FINAL DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGAT. OF FRONTSEATING SERVICE VALVES FROM CHINA (A-570-933) EFFECTIVE 10/22/08; RATE CHANGES 03/13/09

MESSAGE NO: 9076201 DATE: 03 17 2009 CATEGORY: ADA TYPE: FIN REFERENCE: REFERENCE DATE: CASES: A - 570 - 933 - - - - - - - - - - PERIOD COVERED: 10 22 2008 TO LIQ SUSPENSION DATE: TO: DIRECTORS OF FIELD OPERATIONS PORT DIRECTORS FROM: DIRECTOR, SPECIAL ENFORCEMENT RE: FINAL DETERMINATION IN THE ANTIDUMPING DUTY INVESTIGAT. OF FRONTSEATING SERVICE VALVES FROM CHINA (A-570-933) EFFECTIVE 10/22/08; RATE CHANGES 03/13/09 1. ON 03/13/2009, COMMERCE PUBLISHED IN THE FEDERAL REGISTER ITS FINAL DETERMINATION OF SALES AT LESS THAN FAIR VALUE AND FINAL NEGATIVE DETERMINATION OF CRITICAL CIRCUMSTANCES, IN PART IN THE ANTIDUMPING DUTY INVESTIGATION OF FRONTSEATING SERVICE VALVES FROM THE PEOPLE'S REPUBLIC OF CHINA. 2. THE MERCHANDISE COVERED BY THIS INVESTIGATION IS FRONTSEATING SERVICE VALVES, ASSEMBLED OR UNASSEMBLED, COMPLETE OR INCOMPLETE, AND CERTAIN PARTS THEREOF. FRONTSEATING SERVICEVALVES CONTAIN A SEALING SURFACE ON THE FRONT SIDE OF THE VALVE STEM THAT ALLOWS THE INDOOR UNIT OR OUTDOOR UNIT TO BE ISOLATED FROM THE REFRIGERANT STREAM WHEN THE AIR CONDITIONING OR REFRIGERATION UNIT IS BEING SERVICED. FRONTSEATING SERVICE VALVES RELY ON AN ELASTOMER SEAL WHEN THE STEM CAP IS REMOVED FOR SERVICING AND THE STEM CAP METAL TO METAL SEAT TO CREATE THIS SEAL TO THE ATMOSPHERE DURING NORMAL OPERATION. FOR PURPOSES OF THE SCOPE, THE TERM "UNASSEMBLED" FRONTSEATING SERVICE VALVE MEANS A BRAZED SUBASSEMBLY REQUIRING ANY ONE OR MORE OF THE FOLLOWING PROCESSES: THE INSERTION OF A VALVE CORE PIN, THE INSERTION OF A VALVE STEM AND/OR O RING, THE APPLICATION OR INSTALLATION OF A STEM CAP, CHARGE PORT CAP OR TUBE DUST CAP. THE TERM "COMPLETE" FRONTSEATING SERVICE VALVE MEANS A PRODUCTSOLD READY FOR INSTALLATION INTO AN AIR CONDITIONING OR REFRIGERATION UNIT. THE TERM "INCOMPLETE" FRONTSEATING SERVICE VALVE MEANS A PRODUCT THAT WHEN SOLD IS IN MULTIPLE PIECES, SECTIONS, SUBASSEMBLIES OR COMPONENTS AND IS INCAPABLE OF BEING INSTALLED INTO AN AIR CONDITIONING OR REFRIGERATION UNIT AS A SINGLE, UNIFIED VALVE WITHOUT FURTHER ASSEMBLY. THE MAJOR PARTS OR COMPONENTS OF FRONTSEATING SERVICE VALVES INTENDED TO BE COVERED BY THE SCOPE UNDER THE TERM "CERTAIN PARTS THEREOF" ARE ANY BRAZED SUBASSEMBLY CONSISTING OF ANY TWO OR MORE OF THE FOLLOWING COMPONENTS: A VALVE BODY,FIELD CONNECTION TUBE, FACTORY CONNECTION TUBE OR VALVE CHARGE PORT. -THE VALVE BODY IS A RECTANGULAR BLOCK, OR BRASS FORGING, MACHINED TO BE HOLLOW IN THE INTERIOR, WITH A GENERALLY SQUARE SHAPED SEAT (BOTTOM OF BODY). -THE FIELD CONNECTION TUBE AND FACTORY CONNECTION TUBE CONSIST OF COPPER OR OTHER METALLIC TUBING, CUT TO LENGTH, SHAPED AND BRAZED TO THE VALVE BODY IN ORDER TO CREATE TWO PORTS, THE FACTORY CONNECTION TUBE AND THE FIELD CONNECTION TUBE, ARE EACH ON OPPOSITE SIDES OF THE VALVE ASSEMBLY BODY. -THE VALVE CHARGE PORT IS A SERVICE PORT VIA WHICH A HOSE CONNECTION CAN BE USED TO CHARGE OR EVACUATE THE REFRIGERANT MEDIUM OR TO MONITOR THE SYSTEM PRESSURE FOR DIAGNOSTIC PURPOSES. THE SCOPE INCLUDES FRONT SEATING SERVICE VALVES OF ANY SIZE, CONFIGURATION, MATERIAL COMPOSITION OR CONNECTION TYPE. FRONTSEATING SERVICE VALVES ARE CLASSIFIED UNDER SUBHEADING 8481.80.1095, AND ALSO HAVE BEEN CLASSIFIED UNDER SUBHEADING 8415.90.80.85, OF THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES ("HTSUS"). IT IS POSSIBLE FOR FRONTSEATING SERVICE VALVES TO BE MANUFACTURED OUT OF PRIMARY MATERIALS OTHER THAN COPPER AND BRASS, IN WHICH CASE THEY WOULD BE CLASSIFIED UNDER HTSUS SUBHEADINGS 8481.80.3040, 8481.80.3090, OR 8481.80.5090. IN ADDITION, IF UNASSEMBLED OR INCOMPLETE FRONTSEATING SERVICE VALVES ARE IMPORTED, THE VARIOUS PARTS OR COMPONENTS WOULD BE CLASSIFIED UNDER HTSUS SUBHEADINGS 8481.90.1000, 8481.90.3000, OR 8481.90.5000. THE FRONTSEATING SERVICE VALVE DIFFERS FROM A BACKSEATING SERVICEVALVE IN THAT A BACKSEATING SERVICE VALVE HAS TWO SEALING SURFACES ON THE VALVE STEM. THIS DIFFERENCE TYPICALLY INCORPORATES A VALVE STEM ON A BACKSEATING SERVICE VALVE TO BE MACHINED OF STEEL, WHERE A FRONTSEATING SERVICE VALVE HAS A BRASS STEM. THE BACKSEATING SERVICE VALVE DUAL STEM SEAL (ON THE BACK SIDE OF THE STEM), CREATES A METAL TO METAL SEAL WHEN THE VALVE IS IN THE OPEN POSITION, THUS, SEALING THE STEM FROM THE ATMOSPHERE. THE HTSUS SUBHEADINGS ARE PROVIDED FOR CONVENIENCE AND CUSTOMS PURPOSES, BUT THE WRITTEN DESCRIPTION OF THE SCOPE OF THIS PROCEEDING IS DISPOSITIVE. 3. FOR FURTHER REPORTING PURPOSES THIS CASE HAS BEEN ASSIGNED INVESTIGATION NUMBER A-570-933. 4. FOR IMPORTS OF FRONTSEATING SERVICE VALVES FROM THE PEOPLE'S REPUBLIC OF CHINA, CBP SHALL SUSPEND LIQUIDATION OF SUCH SHIPMENTS ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER 10/22/2008. 5. EFFECTIVE 03/13/2009 CBP SHALL REQUIRE, FOR ENTRIES OF FRONTSEATING SERVICE VALVES FROM THE PEOPLE'S REPUBLIC OF CHINA FROM THE EXPORTER/PRODUCER COMBINATIONS LISTED BELOW, A CASH DEPOSIT OR THE POSTING OF A BOND EQUAL TO THE ANTIDUMPING DUTY RATES SHOWN BELOW: EXPORTER: ZHEJIANG DUNAN HETIAN METAL CO., LTD. PRODUCER: ZHEJIANG DUNAN HETIAN METAL CO., LTD CASE NUMBER: (A-570-933-001) CASH DEPOSIT RATE: 12.95 PERCENT EXPORTER: ZHEJIANG SANHUA CO., LTD. PRODUCER: ZHEJIANG SANHUA CO., LTD. CASE NUMBER: (A-570-933-002) CASH DEPOSIT RATE: 28.44 PERCENT EXPORTER: PRC-ENTITY CASE NUMBER (A-570-933-000) CASH DEPOSIT RATE: 55.62 PERCENT 6. FOR ALL OTHER ENTRIES OF FRONTSEATING SERVICE VALVES, THE FOLLOWING CASH DEPOSIT/BONDING INSTRUCTIONS APPLY: A. FOR ALL PRC EXPORTERS OF FRONTSEATING SERVICE VALVES, WHICH HAVE NOT RECEIVED THEIR OWN RATE THE CASH-DEPOSIT OR BONDING RATE WILL BE THE PRC-WIDE RATE. B. FOR ALL NON-PRC EXPORTERS OF FRONTSEATING SERVICE VALVES WHICH HAVE NOT RECEIVED THEIR OWN RATE, THE CASH-DEPOSIT OR BONDING RATE WILL BE THE RATE APPLICABLE TO THE PRODUCER/EXPORTER COMBINATIONS THAT SUPPLIED THAT NON-PRC EXPORTER. 7. IN ACCORDANCE WITH T.D. 85-145, AT THE DISCRETION OF CBP, CUSTOMS OFFICERS MAY ACCEPT EITHER A SINGLE-ENTRY BASIC IMPORTATION AND ENTRY BOND OR A CONTINUOUS BASIC IMPORTATION AND ENTRY BOND ONLY IF THE AMOUNT OF THE ESTIMATED ANTIDUMPING OR COUNTERVAILING DUTY IS LESS THAN FIVE PERCENT AD VALOREM (OR THE EQUIVALENT). OTHERWISE, WHERE THE IMPORTER HAS THE OPTION TO POST A BOND FOR ESTIMATED ANTIDUMPING OR COUNTERVAILING DUTIES, CUSTOMS OFFICERS MUST REQUIRE A SINGLE-ENTRY BASIC IMPORTATION AND ENTRY BOND PURSUANT TO T.D. 85-145. YOU ARE INSTRUCTED TO ADHERE TO THE REQUIREMENTS OF T.D. 85-145 WITH RESPECT TO THESE BONDING REQUIREMENTS. 8. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS, THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA HASHMI OR RON TRENTHAM AT THE OFFICE OF AD/CVD OPERATIONS, IMPORT ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0984 OR (202) 482-3577, RESPECTIVELY (GENERATED BY O8:ED). 9. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. DAVID M. GENOVESE