Polyvinyl Alcohol From the People's Republic of China: Final Results of Antidumping Duty Administrative Review, 27991-27994 [E6-7358]

Download as PDF Federal Register / Vol. 71, No. 93 / Monday, May 15, 2006 / Notices jlentini on PROD1PC65 with NOTICES for constructed value which is imported from the comparison market program to the margin program; (7) removed an incorrect adjustment made to SICARTSA’s general and administrative expense; (8) used the invoice date as the date of sale in the comparison market program; and (9) applied a per–unit assessment rate. See May 8, 2006, Final Calculation Memorandum for Siderurgica Lazaro Cardenas Las Truchas (SICARTSA). Both Hylsa’s and SICARTSA’s adjustments are discussed in detail in the accompanying Wire Rod Decision Memorandum. rod from Mexico entered, or withdrawn from warehouse, for consumption on or after the publication date of these final results, as provided by section 751(a) of the Tariff Act of 1930, as amended (the Act): (1) For SICARTSA and Hylsa, the cash deposit rate will be the rate listed above; (2) for merchandise exported by producers or exporters not covered in this review but covered a prior segment, the cash deposit rate will continue to be the company–specific rate from the final results; (3) if the exporter is not a firm covered in this review or a prior segment, but the producer is, the cash deposit rate will be that established for Final Results of Review the producer of the merchandise in As a result of our review, we these final results of review or in the determine that the following weighted– final determination; and (4) if neither average margins exist for the period the exporter nor the producer is a firm October 01, 2003, through September covered in this review or the 30, 2004: investigation, the cash deposit rate will be 20.11 percent, the ‘‘All Others’’ rate Weighted– established in the less–than-fair–value Average investigation. These deposit Producer Margin (Percentrequirements shall remain in effect until age) publication of the final results of the Hylsa ........................................... 1.81 next administrative review. SICARTSA .................................. 1.26 This notice also serves as a final reminder to importers of their Assessment responsibility under 19 CFR 351.402(f) to file a certificate regarding the The Department will determine, and CBP shall assess, antidumping duties on reimbursement of antidumping duties all appropriate entries, pursuant to 19 prior to liquidation of the relevant CFR 351.212(b). For Hylsa, the entries during this review period. Department has calculated importer– Failure to comply with this requirement specific duty assessment rates on the could result in the Secretary’s basis of the ratio of the total amount of presumption that reimbursement of antidumping duties calculated for the antidumping duties occurred and the examined sales to the total entered subsequent increase in antidumping value of the examined sales for that duties by the amount of antidumping importer. For SICARTSA, the duties reimbursed. Department has calculated importer– This notice also is the only reminder specific assessment rates on a per–unit to parties subject to administrative basis. Specifically, to calculate the protective order (APO) of their assessment rate on a per–unit basis, the responsibility concerning the return or Department divided the total dumping margin for SICARTSA (calculated as the destruction of proprietary information difference between normal value and disclosed under APO in accordance export price) for each importer by the with 19 CFR 351.305. Timely written total quantity of subject merchandise notification of the return/destruction of sold to that importer during the POR. APO materials or conversion to judicial Where the assessment rate is above de protective order is hereby requested. minimis, we will instruct CBP to assess Failure to comply with the regulations duties on all entries of subject and the terms of an APO is a merchandise by that importer. The sanctionable violation. Department will issue appropriate We are issuing and publishing these assessment instructions directly to CBP results and notice in accordance with within 15 days of publication of these sections 751(a)(1) and 777(i)(1) of the final results of review. Act. Cash Deposits Furthermore, the following deposit requirements will be effective upon publication of the final results of this administrative review for all shipments of carbon and certain alloy steel wire VerDate Aug<31>2005 16:54 May 12, 2006 Jkt 208001 PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 27991 Dated: May 8, 2006. David M. Spooner, Assistant Secretary for Import Administration. Appendix I. List of Comments: Hylsa Puebla S.A. (Hysla) Comment 1: Treatment of Home–Market Sales of Redirected Merchandise Comment 2: Recalculation of Hylsa’s Warranty Expenses Comment 3: Hylsa’s Cost of Materials from Affiliated Suppliers - Major Input Rule Comment 4: Treatment of Sales with Negative Dumping Margins (‘‘Zeroing’’) Comment 5: Managerial Labor Costs Comment 6: Parent Company General and Administrative (‘‘G&A’’) Expenses Comment 7: Parent Company Employee Profit Sharing Expenses Comment 8: Use of Monthly Costs for Profit Calculations Comment 9: Hylsa’s Home–Market Credit Expenses Comment 10: Error in the Calculation of Net Price for U.S. Sales with Billing Adjustments Siderurgica Lazaro Cardenas las Truchas, S.A. de C.V. (SICARTSA) Comment 11. Major Input of Iron Ore and Ferrous Scrap Comment 12: Credit Expense using U.S. Dollar Interest Rates Comment 13: Assessment Rate Comment 14: Adjustment to SICARTSA’s G&A Expenses Comment 15: Home–Market Discounts and Rebates Comment 16: Home–Market Credit Expense Comment 17: Treatment of Unpaid Accounts Receivable Comment 18: Incorrect File Name [FR Doc. E6–7360 Filed 5–12–06; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration A–570–879 Polyvinyl Alcohol From the People’s Republic of China: Final Results of Antidumping Duty Administrative Review Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (‘‘the Department’’) published its preliminary results of administrative review of the antidumping duty order on polyvinyl alcohol (‘‘PVA’’) from the AGENCY: E:\FR\FM\15MYN1.SGM 15MYN1 27992 Federal Register / Vol. 71, No. 93 / Monday, May 15, 2006 / Notices People’s Republic of China (‘‘PRC’’) on November 7, 2005. See Polyvinyl Alcohol from the People’s Republic of China: Preliminary Results of Antidumping Duty Administrative Review, 70 FR 67434 (November 7, 2005) (‘‘Preliminary Results’’). The period of review (‘‘POR’’) is August 11, 2003, through September 30, 2004. We invited interested parties to comment on our preliminary results. Based on our analysis of the comments received, we have made certain changes to our calculations. The final dumping margins for this review are listed in the ‘‘Final Results of Review’’ section below. EFFECTIVE DATE: May 15, 2006. FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian, AD/CVD Operations, Office 8, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–6412. SUPPLEMENTARY INFORMATION: Background We invited parties to comment on our Preliminary Results. On December 7, 2005, the Department received case briefs from Petitioners 1 and the respondent, Sinopec Sichuan Vinylon Works (‘‘SVW’’). On December 16, 2005, we received rebuttal comments from Petitioners, SVW, and Solutia, Inc. (‘‘Solutia’’), a domestic producer of PVA. On February 7, 2006, the Department issued a fifth Section D supplemental questionnaire to SVW, to which SVW responded on February 14, 2006. In addition, on February 7, 2006, we issued a memorandum to all interested parties requesting comments regarding a change in the Department’s calculated regression–based wage rate methodology and in the allocation of the labor benefits in the financial ratio calculation. See Letter from Wendy Frankel, Director, Office 8, to All Interested Parties, dated February 7, 2006. Petitioners provided comments on February 14, 2006. No other interested party provided comments. We have conducted this administrative review in accordance with Section 751 of the Tariff Act of 1930, as amended (‘‘the Act’’), and 19 CFR 351.213. jlentini on PROD1PC65 with NOTICES Period of Review The POR is August 11, 2003, through September 30, 2004. Scope of the Order The merchandise covered by this order is PVA. This product consists of 1 Celanese Chemicals, Ltd. and E.I. DuPont de Nemours and Co. (collectively ‘‘Petitioners’’). VerDate Aug<31>2005 16:54 May 12, 2006 Jkt 208001 all PVA hydrolyzed in excess of 80 percent, whether or not mixed or diluted with commercial levels of defoamer or boric acid, except as noted below. The following products are specifically excluded from the scope of this investigation: 1) PVA in fiber form. 2) PVA with hydrolysis less than 83 mole percent and certified not for use in the production of textiles. 3) PVA with hydrolysis greater than 85 percent and viscosity greater than or equal to 90 cps. 4) PVA with a hydrolysis greater than 85 percent, viscosity greater than or equal to 80 cps but less than 90 cps, certified for use in an ink jet application. 5) PVA for use in the manufacture of an excipient or as an excipient in the manufacture of film coating systems which are components of a drug or dietary supplement, and accompanied by an end–use certification. 6) PVA covalently bonded with cationic monomer uniformly present on all polymer chains in a concentration equal to or greater than one mole percent. 7) PVA covalently bonded with carboxylic acid uniformly present on all polymer chains in a concentration equal to or greater than two mole percent, certified for use in a paper application. 8) PVA covalently bonded with thiol uniformly present on all polymer chains, certified for use in emulsion polymerization of non–vinyl acetic material. 9) PVA covalently bonded with paraffin uniformly present on all polymer chains in a concentration equal to or greater than one mole percent. 10) PVA covalently bonded with silan uniformly present on all polymer chains certified for use in paper coating applications. 11) PVA covalently bonded with sulfonic acid uniformly present on all polymer chains in a concentration level equal to or greater than one mole percent. 12) PVA covalently bonded with acetoacetylate uniformly present on all polymer chains in a concentration level equal to or greater than one mole percent. 13) PVA covalently bonded with polyethylene oxide uniformly present on all polymer chains in a concentration level equal to or greater than one mole percent. 14) PVA covalently bonded with PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 quaternary amine uniformly present on all polymer chains in a concentration level equal to or greater than one mole percent. 15) PVA covalently bonded with diacetoneacrylamide uniformly present on all polymer chains in a concentration level greater than three mole percent, certified for use in a paper application. The merchandise subject to this order is currently classifiable under subheading 3905.30.00 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 scope of this order is dispositive. Analysis of Comments Received All issues raised in the post– preliminary comments by parties in this review are addressed in the memorandum from Stephen J. Claeys, Deputy Assistant Secretary for Import Administration, to David M. Spooner, Assistant Secretary for Import Administration, ‘‘Issues and Decision Memorandum for the Final Results of the First Administrative Review of the Antidumping Duty Order on Polyvinyl Alcohol from the People’s Republic of China,’’ dated May 8, 2006 (‘‘Issues and Decision Memorandum’’), which is hereby adopted by this notice. A list of the issues which parties raised and to which we responded in the Issues and Decision Memorandum is attached to this notice as an appendix. The Issues and Decision Memorandum is a public document which is on file in the Central Records Unit (‘‘CRU’’) in room B–099 in the main Department building, and is accessible on the Web at https:// ia.ita.doc.gov/frn. The paper copy and electronic version of the memorandum are identical in content. Changes Since the Preliminary Results Based on our analysis of comments received, we have made changes in the margin calculations for SVW. • We changed our surrogate value labor rate to the rate issued by the Department in November 2005. See Issues and Decision Memorandum at Comment 9. • We moved employee benefits of the surrogate company from the direct labor calculation into manufacturing overhead. See Issues and Decision Memorandum at Comment 8. • For the preliminary results, we did not value freon. However, for the final results, we valued freon for our margin calculations. See Issues and Decision Memorandum at Comment 6. E:\FR\FM\15MYN1.SGM 15MYN1 jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 93 / Monday, May 15, 2006 / Notices • In the preliminary results, we used a heat–of-combustion methodology to allocate costs to acetylene and acetylene tail gas. For the final results, we utilized a value–based allocation methodology. See Issues and Decision Memorandum at Comment 1. • In the preliminary results, we inadvertently added the value of the steam by–product to acetylene and acetylene tail gas. For the final results, we revised the surrogate value for steam to apply the intended by– product credit. See Issues and Decision Memorandum at Comment 1. • For the preliminary results, we inadvertently included a waterway supplier distance in calculating the weighted–average supplier distance for coal. For the final results, we removed this distance. See Final Results of Administrative Review of the Order on Polyvinyl Alcohol from the People’s Republic of China: Sinopec Sichuan Vinylon Works Program Analysis for the Final Results of Review from Lilit Astvatsatrian, Case Analyst, through Robert Bolling, Program Manager, to the File, dated May 8, 2006 (‘‘Final Analysis Memorandum.’’). • We adjusted the calculation of self– produced electricity as an input into self–produced tap water, steam and compressed air, and the calculation of self–produced steam as an input into self–produced 12 degree circulation water, power generation boiler water, de–oxygen water, methanol, vinyl acetate monomer, and acetylene/ acetylene tail gas. See Issues and Decision Memorandum at Comments 12 - 14. • In the preliminary results, we inadvertently applied the surrogate value of pure water to the factor of 33 degree circulation water. For the final results, we applied the surrogate value of 33 degree circulation water to the factor of 33 degree circulation water. See Issues and Decision Memorandum at Comment 15. • In the preliminary results, we intended to increase SVW’s direct labor hours to account for unreported engineering and production management but inadvertently applied the increase only to the last stage of PVA production: the production of finished PVA. For the final results, we increased the direct labor hours for the full PVA production cycle. See Attachment 6 of Preliminary Results of Review of the Order on Polyvinyl Alcohol from the People’s Republic of China: Sinopec Sichuan Vinylon Works Program Analysis for the Preliminary Results of Review from Lilit Astvatsatrian, VerDate Aug<31>2005 16:54 May 12, 2006 Jkt 208001 Case Analyst, through Robert Bolling, Program Manager, to the File, dated October 31, 2005, and Exhibit 1 of Final Analysis Memorandum at page 4. Surrogate Country In the Preliminary Results, we stated that we treat the PRC as a non–market economy (‘‘NME’’) country, and, therefore, we calculated normal value in accordance with section 773(c) of the Act, which applies to NME countries. Also, we stated that we had selected India as the appropriate surrogate country to use in this review for the following reasons: (1) it is a significant producer of comparable merchandise; and (2) it is at a similar level of economic development, pursuant to 773(c)(4) of the Act. See Preliminary Results, 70 FR 67436. For the final results, we made no changes to our findings with respect to the selection of a surrogate country. Separate Rates In proceedings involving 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 deposit rate. It is the Department’s policy to assign all exporters of merchandise subject to review in an NME country this single rate unless an exporter can demonstrate that it is sufficiently independent so as to be entitled to a separate rate. In the Preliminary Results, we found that SVW demonstrated its eligibility for separate–rate status. For the final results, we continue to find that the evidence placed on the record of this review by SVW demonstrates an absence of government control, both in law and in fact, with respect to its exports of the merchandise under review, and, thus determine SVW is eligible for separate–rate status. Weighted–Average Dumping Margin The weighted–average dumping margin is as follows: POLYVINYL ALCOHOL FROM THE PRC Producer/Manufacturer/ Exporter Weighted–Average Margin (Percent) SVW* ............................ 0.04 % * This rate is de minimis. Assessment Rates The Department will issue appraisement instructions directly to U.S. Customs and Border Protection (‘‘CBP’’) within 15 days of publication PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 27993 of these final results of administrative review. In accordance with 19 CFR 351.212(b)(1), we have calculated importer–specific assessment rates for merchandise subject to this review. For SVW, we divided the total dumping margins of its reviewed sales by the total entered value of its reviewed sales for each applicable importer to calculate ad valorem assessment rates. We will direct CBP to assess the resulting assessment rates against the entered customs values for the subject merchandise on SVW’s entries under the relevant order during the POR. To determine whether the duty assessment rates were de minimis, in accordance with the requirement set forth in 19 CFR 351.106(c)(2), we calculated importer–specific ad valorem rates. For SVW, we aggregated the dumping margins calculated for all U.S. sales to each importer and divided this amount by the entered value of the sales to each importer. For further details see Final Analysis Memorandum. Where an importer–specific ad valorem rate is de minimis, we will order CBP to liquidate appropriate entries without regard to antidumping duties. Cash–Deposit Requirements The following deposit requirements will be effective upon publication of this notice of final results of administrative review for all shipments of PVA from the PRC entered, or withdrawn from warehouse, for consumption on or after the date of publication, as provided by section 751(a)(1) of the Act: (1) Because the cash deposit rates for SVW is de minimis, no cash deposit shall be required for SVW; (2) for previously reviewed or investigated companies not listed above that have a separate rate, 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 97.86 percent, the current PRC–wide rate; and (4) the cash deposit rate for all 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. Notification to Importers This notice also serves as a final reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with E:\FR\FM\15MYN1.SGM 15MYN1 27994 Federal Register / Vol. 71, No. 93 / Monday, May 15, 2006 / Notices this requirement could result in the Secretary’s presumption that reimbursement of the antidumping duties occurred and the subsequent assessment of double antidumping duties. This notice also serves as a reminder to parties subject to administrative protective orders (‘‘APOs’’) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. We are issuing and publishing this determination and notice in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: May 8, 2006. David M. Spooner, Assistant Secretary for Import Administration. Appendix jlentini on PROD1PC65 with NOTICES List of Comments and Issues in the Decision Memorandum Comment 1: Cost Allocation Methodology of Acetylene and Acetylene Tail Gas Co–Products Comment 2: Surrogate Value for Natural Gas Comment 3: Surrogate Value for Coal Comment 4: Surrogate Value Purity Adjustment for Purchased Inputs Sourced from Chemical Weekly Comment 5: Surrogate Value for Methanol Comment 6: Valuation of Surrogate Value for Freon Comment 7: Inclusion of Excise Duty in Surrogate Company’s Profit Comment 8: Inclusion of Labor Benefits in Factory Overhead Comment 9: Surrogate Value for Wages Comment 10: Treatment of By–Product Offsets Comment 11: Surrogate Value for Brokerage and Handling Comment 12: Use of Self–Produced Electricity in the Production of Certain Self–Produced Inputs Comment 13: Use of Different Value of Self–Produced Steam as an Input to Other Self–Produced Inputs Comment 14: Use of Self–Produced Electricity in Calculation of the Cost of 33 Degree Circulation Water Comment 15: Calculation of 33 Degree Circulation Water in Margin Calculation Program VerDate Aug<31>2005 16:54 May 12, 2006 Jkt 208001 Comment 16: Correction of the Calculation of Train Freight [FR Doc. E6–7358 Filed 06–12–06; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration [I.D. 050406B] Endangered and Threatened Species; Take of Anadromous Fish National Marine Fisheries Service (NOAA Fisheries), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Receipt of applications for renewal; modification of scientific research/enhancement permit (1093); request for comment. AGENCY: SUMMARY: Notice is hereby given that NMFS has received applications to renew and modify permits from U. S. Geological Survey, Arcata, CA (Permit 1093). This permit would affect Southern Oregon/Northern California Coast (SONCC) coho salmon (Oncorhynchus kisutch), Central California Coast (CCC) coho salmon, Northern California (NC) steelhead (O. mykiss), and California Coastal (CC) Chinook salmon (O. tshawytscha). This document serves to notify the public of the availability of the permit application for review and comment before a final approval or disapproval is made by NMFS. Written comments on the permit application must be received at the appropriate address or fax number (see ADDRESSES) no later than 5 p.m. Daylight Savings Time on June 14, 2006. ADDRESSES: Written comments on any of these renewal and modification request should be sent to the appropriate office as indicated below. Comments may also be sent via fax to the number indicated for the request. Comments will not be accepted if submitted via e-mail or the internet. The applications and related documents are available for review in the indicated office, by appointment: For Permit 1093: Steve Liebhardt, Protected Species Division, NOAA Fisheries, 1655 Heindon Road, Arcata, CA 95521 (ph: 707–825–5186, fax: 707– 825–4840). FOR FURTHER INFORMATION CONTACT: Steve Liebhardt at phone number (707B825B5186), or e-mail: steve.liebhardt@noaa.gov. DATES: SUPPLEMENTARY INFORMATION: PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 Authority Issuance of permits and permit modifications, as required by the Endangered Species Act of 1973 (16 U.S.C. 1531B1543) (ESA), is based on a finding that such permits/modifications: (1) Are applied for in good faith; (2) would not operate to the disadvantage of the listed species which are the subject of the permits; and (3) are consistent with the purposes and policies set forth in section 2 of the ESA. Authority to take listed species is subject to conditions set forth in the permits. Permits and modifications are issued in accordance with and are subject to the ESA and NOAA Fisheries regulations governing listed fish and wildlife permits (50 CFR parts 222–226). Those individuals requesting a hearing on an application listed in this notice should set out the specific reasons why a hearing on that application would be appropriate (see ADDRESSES). The holding of such a hearing is at the discretion of the Assistant Administrator for Fisheries, NOAA. All statements and opinions contained in the permit action summaries are those of the applicant and do not necessarily reflect the views of NMFS. Species Covered in This Notice This notice is relevant to the following four threatened salmonid ESUs: Southern Oregon/Northern California Coast (SONCC) coho salmon (Oncorhynchus kisutch), Central California Coast (CCC) coho salmon, Northern California (NC) steelhead (O. mykiss), and California Coastal (CC) Chinook salmon (O. tshawytscha). Renewal and Requests Received Permit 1093 The U.S. Geological Survey (USGS) has requested the renewal and modification 2 of Permit 1093 for take of SONCC coho salmon, CCC coho salmon, NC steelhead, and CC Chinook salmon, associated with five studies. The USGS proposes to capture juvenile salmon and steelhead by electrofishing. Permit 1068 was originally issued on April 1, 1998. That permit expired on June 30, 2003. NMFS placed the USGS on the California Department of Fish and Game (CDFG) 4d list for scientific research to cover the USGS for anticipated take of listed salmonids. However, because CCC coho salmon are listed as endangered and because the USGS would conduct research on CCC coho salmon, they could not be covered for take of CCC coho salmon under the 4d list. Therefore, NMFS is renewing and modifying Permit 1093 for a second E:\FR\FM\15MYN1.SGM 15MYN1

Agencies

[Federal Register Volume 71, Number 93 (Monday, May 15, 2006)]
[Notices]
[Pages 27991-27994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-7358]


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

DEPARTMENT OF COMMERCE

International Trade Administration

A-570-879


Polyvinyl Alcohol From the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review

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

SUMMARY: The Department of Commerce (``the Department'') published its 
preliminary results of administrative review of the antidumping duty 
order on polyvinyl alcohol (``PVA'') from the

[[Page 27992]]

People's Republic of China (``PRC'') on November 7, 2005. See Polyvinyl 
Alcohol from the People's Republic of China: Preliminary Results of 
Antidumping Duty Administrative Review, 70 FR 67434 (November 7, 2005) 
(``Preliminary Results''). The period of review (``POR'') is August 11, 
2003, through September 30, 2004. We invited interested parties to 
comment on our preliminary results. Based on our analysis of the 
comments received, we have made certain changes to our calculations. 
The final dumping margins for this review are listed in the ``Final 
Results of Review'' section below.

EFFECTIVE DATE: May 15, 2006.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
6412.

SUPPLEMENTARY INFORMATION:

Background

    We invited parties to comment on our Preliminary Results. On 
December 7, 2005, the Department received case briefs from Petitioners 
\1\ and the respondent, Sinopec Sichuan Vinylon Works (``SVW''). On 
December 16, 2005, we received rebuttal comments from Petitioners, SVW, 
and Solutia, Inc. (``Solutia''), a domestic producer of PVA. On 
February 7, 2006, the Department issued a fifth Section D supplemental 
questionnaire to SVW, to which SVW responded on February 14, 2006. In 
addition, on February 7, 2006, we issued a memorandum to all interested 
parties requesting comments regarding a change in the Department's 
calculated regression-based wage rate methodology and in the allocation 
of the labor benefits in the financial ratio calculation. See Letter 
from Wendy Frankel, Director, Office 8, to All Interested Parties, 
dated February 7, 2006. Petitioners provided comments on February 14, 
2006. No other interested party provided comments. We have conducted 
this administrative review in accordance with Section 751 of the Tariff 
Act of 1930, as amended (``the Act''), and 19 CFR 351.213.
---------------------------------------------------------------------------

    \1\ Celanese Chemicals, Ltd. and E.I. DuPont de Nemours and Co. 
(collectively ``Petitioners'').
---------------------------------------------------------------------------

Period of Review

    The POR is August 11, 2003, through September 30, 2004.

Scope of the Order

    The merchandise covered by this order is PVA. This product consists 
of all PVA hydrolyzed in excess of 80 percent, whether or not mixed or 
diluted with commercial levels of defoamer or boric acid, except as 
noted below.
    The following products are specifically excluded from the scope of 
this investigation:

    1) PVA in fiber form.
    2) PVA with hydrolysis less than 83 mole percent and certified not 
for use in the production of textiles.
    3) PVA with hydrolysis greater than 85 percent and viscosity 
greater than or equal to 90 cps.
    4) PVA with a hydrolysis greater than 85 percent, viscosity greater 
than or equal to 80 cps but less than 90 cps, certified for use in an 
ink jet application.
    5) PVA for use in the manufacture of an excipient or as an 
excipient in the manufacture of film coating systems which are 
components of a drug or dietary supplement, and accompanied by an end-
use certification.
    6) PVA covalently bonded with cationic monomer uniformly present on 
all polymer chains in a concentration equal to or greater than one mole 
percent.
    7) PVA covalently bonded with carboxylic acid uniformly present on 
all polymer chains in a concentration equal to or greater than two mole 
percent, certified for use in a paper application.
    8) PVA covalently bonded with thiol uniformly present on all 
polymer chains, certified for use in emulsion polymerization of non-
vinyl acetic material.
    9) PVA covalently bonded with paraffin uniformly present on all 
polymer chains in a concentration equal to or greater than one mole 
percent.
    10) PVA covalently bonded with silan uniformly present on all 
polymer chains certified for use in paper coating applications.
    11) PVA covalently bonded with sulfonic acid uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    12) PVA covalently bonded with acetoacetylate uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    13) PVA covalently bonded with polyethylene oxide uniformly present 
on all polymer chains in a concentration level equal to or greater than 
one mole percent.
    14) PVA covalently bonded with quaternary amine uniformly present 
on all polymer chains in a concentration level equal to or greater than 
one mole percent.
    15) PVA covalently bonded with diacetoneacrylamide uniformly 
present on all polymer chains in a concentration level greater than 
three mole percent, certified for use in a paper application.

    The merchandise subject to this order is currently classifiable 
under subheading 3905.30.00 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 
scope of this order is dispositive.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
this review are addressed in the memorandum from Stephen J. Claeys, 
Deputy Assistant Secretary for Import Administration, to David M. 
Spooner, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum for the Final Results of the First Administrative 
Review of the Antidumping Duty Order on Polyvinyl Alcohol from the 
People's Republic of China,'' dated May 8, 2006 (``Issues and Decision 
Memorandum''), which is hereby adopted by this notice. A list of the 
issues which parties raised and to which we responded in the Issues and 
Decision Memorandum is attached to this notice as an appendix. The 
Issues and Decision Memorandum is a public document which is on file in 
the Central Records Unit (``CRU'') in room B-099 in the main Department 
building, and is accessible on the Web at https://ia.ita.doc.gov/frn. 
The paper copy and electronic version of the memorandum are identical 
in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations for SVW.

 We changed our surrogate value labor rate to the rate issued 
by the Department in November 2005. See Issues and Decision Memorandum 
at Comment 9.
 We moved employee benefits of the surrogate company from the 
direct labor calculation into manufacturing overhead. See Issues and 
Decision Memorandum at Comment 8.
 For the preliminary results, we did not value freon. However, 
for the final results, we valued freon for our margin calculations. See 
Issues and Decision Memorandum at Comment 6.

[[Page 27993]]

 In the preliminary results, we used a heat-of-combustion 
methodology to allocate costs to acetylene and acetylene tail gas. For 
the final results, we utilized a value-based allocation methodology. 
See Issues and Decision Memorandum at Comment 1.
 In the preliminary results, we inadvertently added the value 
of the steam by-product to acetylene and acetylene tail gas. For the 
final results, we revised the surrogate value for steam to apply the 
intended by-product credit. See Issues and Decision Memorandum at 
Comment 1.
 For the preliminary results, we inadvertently included a 
waterway supplier distance in calculating the weighted-average supplier 
distance for coal. For the final results, we removed this distance. See 
Final Results of Administrative Review of the Order on Polyvinyl 
Alcohol from the People's Republic of China: Sinopec Sichuan Vinylon 
Works Program Analysis for the Final Results of Review from Lilit 
Astvatsatrian, Case Analyst, through Robert Bolling, Program Manager, 
to the File, dated May 8, 2006 (``Final Analysis Memorandum.'').
 We adjusted the calculation of self-produced electricity as an 
input into self-produced tap water, steam and compressed air, and the 
calculation of self-produced steam as an input into self-produced 12 
degree circulation water, power generation boiler water, de-oxygen 
water, methanol, vinyl acetate monomer, and acetylene/acetylene tail 
gas. See Issues and Decision Memorandum at Comments 12 - 14.
 In the preliminary results, we inadvertently applied the 
surrogate value of pure water to the factor of 33 degree circulation 
water. For the final results, we applied the surrogate value of 33 
degree circulation water to the factor of 33 degree circulation water. 
See Issues and Decision Memorandum at Comment 15.
 In the preliminary results, we intended to increase SVW's 
direct labor hours to account for unreported engineering and production 
management but inadvertently applied the increase only to the last 
stage of PVA production: the production of finished PVA. For the final 
results, we increased the direct labor hours for the full PVA 
production cycle. See Attachment 6 of Preliminary Results of Review of 
the Order on Polyvinyl Alcohol from the People's Republic of China: 
Sinopec Sichuan Vinylon Works Program Analysis for the Preliminary 
Results of Review from Lilit Astvatsatrian, Case Analyst, through 
Robert Bolling, Program Manager, to the File, dated October 31, 2005, 
and Exhibit 1 of Final Analysis Memorandum at page 4.

Surrogate Country

    In the Preliminary Results, we stated that we treat the PRC as a 
non-market economy (``NME'') country, and, therefore, we calculated 
normal value in accordance with section 773(c) of the Act, which 
applies to NME countries. Also, we stated that we had selected India as 
the appropriate surrogate country to use in this review for the 
following reasons: (1) it is a significant producer of comparable 
merchandise; and (2) it is at a similar level of economic development, 
pursuant to 773(c)(4) of the Act. See Preliminary Results, 70 FR 67436. 
For the final results, we made no changes to our findings with respect 
to the selection of a surrogate country.

Separate Rates

    In proceedings involving 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 deposit rate. It is the Department's policy to assign 
all exporters of merchandise subject to review in an NME country this 
single rate unless an exporter can demonstrate that it is sufficiently 
independent so as to be entitled to a separate rate.
    In the Preliminary Results, we found that SVW demonstrated its 
eligibility for separate-rate status. For the final results, we 
continue to find that the evidence placed on the record of this review 
by SVW demonstrates an absence of government control, both in law and 
in fact, with respect to its exports of the merchandise under review, 
and, thus determine SVW is eligible for separate-rate status.

Weighted-Average Dumping Margin

    The weighted-average dumping margin is as follows:

                     Polyvinyl Alcohol from the PRC
------------------------------------------------------------------------
                                                       Weighted-Average
           Producer/Manufacturer/Exporter              Margin (Percent)
------------------------------------------------------------------------
SVW*................................................              0.04 %
------------------------------------------------------------------------
 * This rate is de minimis.

Assessment Rates

    The Department will issue appraisement instructions directly to 
U.S. Customs and Border Protection (``CBP'') within 15 days of 
publication of these final results of administrative review. In 
accordance with 19 CFR 351.212(b)(1), we have calculated importer-
specific assessment rates for merchandise subject to this review. For 
SVW, we divided the total dumping margins of its reviewed sales by the 
total entered value of its reviewed sales for each applicable importer 
to calculate ad valorem assessment rates. We will direct CBP to assess 
the resulting assessment rates against the entered customs values for 
the subject merchandise on SVW's entries under the relevant order 
during the POR.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer-specific ad valorem rates. For SVW, we aggregated 
the dumping margins calculated for all U.S. sales to each importer and 
divided this amount by the entered value of the sales to each importer. 
For further details see Final Analysis Memorandum. Where an importer-
specific ad valorem rate is de minimis, we will order CBP to liquidate 
appropriate entries without regard to antidumping duties.

Cash-Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of PVA from the PRC entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) Because the cash deposit 
rates for SVW is de minimis, no cash deposit shall be required for SVW; 
(2) for previously reviewed or investigated companies not listed above 
that have a separate rate, 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 97.86 percent, 
the current PRC-wide rate; and (4) the cash deposit rate for all 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.

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with

[[Page 27994]]

this requirement could result in the Secretary's presumption that 
reimbursement of the antidumping duties occurred and the subsequent 
assessment of double antidumping duties. This notice also serves as a 
reminder to parties subject to administrative protective orders 
(``APOs'') of their responsibility concerning the return or destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305. Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 8, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Cost Allocation Methodology of Acetylene and Acetylene Tail 
Gas Co-Products
Comment 2: Surrogate Value for Natural Gas
Comment 3: Surrogate Value for Coal
Comment 4: Surrogate Value Purity Adjustment for Purchased Inputs 
Sourced from Chemical Weekly
Comment 5: Surrogate Value for Methanol
Comment 6: Valuation of Surrogate Value for Freon
Comment 7: Inclusion of Excise Duty in Surrogate Company's Profit
Comment 8: Inclusion of Labor Benefits in Factory Overhead
Comment 9: Surrogate Value for Wages
Comment 10: Treatment of By-Product Offsets
Comment 11: Surrogate Value for Brokerage and Handling
Comment 12: Use of Self-Produced Electricity in the Production of 
Certain Self-Produced Inputs
Comment 13: Use of Different Value of Self-Produced Steam as an Input 
to Other Self-Produced Inputs
Comment 14: Use of Self-Produced Electricity in Calculation of the Cost 
of 33 Degree Circulation Water
Comment 15: Calculation of 33 Degree Circulation Water in Margin 
Calculation Program
Comment 16: Correction of the Calculation of Train Freight

[FR Doc. E6-7358 Filed 06-12-06; 8:45 am]
BILLING CODE 3510-DS-S
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