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Justia Regulation Tracker Department Of Commerce International Trade Administration Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value, 75032-75037 [2016-26104]
Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value, 75032-75037 [2016-26104]
Download as PDF mstockstill on DSK3G9T082PROD with NOTICES 75032 Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices section, with an outside diameter (O.D.) not more than nominal 16 inches (406.4 mm), regardless of wall thickness, surface finish (e.g., black, galvanized, or painted), end finish (plain end, beveled end, grooved, threaded, or threaded and coupled), or industry specification (e.g., American Society for Testing and Materials International (ASTM), proprietary, or other), generally known as standard pipe, fence pipe and tube, sprinkler pipe, and structural pipe (although subject product may also be referred to as mechanical tubing). Specifically, the term ''carbon quality'' includes products in which: (a) iron predominates, by weight, over each of the other contained elements; (b) the carbon content is 2 percent or less, by weight; and (c) none of the elements listed below exceeds the quantity, by weight, as indicated: (i) 1.80 percent of manganese; (ii) 2.25 percent of silicon; (iii) 1.00 percent of copper; (iv) 0.50 percent of aluminum; (v) 1.25 percent of chromium; (vi) 0.30 percent of cobalt; (vii) 0.40 percent of lead; (viii) 1.25 percent of nickel; (ix) 0.30 percent of tungsten; (x) 0.15 percent of molybdenum; (xi) 0.10 percent of niobium; (xii) 0.41 percent of titanium; (xiii) 0.15 percent of vanadium; or (xiv) 0.15 percent of zirconium. Covered products are generally made to standard O.D. and wall thickness combinations. Pipe multi-stenciled to a standard and/or structural specification and to other specifications, such as American Petroleum Institute (API) API–5L specification, may also be covered by the scope of these investigations. In particular, such multi-stenciled merchandise is covered when it meets the physical description set forth above, and also has one or more of the following characteristics: Is 32 feet in length or less; is less than 2.0 inches (50 mm) in outside diameter; has a galvanized and/or painted (e.g., polyester coated) surface finish; or has a threaded and/or coupled end finish. Standard pipe is ordinarily made to ASTM specifications A53, A135, and A795, but can also be made to other specifications. Structural pipe is made primarily to ASTM specifications A252 and A500. Standard and structural pipe may also be produced to proprietary specifications rather than to industry specifications. Sprinkler pipe is designed for sprinkler fire suppression systems and may be made to industry specifications such as ASTM A53 or to proprietary specifications. Fence tubing is included in the scope regardless of certification to a specification listed in the exclusions below, and can also be made to the ASTM A513 specification. Products that meet the physical description set forth above but are made to the following nominal outside diameter and wall thickness combinations, which are recognized by the industry as typical for fence tubing, are included despite being certified to ASTM mechanical tubing specifications: VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 O.D. in inches (nominal) 1.315 1.315 1.315 1.315 1.315 1.315 1.315 1.660 1.660 1.660 1.660 1.660 1.900 1.900 1.900 1.900 1.900 1.900 2.375 2.375 2.375 2.375 2.375 2.375 2.375 2.875 2.875 3.500 3.500 4.000 4.000 4.500 ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... ..................... Wall thickness in inches (nominal) 0.035 0.047 0.055 0.065 0.072 0.083 0.095 0.055 0.065 0.083 0.095 0.109 0.047 0.055 0.065 0.072 0.095 0.109 0.047 0.055 0.065 0.072 0.095 0.109 0.120 0.109 0.165 0.109 0.165 0.148 0.165 0.203 Gauge 20 18 17 16 15 14 13 17 16 14 13 12 18 17 16 15 13 12 18 17 16 15 13 12 11 12 8 12 8 9 8 7 The scope of this investigation does not include: (a) pipe suitable for use in boilers, superheaters, heat exchangers, refining furnaces and feedwater heaters, whether or not cold drawn, which are defined by standards such as ASTM A178 or ASTM A192; (b) finished electrical conduit, i.e., Electrical Rigid Steel Conduit (also known as Electrical Rigid Metal Conduit and Electrical Rigid Metal Steel Conduit), Finished Electrical Metallic Tubing, and Electrical Intermediate Metal Conduit, which are defined by specifications such as American National Standard (ANSI) C80.1–2005, ANSI C80.3–2005, or ANSI C80.6–2005, and Underwriters Laboratories Inc. (UL) UL–6, UL–797, or UL–1242; (c) finished scaffolding, i.e., component parts of final, finished scaffolding that enter the United States unassembled as a ''kit.'' A kit is understood to mean a packaged combination of component parts that contains, at the time of importation, all of the necessary component parts to fully assemble final, finished scaffolding; (d) tube and pipe hollows for redrawing; (e) oil country tubular goods produced to API specifications; (f) line pipe produced to only API specifications, such as API 5L, and not multistenciled; and (g) mechanical tubing, whether or not colddrawn, other than what is included in the above paragraphs. The products subject to this investigation are currently classifiable in Harmonized PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 Tariff Schedule of the United States (HTSUS) statistical reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110, 7306.19.5150, 7306.30.1000, 7306.30.5015, 7306.30.5020, 7306.30.5025, 7306.30.5032, 7306.30.5040, 7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 7306.50.5030, 7306.50.5050, and 7306.50.5070. The HTSUS subheadings above are provided for convenience and U.S. Customs purposes only. The written description of the scope of the investigation is dispositive. Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Margin Calculations V. Discussion of the Issues 1. Management Fees 2. Weight Basis for Ajmal Steel 3. Ajmal Steel's Rebate Adjustment 4. Depreciation on Revalued Assets for Ajmal Steel 5. General and Administrative and Financial Expenses for Ajmal Steel 6. Revision of Ajmal Steel's POI Depreciation Analysis 7. Universal's Level of Trade Adjustment 8. Credit Expenses for one of Universal's U.S. Customers 9. U.S. Packing Costs for Universal 10. Sales to Universal's Affiliated Reseller Al Zaher Building Materials LLC VI. Recommendation [FR Doc. 2016–26107 Filed 10–27–16; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–032] Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the ''Department'') determines that certain iron mechanical transfer drive components (''IMTDC'') from the People's Republic of China (''PRC'') are being, or are likely to be, sold in the United States at less than fair value (''LTFV''). The period of investigation (''POI'') is April 1, 2015 through September 30, 2015. The final weightedaverage dumping margins of sales at LTFV are listed in the ''Final Determination Dumping Margins'' section of this notice. DATES: Effective October 28, 2016. FOR FURTHER INFORMATION CONTACT: Krisha Hill or Jonathan Hill, AD/CVD AGENCY: E:\FR\FM\28OCN1.SGM 28OCN1 Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone (202) 482–4037 or (202) 482–3518, respectively. SUPPLEMENTARY INFORMATION: Background On June 8, 2016, the Department published in the Federal Register its preliminary affirmative determination in the LTFV investigation of IMTDC from the PRC.1 A summary of the events that occurred since the Department published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.2 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (''ACCESS''). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http:// enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic version are identical in content. Period of Investigation The period of investigation (''POI'') is April 1, 2015, through September 30, 2015. mstockstill on DSK3G9T082PROD with NOTICES Scope of the Investigation The products covered by this investigation are iron mechanical transfer drive components. These products are properly classified under Harmonized Tariff Schedule of the 1 See Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 81 FR 36876 (June 8, 2016) (Preliminary Determination) and accompanying Preliminary Decision Memorandum. 2 See Memorandum from Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Ronald Lorentzen, Acting Assistant Secretary for Enforcement and Compliance, ''Antidumping Duty Investigation of Certain Iron Mechanical Transfer Drive Components from the People's Republic of China: Issues and Decision Memorandum for the Final Determination of Sales at Less-Than-FairValue,'' (''Issues and Decision Memorandum''), dated concurrently with this determination and hereby adopted by this notice. VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 United States (''HTSUS'') subheadings 8483.30.8090, 8483.50.6000, 8483.50.9040, 8483.50.9080, 8483.90.3000, 8483.90.8080. Covered merchandise may also enter under the following HTSUS subheadings: 7325.10.0080, 7325.99.1000, 7326.19.0010, 7326.19.0080, 8431.31.0040, 8431.31.0060, 8431.39.0010, 8431.39.0050, 8431.39.0070, 8431.39.0080, and 8483.50.4000. Although the HTSUS subheading is provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. For a complete description of the scope of the investigation, see Appendix I to this notice. Scope Comments Since the Preliminary Determination, Petitioner, as well as interested parties Caterpillar Inc., Carrier Corporation, Dahua Machine Manufacturing Co. Ltd., General Motors Corporation, Kohler Co., Mercury Marine, Otis Elevator Company, Speed Solutions International Inc., ZF Services, LLC, and Vibracoustic North America LP, commented on the scope of this investigation as well as the companion IMTDCs LTFV investigation from the Canada and IMTDCs countervailing duty investigation from the PRC. The Department reviewed these comments and has incorporated into the scope of these investigations Petitioner's exclusion for certain flywheels with a permanently attached outer ring gear and for certain parts of torsional vibration dampers. For further discussion, see the ''Final Scope Decision Memorandum.'' 3 The scope in Appendix I reflects the final modified scope language. Analysis of Comments Received All issues raised in the case and rebuttal briefs that were submitted by parties in this investigation are addressed in either the Final Determination Scope Decision Memorandum or the Issues and Decision Memorandum accompanying this notice, which is hereby adopted by this notice. A list of the issues 3 See Memorandum from Abdelali Elouaradia, Director, Office IV, Antidumping and Countervailing Duty Operations, to Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, regarding ''Antidumping Duty Investigations of Certain Iron Mechanical Transfer Drive Components from Canada and the People's Republic of China and Countervailing Duty Investigation of Certain Iron Mechanical Transfer Drive Components from the People's Republic of China: Scope Decision Memorandum for the Final Determinations,'' (''Final Scope Decision Memorandum'') dated concurrently with this final determination. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 75033 addressed in the Issues and Decision Memorandum is attached to this notice at Appendix II. Verification As provided in section 782(i) of the Tariff Act of 1930, as amended (''the Act''), in June 2016, we verified the sales and factors of production information submitted by Powermach Import & Export Co., Ltd. (''Powermach''),4 the sole participating individually examined respondent. We used standard verification procedures, including an examination of relevant accounting and production records, and original source documents provided by Powermach.5 Separate Rates In the Preliminary Determination, the Department granted separate-rate status to all of the companies which provided separate rates information, except NOK (Wuxi) Vibration Control China Co. Ltd. (''NVCC''), which withdrew from participation as a mandatory respondent in this investigation, and Baldor Electric Canada (''Baldor'') and Yueqing Bethel Shaft Collar Manufacturing Co., Ltd. (''Yueqing Bethel''), which failed to respond to the Department's request for supplemental information. In this final determination, the Department has continued to treat these three companies as part of the PRC-wide entity and is also treating Zhejiang Dongxing Auto Parts Co., Ltd. (''Dongxing'') as part of the PRC-wide entity. For a full discussion of the Department's separate rates determinations with respect to Baldor, Yueqing Bethel, and Dongxing (no parties commented on the Department's separate rate determination with respect to NVCC) 4 We have continued to treat Powermach Import & Export Co., Ltd., Sichuan Dawn Precision Technology Co., Ltd., Sichuan Dawn Foundry Co., Ltd., and Powermach Co., Ltd. as a single entity based upon consideration of the factors in 19 CFR 351.401(f). See Memorandum from Krisha Hill, International Trade Analyst, AD/CVD Operations, Office IV through Howard Smith, Program Manager, AD/CVD Operations, Office IV to Abdelali Elouaradia, Office Director, AD/CVD Operations, Office IV, regarding ''Certain Iron Mechanical Transfer Drive Components from The People's Republic of China: Preliminary Affiliation and Collapsing Memorandum'' (May 31, 2016). 5 See Memorandum from Krisha Hill, International Trade Compliance Analyst, Office IV, Enforcement and Compliance and Jonathan Hill, International Trade Compliance Analyst, Office IV, Enforcement and Compliance through Howard Smith, Program Manager, Office IV Enforcement and Compliance to The File ''Verification Report of the Sales and Factors Responses of Powermach Import & Export Co., Ltd. (Sichuan), Sichuan Dawn Precision Technology Co., Ltd., Sichuan Dawn Foundry Co., Ltd., and Powermach Co., Ltd. in the Antidumping Duty Investigation of Certain Iron Mechanical Transfer Drive Components from the People's Republic of China,'' dated August 3, 2016. E:\FR\FM\28OCN1.SGM 28OCN1 75034 Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices see the Issues and Decision Memorandum. Changes to the Dumping Margin Calculations Since the Preliminary Determination Based on the Department's analysis of the comments received and findings at verification, we made certain changes to our dumping margin calculations. For a discussion of these changes, see the Issues and Decision Memorandum. Dumping Margins for Non-Individually Examined Respondents Under section 735(c)(5)(A) of the Act, the estimated rate for all companies that have not been individually examined is normally equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually examined, excluding any zero and de minimis dumping margins, and any dumping margins determined entirely on the basis of facts available. In this final determination, we calculated a weighted-average dumping margin for Powermach (the only cooperating mandatory respondent) which is not zero, de minimis, or based entirely on facts available. Accordingly, we assigned Powermach's weighted-average dumping margin to non-individually examined PRC exporters qualifying for a separate rate. PRC-Wide Rate In our Preliminary Determination, we found that the PRC-wide entity, which includes certain PRC exporters and/or producers that did not respond to the Department's requests for information, failed to provide necessary information, failed to provide information in a timely manner, and significantly impeded this proceeding by not submitting the requested information. We also find that they failed to cooperate. As a result, we preliminarily determined to calculate the PRC-wide dumping margin on the basis of adverse facts available (''AFA'') pursuant to section 776(b) of the Act. We compared the petition dumping margins to the dumping margins that we calculated for Powermach, the participating individually examined respondent, in order to determine the probative value of the dumping margins in the petition for use as AFA. We continue to find that the highest petition dumping margin, 401.68 percent, is reliable and relevant because it is within the range of the transaction-specific dumping margins on the record for Powermach. Therefore, we assigned this dumping margin (i.e., 401.68 percent) to the PRC-wide entity. Combination Rates In the Initiation Notice, the Department stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation.6 Policy Bulletin 05.1 describes this practice.7 Final Determination Dumping Margins For this final determination, the Department determines that IMTDC are being or likely to be sold in the United States at LTFV, as provided in section 735 of the Act. The Department determines that the following weightedaverage dumping margins exist during the period April 1, 2015, through September 30, 2015: Weightedaverage dumping margin (percent) Exporter Producer Powermach Import & Export Co., Ltd. (Sichuan)/Sichuan Dawn Precision Technology Co., Ltd./Sichuan Dawn Foundry Co., Ltd./Powermach Co., Ltd. Fuqing Jiacheng Trading Corporation Limited ........................... Haiyang Jingweida Gearing Co., Ltd .......................................... Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Powermach Import & Export Co., Ltd. (Sichuan)/Sichuan Dawn Precision Technology Co., Ltd./Sichuan Dawn Foundry Co., Ltd./Powermach Co., Ltd. Fuzhou Min Yue Mechanical & Electrical Co., Ltd .................... Haiyang Jingweida Gearing Co., Ltd ......................................... Shijiazhuang CAPT Power Transmission Co., Ltd .................... Shanghai CPT Machinery Co., Ltd ............................................ Yueqing Bethel Shaft Collar Manufacturing Co., Ltd ................ Kezheng (Fuzhou) Mechanical & Electrical Manufacture Co., Ltd. Handan Hengfa Transmission Co., Ltd ..................................... Shijiazhuang Lihua Mechanical Manufacturing Co., Ltd ........... Xingtai Shengjia Machinery and Equipment Factory ................ Shanghai Keli Machinery Co., Ltd ............................................. Jiangsu Zhengya Technology Co., Ltd ...................................... Taizhou Feiyang Metal Spinning Co., Ltd ................................. Taizhou Pengxun Machinery Manufacturing Co., Ltd ............... Guangde Ronghua Machinery Manufacturing Co., Ltd ............. Qiuxian Hengxin Machinery Co., Ltd ......................................... Reach Machinery Enterprise ..................................................... Chengdu Novo Machinery Co., Ltd ........................................... Chengdu Leno Machinery Co., Ltd ............................................ Shijiazhuang CAPT Power Transmission Co., Ltd .................... Sichuan Dawn Precision Technology Co., Ltd .......................... .................................................................................................... mstockstill on DSK3G9T082PROD with NOTICES Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Hangzhou Powertrans Co., Ltd .................................................. Shijiazhuang CAPT Power Transmission Co., Ltd ..................... Xinguang Technology Co. Ltd of Sichuan Province ................... PRC-Wide Entity ......................................................................... Pursuant to section 735(c)(1)(B) of the Act, the Department will instruct U.S. Initiation Notice, 81 FR at 9438–39. Enforcement and Compliance's Policy Bulletin No. 05.1, regarding, ''Separate-Rates 7 See VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 13.64 401.68 Customs and Border Protection (''CBP'') to continue to suspend liquidation of all entries of IMTDC from the PRC, which were entered, or withdrawn from warehouse, for consumption on or after June 8, 2016, the date of publication in the Federal Register of the affirmative Preliminary Determination. Further, Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,'' dated April 5, 2005 (Policy Continuation of Suspension of Liquidation 6 See 13.64 Bulletin 05.1), available on the Department's Web site at http://enforcement.trade.gov/policy/bull05– 1.pdf. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\28OCN1.SGM 28OCN1 mstockstill on DSK3G9T082PROD with NOTICES Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices pursuant to section 735(c)(1)(B)(ii) of the Act, the Department will instruct CBP to require a cash deposit equal to the amount by which the normal value exceeds U.S. price, adjusted where appropriate for export subsidies and estimated domestic subsidy passthrough,8 as follows: (1) For the exporter/producer combinations listed in the table above, the cash deposit rate is the weighted-average dumping margin listed for that combination in the table; (2) for all combinations of PRC exporters/producers of merchandise under consideration not listed in the table above, the cash deposit rate is the weighted average dumping margin listed for the PRC-wide entity in the table above; and (3) for all non-PRC exporters of merchandise under consideration not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the PRC exporter/producer combination that supplied that non-PRC exporter. The suspension of liquidation instructions will remain in effect until further notice. In a LTFV investigation with a companion countervailing duty (''CVD'') investigation, we normally adjust antidumping duty cash deposit rates by the amount of export subsidies, where appropriate. In the companion CVD investigation, we found that Powermach did not receive export subsidies. The countervailing duty rate for all-others companies in the CVD case is based on Powermach's countervailing duty rate, and thus all-others companies were not assigned an export subsidy rate. Therefore, no offset to Powermach's or the separate rate entities' antidumping duty cash deposit rates for export subsidies is necessary. Additionally, we likewise are not adjusting the antidumping duty cash deposit rate applicable to the PRC-wide entity for export subsidies. Pursuant to 777A(f) of the Act, we are not adjusting the antidumping duty cash deposit rates for estimated domestic subsidy pass-through. Based on the data on the record of this investigation, the Department continues to find that there was not a general decrease in the U.S. average import price during the relevant period. Thus, the Department continues to find that the requirement under section 777A(f)(1)(B) of the Act has not been met, and has not made an adjustment to the antidumping duty cash deposit rates under section 777A(f) of the Act. 8 See sections 772(c)(1)(C) and 777A(f) of the Act, respectively. VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 Disclosure We intend to disclose to parties in this proceeding the calculations performed for this final determination within five days of the date of public announcement of our final determination, in accordance with 19 CFR 351.224(b). International Trade Commission (''ITC'') Notification In accordance with section 735(d) of the Act, we will notify the ITC of our final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of IMTDC from the PRC no later than 45 days after our final determination. If the ITC determines that such injury does not exist, this proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP to assess, upon further instruction by the Department, antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Orders This notice will serve as a reminder to the parties subject to administrative protective order (''APO'') of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely written notification of return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. We are issuing and publishing this determination in accordance with sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c). Dated: October 21, 2016. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The products covered by this investigation are iron mechanical transfer drive components, whether finished or unfinished (i.e., blanks or castings). Subject iron PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 75035 mechanical transfer drive components are in the form of wheels or cylinders with a center bore hole that may have one or more grooves or teeth in their outer circumference that guide or mesh with a flat or ribbed belt or like device and are often referred to as sheaves, pulleys, flywheels, flat pulleys, idlers, conveyer pulleys, synchronous sheaves, and timing pulleys. The products covered by this investigation also include bushings, which are iron mechanical transfer drive components in the form of a cylinder and which fit into the bore holes of other mechanical transfer drive components to lock them into drive shafts by means of elements such as teeth, bolts, or screws. Iron mechanical transfer drive components subject to this investigation are those not less than 4.00 inches (101 mm) in the maximum nominal outer diameter. Unfinished iron mechanical transfer drive components (i.e., blanks or castings) possess the approximate shape of the finished iron mechanical transfer drive component and have not yet been machined to final specification after the initial casting, forging or like operations. These machining processes may include cutting, punching, notching, boring, threading, mitering, or chamfering. Subject merchandise includes iron mechanical transfer drive components as defined above that have been finished or machined in a third country, including but not limited to finishing/machining processes such as cutting, punching, notching, boring, threading, mitering, or chamfering, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the iron mechanical transfer drive components. Subject iron mechanical transfer drive components are covered by the scope of the investigation regardless of width, design, or iron type (e.g., gray, white, or ductile iron). Subject iron mechanical transfer drive components are covered by the scope of the investigation regardless of whether they have non-iron attachments or parts and regardless of whether they are entered with other mechanical transfer drive components or as part of a mechanical transfer drive assembly (which typically includes one or more of the iron mechanical transfer drive components identified above, and which may also include other parts such as a belt, coupling and/or shaft). When entered as a mechanical transfer drive assembly, only the iron components that meet the physical description of covered merchandise are covered merchandise, not the other components in the mechanical transfer drive assembly (e.g., belt, coupling, shaft). However, the scope excludes flywheels with a ring gear permanently attached onto the outer diameter. A ring gear is a steel ring with convex external teeth cut or machined into the outer diameter, and where the diameter of the ring exceeds 200 mm and doesn't exceed 2,244.3 mm. For purposes of this investigation, a covered product is of ''iron'' where the article has a carbon content of 1.7 percent by weight or above, regardless of the presence and amount of additional alloying elements. Excluded from the scope are finished torsional vibration dampers (TVDs). A E:\FR\FM\28OCN1.SGM 28OCN1 75036 Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices finished TVD is an engine component composed of three separate components: an inner ring, a rubber ring and an outer ring. The inner ring is an iron wheel or cylinder with a bore hole to fit a crank shaft which forms a seal to prevent leakage of oil from the engine. The rubber ring is a dampening medium between the inner and outer rings that effectively reduces the torsional vibration. The outer ring, which may be made of materials other than iron, may or may not have grooves in its outer circumference. To constitute a finished excluded TVD, the product must be composed of each of the three parts identified above and the three parts must be permanently affixed to one another such that both the inner ring and the outer ring are permanently affixed to the rubber ring. A finished TVD is excluded only if it meets the physical description provided above; merchandise that otherwise meets the description of the scope and does not satisfy the physical description of excluded finished TVDs above is still covered by the scope of the investigation regardless of end use or identification as a TVD. Also excluded from the scope are certain TVD inner rings. To constitute an excluded TVD inner ring, the product must have each of the following characteristics: (1) A single continuous curve forming a protrusion or indentation on outer surface, also known as a sine lock, with a height or depth not less than 1.5 millimeters and not exceeding 4.0 millimeters and with a width of at least 10 millimeters as measured across the sine lock from one edge of the curve to the other; 9 (2) a face width of the outer diameter of greater than or equal to 20 millimeters but less than or equal to 80 millimeters; (3) an outside diameter greater than or equal to 101 millimeters but less than or equal to 300 millimeters; and (4) a weight not exceeding 7 kilograms. A TVD inner ring is excluded only if it meets the physical description provided above; merchandise that otherwise meets the description of the scope and does not satisfy the physical description of excluded TVD inner rings is still covered by the scope of this investigation regardless of end use or identification as a TVD inner ring. The scope also excludes light-duty, fixedpitch, non-synchronous sheaves (''excludable LDFPN sheaves'') with each of the following Size (belt profile) Outside diameter Top width range of each groove (inches) Maximum height (inches) Angle (°) 3L, 4L) ............................................ 3L, 4L) ............................................ B, 4L, 5L) ........................................ B, 4L, 5L) ........................................ ≤5.45 in ............................................................. >5.45 in. but ≤18.75 in ..................................... ≤7.40 in ............................................................. >7.40 in. but ≤18.75 in ..................................... In addition to the above characteristics, excludable LDFPN sheaves must also have a maximum weight (pounds-per-piece) as follows: for excludable LDFPN sheaves with one groove and an outside diameter of greater than 4.0 inches but less than or equal to 8.0 inches, the maximum weight is 4.7 pounds; for excludable LDFPN sheaves with two grooves and an outside diameter of greater than 4.0 inches but less than or equal to 8.0 inches, the maximum weight is 8.5 pounds; for excludable LDFPN sheaves with one groove and an outside diameter of greater than 8.0 inches but less than or equal to 12.0 inches, the maximum weight is 8.5 pounds; for excludable LDFPN sheaves with two grooves and an outside diameter of greater than 8.0 inches but less than or equal to 12.0 inches, the maximum weight is 15.0 pounds; for excludable LDFPN sheaves with one groove and an outside diameter of greater than 12.0 inches but less than or equal to 15.0 inches, the maximum weight is 13.3 pounds; for excludable LDFPN sheaves with two grooves and an outside diameter of greater than 12.0 inches but less than or equal to 15.0 inches, the maximum weight is 17.5 pounds; for excludable LDFPN sheaves with one groove and an outside diameter of greater than 15.0 inches but less than or equal to 18.75 inches, the maximum weight is 16.5 pounds; and for excludable LDFPN sheaves with two grooves and an outside diameter of greater than 15.0 inches but less than or equal to 18.75 inches, the maximum weight is 26.5 pounds. The scope also excludes light-duty, variable-pitch, non-synchronous sheaves with each of the following characteristics: made from grey iron designated as ASTM (North American specification) Grade 30 or lower, GB/T (Chinese specification) Grade HT200 or lower, DIN (German specification) GG 20 or lower, or EN (European specification) EN–GJL 200 or lower; having no more than 2 grooves; having a maximum overall width of less than 2.25 inches with a single groove, or of 3.25 inches or less with two grooves; having a maximum outside diameter of not more than 7.5 inches; having a maximum bore size of 1.625 inches; having either one or two identical, internallythreaded (i.e., with threads on the inside diameter), adjustable (rotating) flange(s) on an externally-threaded hub (i.e., with threads on the outside diameter) that enable(s) the width (opening) of the groove to be changed; and having no teeth on the outside or datum diameter. The scope also excludes certain IMTDC bushings. An IMTDC bushing is excluded only if it has a tapered angle of greater than or equal to 10 degrees, where the angle is measured between one outside tapered surface and the directly opposing outside tapered surface. The merchandise covered by this investigation is currently classifiable under Harmonized Tariff Schedule of the United States (''HTSUS'') subheadings 8483.30.8090, 8483.50.6000, 8483.50.9040, 8483.50.9080, 8483.90.3000, 8483.90.8080. Covered merchandise may also enter under the following HTSUS subheadings: 7325.10.0080, 7325.99.1000, 7326.19.0010, 7326.19.0080, 8431.31.0040, 8431.31.0060, 8431.39.0010, 8431.39.0050, 8431.39.0070, 8431.39.0080, and 8483.50.4000. These HTSUS subheadings are provided for convenience and customs purposes. The written description of the scope of the investigation is dispositive. 9 The edges of the sine lock curve are defined as the points where the surface of the inner ring is no longer parallel to the plane formed by the inner surface of the bore hole that attaches the ring to the crankshaft. 10 An arm or spoke construction is where arms or spokes (typically 3 to 6) connect the outside diameter of the sheave with the hub of the sheave. This is in contrast to a block construction (in which the material between the hub and the outside diameter is solid with a uniform thickness that is the same thickness as the hub of the sheave) or a web construction (in which the material between the hub and the outside diameter is solid but is thinner than at the hub of the sheave). MA/AK MA/AK MB/BK MB/BK mstockstill on DSK3G9T082PROD with NOTICES characteristics: made from grey iron designated as ASTM (North American specification) Grade 30 or lower, GB/T (Chinese specification) Grade HT200 or lower, DIN (German specification) GG 20 or lower, or EN (European specification) EN– GJL 200 or lower; having no more than two grooves; having a maximum face width of no more than 1.75 inches, where the face width is the width of the part at its outside diameter; having a maximum outside diameter of not more than 18.75 inches; and having no teeth on the outside or datum diameter. Excludable LDFPN sheaves must also either have a maximum straight bore size of 1.6875 inches with a maximum hub diameter of 2.875 inches; or else have a tapered bore measuring 1.625 inches at the large end, a maximum hub diameter of 3.50 inches, a length through tapered bore of 1.0 inches, exactly two tapped holes that are 180 degrees apart, and a 2.0- inch bolt circle on the face of the hub. Excludable LDFPN sheaves more than 6.75 inches in outside diameter must also have an arm or spoke construction.10 Further, excludable LDFPN sheaves must have a groove profile as indicated in the table below: (A, (A, (A, (A, VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 0.484–0.499 0.499–0.509 0.607–0.618 0.620–0.631 0.531 0.531 0.632 0.635 Appendix II List of Topics in the Issues and Decision Memorandum I. Summary II. Background E:\FR\FM\28OCN1.SGM 28OCN1 34 38 34 38 Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Notices III. Scope Comments IV. Scope of the Investigation V. Discussion of the Issues: Comment 1: Treatment of Input Comment 2: Per-Unit Consumption Comment 3: Generated Iron Scrap Comment 4: By-Product Offset Comment 5: Underreported Consumption Comment 6: Mold Workshop Labor Comment 7: Separate Rate Status for Baldor Electric Company Canada Comment 8: Separate Rate Status for Zhejiang Damon Industrial Equipment Co., Ltd. Comment 9: Separate Rate Status for Zhejiang Dongxing Auto Parts Co., Ltd. Comment 10: Separate Rate Status for Yueqing Bethel Shaft Collar Manufacturing Co., Ltd. Comment 11: Surrogate Value for Labor Comment 12: Surrogate Value for Baking Coal Comment 13: Surrogate Value for Antitarnish Paper Comment 14: Surrogate Value for Spheroidizing Agent Comment 15: Surrogate Value for Rail Freight Comment 16: Selection of Financial Statements Comment 17: SG&A Expense Calculation in Thai Ductile Inductory Co. Ltd.'s Financial Statements VI. Recommendation [FR Doc. 2016–26104 Filed 10–27–16; 8:45 am] DEPARTMENT OF COMMERCE International Trade Administration [C–570–031] Countervailing Duty Investigation of Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Final Affirmative Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the ''Department'') determines that countervailable subsidies are being provided to producers and exporters of certain iron mechanical transfer drive components (''IMTDCs'') from the People's Republic of China (the ''PRC''). For information on the estimated subsidy rates, see the ''Final Determination and Suspension of Liquidation'' section of this notice. DATES: Effective October 28, 2016. FOR FURTHER INFORMATION CONTACT: Robert Galantucci, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482–2923. mstockstill on DSK3G9T082PROD with NOTICES VerDate Sep<11>2014 18:12 Oct 27, 2016 Jkt 241001 Background The Department published the Preliminary Determination on April 11, 2016.1 A summary of the events that occurred since the Department published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum 2 issued concurrently with this notice. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (''ACCESS''). ACCESS is available to registered users at http:// access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/. The signed Issues and Decision Memorandum and the electronic version are identical in content. Period of Investigation The period of investigation for which we are measuring subsidies is January 1, 2014 through December 31, 2014. BILLING CODE 3510–DS–P AGENCY: SUPPLEMENTARY INFORMATION: Scope Comments The Department set aside a period of time for parties to address scope issues.3 For a summary of the product coverage comments submitted to the record of this final determination, and the Department's discussion and analysis of all comments timely received, see the Final Scope Decision Memorandum.4 1 See Countervailing Duty Investigation of Certain Iron Mechanical Transfer Drive Components From the People's Republic of China: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination, 81 FR 21316 (April 11, 2016) (''Preliminary Determination'') and accompanying Issues and Decision Memorandum (''Preliminary Decision Memorandum''). 2 See Memorandum, ''Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Iron Mechanical Transfer Drive Components from the People's Republic of China,'' dated concurrently with this determination and hereby adopted by this notice (''Issues and Decision Memorandum''). 3 See Memorandum, ''Certain Iron Mechanical Transfer Drive Components from Canada and the People's Republic of China: Deadline for Scope Comments,'' July 19, 2016. 4 See Memorandum, ''Antidumping Duty Investigations of Certain Iron Mechanical Transfer Drive Components from Canada and the People's Republic of China and Countervailing Duty Investigation of Certain Iron Mechanical Transfer Drive Components from the People's Republic of China: Scope Decision Memorandum for the Final PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 75037 The Final Scope Decision Memorandum is incorporated by, and hereby adopted by, this notice. Scope of the Investigation The products covered by this investigation are IMTDCs from the PRC. For a complete description of the scope of this investigation, see the ''Scope of the Investigation,'' in Appendix II of this notice. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation, and the issues raised in the case and rebuttal briefs submitted by the parties, are discussed in the Issues and Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice at Appendix I. Use of Adverse Facts Available (''AFA'') In making its findings, the Department relied, in part, on facts available. For mandatory respondent NOK (Wuxi) Vibration Control China Co. Ltd. (''NOK Wuxi''), we are basing the countervailing duty (''CVD'') rate on facts otherwise available, pursuant to sections 776(a)(2)(C) and (D) of the Tariff Act of 1930, as amended (the ''Act''). Further, because NOK Wuxi did not cooperate to the best of its ability in this investigation, we determine that an adverse inference is warranted, pursuant to section 776(b) of the Act. The Department has applied a total AFA rate to NOK Wuxi. Similarly, the Department has applied a total AFA rate to 30 companies that failed to respond to the Department's quantity and value questionnaire.5 Additionally, in several instances the Department has applied partial AFA to calculate subsidy rates for the other mandatory respondent Powermach Import & Export Co., Ltd. (Sichuan) (''Powermach I&E''). For further information, see the section titled ''Use of Facts Otherwise Available and Adverse Inferences,'' in the Issues and Decision Memorandum. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, Determinations,'' (''Final Scope Decision Memorandum'') dated concurrently with this final determination; see also Memorandum, ''Certain Iron Mechanical Transfer Drive Components from Canada and the People's Republic of China: Scope Comments Decision Memorandum for the Preliminary Determinations,'' dated May 31, 2016. 5 See Preliminary Determination at 81 FR 21317– 21318. E:\FR\FM\28OCN1.SGM 28OCN1
[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[A-570-032]
Certain Iron Mechanical Transfer Drive Components From the
People's Republic of China: Final Affirmative Determination of Sales at
Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') determines
that certain iron mechanical transfer drive components (``IMTDC'') from
the People's Republic of China (``PRC'') are being, or are likely to
be, sold in the United States at less than fair value (``LTFV''). The
period of investigation (``POI'') is April 1, 2015 through September
30, 2015. The final weighted-average dumping margins of sales at LTFV
are listed in the ``Final Determination Dumping Margins'' section of
this notice.
DATES: Effective October 28, 2016.
FOR FURTHER INFORMATION CONTACT: Krisha Hill or Jonathan Hill, AD/CVD
Operations, Office IV, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW., Washington, DC 20230; telephone (202) 482-4037 or (202) 482-3518,
On June 8, 2016, the Department published in the Federal Register
its preliminary affirmative determination in the LTFV investigation of
IMTDC from the PRC.\1\
\1\ See Certain Iron Mechanical Transfer Drive Components From
the People's Republic of China: Preliminary Determination of Sales
at Less Than Fair Value and Postponement of Final Determination, 81
FR 36876 (June 8, 2016) (Preliminary Determination) and accompanying
Preliminary Decision Memorandum.
A summary of the events that occurred since the Department
published the Preliminary Determination, as well as a full discussion
of the issues raised by parties for this final determination, may be
found in the Issues and Decision Memorandum.\2\ The Issues and Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (``ACCESS''). ACCESS is available
to registered users at http://access.trade.gov, and is available to all
parties in the Central Records Unit, Room B8024 of the main Department
of Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum
and the electronic version are identical in content.
\2\ See Memorandum from Gary Taverman, Associate Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Ronald Lorentzen, Acting Assistant Secretary for
Enforcement and Compliance, ``Antidumping Duty Investigation of
Certain Iron Mechanical Transfer Drive Components from the People's
Republic of China: Issues and Decision Memorandum for the Final
Determination of Sales at Less-Than-Fair-Value,'' (``Issues and
Decision Memorandum''), dated concurrently with this determination
and hereby adopted by this notice.
Period of Investigation
The period of investigation (``POI'') is April 1, 2015, through
Scope of the Investigation
The products covered by this investigation are iron mechanical
transfer drive components. These products are properly classified under
Harmonized Tariff Schedule of the United States (``HTSUS'') subheadings
8483.30.8090, 8483.50.6000, 8483.50.9040, 8483.50.9080, 8483.90.3000,
8483.90.8080. Covered merchandise may also enter under the following
HTSUS subheadings: 7325.10.0080, 7325.99.1000, 7326.19.0010,
8431.39.0070, 8431.39.0080, and 8483.50.4000. Although the HTSUS
subheading is provided for convenience and customs purposes, the
written description of the merchandise under investigation is
dispositive. For a complete description of the scope of the
investigation, see Appendix I to this notice.
Scope Comments
Since the Preliminary Determination, Petitioner, as well as
interested parties Caterpillar Inc., Carrier Corporation, Dahua Machine
Manufacturing Co. Ltd., General Motors Corporation, Kohler Co., Mercury
Marine, Otis Elevator Company, Speed Solutions International Inc., ZF
Services, LLC, and Vibracoustic North America LP, commented on the
scope of this investigation as well as the companion IMTDCs LTFV
investigation from the Canada and IMTDCs countervailing duty
investigation from the PRC. The Department reviewed these comments and
has incorporated into the scope of these investigations Petitioner's
exclusion for certain flywheels with a permanently attached outer ring
gear and for certain parts of torsional vibration dampers. For further
discussion, see the ``Final Scope Decision Memorandum.'' \3\ The scope
in Appendix I reflects the final modified scope language.
\3\ See Memorandum from Abdelali Elouaradia, Director, Office
IV, Antidumping and Countervailing Duty Operations, to Gary
Taverman, Associate Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, regarding ``Antidumping Duty
Investigations of Certain Iron Mechanical Transfer Drive Components
from Canada and the People's Republic of China and Countervailing
Duty Investigation of Certain Iron Mechanical Transfer Drive
Components from the People's Republic of China: Scope Decision
Memorandum for the Final Determinations,'' (``Final Scope Decision
Memorandum'') dated concurrently with this final determination.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs that were
submitted by parties in this investigation are addressed in either the
Final Determination Scope Decision Memorandum or the Issues and
Decision Memorandum accompanying this notice, which is hereby adopted
by this notice. A list of the issues addressed in the Issues and
Decision Memorandum is attached to this notice at Appendix II.
As provided in section 782(i) of the Tariff Act of 1930, as amended
(``the Act''), in June 2016, we verified the sales and factors of
production information submitted by Powermach Import & Export Co., Ltd.
(``Powermach''),\4\ the sole participating individually examined
respondent. We used standard verification procedures, including an
examination of relevant accounting and production records, and original
source documents provided by Powermach.\5\
\4\ We have continued to treat Powermach Import & Export Co.,
Ltd., Sichuan Dawn Precision Technology Co., Ltd., Sichuan Dawn
Foundry Co., Ltd., and Powermach Co., Ltd. as a single entity based
upon consideration of the factors in 19 CFR 351.401(f). See
Memorandum from Krisha Hill, International Trade Analyst, AD/CVD
Operations, Office IV through Howard Smith, Program Manager, AD/CVD
Operations, Office IV to Abdelali Elouaradia, Office Director, AD/
CVD Operations, Office IV, regarding ``Certain Iron Mechanical
Transfer Drive Components from The People's Republic of China:
Preliminary Affiliation and Collapsing Memorandum'' (May 31, 2016).
\5\ See Memorandum from Krisha Hill, International Trade
Compliance Analyst, Office IV, Enforcement and Compliance and
Jonathan Hill, International Trade Compliance Analyst, Office IV,
Enforcement and Compliance through Howard Smith, Program Manager,
Office IV Enforcement and Compliance to The File ``Verification
Report of the Sales and Factors Responses of Powermach Import &
Export Co., Ltd. (Sichuan), Sichuan Dawn Precision Technology Co.,
Ltd., Sichuan Dawn Foundry Co., Ltd., and Powermach Co., Ltd. in the
Antidumping Duty Investigation of Certain Iron Mechanical Transfer
Drive Components from the People's Republic of China,'' dated August
Separate Rates
In the Preliminary Determination, the Department granted separate-
rate status to all of the companies which provided separate rates
information, except NOK (Wuxi) Vibration Control China Co. Ltd.
(``NVCC''), which withdrew from participation as a mandatory respondent
in this investigation, and Baldor Electric Canada (``Baldor'') and
Yueqing Bethel Shaft Collar Manufacturing Co., Ltd. (``Yueqing
Bethel''), which failed to respond to the Department's request for
supplemental information. In this final determination, the Department
has continued to treat these three companies as part of the PRC-wide
entity and is also treating Zhejiang Dongxing Auto Parts Co., Ltd.
(``Dongxing'') as part of the PRC-wide entity. For a full discussion of
the Department's separate rates determinations with respect to Baldor,
Yueqing Bethel, and Dongxing (no parties commented on the Department's
separate rate determination with respect to NVCC)
see the Issues and Decision Memorandum.
Changes to the Dumping Margin Calculations Since the Preliminary
Based on the Department's analysis of the comments received and
findings at verification, we made certain changes to our dumping margin
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Dumping Margins for Non-Individually Examined Respondents
Under section 735(c)(5)(A) of the Act, the estimated rate for all
companies that have not been individually examined is normally equal to
the weighted average of the estimated weighted-average dumping margins
established for exporters and producers individually examined,
excluding any zero and de minimis dumping margins, and any dumping
margins determined entirely on the basis of facts available. In this
final determination, we calculated a weighted-average dumping margin
for Powermach (the only cooperating mandatory respondent) which is not
zero, de minimis, or based entirely on facts available. Accordingly, we
assigned Powermach's weighted-average dumping margin to non-
individually examined PRC exporters qualifying for a separate rate.
PRC-Wide Rate
In our Preliminary Determination, we found that the PRC-wide
entity, which includes certain PRC exporters and/or producers that did
not respond to the Department's requests for information, failed to
provide necessary information, failed to provide information in a
timely manner, and significantly impeded this proceeding by not
submitting the requested information. We also find that they failed to
cooperate. As a result, we preliminarily determined to calculate the
PRC-wide dumping margin on the basis of adverse facts available
(``AFA'') pursuant to section 776(b) of the Act. We compared the
petition dumping margins to the dumping margins that we calculated for
Powermach, the participating individually examined respondent, in order
to determine the probative value of the dumping margins in the petition
for use as AFA. We continue to find that the highest petition dumping
margin, 401.68 percent, is reliable and relevant because it is within
the range of the transaction-specific dumping margins on the record for
Powermach. Therefore, we assigned this dumping margin (i.e., 401.68
percent) to the PRC-wide entity.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for the respondents that are eligible for a
separate rate in this investigation.\6\ Policy Bulletin 05.1 describes
this practice.\7\
\6\ See Initiation Notice, 81 FR at 9438-39.
\7\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available
on the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
Final Determination Dumping Margins
For this final determination, the Department determines that IMTDC
are being or likely to be sold in the United States at LTFV, as
provided in section 735 of the Act. The Department determines that the
following weighted-average dumping margins exist during the period
April 1, 2015, through September 30, 2015:
Weighted-
Exporter                     Producer             dumping
(percent)
Powermach Import & Export Co.,   Powermach Import &                13.64
Ltd. (Sichuan)/Sichuan Dawn      Export Co., Ltd.
Precision Technology Co., Ltd./  (Sichuan)/Sichuan Dawn
Sichuan Dawn Foundry Co., Ltd./  Precision Technology
Powermach Co., Ltd.              Co., Ltd./Sichuan Dawn
Foundry Co., Ltd./
Powermach Co., Ltd.
Fuqing Jiacheng Trading          Fuzhou Min Yue                    13.64
Corporation Limited.             Mechanical &
Electrical Co., Ltd.
Haiyang Jingweida Gearing Co.,   Haiyang Jingweida                 13.64
Ltd.                             Gearing Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Shijiazhuang CAPT Power           13.64
Transmission Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Shanghai CPT Machinery            13.64
Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Yueqing Bethel Shaft              13.64
Collar Manufacturing
Hangzhou Powertrans Co., Ltd...  Kezheng (Fuzhou)                  13.64
Mechanical &
Electrical Manufacture
Hangzhou Powertrans Co., Ltd...  Handan Hengfa                     13.64
Hangzhou Powertrans Co., Ltd...  Shijiazhuang Lihua                13.64
Hangzhou Powertrans Co., Ltd...  Xingtai Shengjia                  13.64
Equipment Factory.
Hangzhou Powertrans Co., Ltd...  Shanghai Keli Machinery           13.64
Hangzhou Powertrans Co., Ltd...  Jiangsu Zhengya                   13.64
Technology Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Taizhou Feiyang Metal             13.64
Spinning Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Taizhou Pengxun                   13.64
Hangzhou Powertrans Co., Ltd...  Guangde Ronghua                   13.64
Hangzhou Powertrans Co., Ltd...  Qiuxian Hengxin                   13.64
Machinery Co., Ltd.
Hangzhou Powertrans Co., Ltd...  Reach Machinery                   13.64
Enterprise.
Hangzhou Powertrans Co., Ltd...  Chengdu Novo Machinery            13.64
Hangzhou Powertrans Co., Ltd...  Chengdu Leno Machinery            13.64
Shijiazhuang CAPT Power          Shijiazhuang CAPT Power           13.64
Transmission Co., Ltd.           Transmission Co., Ltd.
Xinguang Technology Co. Ltd of   Sichuan Dawn Precision            13.64
Sichuan Province.                Technology Co., Ltd.
PRC-Wide Entity................  .......................          401.68
Continuation of Suspension of Liquidation
Pursuant to section 735(c)(1)(B) of the Act, the Department will
instruct U.S. Customs and Border Protection (``CBP'') to continue to
suspend liquidation of all entries of IMTDC from the PRC, which were
entered, or withdrawn from warehouse, for consumption on or after June
8, 2016, the date of publication in the Federal Register of the
affirmative Preliminary Determination. Further,
pursuant to section 735(c)(1)(B)(ii) of the Act, the Department will
instruct CBP to require a cash deposit equal to the amount by which the
normal value exceeds U.S. price, adjusted where appropriate for export
subsidies and estimated domestic subsidy pass-through,\8\ as follows:
(1) For the exporter/producer combinations listed in the table above,
the cash deposit rate is the weighted-average dumping margin listed for
that combination in the table; (2) for all combinations of PRC
exporters/producers of merchandise under consideration not listed in
the table above, the cash deposit rate is the weighted average dumping
margin listed for the PRC-wide entity in the table above; and (3) for
all non-PRC exporters of merchandise under consideration not listed in
the table above, the cash deposit rate is the cash deposit rate
applicable to the PRC exporter/producer combination that supplied that
non-PRC exporter. The suspension of liquidation instructions will
remain in effect until further notice.
\8\ See sections 772(c)(1)(C) and 777A(f) of the Act,
In a LTFV investigation with a companion countervailing duty
(``CVD'') investigation, we normally adjust antidumping duty cash
deposit rates by the amount of export subsidies, where appropriate. In
the companion CVD investigation, we found that Powermach did not
receive export subsidies. The countervailing duty rate for all-others
companies in the CVD case is based on Powermach's countervailing duty
rate, and thus all-others companies were not assigned an export subsidy
rate. Therefore, no offset to Powermach's or the separate rate
entities' antidumping duty cash deposit rates for export subsidies is
necessary. Additionally, we likewise are not adjusting the antidumping
duty cash deposit rate applicable to the PRC-wide entity for export
subsidies.
Pursuant to 777A(f) of the Act, we are not adjusting the
antidumping duty cash deposit rates for estimated domestic subsidy
pass-through. Based on the data on the record of this investigation,
the Department continues to find that there was not a general decrease
in the U.S. average import price during the relevant period. Thus, the
Department continues to find that the requirement under section
777A(f)(1)(B) of the Act has not been met, and has not made an
adjustment to the antidumping duty cash deposit rates under section
777A(f) of the Act.
We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of public announcement of our final determination, in
accordance with 19 CFR 351.224(b).
International Trade Commission (``ITC'') Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in
accordance with section 735(b)(2) of the Act, the ITC will make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of IMTDC from the PRC no later than 45 days after our
final determination. If the ITC determines that such injury does not
exist, this proceeding will be terminated and all securities posted
will be refunded or canceled. If the ITC determines that such injury
does exist, the Department will issue an antidumping duty order
directing CBP to assess, upon further instruction by the Department,
antidumping duties on all imports of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding Administrative Protective Orders
This notice will serve as a reminder to the parties subject to
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305. Timely written notification of
return or destruction of APO materials or conversion to judicial
protective order is hereby requested. Failure to comply with the
regulations and the terms of an APO is a sanctionable violation.
We are issuing and publishing this determination in accordance with
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).
Dated: October 21, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
transfer drive components, whether finished or unfinished (i.e.,
blanks or castings). Subject iron mechanical transfer drive
components are in the form of wheels or cylinders with a center bore
hole that may have one or more grooves or teeth in their outer
circumference that guide or mesh with a flat or ribbed belt or like
device and are often referred to as sheaves, pulleys, flywheels,
flat pulleys, idlers, conveyer pulleys, synchronous sheaves, and
timing pulleys. The products covered by this investigation also
include bushings, which are iron mechanical transfer drive
components in the form of a cylinder and which fit into the bore
holes of other mechanical transfer drive components to lock them
into drive shafts by means of elements such as teeth, bolts, or
Iron mechanical transfer drive components subject to this
investigation are those not less than 4.00 inches (101 mm) in the
maximum nominal outer diameter.
Unfinished iron mechanical transfer drive components (i.e.,
blanks or castings) possess the approximate shape of the finished
iron mechanical transfer drive component and have not yet been
machined to final specification after the initial casting, forging
or like operations. These machining processes may include cutting,
punching, notching, boring, threading, mitering, or chamfering.
Subject merchandise includes iron mechanical transfer drive
components as defined above that have been finished or machined in a
third country, including but not limited to finishing/machining
processes such as cutting, punching, notching, boring, threading,
mitering, or chamfering, or any other processing that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the country of manufacture of the iron mechanical
transfer drive components.
Subject iron mechanical transfer drive components are covered by
the scope of the investigation regardless of width, design, or iron
type (e.g., gray, white, or ductile iron). Subject iron mechanical
transfer drive components are covered by the scope of the
investigation regardless of whether they have non-iron attachments
or parts and regardless of whether they are entered with other
mechanical transfer drive components or as part of a mechanical
transfer drive assembly (which typically includes one or more of the
iron mechanical transfer drive components identified above, and
which may also include other parts such as a belt, coupling and/or
shaft). When entered as a mechanical transfer drive assembly, only
the iron components that meet the physical description of covered
merchandise are covered merchandise, not the other components in the
mechanical transfer drive assembly (e.g., belt, coupling, shaft).
However, the scope excludes flywheels with a ring gear permanently
attached onto the outer diameter. A ring gear is a steel ring with
convex external teeth cut or machined into the outer diameter, and
where the diameter of the ring exceeds 200 mm and doesn't exceed
2,244.3 mm.
For purposes of this investigation, a covered product is of
``iron'' where the article has a carbon content of 1.7 percent by
weight or above, regardless of the presence and amount of additional
alloying elements.
Excluded from the scope are finished torsional vibration dampers
(TVDs). A
finished TVD is an engine component composed of three separate
components: an inner ring, a rubber ring and an outer ring. The
inner ring is an iron wheel or cylinder with a bore hole to fit a
crank shaft which forms a seal to prevent leakage of oil from the
engine. The rubber ring is a dampening medium between the inner and
outer rings that effectively reduces the torsional vibration. The
outer ring, which may be made of materials other than iron, may or
may not have grooves in its outer circumference. To constitute a
finished excluded TVD, the product must be composed of each of the
three parts identified above and the three parts must be permanently
affixed to one another such that both the inner ring and the outer
ring are permanently affixed to the rubber ring. A finished TVD is
excluded only if it meets the physical description provided above;
merchandise that otherwise meets the description of the scope and
does not satisfy the physical description of excluded finished TVDs
above is still covered by the scope of the investigation regardless
of end use or identification as a TVD.
Also excluded from the scope are certain TVD inner rings. To
constitute an excluded TVD inner ring, the product must have each of
the following characteristics: (1) A single continuous curve forming
a protrusion or indentation on outer surface, also known as a sine
lock, with a height or depth not less than 1.5 millimeters and not
exceeding 4.0 millimeters and with a width of at least 10
millimeters as measured across the sine lock from one edge of the
curve to the other; \9\ (2) a face width of the outer diameter of
greater than or equal to 20 millimeters but less than or equal to 80
millimeters; (3) an outside diameter greater than or equal to 101
millimeters but less than or equal to 300 millimeters; and (4) a
weight not exceeding 7 kilograms. A TVD inner ring is excluded only
if it meets the physical description provided above; merchandise
that otherwise meets the description of the scope and does not
satisfy the physical description of excluded TVD inner rings is
still covered by the scope of this investigation regardless of end
use or identification as a TVD inner ring.
\9\ The edges of the sine lock curve are defined as the points
where the surface of the inner ring is no longer parallel to the
plane formed by the inner surface of the bore hole that attaches the
ring to the crankshaft.
The scope also excludes light-duty, fixed-pitch, non-synchronous
sheaves (``excludable LDFPN sheaves'') with each of the following
characteristics: made from grey iron designated as ASTM (North
American specification) Grade 30 or lower, GB/T (Chinese
specification) Grade HT200 or lower, DIN (German specification) GG
20 or lower, or EN (European specification) EN-GJL 200 or lower;
having no more than two grooves; having a maximum face width of no
more than 1.75 inches, where the face width is the width of the part
at its outside diameter; having a maximum outside diameter of not
more than 18.75 inches; and having no teeth on the outside or datum
diameter. Excludable LDFPN sheaves must also either have a maximum
straight bore size of 1.6875 inches with a maximum hub diameter of
2.875 inches; or else have a tapered bore measuring 1.625 inches at
the large end, a maximum hub diameter of 3.50 inches, a length
through tapered bore of 1.0 inches, exactly two tapped holes that
are 180 degrees apart, and a 2.0- inch bolt circle on the face of
the hub. Excludable LDFPN sheaves more than 6.75 inches in outside
diameter must also have an arm or spoke construction.\10\ Further,
excludable LDFPN sheaves must have a groove profile as indicated in
the table below:
\10\ An arm or spoke construction is where arms or spokes
(typically 3 to 6) connect the outside diameter of the sheave with
the hub of the sheave. This is in contrast to a block construction
(in which the material between the hub and the outside diameter is
solid with a uniform thickness that is the same thickness as the hub
of the sheave) or a web construction (in which the material between
the hub and the outside diameter is solid but is thinner than at the
hub of the sheave).
Top width
range of each  Maximum height     Angle
Size (belt profile)                 Outside diameter           groove         (inches)       ([deg])
MA/AK (A, 3L, 4L)......................  <=5.45 in.................     0.484-0.499           0.531           34
MA/AK (A, 3L, 4L)......................  >5.45 in. but <=18.75 in..     0.499-0.509           0.531           38
MB/BK (A, B, 4L, 5L)...................  <=7.40 in.................     0.607-0.618           0.632           34
MB/BK (A, B, 4L, 5L)...................  >7.40 in. but <=18.75 in..     0.620-0.631           0.635           38
In addition to the above characteristics, excludable LDFPN
sheaves must also have a maximum weight (pounds-per-piece) as
follows: for excludable LDFPN sheaves with one groove and an outside
diameter of greater than 4.0 inches but less than or equal to 8.0
inches, the maximum weight is 4.7 pounds; for excludable LDFPN
sheaves with two grooves and an outside diameter of greater than 4.0
inches but less than or equal to 8.0 inches, the maximum weight is
8.5 pounds; for excludable LDFPN sheaves with one groove and an
outside diameter of greater than 8.0 inches but less than or equal
to 12.0 inches, the maximum weight is 8.5 pounds; for excludable
LDFPN sheaves with two grooves and an outside diameter of greater
than 8.0 inches but less than or equal to 12.0 inches, the maximum
weight is 15.0 pounds; for excludable LDFPN sheaves with one groove
and an outside diameter of greater than 12.0 inches but less than or
equal to 15.0 inches, the maximum weight is 13.3 pounds; for
excludable LDFPN sheaves with two grooves and an outside diameter of
greater than 12.0 inches but less than or equal to 15.0 inches, the
maximum weight is 17.5 pounds; for excludable LDFPN sheaves with one
groove and an outside diameter of greater than 15.0 inches but less
than or equal to 18.75 inches, the maximum weight is 16.5 pounds;
and for excludable LDFPN sheaves with two grooves and an outside
diameter of greater than 15.0 inches but less than or equal to 18.75
inches, the maximum weight is 26.5 pounds.
The scope also excludes light-duty, variable-pitch, non-
synchronous sheaves with each of the following characteristics: made
from grey iron designated as ASTM (North American specification)
Grade 30 or lower, GB/T (Chinese specification) Grade HT200 or
lower, DIN (German specification) GG 20 or lower, or EN (European
specification) EN-GJL 200 or lower; having no more than 2 grooves;
having a maximum overall width of less than 2.25 inches with a
single groove, or of 3.25 inches or less with two grooves; having a
maximum outside diameter of not more than 7.5 inches; having a
maximum bore size of 1.625 inches; having either one or two
identical, internally-threaded (i.e., with threads on the inside
diameter), adjustable (rotating) flange(s) on an externally-threaded
hub (i.e., with threads on the outside diameter) that enable(s) the
width (opening) of the groove to be changed; and having no teeth on
the outside or datum diameter.
The scope also excludes certain IMTDC bushings. An IMTDC bushing
is excluded only if it has a tapered angle of greater than or equal
to 10 degrees, where the angle is measured between one outside
tapered surface and the directly opposing outside tapered surface.
The merchandise covered by this investigation is currently
classifiable under Harmonized Tariff Schedule of the United States
(``HTSUS'') subheadings 8483.30.8090, 8483.50.6000, 8483.50.9040,
8483.50.9080, 8483.90.3000, 8483.90.8080. Covered merchandise may
also enter under the following HTSUS subheadings: 7325.10.0080,
7325.99.1000, 7326.19.0010, 7326.19.0080, 8431.31.0040,
8431.39.0080, and 8483.50.4000. These HTSUS subheadings are provided
for convenience and customs purposes. The written description of the
scope of the investigation is dispositive.
List of Topics in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Discussion of the Issues:
Comment 1: Treatment of Input
Comment 2: Per-Unit Consumption
Comment 3: Generated Iron Scrap
Comment 4: By-Product Offset
Comment 5: Underreported Consumption
Comment 6: Mold Workshop Labor
Comment 7: Separate Rate Status for Baldor Electric Company
Comment 8: Separate Rate Status for Zhejiang Damon Industrial
Equipment Co., Ltd.
Comment 9: Separate Rate Status for Zhejiang Dongxing Auto Parts
Comment 10: Separate Rate Status for Yueqing Bethel Shaft Collar
Comment 11: Surrogate Value for Labor
Comment 12: Surrogate Value for Baking Coal
Comment 13: Surrogate Value for Anti-tarnish Paper
Comment 14: Surrogate Value for Spheroidizing Agent
Comment 15: Surrogate Value for Rail Freight
Comment 16: Selection of Financial Statements
Comment 17: SG&A Expense Calculation in Thai Ductile Inductory
Co. Ltd.'s Financial Statements
VI. Recommendation
[FR Doc. 2016-26104 Filed 10-27-16; 8:45 am]
BILLING CODE 3510-DS-P


Dr. Mary Nakata is an Individual Therapist at PCH Treatment Center. She is also a supervising and training Analyst at The Institute of Contemporary Psychoanalysis in Los Angeles, where she obtained her doctoral degree. Dr. Nakata received her Masters degree in Public Health from UCLA. She has over 35 years of experience treating individuals, couples and families. Dr. Nakata has served as a Staff Psychologist at the Pritikin Longevity Center, as well as the Fernald School at UCLA. She also maintains a private practice in West Los Angeles.


text:
M&A Outlook 2021
Spotlight on trends towards alternative deal structures
Global | Publication | January 2021
Global trends accelerating alternative deal structures
Other driving factors
Focus on JV&A
Features of success
Alternative deal structures and in particular joint ventures and alliances (JV&A) are becoming increasingly popular amongst dealmakers across various industries.
By contrast to classic M&A which is focused on acquiring control and subsequent integration of the target into the buyer's world, companies may enter into alternative deal structures such as joint ventures, strategic alliances, corporate venture capital or acquisitions of minority stakes. What is driving this trend?
Digital transformation, disruptive technology, and sustainability regulation are certainly amongst those global trends that explain why alternative forms of collaboration are increasingly on dealmakers' agendas.
Firstly, there is almost no industry that remains unaffected by digital transformation. Digital transformation creates new ways of collaboration between industries and big technology and cloud providers. This trend has only been accelerated by the COVID-19 crisis.
Secondly, disruptive technology urges traditional industries to rethink their business model and adopt to new realities. Forms of disruptive technologies such as artificial intelligence, the internet of things, smart contracts, blockchain and distributed ledger technology and cryptocurrencies are some of the major drivers behind businesses increasingly needing to collaborate across industries, value chains, and jurisdictions to achieve risk-sharing through cooperation.
Thirdly, sustainability regulations dramatically change individual behaviors and can transform industries around the globe. Established business models are suddenly facing a survival test which may often identify ways of collaboration with competitors and suppliers.
Deal makers may also consider alternative deal structures to de-risk a cost-intensive acquisition or investment faced with a lack of funding; to access new capabilities and markets; to initiate a creeping acquisition or sale; or simply enlarge the dealmaker's toolkit. Moreover, whilst the COVID-19 crisis continues to dominate daily life, accelerated disruption and change will certainly be a decisive element for alternative deal making in the near future.
There are a number of pitfalls dealmakers should be aware of when considering alternative deal structures, for instance, an incorporated joint venture.
Common hazards are:
Shortsighted business planning: This is often caused by not having adjusted a draft business plan created at the outset of the joint venture after its initial phase
A lack of joint strategy: This is often caused by unrealistic or different expectations or changes in (group) strategy of a joint venture partner
Expertise, performance and financial strength of the joint venture partners which does not correspond to pre-agreed shareholding ratios. This increases the potential for disputes
Inadequate dispute resolution solutions: This is often a result of poor governance structures and dispute escalation mechanics not tailored to the circumstances of the joint venture and its participants
Lack of a shared vision of the route and time line to exit, bearing in mind that a typical lifespan of an incorporated joint venture is five to seven years (but can be considerably longer): This is most often caused by not having debated various exit scenarios and their suitability to the joint venture.
Whilst not losing sight of the pitfalls, it is also important to assess the key hallmarks of successful JV-deal-making, such as:
Partner fit: This is fundamental and assesses whether the selected JV-partner is aligned with joint strategic objectives and expectations to make the business case happen.
Deal logic: Stakeholders will not approve the joint venture if there is not a convincing business case and a strong commercial backdrop. Benchmarking the proposed joint venture against other options, such as outsourcing, supply or R&D agreements, contractual joint venture or minority investment (or hybrid models) is important in the early planning phase.
JV-Structure: There are multiple factors that drive a joint venture's structure. In an ever more global and competitive economy, geographical footprint, regulatory risk, protection of IP and know-how, as well as access to trusted dispute resolution forums, become even more important.
Governance and control: Studies have revealed that joint ventures where governance and control structures reflect intense debate and modelling ahead of implementation are far less prone to disputes than less tailored solutions.
Financing: This must be appropriate to the joint venture's business plan, particularly in times of economic downturn and in light of the Covid-19 crisis
Exit: There is no room for reluctance to anticipate potential exit-scenarios. Testing a JV-partner's attitude towards exit at early stage and agreeing on bespoke solutions creates legal certainty on one of the most critical aspects of a successful joint venture.
M&A hub
Key legal and regulatory developments driving and shaping M&A
M&A trends in Canada for 2021
The global effects of the pandemic have caused inevitable market pressures that will require industries to look towards reshaping the manner in which they carry on business, organically or through M&A.
The outlook for M&A after the US elections
This update discusses M&A opportunities after exploring the pandemic-related challenges to be overcome in M&A dealmaking.
Trends in Asian M&A Deals
The past year has been a difficult time for mergers and acquisitions across the Asia region.
Mergers and Acquisitions: A view from Africa
The last 12 months have delivered unprecedented challenges to the global M&A climate, with Africa being no exception to this.
National Security and Investment
On 12th November 2020 the UK Government published a new National Security and Investment Bill.
M&A in Europe's life sciences and healthcare industry
The pandemic has had a huge impact on the economy and the M&A market, especially in the life sciences and healthcare industry.
Due diligence in the time of COVID
COVID hasn't changed the overall purpose of legal due diligence, however, the focus and practicalities of that exercise has been affected.
Deals Down Under – Australia in the sights of Global Private Equity
Recently there has been a major consolidation of the Australian private equity landscape. We look at the developments in the market.
Investment and M&A trends in Fintech
We look at the latest global trends in FinTech M&A and the outlook for the market.
Karsten Kühnle
Head of Frankfurt
T: +49 69 505096 304
karsten.kuehnle@nortonrosefulbright.com

redpajama_set_name: RedPajamaCommonCrawl


For me, one of the greatest parts of fall is seeing all the berry-toned bouquets emerge. Patricia Kantzos Photography helped Bourgeon celebrate the opening of their new studio with this stunning shoot showcasing a bouquet that couldn't possibly be any more gorgeous, with stems of scabiosa, peonies, ranunculus, and clematis.
From the photographer, Patricia Kantzos: Amy Febinger of Bourgeon and I worked together on an inspiration shoot as a way to celebrate the opening of her Brooklyn flower studio. We wanted to keep it clean and showcase a wedding bouquet, the simplicity of the flowers used along with the bouquet's architecture and design elements.
Amy decorated her studio space with some beautiful pieces she inherited from her mother and grandmother. We decided to use some of these details in the shoot – the rocking chair, antique silver tray, the pink depression glass pitcher, the Prince Albert tin she uses everyday to hold pins… This was an incredibly heartfelt way to honor her mother and grandmother.


text:
Jose Bautista Fighting Decline
by Craig Edwards
Back in 2008, after a half-decade of great hitting, David Ortiz slumped a bit, recording "only" a 124 wRC+. At 32, it was fair to expect some decline in performance. An offensive line 24% better than league average — as opposed to the 45-75% he'd been sustaining — seemed like a reasonable indicator of that decline. The next season, Ortiz slumped even more, posting just a 100 wRC+, essentially becoming a replacement-level player in the process. It made sense to wonder if he were finished. He wasn't, of course. Ortiz proceeded to put up a 148 wRC+ over the next seven years, retiring after this past year following his age-40 season.
At 36, free agent Jose Bautista is a few years older than Ortiz was back in 2008, but similar questions apply. From 2010 to 2015, the former Jays outfielder put up a 156 wRC+, establishing himself as one of the best hitters in the game. He entered spring training this year thinking big in free agency, hoping for a contract well above $100 million. Following his 2016 season, that seems less likely. Bautista produced "only" a 122 wRC+ — and, for the first time during his tenure with the Blue Jays, Bautista was a below average player, putting up just a 1.4 WAR.
Despite a disappointing season at the plate, though — and questions about his arm holding up in the outfield — the projections expect a rebound for Bautista. Our Depth Chart forecast calls for a 128 wRC+ and 2.8 WAR from Baustita, which would still make him a valuable player next season.
A survey of the crowd this offseason produced an estimate of three years and $65 million for Bautista's next contract. Ranking the top-50 free agents, Dave Cameron guessed Bautista would receive three years and $75 million. Power is always in demand in free agency and Bautista has it, producing a .217 ISO this past season even in what amounts to a down year. Even with a bounce-back season, like the projections suggest, it will be hard for Bautista to produce wins at a rate commensurate with the sort of contract he's likely to receive. The table below documents Bautista's estimated value over three years based on his 2.8 WAR projection for 2017 plus a standard aging curve.
Jose Bautista's Estimated Value — 3 yr / $58.9 M
$/WAR
Est. Contract
2017 36 2.8 $8.5 M $23.8 M
Totals 6.6 $58.9 M
Value: $8.5M/WAR with 5.0% inflation (for first 5 years)
Aging Curve: +0.25 WAR/yr (18-27), 0 WAR/yr (28-30),-0.5 WAR/yr (31-37),-0.75 WAR/yr (> 37)
That projection places Bautista's value below both Cameron's estimate and also the crowd's. To be worth $75 million over the course of three years, and assuming a standard aging curve, Bautista would need to start at 3.4 WAR in 2017. It's not impossible that he could hit that mark — Nelson Cruz did it this past year at age 36, for example — but it would probably take a 140 wRC+ or higher with Bautista's defense, and that would be a big step up from this past season.
To determine how likely that might be, I took a look at all age-35 seasons from the past 50 years, identifying non-catchers who had recorded a wRC+ within 10 points of Bautista's 122 and then went on to play at age 36, as well. At age 35, Bautista's group of historical comparables put up a 2.3 WAR and 122 wRC+, pretty close to what Bautista himself did this past season. At age 36, the group declined just like we'd expect, producing 1.7 WAR and 111 wRC+. Of the 21 players, nine posted a wRC+ decline of more than 20 points. Fifteen of 21 players declined, and of the six players who got better, only five played in a full season. Three players (Andres Galarraga, Torii Hunter, and Billy Williams) saw modest increases like the one Bautista would need to hit his projections next year, and just two players (Darrell Evans, Dave Winfield) saw the big type of increases that would make Bautista worth $75 million.
That last group is simply a bunch of players who played at a similar level to Bautista at age 35 without accounting for just how good Bautista has been over the last half-decade. To find a group of players who might reflect Bautista's excellence, I looked at non-catchers between ages 33 and 35 over the last 50 years who recorded (a) a WAR within 3.0 of Bautista's 12.0 mark, (b) a wRC+ within 10 points of Bautista's 145 figure, (c) a plate-appearance total within 20% of Bautista's 1,856, (d) an ISO above .150, and (e) an age-35 wRC+ within 20 points of Bautista's 122 mark. That collection of five criteria yields the following group:
Jose Bautista Comps: Ages 33 Through 35
Ken Caminiti 1751 95 .292 .385 .550 147 -15.5 13.8
Jeff Bagwell 2110 109 .285 .391 .537 137 -29.1 13.8
Billy Williams 1986 85 .307 .383 .516 141 -41.9 13
Paul Molitor 1911 41 .313 .382 .473 137 -33.3 12.4
Jack Clark 1623 79 .251 .406 .481 147 -35.7 11
Magglio Ordonez 1820 58 .332 .397 .512 140 -29.4 10.5
Sammy Sosa 1794 124 .274 .366 .556 136 -33.5 10.2
AVERAGE 1856 84 .293 .387 .518 141 -31.2 12.1
Jose Bautista 1856 97 .259 .383 .508 145 -37.1 12.1
We have a pretty good group of players, here. That these players were generally good through their mid-30s was no assurance that they'd continue playing well past that point, however. At age 36, for example this group — which averaged four wins per season from age 33 through 35 — recorded just a 1.7 WAR, declining to a 115 wRC+.
That's not to say there's a call for total pessimism. Because it's a pretty small group, Sammy Sosa's collapse hurts the overall figures quite a bit. Plus, Bagwell, Molitor, and Ordonez all put up above-average seasons, so it's not as if Bautista doesn't have a decent chance at a good season. Unfortunately, time isn't very forgiving. The group averaged just 3.3 WAR from age 36 through age 38, and only Molitor's 9.2 WAR during that span keeps the average that high. Jeff Bagwell's (at 3.6 WAR) is the only other player to have exceeded three wins. The overall numbers are also hurt due to some players failing to reach their age-38 season. Playing into the late 30s is hardly a guarantee, even for players still performing at a high level a few years before.
We can take a different look by tossing out Bautista's 2016 season and pretending it is some weird anomaly due to injuries that won't affect him in the future. The outlook still isn't helped much. I ran another set of comps, this time only looking for players similar to Bautista from age 32 through age 34, when Bautista was performing at a high level. The nine players who fit that criteria put up a 124 wRC+ and 2.1 WAR at age 36. That's a little bit better than the comps above, but from age 36 through age 38, they averaged just 3.9 WAR, nowhere near justifying a $75 million deal. And those nine players averaged a 126 wRC+ and 3.4 WAR at age 35, exceeding Bautista at that age.
It's possible that Bautista goes through an Ortiz-like renaissance, but the odds are stacked against him simply due to his age. To be worth a $75 million contract, Bautista would need to exceed eight wins over the next three years, and this century, only 10 players have done that. (That group of 10, in order of WAR: Barry Bonds, Moises Alou, Chipper Jones, Rafael Palmeiro, Adrian Beltre, Edgar Martinez, Manny Ramirez, Jeff Kent, Steve Finley, and David Ortiz.) Only 25 players have even been worth five wins at that age since 2000. It's not fun going around telling everyone not to sign players, but this is the free-agent class we were dealt. Bautista might come back and have a great year, but the odds are against him.
Mike Trout Officially Does Everything but Pitch
Astros Acquire Veteran Game Caller Brian McCann
Craig Edwards can be found on twitter @craigjedwards.
Dominikk85member
Bautista doesn't Really need a big renaissance, he basically was hurt all year long. I'm pretty sure if he was able to get healthy again he would produce a couple more 140 wRC+ seasons.
the big risk is the health. he always was a little injury prone but it has gotten so bad that I think he is not playable in the field.
Bautista generally was a well aging skillset (power+patience without excessive Ks) but his body needs to hold up and history is not looking good in that regard and age will likely only make it worse.
Arjon
Reply to Dominikk85
He doesn't have the greatest record for staying healthy though, which doesn't seem to bode well for his chances of being able to do so as he gets even older. So, what he could do if healthy has to be weighed against the probability he won't be.


The Soil say farewell to Matshoba: Both vocalists will perform in the #ExperienceTheSoil tour in East London and Port Elizabeth next month. Vocalist and beat boxer Luphindo Ngxanga said it was bitter-sweet to see Matshoba go but they were ready to have their "first lady" back. "It's been good.