Glycine From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, 17649-17653 [E5-1612]
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Federal Register / Vol. 70, No. 66 / Thursday, April 7, 2005 / Notices
a review is requested. Section
751(a)(3)(A) of the Act further states that
if it is not practicable to complete the
review within the time period specified,
the administering authority may extend
the 245-day period to issue its
preliminary results by up to 120 days.
We determine that completion of the
preliminary results of this review within
the 245-day period is not practicable for
the following reasons. This review
covers six companies, and to conduct
the sales and cost analyses for each
requires the Department to gather and
analyze a significant amount of
information pertaining to each
company’s sales practices,
manufacturing costs and corporate
relationships. In addition, the
Department is analyzing issues related
to scope exclusions of certain products.
Given the number and complexity of
issues in this case, and in accordance
with section 751(a)(3)(A) of the Act, we
are extending the time period for issuing
the preliminary results of review to 365
days. Therefore, the preliminary results
are now due no later than August 31,
2005. The final results continued to be
due 120 days after publication of the
preliminary results.
Barbara E. Tillman,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. E5–1608 Filed 4–6–05; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–836]
Glycine From the People’s Republic of
China: Preliminary Results of
Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
Baoding Mantong Fine Chemistry Co.,
Ltd. (‘‘Baoding Mantong’’), the
Department of Commerce (‘‘the
Department’’) is conducting an
administrative review of the
antidumping duty order on glycine from
the People’s Republic of China (‘‘PRC’’).
This review covers Baoding Mantong.
The period of review (‘‘POR’’) is March
1, 2003 through February 29, 2004. We
preliminarily find that sales have been
made below normal value (‘‘NV’’). The
preliminary results are listed below in
the section titled ‘‘Preliminary Results
of Review.’’ If these preliminary results
are adopted in our final results, we will
AGENCY:
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instruct U.S. Customs and Border
Protection (‘‘CBP’’) to assess the ad
valorem margins against the entered
value of each entry of the subject
merchandise during the POR. We invite
interested parties to comment on these
preliminary results. Parties that submit
comments are requested to submit with
each argument (1) a statement of the
issue and (2) a brief summary of the
argument(s).
EFFECTIVE DATE:
April 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Matthew Renkey, Catherine Bertrand, or
Shannon Fraser, at (202) 482–2313,
(202) 482–3207, or (202) 482–0165,
respectively; AD/CVD Operations,
Office 9, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On March 29, 1995, the Department
published in the Federal Register an
antidumping duty order on glycine from
the PRC. See Antidumping Duty Order:
Glycine from the People’s Republic of
China, 60 FR 16116, (March 29, 1995).
On March 1, 2004, the Department
published a Notice of Opportunity to
Request an Administrative Review of
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation, 69 FR 9584 (March 1,
2004). On March 16, 2004, Baoding
Mantong requested that the Department
conduct an administrative review of its
company’s sales of subject merchandise
to the United States during the POR, in
accordance with section 351.213(b) of
the Department’s regulations. On April
28, 2004, the Department initiated the
review for Baoding Mantong. See
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews in Part, 69 FR 23170 (April 28,
2004). On May 26, 2004, the Department
issued an antidumping duty
questionnaire to Baoding Mantong. On
November 9, 2004, we invited interested
parties to comment on the Department’s
surrogate country selection and/or
significant production in the other
potential surrogate countries and to
submit publicly available information to
value the factors of production. On
February 14, 2005, the Department
received comments from Baoding
Mantong on surrogate information with
which to value the factors of production
in this proceeding. With regard to
Baoding Mantong, the Department
received timely filed original and
supplemental questionnaire responses.
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17649
Scope of the Order
The product covered by the order is
glycine, which is a free-flowing
crystalline material, like salt or sugar.
Glycine is produced at varying levels of
purity and is used as a sweetener/taste
enhancer, a buffering agent,
reabsorbable amino acid, chemical
intermediate, and a metal complexing
agent. This review covers glycine of all
purity levels. Glycine is currently
classified under subheading
2922.49.4020 of the Harmonized Tariff
Schedule of the United States (HTSUS).
Although the HTSUS subheading is
provided for convenience and Customs
purposes, the written description of the
merchandise under the order is
dispositive.
Verification
As provided in section 782(i) of the
Tariff Act of 1930, as amended (‘‘the
Act’’) and 19 CFR 351.307, we
conducted verification of the
questionnaire responses of Baoding
Mantong. We used standard verification
procedures, including on-site inspection
of the production and sales facilities,
and an examination of relevant sales
and financial records. Our verification
results are outlined in the
Administrative Review of Glycine from
the People’s Republic of China: Sales
and Factors Verification Report for
Baoding Mantong Fine Chemistry Co.,
Ltd., dated March 31, 2005 (‘‘Baoding
Mantong Verification Report’’). A public
version of this report is on file in the
Central Records Unit located in room
B–099 of the Main Commerce Building.
Separate Rates
In proceedings involving non-market
economy (‘‘NME’’) countries, the
Department begins with a rebuttable
presumption that all companies within
the country are subject to government
control and, thus, should be assigned a
single antidumping duty rate unless an
exporter can affirmatively demonstrate
an absence of government control, both
in law (de jure) and in fact (de facto),
with respect to its export activities. See
Notice of Final Determination of Sales
at Less Than Fair Value: Sparklers from
the People’s Republic of China, 56 FR
20588 (May 6, 1991) (‘‘Sparklers’’). In
this review, Baoding Mantong requested
a separate company-specific rate.
Accordingly, we have considered
whether the company is independent
from government control, and therefore
eligible for a separate rate. The
Department’s separate rate test to
determine whether the exporter is
independent from government control
does not consider, in general,
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macroeconomic/border-type controls,
e.g., export licenses, quotas, and
minimum export prices, particularly if
these controls are imposed to prevent
dumping. The test focuses, rather, on
controls over the investment, pricing,
and output decision-making process at
the individual firm level. See Certain
Cut-to-Length Carbon Steel Plate from
the Ukraine: Final Determination of
Sales at Less than Fair Value, 62 FR
61754, 61757 (November 19, 1997), and
Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from
the People’s Republic of China: Final
Results of Antidumping Duty
Administrative Review, 62 FR 61276,
61279 (November 17, 1997).
To establish whether a firm is
sufficiently independent from
government control of its export
activities to be entitled to a separate
rate, the Department analyzes each
entity exporting the subject
merchandise under a test arising from
Sparklers, as amplified by Notice of
Final Determination of Sales at Less
Than Fair Value: Silicon Carbide from
the People’s Republic of China, 59 FR
22585 (May 2, 1994) (‘‘Silicon
Carbide’’). In accordance with the
separate rates criteria, the Department
assigns separate rates in NME cases only
if respondents can demonstrate the
absence of both de jure and de facto
government control over export
activities.
Baoding Mantong provided complete
separate-rate information in its
responses to our original and
supplemental questionnaires.
Accordingly, we performed a separate
rates analysis to determine whether it is
independent of government control.
Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual company may be
granted a separate rate: (1) An absence
of restrictive stipulations associated
with an individual exporter’s business
and export licenses; (2) any legislative
enactments decentralizing control of
companies; and (3) any other formal
measures by the government
decentralizing control of companies. See
Sparklers, 56 FR at 20589. Our analysis
shows that the evidence on the record
supports a preliminary finding of de
jure absence of government control for
Baoding Mantong based on each of these
factors. Baoding Mantong has placed on
the record a number of documents to
demonstrate absence of de jure control,
including the ‘‘Foreign Trade Law of the
People’s Republic of China.’’ See
Attachment A–1 of Baoding Mantong’s
July 14, 2004 submission. The Foreign
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Trade Law allows the company full
autonomy from the central authority in
governing its business operations. We
have reviewed Article 11 of Chapter II
of the Foreign Trade Law, which states
‘‘foreign trade dealers shall enjoy full
autonomy in their business operation
and be responsible for their own profits
and losses in accordance with the law.’’
During verification, Baoding Mantong
also provided its ‘‘Articles of
Association,’’ ‘‘Certificate of Approval
for Enterprises with Foreign Trade
Rights in the People’s Republic of
China,’’ and ‘‘Foreign Trade Entity
Registration Form.’’ See Baoding
Mantong Verification Report, Exhibit 1.
As in prior cases, we have analyzed
such PRC laws and approvals and found
that they establish an absence of de jure
control. See, e.g., Pure Magnesium from
the People’s Republic of China: Final
Results of New Shipper Review, 63 FR
3085, 3086 (January 21, 1998) and
Preliminary Results of New Shipper
Review: Certain Preserved Mushrooms
From the People’s Republic of China, 66
FR 30695, 30696 (June 7, 2001). Baoding
Mantong also submitted a copy of its
business licence in Attachment A–2 of
its July 14, 2004 submission. This
license was issued by the Agency of
Registration, Mancheng County,
Industry and Commerce Administrative
Bureau. Baoding Mantong indicates that
its business operations are limited to the
scope of the licence, and that the licence
may be revoked if the company acts
outside of its business scope, fails to pay
taxes, or violates criminal laws. At
verification, we reviewed Baoding
Mantong’s business license and found
that it was granted in accordance with
the relevant PRC laws. Moreover, the
results of verification support the
information provided regarding the PRC
laws. Therefore, we preliminarily
determine that there is an absence of de
jure control over the export activities of
Baoding Mantong.
Absence of De Facto Control
Typically, the Department considers
four factors in evaluating whether a
respondent is subject to de facto
government control of its export
functions: (1) Whether the export prices
are set by, or subject to, the approval of
a government authority; (2) whether the
respondent has authority to negotiate
and sign contracts, and other
agreements; (3) whether the respondent
has autonomy from the government in
making decisions regarding the
selection of its management; and (4)
whether the respondent retains the
proceeds of its export sales and makes
independent decisions regarding
disposition of profits or financing of
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losses. See Silicon Carbide, 59 FR at
22587.
As stated in previous cases, there is
some evidence that certain enactments
of the PRC central government have not
been implemented uniformly among
different sectors and/or jurisdictions in
the PRC. See Silicon Carbide, 59 FR at
22586–22587. Therefore, the
Department has determined that an
analysis of de facto control is critical in
determining whether respondents are,
in fact, subject to a degree of
government control which would
preclude the Department from assigning
separate rates.
Baoding Mantong has asserted the
following: (1) It is a privately owned
limited liability company; (2) there is no
government participation in its setting
of export prices; (3) its general manager
has the authority to bind sales contracts;
(4) it does not have to notify any
government authorities of its
management selection; (5) there are no
restrictions on the use of its export
revenue; and (6) its management is
selected by its board of directors and it
does not have to notify any government
authorities of its management selection
(See July 14, 2004 submission). We have
examined the documentation provided
and note that it does not suggest that
pricing is coordinated among exporters
of glycine from the PRC. Furthermore,
our analysis of the responses during
verification reveals no other information
indicating the existence of government
control. See Baoding Mantong
Verification Report.
Consequently, because evidence on
the record indicates an absence of
government control, both in law and in
fact, over Baoding Mantong’s export
activities, we preliminarily determine
that the company has met the criteria for
the application of a separate rate.
Normal Value Comparisons
To determine whether Baoding
Mantong’s sale of the subject
merchandise to the United States was
made at a price below NV, we compared
its United States price to a normal
value, as described in the ‘‘United States
Price’’ and ‘‘Normal Value’’ section of
this notice.
United States Price
For Baoding Mantong, we based
United States price on export price
(‘‘EP’’) in accordance with section
772(a) of the Act, because the first sale
to an unaffiliated purchaser was made
prior to importation, and constructed
export price was not otherwise
warranted by the facts on the record. We
calculated EP based on the packed price
from the exporter to the first unaffiliated
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customer in the United States. Although
Baoding Mantong reported that its sale
was made on an FOB basis, at
verification the Department found that
Baoding Mantong arranged and paid for
the ocean freight from China to the U.S.
port and then was reimbursed by the
U.S. customer for the amount of freight
expense. Accordingly, we have added
the amount of freight revenue to the
U.S. sales price and deducted the freight
cost from the U.S. price. Because the
Department verified that Baoding
Mantong paid for the freight expense in
renminbi, we valued the ocean freight
using a surrogate value.
Where foreign inland freight, foreign
brokerage and handling, or ocean freight
were provided by PRC service providers
or paid for in renminbi, we valued these
services using Indian surrogate values or
a U.S. surrogate value, as appropriate.
(see ‘‘Factors of Production’’ section
below for further discussion). For those
expenses that were provided by a
market-economy supplier and paid for
in market-economy currency, we used
the reported expense.
Normal Value
Non-Market-Economy Status
In every case conducted by the
Department involving the PRC, the PRC
has been treated as an NME country.
Pursuant to section 771(18)(C)(i) of the
Act, any determination that a foreign
country is an NME country shall remain
in effect until revoked by the
administering authority. See Tapered
Roller Bearings and Parts Thereof,
Finished and Unfinished, From the
People’s Republic of China: Preliminary
Results 2001–2002 Administrative
Review and Partial Rescission of
Review, 68 FR 7500 (February 14, 2003).
None of the parties to this review have
contested such treatment. Accordingly,
we calculated NV in accordance with
section 773(c) of the Act, which applies
to NME countries.
Surrogate Country
Section 773(c)(4) of the Act requires
the Department to value an NME
producer’s factors of production, to the
extent possible, in one or more marketeconomy countries that (1) are at a level
of economic development comparable to
that of the NME country, and (2) are
significant producers of comparable
merchandise. India is among the
countries comparable to the PRC in
terms of overall economic development,
as identified in the October 15, 2004,
Memorandum from the Office of Policy
to Alex Villaneuva. See Attachment 1,
Memorandum to the File from Shannon
Fraser through James Doyle, ‘‘Selection
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of a Surrogate Country,’’ dated March
31, 2005 (‘‘Surrogate Country Selection
Memorandum’’). In addition, based on
publicly available information placed
on the record (e.g., U.S. import data),
India is a significant producer of the
subject merchandise. Specifically, the
United States imported 600,206
kilograms of glycine from India during
the POR, making India the largest
exporter of glycine to the United States.
Accordingly, we considered India the
surrogate country for purposes of
valuing the factors of production
because it meets the Department’s
criteria for surrogate-country selection.
See Surrogate Country Selection
Memorandum.
Factors of Production
Section 773(c)(1) of the Act provides
that the Department shall determine NV
using a factors-of-production
methodology if (1) the merchandise is
exported from an NME country, and (2)
available information does not permit
the calculation of NV using homemarket prices, third-country prices, or
constructed value under section 773(a)
of the Act. Factors of production
include the following elements: (1)
Hours of labor required, (2) quantities of
raw materials employed, (3) amounts of
energy and other utilities consumed,
and (4) representative capital costs. We
valued all the input factors using
publicly available information.
In accordance with section
351.301(c)(3)(ii) of the Department’s
regulations, for the final results of an
administrative review, interested parties
may submit publicly available
information to value the factors of
production no later than twenty days
following the date of publication of
these preliminary results.
Factor Valuations
In accordance with section 773(c) of
the Act, we calculated NV based on the
factors of production which included,
but were not limited to: (1) Hours of
labor required; (2) quantities of raw
materials employed; (3) amounts of
energy and other utilities consumed;
and (4) representative capital costs,
including depreciation. We used factors
of production reported by the producer
or exporter for materials, energy, labor,
and packing. To calculate NV, we
multiplied the reported unit factor
quantities by publicly available Indian
or U.S. values.
In selecting the surrogate values, we
considered the quality, specificity, and
contemporaneity of the data, in
accordance with our practice. When we
used publicly available import data
from the Ministry of Commerce of India
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(‘‘Indian Import Statistics’’) for March
2003 through February 2004 to value
inputs sourced domestically by PRC
suppliers, we added to the Indian
surrogate values a surrogate freight cost
calculated using the shorter of the
reported distance from the domestic
supplier to the factory or the distance
from the nearest seaport to the factory.
This adjustment is in accordance with
the Court of Appeals for the Federal
Circuit’s decision in Sigma Corp. v.
United States, 117 F. 3d 1401, 1408
(Fed. Cir. 1997). In instances where we
relied on Indian import data to value
inputs, in accordance with the
Department’s practice, we excluded
imports from both NME countries and
countries deemed to maintain broadly
available, non-industry-specific
subsidies which may benefit all
exporters to all export markets (i.e.,
Indonesia, South Korea, and Thailand)
from our surrogate value calculations.
See, e.g., Final Determination of Sales at
Less Than Fair Value: Certain
Automotive Replacement Glass
Windshields from the People’s Republic
of China, 67 FR 6482 (February 12,
2002) and accompanying Issues and
Decision Memorandum at Comment 1.
See, also, Notice of Preliminary
Determination of Sales at Less Than
Fair Value, Postponement of Final
Determination, and Affirmative
Preliminary Determination of Critical
Circumstances: Certain Color Television
Receivers From the People’s Republic of
China, 68 FR 66800, 66808 (November
28, 2003), unchanged in the
Department’s final results at 69 FR
20594 (April 16, 2004).
Where we could not obtain publicly
available information contemporaneous
with the POR to value factors, we
adjusted the surrogate values using the
Indian Wholesale Price Index (‘‘WPI’’)
as published in the International
Financial Statistics (‘‘IFS’’) of the
International Monetary Fund (‘‘IMF’’),
for those surrogate values in Indian
rupees. We made currency conversions,
where necessary, pursuant to section
351.415 of the Department’s regulations,
to U.S. dollars using the applicable
average exchange rate for the POR. We
based the average exchange rates on
exchange rate data from the Import
Administration Web site at https://
ia.ita.doc.gov/exchange/. See
Surrogate Values Used for the
Preliminary Results of the 3/1/03–2/29/
04 Administrative Review of Glycine
from the People’s Republic of China
‘‘Factor Valuation Memo’’.
We valued the factors of production
as follows:
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Material and Packing Inputs
To value the inputs of acetic acid,
sulfur, liquid ammonia, formaldehyde,
methyl alcohol, paper bags, and plastic
liners, we used the weighted-average
unit import value derived from Indian
import statistics, as published in the
World Trade Atlas for the period March
1, 2003 through February 29, 2004. To
value the input of liquid chlorine, we
relied upon the average of two liquid
chlorine prices, as obtained from the
April 1, 2002 through March 31, 2003
financial statements of two Indian
chemical companies, Bihar Caustic &
Chemicals Limited and Kanoria
Chemicals & Industries Limited.
Energy
We valued electricity using the
reported price for electricity in India in
dollars per kilowatt hour for the year
2000 as reported by the International
Energy Agency (IEA) in Key World
Energy Statistics (2003), and we inflated
the value for the POR by using the WPI
for India. To value water, we relied
upon public information from the
Municipal Corporation of Greater
Mumbai’s Web site. See https://
www.mcgm.gov.inStat%20&%20Fig/
Revenue.htm. The Web site notes that
the Municipal Corporation of Greater
Mumbai’s data is for 2000 through 2001.
Because this data is not
contemporaneous with the POR, an
adjustment has been made for inflation
using the WPI for India. To value coal,
we used the weighted-average unit
import value derived from Indian
import statistics in the World Trade
Atlas for the period March 1, 2003
through February 29, 2004.
By-Products
Baoding Mantong reported that it
produced two by-products in its
production of subject merchandise:
Hydrochloric acid and ammonium
chloride. At verification, we confirmed
that Baoding Mantong made sales of
these by-products. Accordingly, we
adjusted the material cost downward to
reflect a by-product offset to the
material cost included in the normal
value. We valued ammonium chloride
by using the weighted-average unit
import values derived from Indian
import statistics in the World Trade
Atlas for the period March 1, 2003
through February 29, 2004. We valued
hydrochloric acid by using price
information obtained from Chemical
Weekly from March 1, 2003 through
February 29, 2004.
Labor
For labor, we used the PRC
regression-based wage rate at the Import
Administration’s home page, Import
Library, Expected Wages of Selected
NME Countries, updated on November
15, 2004. See https://ia.ita.doc.gov/wages
/02wages/ 02wages.html. Because of the
variability of wage rates in countries
with similar per capita gross domestic
products, section 351.408(c)(3) of the
Department’s regulations requires the
use of a regression-based wage rate. The
source of these wage rate data on the
Import Administration’s web site is the
Yearbook of Labour Statistics 2002,
International Labour Office (Geneva:
2002), Chapter 5B: Wages in
Manufacturing.
Factory Overhead, Selling, General,
and Administrative (‘‘SG&A’’)
Expenses, and Profit
To value factory overhead, SG&A, and
profit, we used the financial information
obtained from the 2003–2004 financial
statement of an Indian pharmaceutical
producer, Torrent Pharmaceuticals
Limited (‘‘Torrent’’). The factory
overhead ratio was calculated as a
percentage of total manufacturing costs
(which includes materials, labor, and
energy). The SG&A ratio was calculated
as a percentage of total factory overhead
and total manufacturing costs. The
profit ratio was calculated as a
percentage of factory overhead, SG&A,
and total manufacturing costs.
Transportation Expenses
To value inland truck freight costs, we
used freight prices published in the
April 26, 2002 edition of the Iron &
Steel Newsletter, which cites https://
www.INFreight.com, which is an Indian
logistics Web site that tracks freight
rates for all of India. The Department
averaged the rates from three points of
origin (Mumbai, Dehli, and Calcutta) to
all destinations for which distances
were published by https://
www.mapsofindia.com. Since the rate
was not contemporaneous with the
POR, we adjusted the rate for inflation
using the WPI for India. To value ocean
freight cost, we used information
obtained from a U.S. international
shipping company for a delivery from
Baoding Mantong’s reported port of
export to the reported U.S. port of
importation. See Memorandum to the
File, ‘‘Selection of Ocean Freight Cost,’’
dated March 31, 2005.
Preliminary Results of Review
We preliminary determine that the
following dumping margin exists:
Manufacturer/export
Time period
Baoding Mantong Fine Chemistry Co., Ltd .......................................................................................................
3/1/03–2/29/04
Assessment Rates
Upon completion of this
administrative review, the Department
shall determine, and U.S. Customs and
Border Protection (‘‘CBP’’) shall assess,
antidumping duties on all appropriate
entries. In accordance with 19 CFR
351.212(b)(1), for assessment purposes,
we will calculate importer-specific
assessment rates for glycine from the
PRC. We divide the total dumping
margin for the reviewed sales by the
total entered value of the reviewed sales
for each importer during the POR. Upon
completion of this review, we will
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direct CBP to assess antidumping duties
based on a percentage of entered value
equivalent to the company-specific
dumping margin established in this
review for each entry of subject
merchandise made by Baoding Mantong
during the POR. The Department will
issue appropriate assessment
instructions directly to CBP within 15
days of publication of the final results
of this administrative review.
Cash-Deposit Requirements
The following cash-deposit rates will
be effective upon publication of the
final results of this review for all
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Margin
76.72%
shipments of glycine from the PRC
entered, or withdrawn from warehouse,
for consumption on or after the
publication date, as provided for by
section 751(a)(2)(c) of the Act: (1) For
subject merchandise exported by
Baoding Mantong, the cash deposit rate
will be that established in the final
results of this review, except if the rate
is less than 0.50 percent and, therefore,
de minimis within the meaning of the
19 CFR 351.106(c)(1), in which case the
cash deposit rate will be zero; (2) for
previously investigated or reviewed
companies not listed above that have
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separate rates, the cash-deposit rate will
continue to be the company-specific rate
published for the most recent period; (3)
the cash-deposit rate for all other PRC
exporters will be the PRC-wide rate
which is currently 155.89 percent; and
(4) the cash-deposit rate for all other
non-PRC exporters will be the rate
applicable to the PRC exporter that
supplied that exporter. These deposit
requirements, when imposed, shall
remain in effect until publication of the
final results of the next administrative
review.
Schedule for Final Results of Review
The Department will disclose
calculations performed in connection
with the preliminary results of this
review within five days of the date of
publication of this notice in accordance
with section 351.224(b) of the
Department’s regulations. Any
interested party may request a hearing
within 30 days of publication of this
notice in accordance with section
351.310(c) of the Department’s
regulations. Any hearing would
normally be held 37 days after the
publication of this notice, or the first
workday thereafter, at the U.S.
Department of Commerce, 14th Street
and Constitution Avenue, NW.,
Washington, DC 20230. Individuals who
wish to request a hearing must submit
a written request within 30 days of the
publication of this notice in the Federal
Register to the Assistant Secretary for
Import Administration, U.S. Department
of Commerce, Room 1870, 14th Street
and Constitution Avenue, NW.,
Washington, DC 20230. Requests for a
public hearing should contain: (1) The
party’s name, address, and telephone
number; (2) the number of participants;
and (3) to the extent practicable, an
identification of the arguments to be
raised at the hearing.
Unless otherwise notified by the
Department, interested parties may
submit case briefs within 30 days of the
date of publication of this notice in
accordance with section 351.309(c)(ii) of
the Department’s regulations. As part of
the case brief, parties are encouraged to
provide a summary of the arguments not
to exceed five pages and a table of
statutes, regulations, and cases cited.
Rebuttal briefs, which must be limited
to issues raised in the case briefs, must
be filed within five days after the case
brief is filed. If a hearing is held, an
interested party may make an
affirmative presentation only on
arguments included in that party’s case
brief and may make a rebuttal
presentation only on arguments
included in that party’s rebuttal brief.
Parties should confirm by telephone the
VerDate jul<14>2003
18:22 Apr 06, 2005
Jkt 205001
time, date, and place of the hearing no
later than 48 hours before the scheduled
time. The Department will issue the
final results of this review, which will
include the results of its analysis of
issues raised in the briefs, not later than
120 days after the date of publication of
this notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under section
351.402(f) of the Department’s
regulations to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during these review
periods. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This administrative review and this
notice are published in accordance with
sections 751(a)(2)(B) and 777(i)(1) of the
Act.
Dated: March 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–1612 Filed 4–6–05; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–507–501]
Certain In-shell Pistachios From the
Islamic Republic of Iran: Preliminary
Results of Countervailing Duty
Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of the
countervailing duty (CVD) order on
certain in-shell (raw) pistachios from
the Islamic Republic of Iran (Iran) for
the period January 1, 2003, through
December 31, 2003. For information on
the net subsidy rate for the reviewed
company, please see the ‘‘Preliminary
Results of Review’’ section of this
notice. Interested parties are invited to
comment on these preliminary results.
(See the ‘‘Public Comment’’ section of
this notice).
DATES: Effective Date: April 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Darla Brown, AD/CVD Operations,
Office 3, Import Administration, U.S.
AGENCY:
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
17653
Department of Commerce, Room 4014,
14th Street and Constitution Avenue,
NW., Washington, DC 20230; telephone
(202) 482–2786.
SUPPLEMENTARY INFORMATION:
Background
On March 11, 1986, the Department
published in the Federal Register the
countervailing duty order on certain inshell (raw) pistachios from Iran. See
Final Affirmative Countervailing Duty
Determination and Countervailing Duty
Order: In-shell Pistachios from Iran, 51
FR 8344 (March 11, 1986) (In-shell
Pistachios). On March 1, 2004, the
Department published a notice of
opportunity to request an administrative
review of this CVD order. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review, 69 FR 9584
(March 1, 2004). On March 19, 2004, we
received a timely request for an
administrative review from Tehran
Negah Nima Trading Company, Inc.,
trading as Nima Trading Company
(Nima), the respondent company in this
proceeding. On April 28, 2004, we
initiated an administrative review of the
CVD order on in-shell (raw) pistachios
from Iran covering the period of review
(POR) January 1, 2003, through
December 31, 2003. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews, 69 FR 23170
(April 28, 2004).
On May 11, 2004, we issued our
initial questionnaire to the Government
of Iran (GOI) and Nima. On June 14,
2004, petitioners 1 filed an entry of
appearance, request for verification, and
request for a duty absorption
determination. On June 24, 2004, in a
letter to petitioners, we declined to
conduct a duty absorption
determination in this CVD
administrative review.
On July 6, 2004, and July 8, 2004, the
GOI and Nima, respectively, submitted
questionnaire responses.
On July 23, 2004, petitioners
submitted a request for extension to file
new subsidy allegations. On July 28,
2004, we granted petitioners a two-week
extension to file new subsidy allegations
in this administrative review. On
August 11, 2004, petitioners submitted
new subsidy allegations.
On August 18, 2004, we issued
supplemental questionnaires to the GOI
and Nima. On September 1, 2004, and
September 15, 2004, the GOI and Nima,
respectively, submitted supplemental
questionnaire responses.
1 Petitioners are comprised of members of the
California Pistachio Commission (CPC).
E:\FR\FM\07APN1.SGM
07APN1
Agencies
[Federal Register Volume 70, Number 66 (Thursday, April 7, 2005)]
[Notices]
[Pages 17649-17653]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1612]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-836]
Glycine From the People's Republic of China: Preliminary Results
of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Baoding Mantong Fine Chemistry
Co., Ltd. (``Baoding Mantong''), the Department of Commerce (``the
Department'') is conducting an administrative review of the antidumping
duty order on glycine from the People's Republic of China (``PRC'').
This review covers Baoding Mantong. The period of review (``POR'') is
March 1, 2003 through February 29, 2004. We preliminarily find that
sales have been made below normal value (``NV''). The preliminary
results are listed below in the section titled ``Preliminary Results of
Review.'' If these preliminary results are adopted in our final
results, we will instruct U.S. Customs and Border Protection (``CBP'')
to assess the ad valorem margins against the entered value of each
entry of the subject merchandise during the POR. We invite interested
parties to comment on these preliminary results. Parties that submit
comments are requested to submit with each argument (1) a statement of
the issue and (2) a brief summary of the argument(s).
Effective Date: April 7, 2005.
FOR FURTHER INFORMATION CONTACT: Matthew Renkey, Catherine Bertrand, or
Shannon Fraser, at (202) 482-2313, (202) 482-3207, or (202) 482-0165,
respectively; AD/CVD Operations, Office 9, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On March 29, 1995, the Department published in the Federal Register
an antidumping duty order on glycine from the PRC. See Antidumping Duty
Order: Glycine from the People's Republic of China, 60 FR 16116, (March
29, 1995). On March 1, 2004, the Department published a Notice of
Opportunity to Request an Administrative Review of Antidumping or
Countervailing Duty Order, Finding, or Suspended Investigation, 69 FR
9584 (March 1, 2004). On March 16, 2004, Baoding Mantong requested that
the Department conduct an administrative review of its company's sales
of subject merchandise to the United States during the POR, in
accordance with section 351.213(b) of the Department's regulations. On
April 28, 2004, the Department initiated the review for Baoding
Mantong. See Initiation of Antidumping and Countervailing Duty
Administrative Reviews in Part, 69 FR 23170 (April 28, 2004). On May
26, 2004, the Department issued an antidumping duty questionnaire to
Baoding Mantong. On November 9, 2004, we invited interested parties to
comment on the Department's surrogate country selection and/or
significant production in the other potential surrogate countries and
to submit publicly available information to value the factors of
production. On February 14, 2005, the Department received comments from
Baoding Mantong on surrogate information with which to value the
factors of production in this proceeding. With regard to Baoding
Mantong, the Department received timely filed original and supplemental
questionnaire responses.
Scope of the Order
The product covered by the order is glycine, which is a free-
flowing crystalline material, like salt or sugar. Glycine is produced
at varying levels of purity and is used as a sweetener/taste enhancer,
a buffering agent, reabsorbable amino acid, chemical intermediate, and
a metal complexing agent. This review covers glycine of all purity
levels. Glycine is currently classified under subheading 2922.49.4020
of the Harmonized Tariff Schedule of the United States (HTSUS).
Although the HTSUS subheading is provided for convenience and Customs
purposes, the written description of the merchandise under the order is
dispositive.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(``the Act'') and 19 CFR 351.307, we conducted verification of the
questionnaire responses of Baoding Mantong. We used standard
verification procedures, including on-site inspection of the production
and sales facilities, and an examination of relevant sales and
financial records. Our verification results are outlined in the
Administrative Review of Glycine from the People's Republic of China:
Sales and Factors Verification Report for Baoding Mantong Fine
Chemistry Co., Ltd., dated March 31, 2005 (``Baoding Mantong
Verification Report''). A public version of this report is on file in
the Central Records Unit located in room B-099 of the Main Commerce
Building.
Separate Rates
In proceedings involving non-market economy (``NME'') countries,
the Department begins with a rebuttable presumption that all companies
within the country are subject to government control and, thus, should
be assigned a single antidumping duty rate unless an exporter can
affirmatively demonstrate an absence of government control, both in law
(de jure) and in fact (de facto), with respect to its export
activities. See Notice of Final Determination of Sales at Less Than
Fair Value: Sparklers from the People's Republic of China, 56 FR 20588
(May 6, 1991) (``Sparklers''). In this review, Baoding Mantong
requested a separate company-specific rate. Accordingly, we have
considered whether the company is independent from government control,
and therefore eligible for a separate rate. The Department's separate
rate test to determine whether the exporter is independent from
government control does not consider, in general,
[[Page 17650]]
macroeconomic/border-type controls, e.g., export licenses, quotas, and
minimum export prices, particularly if these controls are imposed to
prevent dumping. The test focuses, rather, on controls over the
investment, pricing, and output decision-making process at the
individual firm level. See Certain Cut-to-Length Carbon Steel Plate
from the Ukraine: Final Determination of Sales at Less than Fair Value,
62 FR 61754, 61757 (November 19, 1997), and Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished, from the People's Republic of
China: Final Results of Antidumping Duty Administrative Review, 62 FR
61276, 61279 (November 17, 1997).
To establish whether a firm is sufficiently independent from
government control of its export activities to be entitled to a
separate rate, the Department analyzes each entity exporting the
subject merchandise under a test arising from Sparklers, as amplified
by Notice of Final Determination of Sales at Less Than Fair Value:
Silicon Carbide from the People's Republic of China, 59 FR 22585 (May
2, 1994) (``Silicon Carbide''). In accordance with the separate rates
criteria, the Department assigns separate rates in NME cases only if
respondents can demonstrate the absence of both de jure and de facto
government control over export activities.
Baoding Mantong provided complete separate-rate information in its
responses to our original and supplemental questionnaires. Accordingly,
we performed a separate rates analysis to determine whether it is
independent of government control.
Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) An absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) any other
formal measures by the government decentralizing control of companies.
See Sparklers, 56 FR at 20589. Our analysis shows that the evidence on
the record supports a preliminary finding of de jure absence of
government control for Baoding Mantong based on each of these factors.
Baoding Mantong has placed on the record a number of documents to
demonstrate absence of de jure control, including the ``Foreign Trade
Law of the People's Republic of China.'' See Attachment A-1 of Baoding
Mantong's July 14, 2004 submission. The Foreign Trade Law allows the
company full autonomy from the central authority in governing its
business operations. We have reviewed Article 11 of Chapter II of the
Foreign Trade Law, which states ``foreign trade dealers shall enjoy
full autonomy in their business operation and be responsible for their
own profits and losses in accordance with the law.'' During
verification, Baoding Mantong also provided its ``Articles of
Association,'' ``Certificate of Approval for Enterprises with Foreign
Trade Rights in the People's Republic of China,'' and ``Foreign Trade
Entity Registration Form.'' See Baoding Mantong Verification Report,
Exhibit 1. As in prior cases, we have analyzed such PRC laws and
approvals and found that they establish an absence of de jure control.
See, e.g., Pure Magnesium from the People's Republic of China: Final
Results of New Shipper Review, 63 FR 3085, 3086 (January 21, 1998) and
Preliminary Results of New Shipper Review: Certain Preserved Mushrooms
From the People's Republic of China, 66 FR 30695, 30696 (June 7, 2001).
Baoding Mantong also submitted a copy of its business licence in
Attachment A-2 of its July 14, 2004 submission. This license was issued
by the Agency of Registration, Mancheng County, Industry and Commerce
Administrative Bureau. Baoding Mantong indicates that its business
operations are limited to the scope of the licence, and that the
licence may be revoked if the company acts outside of its business
scope, fails to pay taxes, or violates criminal laws. At verification,
we reviewed Baoding Mantong's business license and found that it was
granted in accordance with the relevant PRC laws. Moreover, the results
of verification support the information provided regarding the PRC
laws. Therefore, we preliminarily determine that there is an absence of
de jure control over the export activities of Baoding Mantong.
Absence of De Facto Control
Typically, the Department considers four factors in evaluating
whether a respondent is subject to de facto government control of its
export functions: (1) Whether the export prices are set by, or subject
to, the approval of a government authority; (2) whether the respondent
has authority to negotiate and sign contracts, and other agreements;
(3) whether the respondent has autonomy from the government in making
decisions regarding the selection of its management; and (4) whether
the respondent retains the proceeds of its export sales and makes
independent decisions regarding disposition of profits or financing of
losses. See Silicon Carbide, 59 FR at 22587.
As stated in previous cases, there is some evidence that certain
enactments of the PRC central government have not been implemented
uniformly among different sectors and/or jurisdictions in the PRC. See
Silicon Carbide, 59 FR at 22586-22587. Therefore, the Department has
determined that an analysis of de facto control is critical in
determining whether respondents are, in fact, subject to a degree of
government control which would preclude the Department from assigning
separate rates.
Baoding Mantong has asserted the following: (1) It is a privately
owned limited liability company; (2) there is no government
participation in its setting of export prices; (3) its general manager
has the authority to bind sales contracts; (4) it does not have to
notify any government authorities of its management selection; (5)
there are no restrictions on the use of its export revenue; and (6) its
management is selected by its board of directors and it does not have
to notify any government authorities of its management selection (See
July 14, 2004 submission). We have examined the documentation provided
and note that it does not suggest that pricing is coordinated among
exporters of glycine from the PRC. Furthermore, our analysis of the
responses during verification reveals no other information indicating
the existence of government control. See Baoding Mantong Verification
Report.
Consequently, because evidence on the record indicates an absence
of government control, both in law and in fact, over Baoding Mantong's
export activities, we preliminarily determine that the company has met
the criteria for the application of a separate rate.
Normal Value Comparisons
To determine whether Baoding Mantong's sale of the subject
merchandise to the United States was made at a price below NV, we
compared its United States price to a normal value, as described in the
``United States Price'' and ``Normal Value'' section of this notice.
United States Price
For Baoding Mantong, we based United States price on export price
(``EP'') in accordance with section 772(a) of the Act, because the
first sale to an unaffiliated purchaser was made prior to importation,
and constructed export price was not otherwise warranted by the facts
on the record. We calculated EP based on the packed price from the
exporter to the first unaffiliated
[[Page 17651]]
customer in the United States. Although Baoding Mantong reported that
its sale was made on an FOB basis, at verification the Department found
that Baoding Mantong arranged and paid for the ocean freight from China
to the U.S. port and then was reimbursed by the U.S. customer for the
amount of freight expense. Accordingly, we have added the amount of
freight revenue to the U.S. sales price and deducted the freight cost
from the U.S. price. Because the Department verified that Baoding
Mantong paid for the freight expense in renminbi, we valued the ocean
freight using a surrogate value.
Where foreign inland freight, foreign brokerage and handling, or
ocean freight were provided by PRC service providers or paid for in
renminbi, we valued these services using Indian surrogate values or a
U.S. surrogate value, as appropriate. (see ``Factors of Production''
section below for further discussion). For those expenses that were
provided by a market-economy supplier and paid for in market-economy
currency, we used the reported expense.
Normal Value
Non-Market-Economy Status
In every case conducted by the Department involving the PRC, the
PRC has been treated as an NME country. Pursuant to section
771(18)(C)(i) of the Act, any determination that a foreign country is
an NME country shall remain in effect until revoked by the
administering authority. See Tapered Roller Bearings and Parts Thereof,
Finished and Unfinished, From the People's Republic of China:
Preliminary Results 2001-2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500 (February 14, 2003). None of the
parties to this review have contested such treatment. Accordingly, we
calculated NV in accordance with section 773(c) of the Act, which
applies to NME countries.
Surrogate Country
Section 773(c)(4) of the Act requires the Department to value an
NME producer's factors of production, to the extent possible, in one or
more market-economy countries that (1) are at a level of economic
development comparable to that of the NME country, and (2) are
significant producers of comparable merchandise. India is among the
countries comparable to the PRC in terms of overall economic
development, as identified in the October 15, 2004, Memorandum from the
Office of Policy to Alex Villaneuva. See Attachment 1, Memorandum to
the File from Shannon Fraser through James Doyle, ``Selection of a
Surrogate Country,'' dated March 31, 2005 (``Surrogate Country
Selection Memorandum''). In addition, based on publicly available
information placed on the record (e.g., U.S. import data), India is a
significant producer of the subject merchandise. Specifically, the
United States imported 600,206 kilograms of glycine from India during
the POR, making India the largest exporter of glycine to the United
States. Accordingly, we considered India the surrogate country for
purposes of valuing the factors of production because it meets the
Department's criteria for surrogate-country selection. See Surrogate
Country Selection Memorandum.
Factors of Production
Section 773(c)(1) of the Act provides that the Department shall
determine NV using a factors-of-production methodology if (1) the
merchandise is exported from an NME country, and (2) available
information does not permit the calculation of NV using home-market
prices, third-country prices, or constructed value under section 773(a)
of the Act. Factors of production include the following elements: (1)
Hours of labor required, (2) quantities of raw materials employed, (3)
amounts of energy and other utilities consumed, and (4) representative
capital costs. We valued all the input factors using publicly available
information.
In accordance with section 351.301(c)(3)(ii) of the Department's
regulations, for the final results of an administrative review,
interested parties may submit publicly available information to value
the factors of production no later than twenty days following the date
of publication of these preliminary results.
Factor Valuations
In accordance with section 773(c) of the Act, we calculated NV
based on the factors of production which included, but were not limited
to: (1) Hours of labor required; (2) quantities of raw materials
employed; (3) amounts of energy and other utilities consumed; and (4)
representative capital costs, including depreciation. We used factors
of production reported by the producer or exporter for materials,
energy, labor, and packing. To calculate NV, we multiplied the reported
unit factor quantities by publicly available Indian or U.S. values.
In selecting the surrogate values, we considered the quality,
specificity, and contemporaneity of the data, in accordance with our
practice. When we used publicly available import data from the Ministry
of Commerce of India (``Indian Import Statistics'') for March 2003
through February 2004 to value inputs sourced domestically by PRC
suppliers, we added to the Indian surrogate values a surrogate freight
cost calculated using the shorter of the reported distance from the
domestic supplier to the factory or the distance from the nearest
seaport to the factory. This adjustment is in accordance with the Court
of Appeals for the Federal Circuit's decision in Sigma Corp. v. United
States, 117 F. 3d 1401, 1408 (Fed. Cir. 1997). In instances where we
relied on Indian import data to value inputs, in accordance with the
Department's practice, we excluded imports from both NME countries and
countries deemed to maintain broadly available, non-industry-specific
subsidies which may benefit all exporters to all export markets (i.e.,
Indonesia, South Korea, and Thailand) from our surrogate value
calculations. See, e.g., Final Determination of Sales at Less Than Fair
Value: Certain Automotive Replacement Glass Windshields from the
People's Republic of China, 67 FR 6482 (February 12, 2002) and
accompanying Issues and Decision Memorandum at Comment 1. See, also,
Notice of Preliminary Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Affirmative Preliminary
Determination of Critical Circumstances: Certain Color Television
Receivers From the People's Republic of China, 68 FR 66800, 66808
(November 28, 2003), unchanged in the Department's final results at 69
FR 20594 (April 16, 2004).
Where we could not obtain publicly available information
contemporaneous with the POR to value factors, we adjusted the
surrogate values using the Indian Wholesale Price Index (``WPI'') as
published in the International Financial Statistics (``IFS'') of the
International Monetary Fund (``IMF''), for those surrogate values in
Indian rupees. We made currency conversions, where necessary, pursuant
to section 351.415 of the Department's regulations, to U.S. dollars
using the applicable average exchange rate for the POR. We based the
average exchange rates on exchange rate data from the Import
Administration Web site at https://ia.ita.doc.gov/exchange/.
See Surrogate Values Used for the Preliminary Results of the 3/1/03-2/
29/04 Administrative Review of Glycine from the People's Republic of
China ``Factor Valuation Memo''.
We valued the factors of production as follows:
[[Page 17652]]
Material and Packing Inputs
To value the inputs of acetic acid, sulfur, liquid ammonia,
formaldehyde, methyl alcohol, paper bags, and plastic liners, we used
the weighted-average unit import value derived from Indian import
statistics, as published in the World Trade Atlas for the period March
1, 2003 through February 29, 2004. To value the input of liquid
chlorine, we relied upon the average of two liquid chlorine prices, as
obtained from the April 1, 2002 through March 31, 2003 financial
statements of two Indian chemical companies, Bihar Caustic & Chemicals
Limited and Kanoria Chemicals & Industries Limited.
Energy
We valued electricity using the reported price for electricity in
India in dollars per kilowatt hour for the year 2000 as reported by the
International Energy Agency (IEA) in Key World Energy Statistics
(2003), and we inflated the value for the POR by using the WPI for
India. To value water, we relied upon public information from the
Municipal Corporation of Greater Mumbai's Web site. See https://
www.mcgm.gov.inStat%20&%20Fig/Revenue.htm. The Web site notes that the
Municipal Corporation of Greater Mumbai's data is for 2000 through
2001. Because this data is not contemporaneous with the POR, an
adjustment has been made for inflation using the WPI for India. To
value coal, we used the weighted-average unit import value derived from
Indian import statistics in the World Trade Atlas for the period March
1, 2003 through February 29, 2004.
By-Products
Baoding Mantong reported that it produced two by-products in its
production of subject merchandise: Hydrochloric acid and ammonium
chloride. At verification, we confirmed that Baoding Mantong made sales
of these by-products. Accordingly, we adjusted the material cost
downward to reflect a by-product offset to the material cost included
in the normal value. We valued ammonium chloride by using the weighted-
average unit import values derived from Indian import statistics in the
World Trade Atlas for the period March 1, 2003 through February 29,
2004. We valued hydrochloric acid by using price information obtained
from Chemical Weekly from March 1, 2003 through February 29, 2004.
Labor
For labor, we used the PRC regression-based wage rate at the Import
Administration's home page, Import Library, Expected Wages of Selected
NME Countries, updated on November 15, 2004. See https://ia.ita.doc.gov/
wages/02wages/02wages.html. Because of the variability of wage rates
in countries with similar per capita gross domestic products, section
351.408(c)(3) of the Department's regulations requires the use of a
regression-based wage rate. The source of these wage rate data on the
Import Administration's web site is the Yearbook of Labour Statistics
2002, International Labour Office (Geneva: 2002), Chapter 5B: Wages in
Manufacturing.
Factory Overhead, Selling, General, and Administrative (``SG&A'')
Expenses, and Profit
To value factory overhead, SG&A, and profit, we used the financial
information obtained from the 2003-2004 financial statement of an
Indian pharmaceutical producer, Torrent Pharmaceuticals Limited
(``Torrent''). The factory overhead ratio was calculated as a
percentage of total manufacturing costs (which includes materials,
labor, and energy). The SG&A ratio was calculated as a percentage of
total factory overhead and total manufacturing costs. The profit ratio
was calculated as a percentage of factory overhead, SG&A, and total
manufacturing costs.
Transportation Expenses
To value inland truck freight costs, we used freight prices
published in the April 26, 2002 edition of the Iron & Steel Newsletter,
which cites https://www.INFreight.com, which is an Indian logistics Web
site that tracks freight rates for all of India. The Department
averaged the rates from three points of origin (Mumbai, Dehli, and
Calcutta) to all destinations for which distances were published by
https://www.mapsofindia.com. Since the rate was not contemporaneous with
the POR, we adjusted the rate for inflation using the WPI for India. To
value ocean freight cost, we used information obtained from a U.S.
international shipping company for a delivery from Baoding Mantong's
reported port of export to the reported U.S. port of importation. See
Memorandum to the File, ``Selection of Ocean Freight Cost,'' dated
March 31, 2005.
Preliminary Results of Review
We preliminary determine that the following dumping margin exists:
------------------------------------------------------------------------
Manufacturer/export Time period Margin
------------------------------------------------------------------------
Baoding Mantong Fine Chemistry 3/1/03-2/29/04..... 76.72%
Co., Ltd.
------------------------------------------------------------------------
Assessment Rates
Upon completion of this administrative review, the Department shall
determine, and U.S. Customs and Border Protection (``CBP'') shall
assess, antidumping duties on all appropriate entries. In accordance
with 19 CFR 351.212(b)(1), for assessment purposes, we will calculate
importer-specific assessment rates for glycine from the PRC. We divide
the total dumping margin for the reviewed sales by the total entered
value of the reviewed sales for each importer during the POR. Upon
completion of this review, we will direct CBP to assess antidumping
duties based on a percentage of entered value equivalent to the
company-specific dumping margin established in this review for each
entry of subject merchandise made by Baoding Mantong during the POR.
The Department will issue appropriate assessment instructions directly
to CBP within 15 days of publication of the final results of this
administrative review.
Cash-Deposit Requirements
The following cash-deposit rates will be effective upon publication
of the final results of this review for all shipments of glycine from
the PRC entered, or withdrawn from warehouse, for consumption on or
after the publication date, as provided for by section 751(a)(2)(c) of
the Act: (1) For subject merchandise exported by Baoding Mantong, the
cash deposit rate will be that established in the final results of this
review, except if the rate is less than 0.50 percent and, therefore, de
minimis within the meaning of the 19 CFR 351.106(c)(1), in which case
the cash deposit rate will be zero; (2) for previously investigated or
reviewed companies not listed above that have
[[Page 17653]]
separate rates, the cash-deposit rate will continue to be the company-
specific rate published for the most recent period; (3) the cash-
deposit rate for all other PRC exporters will be the PRC-wide rate
which is currently 155.89 percent; and (4) the cash-deposit rate for
all other non-PRC exporters will be the rate applicable to the PRC
exporter that supplied that exporter. These deposit requirements, when
imposed, shall remain in effect until publication of the final results
of the next administrative review.
Schedule for Final Results of Review
The Department will disclose calculations performed in connection
with the preliminary results of this review within five days of the
date of publication of this notice in accordance with section
351.224(b) of the Department's regulations. Any interested party may
request a hearing within 30 days of publication of this notice in
accordance with section 351.310(c) of the Department's regulations. Any
hearing would normally be held 37 days after the publication of this
notice, or the first workday thereafter, at the U.S. Department of
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC
20230. Individuals who wish to request a hearing must submit a written
request within 30 days of the publication of this notice in the Federal
Register to the Assistant Secretary for Import Administration, U.S.
Department of Commerce, Room 1870, 14th Street and Constitution Avenue,
NW., Washington, DC 20230. Requests for a public hearing should
contain: (1) The party's name, address, and telephone number; (2) the
number of participants; and (3) to the extent practicable, an
identification of the arguments to be raised at the hearing.
Unless otherwise notified by the Department, interested parties may
submit case briefs within 30 days of the date of publication of this
notice in accordance with section 351.309(c)(ii) of the Department's
regulations. As part of the case brief, parties are encouraged to
provide a summary of the arguments not to exceed five pages and a table
of statutes, regulations, and cases cited. Rebuttal briefs, which must
be limited to issues raised in the case briefs, must be filed within
five days after the case brief is filed. If a hearing is held, an
interested party may make an affirmative presentation only on arguments
included in that party's case brief and may make a rebuttal
presentation only on arguments included in that party's rebuttal brief.
Parties should confirm by telephone the time, date, and place of the
hearing no later than 48 hours before the scheduled time. The
Department will issue the final results of this review, which will
include the results of its analysis of issues raised in the briefs, not
later than 120 days after the date of publication of this notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under section 351.402(f) of the Department's
regulations to file a certificate regarding the reimbursement of
antidumping duties prior to liquidation of the relevant entries during
these review periods. Failure to comply with this requirement could
result in the Secretary's presumption that reimbursement of antidumping
duties occurred and the subsequent assessment of double antidumping
duties.
This administrative review and this notice are published in
accordance with sections 751(a)(2)(B) and 777(i)(1) of the Act.
Dated: March 31, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-1612 Filed 4-6-05; 8:45 am]
BILLING CODE 3510-DS-P