Dumping Margin During an Antidumping Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') is requesting
comments regarding the calculation of the weighted average dumping
margin in an antidumping duty investigation. Currently, the Department
usually makes comparisons between average export prices and average
normal values and does not offset any dumping that is found with the
results of comparisons for which the average export price exceeds the
average normal value. A recent WTO dispute settlement report has found
that the United States application of this methodology was inconsistent
with our WTO obligations. In response to this report, the Department
will abandon the use of average-to-average comparisons without such
offsets. The Department seeks comment on the alternative approach(s)
that may be appropriate in future investigations.
EFFECTIVE DATE: March 6, 2006.
DATES: To be assured of consideration, written comments must be
received no later than 30 days after the date of publication in the
Federal Register. Rebuttal comments must be received no later than 45
days after the publication date.
ADDRESS: Submit comments to David Spooner, Assistant Secretary for
Import Administration, U.S. Department of Commerce, Central Records
Unit, Room 1870, Pennsylvania Avenue and 14th Street, NW., Washington,
DC 20230; Attention: Weighted Average Dumping Margin.
FOR FURTHER INFORMATION CONTACT: Michael Rill at 202) 482-3058, Mark
Barnett at (202) 482-2866, or William Kovatch at (202) 482-5052.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to section 777A(d)(1)(A) of the Tariff Act of 1930, in an
investigation, the Department may determine whether the subject
merchandise is being sold at less than fair value either by comparing
weighted average normal values to weighted average export prices of
comparable merchandise (the average-to-average comparison methodology),
or by comparing normal values of individual transactions to the export
prices\1\ of individual transactions for comparable merchandise (the
transaction-to-transaction comparison methodology). The Department's
regulations state that the Department will normally use the average-to-
average comparison methodology in an investigation. 19 C.F.R.
351.414(c)(1).
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\1\ The Department may also use constructed export prices, if
appropriate. Because the use of export prices or constructed export
prices is not relevant to the substance of this notice, the
Department refers only to export prices hereafter.
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In applying the average-to-average methodology during an
investigation, the Department usually divides the export transactions
into groups by model and level of trade (``averaging groups''), and
compares an average of the export price of transactions within one
group to an average normal value for the same or similar model of the
foreign like product at the same or most similar level of trade. When
aggregating the results of the comparisons of averaging groups in order
to determine the weighted average dumping margin, the Department has
not allowed the results of averaging groups for which export price
exceeds normal value to offset the results of averaging groups for
which export price is less than normal value.\2\
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\2\ Section 771(35)(A) of the Act defines the dumping margin as
the amount by which normal value ``exceeds'' export or constructed
export price. Section 771(35)(B) defines the weighted average
dumping margin as the percentage determined by dividing the
aggregate dumping margins determined for a specific exporter or
producer by the aggregate export or constructed export price of that
exporter or producer.
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The European Communities (``EC'') challenged the denial of offsets,
both ``as such,'' and ``as applied'' in certain administrative
determinations, as being inconsistent with the World Trade Organization
(``WTO'') Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade 1994 (``Antidumping Agreement'') before
a dispute settlement panel. The panel circulated its report on October
31, 2005, finding, with respect to the specific antidumping duty
investigations subject to the EC's challenge, that the Department's
denial of offsets when using the average-to-average comparison
methodology in an investigation is inconsistent with Article 2.4.2 of
the Antidumping Agreement.\3\ The United States has not appealed this
aspect of the panel's report.
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\3\ Panel Report, United States - Laws, Regulations and
Methodology for Calculating Dumping Margins (``US - Zeroing''), WT/
DS294/R, para. 7.32, circulated October 31, 2005 (``Zeroing'').
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Proposal for Calculating the Weighted Average Dumping Margin in an
Antidumping Investigation and Request for Comments
Pursuant to section 123(g)(1) of the Uruguay Round Agreements Act
(``the URAA''), ``[i]n any case in which a dispute settlement panel or
the Appellate Body finds in its report that a regulation or practice of
a department or agency of the United States is inconsistent with any of
the Uruguay Round Agreements,'' certain requirements must be met before
``that regulation or practice'' may be ``amended, rescinded, or
otherwise modified . . . .'' Section 123(g)(1)(C) of the URAA requires
that the Department provide opportunity for public comment by
publishing ``the proposed modifications and the explanation of the
modification'' in the Federal Register.
The WTO panel in US - Zeroing has found the denial of offsets in
certain antidumping duty investigations, when using the average-to-
average comparison methodology, to be inconsistent with Article 2.4.2
of the Antidumping Agreement.\4\ Accordingly, the Department proposes
that it will no longer make average-to-average comparisons without
providing offsets for non-dumped comparisons.
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\4\ US - Zeroing, para. 7.32.
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The Department is soliciting comments pertaining to this proposal
and appropriate methodologies to be applied in future antidumping duty
investigations in light of the panel's report in US - Zeroing.
Timetable
After considering all comments received, the Department intends to
publish in the Federal Register a final notice regarding the
calculation of the weighted average dumping margin using the average-
to-average comparison methodology in an investigation. See section
123(g)(1)(F) of the URAA (19 U.S.C. 3533(g)(1)(F)). Any changes in
methodology will be applied in all investigations initiated on the
basis of petitions received on or after the first day of the month
following the date of publication of the Department's final notice of
the new weighted average dumping margin calculation methodology.
Comments - Format
Parties wishing to comment should submit a signed original and six
copies of each set of comments, including reasons for any
recommendations, along with a cover letter identifying the commenter's
name and address. To help simplify the processing and distribution
[[Page 11190]]
of comments and rebuttals, the Department requests that a submission in
electronic form accompany the required paper copies. Comments filed in
electronic form should be on CD-ROM in either WordPerfect format or a
format that the WordPerfect program can convert into WordPerfect.
Comments received on CD-ROM will be made available to the public on
the Web at the following address: http://ia.ita.doc.gov/. In addition,
upon request, the Department will make comments filed in electronic
form available to the public on CD-ROMs (at cost) with specific
instructions for accessing compressed data (if necessary). Any
questions concerning file formatting, document conversion, access on
the Web, or other electronic filing issues should be addressed to
Andrew Lee Beller, IA Webmaster, at (202) 482-0866 or via e-mail at
[email protected].
Dated: February 28, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. 06-2134 Filed 3-3-06; 1:14 pm]
Billing Code: 3510-DS-R