Carbazole Violet Pigment 23 From the People's Republic of China; Preliminary Results of Antidumping Duty Administrative Review and Rescission in Part, 65073-65077 [E6-18787]
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Federal Register / Vol. 71, No. 215 / Tuesday, November 7, 2006 / Notices
the ARTS under OMB Control Number
0607–0013.
Based upon the foregoing, I have
directed that an annual survey be
conducted for the purpose of collecting
these data.
Dated: November 1, 2006.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. E6–18718 Filed 11–6–06; 8:45 am]
BILLING CODE 3510–07–P
DEPARTMENT OF COMMERCE
Bureau of the Census
[Docket Number 061025278–6278–01]
Service Annual Survey for 2006
Bureau of the Census,
Commerce.
ACTION: Notice of Determination.
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AGENCY:
SUMMARY: In accordance with Title 13,
United States Code (U.S.C.), Sections
182, 224, and 225, the Bureau of the
Census (Census Bureau) has determined
that limited financial data (revenue,
expenses, and the like) for selected
service industries are needed to provide
a sound statistical basis for the
formation of policy by various
governmental agencies. These data also
apply to a variety of public and business
needs. To obtain the desired data, the
Census Bureau announces the
administration of the 2006 Service
Annual Survey (SAS).
ADDRESSES: The Census Bureau will
furnish report forms to respondents
included in the survey, and additional
copies are available upon written
request to the Director, Census Bureau,
Washington, DC 20233–0101.
FOR FURTHER INFORMATION CONTACT: Ron
Farrar, Chief, Health and Consumer
Services Branch, Service Sector
Statistics Division, at (301) 763–6782.
SUPPLEMENTARY INFORMATION: The
Census Bureau conducts surveys
necessary to furnish current data on
subjects covered by the major censuses
authorized by Title 13, U.S.C. The SAS
provides continuing and timely national
statistical data each year. Data collected
in this survey are within the general
scope, type, and character of those
inquiries covered in the economic
census.
The Census Bureau needs reports only
from a limited sample of service sector
firms in the United States. The SAS now
covers all or some of the following nine
sectors: Transportation and
Warehousing; Information; Finance, and
Insurance; Real Estate and Rental and
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Technical Services; Administrative and
Support and Waste Management and
Remediation Services; Health Care and
Social Assistance; Arts, Entertainment,
and Recreation; and Other Services. The
probability of a firm’s selection is based
on its revenue size (estimated from
payroll); that is, firms with a larger
payroll will have a greater probability of
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firms covered by this survey and require
their submission within 30 days after
receipt. These data are not publicly
available from non-government or other
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Based upon the foregoing, the Census
Bureau is conducting the 2006 SAS for
the purpose of collecting these data.
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collection of information displays a
current valid Office of Management and
Budget (OMB) control number. In
accordance with the PRA, Title 44
U.S.C., Chapter 35, the OMB approved
the SAS under OMB Control Number
0607–0422.
Dated: October 30, 2006.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. E6–18719 Filed 11–6–06; 8:45 am]
BILLING CODE 3510–07–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–892]
Carbazole Violet Pigment 23 From the
People’s Republic of China;
Preliminary Results of Antidumping
Duty Administrative Review and
Rescission in Part
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting the
administrative review of the
antidumping duty order on carbazole
violet pigment 23 (CVP 23) from the
People’s Republic of China (PRC) for the
period June 24, 2004, through November
30, 2005. We are rescinding this review
with respect to Trust Chem Co., Ltd./
Boson Enterprises Ltd. (collectively
Trust Chem) and Nantong Haidi
Chemical Company (Haidi). We have
preliminarily determined that sales have
not been made below normal value (NV)
AGENCY:
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65073
by the respondent, Tianjin Hanchem
International Trading Co., Ltd.
(Hanchem). If these preliminary results
are adopted in our final results of this
review, we will instruct U.S. Customs
and Border Protection (CBP) to liquidate
the appropriate entries without regard to
antidumping duties.
Interested parties are invited to
comment on these preliminary results.
We will issue the final results no later
than 120 days from the date of
publication of this notice.
DATES: Effective Date: November 7,
2006.
FOR FURTHER INFORMATION CONTACT:
Rebecca Trainor or Brian Smith, AD/
CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–4007 or (202) 482–
1766, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 1, 2005, the Department
published a notice of opportunity to
request an administrative review of the
antidumping duty order on CVP 23 from
the PRC for the period June 24, 2004,
through November 30, 2005. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity to Request
Administrative Review, 70 FR 72109
(December 1, 2005). On December 27,
2005, the Department received a request
to conduct an administrative review
from Trust Chem, an exporter of the
subject merchandise during the review
period. On December 28, 2005, we
received a request for review from
Haidi, a producer/exporter of CVP 23,
and from Hanchem, an exporter of CVP
23 to the United States during the
review period. On February 1, 2006, we
published in the Federal Register a
notice of the initiation of the
antidumping duty administrative review
of CVP 23 from the PRC for the period
June 24, 2004, through November 30,
2005. See Initiation of Antidumping and
Countervailing Duty Administrative
Reviews and Request for Revocation in
Part, 71 FR 5241 (February 1, 2006).
On February 6, 2006, we issued an
antidumping duty questionnaire to
Trust Chem, Haidi, and Hanchem. On
March 2, 2006, and May 1, 2006, Trust
Chem and Haidi, respectively, timely
withdrew their requests for
administrative review. Both companies
requested that the Department rescind
the review with respect to them, in
accordance with 19 CFR 351.213(d)(1).
We received questionnaire and
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supplemental questionnaire responses
from Hanchem between March and July
2006.
On April 4, 2006, we invited
interested parties to comment on
surrogate country selection and to
provide publicly available information
for valuing the factors of production
(FOP). On July 7, 2006, we received
comments on surrogate country
selection from the petitioners, Nation
Ford Chemical Co. and Sun Chemical
Corp. Between July 21, 2006, and
October 12, 2006, the petitioners and
Hanchem filed information for valuing
the FOPs, as well as argument with
respect to the valuation of one particular
input, chloranil.
On August 21, 2006, we extended the
time limit for the preliminary results in
this review until November 1, 2006. See
Carbazole Violet Pigment 23 from the
People’s Republic of China: Notice of
Extension of Time Limit for 2004–2005
Administration {sic} Review, 71 FR
50386 (August 25, 2006).
Period of Review
The period of review (POR) is June 24,
2004, through November 30, 2005.
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Scope of Order
The merchandise covered by this
order is carbazole violet pigment 23
identified as Color Index No. 51319 and
Chemical Abstract No. 6358–30–1, with
the chemical name of diindolo [3,2b:3’,2’-m]triphenodioxazine, 8,18dichloro-5, 15-diethy-5,15-dihydro-, and
molecular formula of C34H 22Cl2N4O2.1
The subject merchandise includes the
crude pigment in any form (e.g., dry
powder, paste, wet cake) and finished
pigment in the form of presscake and
dry color. Pigment dispersions in any
form (e.g., pigments dispersed in
oleoresins, flammable solvents, water)
are not included within the scope of this
order. The merchandise subject to this
order is classifiable under subheading
3204.17.9040 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.
Partial Rescission of Review
Pursuant to 19 CFR 351.213(d)(1), the
Department may rescind an
administrative review in whole, or in
part, if interested parties that requested
a review withdraw their requests within
90 days of the date of publication of
notice of initiation of the requested
1 The bracketed section of the product
description, [3,2-b:3’,2’-m], is not business
proprietary information, but is part of the chemical
nomenclature.
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review. As noted above in the
‘‘Background’’ section of this notice,
Trust Chem and Haidi withdrew their
requests for an administrative review on
March 2, 2006, and May 1, 2006,
respectively. Because the petitioners did
not request an administrative review for
these companies and the requests to
withdraw were made within the time
limit specified under section 19 CFR
351.213(d)(1), we are rescinding this
administrative review with respect to
Trust Chem and Haidi.
Non-Market Economy Country Status
Hanchem did not contest the
Department’s treatment of the PRC as a
non-market economy (NME) country,
and the Department has treated the PRC
as a NME country in all past
antidumping duty investigations and
administrative reviews and continues to
do so in this case. See, e.g., Honey from
the People’s Republic of China: Final
Results and Final Rescission, In Part, of
Antidumping Duty Administrative
Review, 71 FR 34893 (June 16, 2006)
(Honey); and Final Determination of
Sales at Less than Fair Value and Final
Partial Affirmative Determination of
Critical Circumstances: Diamond
Sawblades and Parts Thereof from the
People’s Republic of China, 71 FR 29303
(May 22, 2006) (Sawblades). No
interested party in this case has argued
that we should do otherwise.
Designation as a NME country remains
in effect until it is revoked by the
Department. See section 771(18)(C)(i) of
the Tariff Act of 1930, as amended (Act).
Surrogate Country
Section 773(c)(1) of the Act directs us
to base NV on the NME producer’s
FOPs, valued in a surrogate marketeconomy country or countries
considered to be appropriate by the
Department. In accordance with section
773(c)(4) of the Act, in valuing the
FOPs, the Department shall utilize, to
the extent possible, the prices or costs
of FOPs in one or more market-economy
countries that are: (1) At a level of
economic development comparable to
that of the NME country; and (2)
significant producers of comparable
merchandise.
The Department has previously
determined that India, Sri Lanka,
Indonesia, the Philippines, and Egypt
are countries comparable to the PRC in
terms of economic development. See the
February 9, 2006, memorandum from
Ron Lorentzen, Director, Office of
Policy, to Irene Darzenta Tzafolias,
Acting Director, Office 2, entitled,
‘‘Antidumping Duty Administrative
Review of Carbazole Violet Pigment 23
(CVP23) from the People’s Republic of
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China (PRC): Request for a List of
Surrogate Countries.’’ Customarily, we
select an appropriate surrogate country
based on the availability and reliability
of data from the countries that are
significant producers of comparable
merchandise. For PRC cases, the
primary surrogate country has often
been India if it is a significant producer
of comparable merchandise. In this case,
we found that India is a significant
producer of comparable merchandise.
See the August 3, 2006, memorandum to
the file entitled ‘‘2004–2005
Administrative Review of the
Antidumping Duty Order on Carbazole
Violet Pigment 23 from the People’s
Republic of China: Selection of a
Surrogate Country.’’
The Department used India as the
surrogate country and, accordingly,
calculated NV using Indian prices to
value the PRC producer’s FOPs, when
available and appropriate. The sources
of the surrogate factor values are
discussed under the ‘‘Normal Value’’
section below and in the November 1,
2006, memorandum to the file entitled,
‘‘Preliminary Results of Review of the
Antidumping Duty Order on Carbazole
Violet Pigment 23 from the People’s
Republic of China: Factor Valuation
Memorandum’’ (Factor Valuation
Memorandum). We obtained and relied
upon publicly available information
whenever possible.
In accordance with 19 CFR
351.301(c)(3)(ii), for the final results of
this administrative review, interested
parties may submit publicly available
information to value FOPs within 20
days after the date of publication of
these preliminary results.
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 rate. It is the
Department’s policy to assign all
exporters of subject merchandise subject
to review in a NME country a single rate
unless an exporter can demonstrate that
it is sufficiently independent of
government control to be entitled to a
separate rate. See, e.g., Honey from the
People’s Republic of China: Preliminary
Results and Partial Rescission of
Antidumping Duty Administrative
Review, 70 FR 74764, 74765 (December
16, 2005) (unchanged in final results);
and Sawblades, 71 FR at 29307.
We have considered whether the
reviewed company based in the PRC is
eligible for a separate rate. The
Department’s separate-rate test to
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determine whether an exporter is
independent from government control
does not consider, in general,
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, e.g.,
Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From
the People’s Republic of China; Final
Results of Antidumping Administrative
Review, 62 FR 61276, 61279 (November
17, 1997); and Preliminary
Determination of Sales at Less than Fair
Value: Honey from the People’s
Republic of China, 60 FR 14725,14727–
28 (March 20, 1995).
To establish whether an exporter is
sufficiently independent of government
control to be entitled to a separate rate,
the Department analyzes the exporter in
light of select criteria, discussed below.
See Final Determination of Sales at Less
Than Fair Value: Sparklers from the
People’s Republic of China, 56 FR
20585, 22587 (May 6, 1991) (Sparklers);
and 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).
Under this test, exporters in NME
countries are entitled to separate,
company-specific margins when they
can demonstrate an absence of
government control over exports, both
in law (de jure) and in fact (de
facto).Hanchem provided companyspecific separate-rate information and
stated that it met the standards for
receiving a separate rate. Hanchem has
stated that there is no element of
government control over its export
activities and has requested a separate,
company-specific rate.
A. Absence of De Jure Control
The Department considers the
following de jure criteria in determining
whether an individual exporter 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 20588.
Hanchem has placed on the record
statements and documents to
demonstrate an absence of de jure
control including its list of
shareholders, business license, and the
Company Law of the People’s Republic
of China, as revised Ocotber 27, 2005
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(Company Law). Other than limiting
Hanchem to activities referenced in the
business license, we found no restrictive
stipulations associated with the license.
In addition, in previous cases the
Department has analyzed the Company
Law and found that it establishes an
absence of de jure control. See, e.g.,
Certain Non-Frozen Apple Juice
Concentrate from the People’s Republic
of China: Final Results, Partial
Rescission and Termination of a Partial
Deferral of the 2002–2003
Administrative Review, 69 FR 65148,
65150 (November 10, 2004). We have no
information in this segment of the
proceeding that would cause us to
reconsider this determination.
Therefore, based on the foregoing, we
have preliminarily found an absence of
de jure control for Hanchem.
B. Absence of De Facto Control
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 Final Determination of
Sales at Less Than Fair Value: Certain
Preserved Mushrooms from the People’s
Republic of China, 63 FR 72255
(December 31, 1998). 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.
The Department typically considers
four factors in evaluating whether a
particular exporter is subject to de facto
government control of its export
functions: (1) Whether the exporter sets
its own export prices independent of the
government and without the approval of
a government authority; (2) whether the
exporter has authority to negotiate and
sign contracts and other agreements; (3)
whether the exporter has autonomy
from the government in making
decisions regarding the selection of its
management; and (4) whether the
exporter retains the proceeds of its
export sales and makes independent
decisions regarding disposition of
profits or financing of losses. See, e.g.,
Notice of Final Determination of Sales
at Less Than Fair Value: Furfuryl
Alcohol From the People’s Republic of
China, 60 FR 22544, 22545 (May 8,
1995).
With regard to de facto control,
Hanchem reported that: (1) It
independently set prices for sales to the
United States with customers and these
prices are not subject to review by any
government organization; (2) it did not
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coordinate with other exporters or
producers to set the price or to
determine to which market the
companies will sell subject
merchandise; (3) the PRC Chamber of
Commerce does not coordinate the
export activities of Hanchem; (4) its
general manager has the authority to
contractually bind it to sell subject
merchandise; (5) its shareholders
appoint its general manager; (6) there is
no restriction on its use of export
revenues; and (7) its shareholders
ultimately determine the disposition of
its profits. Additionally, Hanchem’s
questionnaire responses did not suggest
that pricing is coordinated among
exporters. Furthermore, our analysis of
Hanchem’s questionnaire responses
reveals no other information indicating
government control of its export
activities. Therefore, based on the
information on the record, we
preliminarily determine that there is an
absence of de facto government control
with respect to Hanchem’s export
functions, and that Hanchem has met
the criteria for the application of a
separate rate.
Normal Value Comparisons
To determine whether sales of CVP 23
to the United States by Hanchem were
made at less than NV, we compared
export price (EP) to NV, as described in
the ‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice, pursuant to
section 771(35) of the Act.
Export Price
Because Hanchem sold subject
merchandise to unaffiliated purchasers
in the United States prior to importation
into the United States (or to unaffiliated
resellers outside the United States with
knowledge that the merchandise was
destined for the United States) and use
of a constructed export price
methodology is not otherwise indicated,
we have used EP in accordance with
section 772(a) of the Act.
We calculated EP for Hanchem based
on FOB port prices to unaffiliated
purchaser(s) in the United States. We
made deductions from the U.S. sale
price for movement expenses, in
accordance with section 772(c)(2)(A) of
the Act, consisting of inland freight
from the plant to the port of exportation.
To value truck freight, we used the
freight rates published by the Indian
Freight Exchange, available at https://
www.infreight.com. The truck freight
rates are contemporaneous with the
POR; therefore, we made no adjustments
for inflation. See the November 1, 2006,
memorandum to the file entitled, ‘‘U.S.
Price and Factors of Production
Adjustments for the Preliminary
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Results’’ (Preliminary Calculation
Memorandum), and the Factor
Valuation Memorandum.
Normal Value
Section 773(c)(1) of the Act provides
that, in the case of a NME, the
Department shall determine NV using
an FOP methodology if the merchandise
is exported from a NME country and the
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.
The Department will base NV on FOP
because the presence of government
controls on various aspects of these
economies renders price comparisons
and the calculation of production costs
invalid under our normal
methodologies. Therefore, we calculated
NV based on FOP in accordance with
sections 773(c)(3) and (4) of the Act and
19 CFR 351.408(c). The FOPs include:
(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 used the FOPs reported by
respondents for materials, energy, labor,
and packing.
In accordance with 19 CFR
351.408(c)(1), when a producer sources
an input from a market-economy
country and pays for it in marketeconomy currency, the Department will
normally value the factor using the
actual price paid for the input. See 19
CFR 351.408(c)(1); see also Lasko Metal
Products v. United States, 43 F.3d 1442,
1445–1446 (Fed. Cir. 1994) (affirming
the Department’s use of market-based
prices to value certain FOPs). Where a
portion of the input is purchased from
a market-economy supplier and the
remainder from a NME supplier, the
Department will normally use the price
paid for the inputs sourced from marketeconomy suppliers to value all of the
input, provided the volume of the
market-economy inputs as a share of
total purchases from all sources is
‘‘meaningful.’’ See Antidumping Duties;
Countervailing Duties; Final rule, 62 FR
27295, 27366 (May 19, 1997);
Shakeproof v. United States, 268 F.3d
1376, 1382 (Fed. Cir. 2001). See also 19
CFR 351.408(c)(1).
With regard to both the Indian importbased surrogate values and the marketeconomy input values, we have
disregarded prices that we have reason
to believe or suspect may be subsidized.
See Omnibus Trade and
Competitiveness Act of 1988 (OCTA),
Conference Report to Accompany H.R.
3, H. Report No. 100–578, 590–91, 1988
U.S. Code and Adm. N. 1547, 1623
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(1988) (H.R. Rep. 100–578 (1988));
Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From
the People’s Republic of China; Final
Results of 1999–2000 Administrative
Review, Partial Rescission of Review,
and Determination Not to Revoke Order
in Part, 66 FR 57420 (November 15,
2001), and accompanying Issues and
Decision Memorandum at Comment 1.
We have found that India, Indonesia,
South Korea, and Thailand maintain
broadly available, non-industry-specific
export subsidies, and it is reasonable to
infer that exports to all markets from
these countries may be subsidized. See
Certain Frozen Fish Fillets from the
Socialist Republic of Vietnam:
Preliminary Results and Preliminary
Partial Rescission of Antidumping Duty
Administrative Review, 70 FR 54007,
54011 (September 13, 2005) (unchanged
in final results); and China National
Machinery Import & Export Corporation
v. United States, 293 F. Supp. 2d 1334
(CIT 2003), aff’d 104 Fed. App. 183
(Fed. Cir. 2004).
We are also guided by the statute’s
legislative history that explains that it is
not necessary to conduct a formal
investigation to ensure that such prices
are not subsidized. See H.R. Rep. 100–
578 (1988). Rather, the Department
bases its decision on information that is
available to it at the time it is making
its determination. Therefore, we have
not used prices from these countries
either in calculating the Indian importbased surrogate values or in calculating
market-economy input values. See
Factor Valuation Memorandum.
Factor Valuations
To calculate NV, we multiplied the
reported per-unit factor quantities by
publicly available Indian surrogate
values. In selecting the surrogate values,
we considered the quality, specificity,
and contemporaneity of the data. As
appropriate, we adjusted input prices by
including freight costs to make them
delivered prices. Specifically, we added
to the Indian import 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 port of
export to the factory where appropriate
(i.e., where the sales terms for the
market-economy inputs were not
delivered to the factory). This
adjustment is in accordance with the
decision of the Court of Appeals for the
Federal Circuit in Sigma Corp. v. United
States, 117 F. 3d 1401 (Fed. Cir. 1997).
We valued benzene, bromoethane,
chlorobenzene, benzene sulfonyl
chloride, caustic soda, caustic soda
solution, chloranil, solvent, nekal, ethyl
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alcohol, methyl alcohol, sodium sulfide,
trithylamine, catalyst, paper bags,
plastic film, plastic bags, pallets, and
steam coal using India import statistics
as published by the World Trade Atlas.
We valued hydrochloric acid, nitric
acid, salt, and dimethyl formamide
using Indian domestic market prices
reported in Chemical Weekly. Where
necessary, we adjusted the surrogate
values to reflect inflation/deflation
using the Indian Wholesale Price Index
as published in the International
Financial Statistics of the International
Monetary Fund. We further adjusted
these prices to account for freight costs
incurred between the supplier and
respondent. The Factor Valuation
Memorandum includes a detailed
description of all surrogate values used
for the respondent.
Hanchem reported that meaningful
percentages of its purchases of odichlorobenzene and carbazole were
sourced from market-economy countries
and paid for in market-economy
currencies. Pursuant to 19 CFR
351.408(c)(1), we used the actual price
paid by Hanchem for these inputs. We
adjusted these values to account for
freight costs incurred between the
supplier and respondent. See Factor
Valuation Memorandum and
Preliminary Calculation Memorandum.
We obtained surrogate electricity rates
from retail pricing data for India found
in the International Energy Agency’s
‘‘Energy Prices & Taxes Quarterly
Statistics 2003’’ report which we
inflated to the POR. We valued water
using rates from the Maharashtra
Industrial Development Corporation.
For direct labor, indirect labor, and
packing labor, consistent with 19 CFR
351.408(c)(3), we used the PRC
regression-based wage rate as reported
on Import Administration’s Web site,
Expected Wages of Selected NME
Countries, revised in November 2005.
See Expected Wages of Selected NME
Countries (revised November 2005)
(available at https://ia.ita.doc.gov/
wages). The source of these wage rate
data on the Import Administration’s
Web site is the Yearbook of Labour
Statistics 2003, ILO (Geneva: 2003),
Chapter 5B: Wages in Manufacturing.
Because this regression-based wage rate
does not separate the labor rates into
different skill levels or types of labor,
we have applied the same wage rate to
all skill levels and types of labor
reported by the respondent. See Factor
Valuation Memorandum and
Preliminary Calculation Memorandum.
To determine factory overhead,
depreciation, selling, general, and
administrative expenses, interest
expenses, and profit for the finished
E:\FR\FM\07NON1.SGM
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Federal Register / Vol. 71, No. 215 / Tuesday, November 7, 2006 / Notices
product, we relied on rates derived from
the financial statements of Pidilite
Industries, Ltd., an Indian producer of
comparable merchandise. We applied
these ratios to Hanchem’s costs
(determined as noted above) for
materials, labor, and energy. See Factor
Valuation Memorandum and
Preliminary Calculation Memorandum.
Currency Conversion
We made currency conversions into
U.S. dollars, in accordance with section
773A(a) of the Act, based on the
exchange rates in effect on the dates of
the U.S. sales, as certified by the Federal
Reserve Bank.
Preliminary Results of Review
The weighted-average dumping
margin is as follows:
Cash Deposit Requirements
Margin
percentage
Tianjin Hanchem International
Trading Co., Ltd. ...................
ycherry on PROD1PC64 with NOTICES
Manufacturer/producer/exporter
0.00
Disclosure
The Department will disclose
calculations performed for these
preliminary results to the parties within
five days of the date of publication of
this notice in accordance with 19 CFR
351.224(b). Any interested party may
request a hearing within 30 days of
publication of these preliminary results.
See 19 CFR 351.310(c). Any hearing, if
requested, will generally be held two
days after the scheduled date for
submission of rebuttal briefs. See 19
CFR 351.310(d). Interested parties may
submit case briefs and/or written
comments no later than 30 days after the
date of publication of these preliminary
results of review. See 19 CFR
351.309(c)(ii). Rebuttal briefs and
rebuttals to written comments, limited
to issues raised in such briefs or
comments, may be filed no later than 37
days after the date of publication. See 19
CFR 351.309(d). Further, parties
submitting written comments should
provide the Department with an
additional copy of those comments on
diskette. The Department will issue the
final results of this administrative
review, which will include the results of
its analysis of issues raised in any
comments, and at a hearing, within 120
days of publication of these preliminary
results, pursuant to section 751(a)(3)(A)
of the Act.
Assessment Rates
Upon issuance of the final results, the
Department will determine, and CBP
shall assess, antidumping duties on all
VerDate Aug<31>2005
14:44 Nov 06, 2006
Jkt 211001
appropriate entries. The Department
intends to issue assessment instructions
to CBP 15 days after the date of
publication of the final results of
review.
Pursuant to 19 CFR 351.212(b)(1), we
will calculate, where applicable, the
importer-specific ad valorem duty
assessment rate based on the ratio of the
total amount of the dumping margins
calculated for the examined sales to the
total entered value of those same sales.
We will instruct CBP to assess
antidumping duties on all appropriate
entries covered by this review if any
importer-specific assessment rate
calculated in the final results of this
review is above de minimis.
The following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for all shipments
of the subject merchandise 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
Hanchem, the cash deposit rate will be
that established in the final results of
this review (except, if the rate is zero or
de minimis, no cash deposit will be
required); (2) for previously investigated
or reviewed PRC and non-PRC exporters
not listed above that have separate rates,
the cash deposit rate will continue to be
the exporter-specific rate published for
the most recent period; (3) for all PRC
exporters of subject merchandise which
have not been found to be entitled to a
separate rate, the cash deposit rate will
be the PRC-wide rate of 217.94 percent;
and (4) for all non-PRC exporters of
subject merchandise which have not
received their own rate, the cash deposit
rate will be the rate applicable to the
PRC exporters that supplied that nonPRC 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
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) 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 this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
65077
We are issuing and publishing these
preliminary results of review in
accordance with sections 751(a)(1) and
777(i)(1) of the Act, and 19 CFR
351.221(b).
Dated: November 1, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E6–18787 Filed 11–6–06; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
(A–274–804)
Carbon and Alloy Steel Wire Rod from
Trinidad and Tobago; Preliminary
Results of Antidumping Duty
Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On December 1, 2005, the
Department of Commerce (‘‘the
Department’’) initiated an
administrative review of the
antidumping duty order on carbon and
alloy steel wire rod (‘‘wire rod’’) from
Trinidad and Tobago for the period of
review (‘‘POR’’) October 1, 2004,
through September 30, 2005.
We preliminarily determine that
during the POR, Mittal Steel Point Lisas
Limited (‘‘MSPL’’) and its affiliates
Mittal Steel North America Inc.
(‘‘MSNA’’) and Mittal Walker Wire Inc.
(collectively ‘‘Mittal’’) did not make
sales of subject merchandise at less than
normal value (‘‘NV’’) (i.e., sales were
made at de minimis dumping margins).
If these preliminary results are adopted
in the final results of this administrative
review, we will instruct U.S. Customs
and Border Protection (‘‘CBP’’) to
liquidate appropriate entries without
regard to antidumping duties.
Interested parties are invited to
comment on these preliminary results.
Parties who submit comments in this
segment of the proceeding should also
submit with them: (1) a statement of the
issues and (2) a brief summary of the
comments. Further, parties submitting
written comments are requested to
provide the Department with an
electronic version of the public version
of any such comments on diskette.
EFFECTIVE DATE: November 7, 2006.
FOR FURTHER INFORMATION CONTACT:
Dennis McClure or Stephanie Moore,
AD/CVD Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
AGENCY:
E:\FR\FM\07NON1.SGM
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Agencies
[Federal Register Volume 71, Number 215 (Tuesday, November 7, 2006)]
[Notices]
[Pages 65073-65077]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18787]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-892]
Carbazole Violet Pigment 23 From the People's Republic of China;
Preliminary Results of Antidumping Duty Administrative Review and
Rescission in Part
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting the
administrative review of the antidumping duty order on carbazole violet
pigment 23 (CVP 23) from the People's Republic of China (PRC) for the
period June 24, 2004, through November 30, 2005. We are rescinding this
review with respect to Trust Chem Co., Ltd./Boson Enterprises Ltd.
(collectively Trust Chem) and Nantong Haidi Chemical Company (Haidi).
We have preliminarily determined that sales have not been made below
normal value (NV) by the respondent, Tianjin Hanchem International
Trading Co., Ltd. (Hanchem). If these preliminary results are adopted
in our final results of this review, we will instruct U.S. Customs and
Border Protection (CBP) to liquidate the appropriate entries without
regard to antidumping duties.
Interested parties are invited to comment on these preliminary
results. We will issue the final results no later than 120 days from
the date of publication of this notice.
DATES: Effective Date: November 7, 2006.
FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Brian Smith, AD/CVD
Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4007 or (202) 482-1766, respectively.
SUPPLEMENTARY INFORMATION:
Background
On December 1, 2005, the Department published a notice of
opportunity to request an administrative review of the antidumping duty
order on CVP 23 from the PRC for the period June 24, 2004, through
November 30, 2005. See Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity to Request
Administrative Review, 70 FR 72109 (December 1, 2005). On December 27,
2005, the Department received a request to conduct an administrative
review from Trust Chem, an exporter of the subject merchandise during
the review period. On December 28, 2005, we received a request for
review from Haidi, a producer/exporter of CVP 23, and from Hanchem, an
exporter of CVP 23 to the United States during the review period. On
February 1, 2006, we published in the Federal Register a notice of the
initiation of the antidumping duty administrative review of CVP 23 from
the PRC for the period June 24, 2004, through November 30, 2005. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Request for Revocation in Part, 71 FR 5241 (February 1,
2006).
On February 6, 2006, we issued an antidumping duty questionnaire to
Trust Chem, Haidi, and Hanchem. On March 2, 2006, and May 1, 2006,
Trust Chem and Haidi, respectively, timely withdrew their requests for
administrative review. Both companies requested that the Department
rescind the review with respect to them, in accordance with 19 CFR
351.213(d)(1). We received questionnaire and
[[Page 65074]]
supplemental questionnaire responses from Hanchem between March and
July 2006.
On April 4, 2006, we invited interested parties to comment on
surrogate country selection and to provide publicly available
information for valuing the factors of production (FOP). On July 7,
2006, we received comments on surrogate country selection from the
petitioners, Nation Ford Chemical Co. and Sun Chemical Corp. Between
July 21, 2006, and October 12, 2006, the petitioners and Hanchem filed
information for valuing the FOPs, as well as argument with respect to
the valuation of one particular input, chloranil.
On August 21, 2006, we extended the time limit for the preliminary
results in this review until November 1, 2006. See Carbazole Violet
Pigment 23 from the People's Republic of China: Notice of Extension of
Time Limit for 2004-2005 Administration {sic{time} Review, 71 FR 50386
(August 25, 2006).
Period of Review
The period of review (POR) is June 24, 2004, through November 30,
2005.
Scope of Order
The merchandise covered by this order is carbazole violet pigment
23 identified as Color Index No. 51319 and Chemical Abstract No. 6358-
30-1, with the chemical name of diindolo [3,2-b:3',2'-
m]triphenodioxazine, 8,18-dichloro-5, 15-diethy-5,15-dihydro-, and
molecular formula of C34H
22Cl2N4O2.\1\ The subject
merchandise includes the crude pigment in any form (e.g., dry powder,
paste, wet cake) and finished pigment in the form of presscake and dry
color. Pigment dispersions in any form (e.g., pigments dispersed in
oleoresins, flammable solvents, water) are not included within the
scope of this order. The merchandise subject to this order is
classifiable under subheading 3204.17.9040 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.
---------------------------------------------------------------------------
\1\ The bracketed section of the product description, [3,2-
b:3',2'-m], is not business proprietary information, but is part of
the chemical nomenclature.
---------------------------------------------------------------------------
Partial Rescission of Review
Pursuant to 19 CFR 351.213(d)(1), the Department may rescind an
administrative review in whole, or in part, if interested parties that
requested a review withdraw their requests within 90 days of the date
of publication of notice of initiation of the requested review. As
noted above in the ``Background'' section of this notice, Trust Chem
and Haidi withdrew their requests for an administrative review on March
2, 2006, and May 1, 2006, respectively. Because the petitioners did not
request an administrative review for these companies and the requests
to withdraw were made within the time limit specified under section 19
CFR 351.213(d)(1), we are rescinding this administrative review with
respect to Trust Chem and Haidi.
Non-Market Economy Country Status
Hanchem did not contest the Department's treatment of the PRC as a
non-market economy (NME) country, and the Department has treated the
PRC as a NME country in all past antidumping duty investigations and
administrative reviews and continues to do so in this case. See, e.g.,
Honey from the People's Republic of China: Final Results and Final
Rescission, In Part, of Antidumping Duty Administrative Review, 71 FR
34893 (June 16, 2006) (Honey); and Final Determination of Sales at Less
than Fair Value and Final Partial Affirmative Determination of Critical
Circumstances: Diamond Sawblades and Parts Thereof from the People's
Republic of China, 71 FR 29303 (May 22, 2006) (Sawblades). No
interested party in this case has argued that we should do otherwise.
Designation as a NME country remains in effect until it is revoked by
the Department. See section 771(18)(C)(i) of the Tariff Act of 1930, as
amended (Act).
Surrogate Country
Section 773(c)(1) of the Act directs us to base NV on the NME
producer's FOPs, valued in a surrogate market-economy country or
countries considered to be appropriate by the Department. In accordance
with section 773(c)(4) of the Act, in valuing the FOPs, the Department
shall utilize, to the extent possible, the prices or costs of FOPs in
one or more market-economy countries that are: (1) At a level of
economic development comparable to that of the NME country; and (2)
significant producers of comparable merchandise.
The Department has previously determined that India, Sri Lanka,
Indonesia, the Philippines, and Egypt are countries comparable to the
PRC in terms of economic development. See the February 9, 2006,
memorandum from Ron Lorentzen, Director, Office of Policy, to Irene
Darzenta Tzafolias, Acting Director, Office 2, entitled, ``Antidumping
Duty Administrative Review of Carbazole Violet Pigment 23 (CVP23) from
the People's Republic of China (PRC): Request for a List of Surrogate
Countries.'' Customarily, we select an appropriate surrogate country
based on the availability and reliability of data from the countries
that are significant producers of comparable merchandise. For PRC
cases, the primary surrogate country has often been India if it is a
significant producer of comparable merchandise. In this case, we found
that India is a significant producer of comparable merchandise. See the
August 3, 2006, memorandum to the file entitled ``2004-2005
Administrative Review of the Antidumping Duty Order on Carbazole Violet
Pigment 23 from the People's Republic of China: Selection of a
Surrogate Country.''
The Department used India as the surrogate country and,
accordingly, calculated NV using Indian prices to value the PRC
producer's FOPs, when available and appropriate. The sources of the
surrogate factor values are discussed under the ``Normal Value''
section below and in the November 1, 2006, memorandum to the file
entitled, ``Preliminary Results of Review of the Antidumping Duty Order
on Carbazole Violet Pigment 23 from the People's Republic of China:
Factor Valuation Memorandum'' (Factor Valuation Memorandum). We
obtained and relied upon publicly available information whenever
possible.
In accordance with 19 CFR 351.301(c)(3)(ii), for the final results
of this administrative review, interested parties may submit publicly
available information to value FOPs within 20 days after the date of
publication of these preliminary results.
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 rate. It is the Department's policy to assign all
exporters of subject merchandise subject to review in a NME country a
single rate unless an exporter can demonstrate that it is sufficiently
independent of government control to be entitled to a separate rate.
See, e.g., Honey from the People's Republic of China: Preliminary
Results and Partial Rescission of Antidumping Duty Administrative
Review, 70 FR 74764, 74765 (December 16, 2005) (unchanged in final
results); and Sawblades, 71 FR at 29307.
We have considered whether the reviewed company based in the PRC is
eligible for a separate rate. The Department's separate-rate test to
[[Page 65075]]
determine whether an exporter is independent from government control
does not consider, in general, 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, e.g., Tapered Roller
Bearings and Parts Thereof, Finished and Unfinished, From the People's
Republic of China; Final Results of Antidumping Administrative Review,
62 FR 61276, 61279 (November 17, 1997); and Preliminary Determination
of Sales at Less than Fair Value: Honey from the People's Republic of
China, 60 FR 14725,14727-28 (March 20, 1995).
To establish whether an exporter is sufficiently independent of
government control to be entitled to a separate rate, the Department
analyzes the exporter in light of select criteria, discussed below. See
Final Determination of Sales at Less Than Fair Value: Sparklers from
the People's Republic of China, 56 FR 20585, 22587 (May 6, 1991)
(Sparklers); and 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). Under this test, exporters in NME countries
are entitled to separate, company-specific margins when they can
demonstrate an absence of government control over exports, both in law
(de jure) and in fact (de facto).Hanchem provided company-specific
separate-rate information and stated that it met the standards for
receiving a separate rate. Hanchem has stated that there is no element
of government control over its export activities and has requested a
separate, company-specific rate.
A. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual exporter 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 20588.
Hanchem has placed on the record statements and documents to
demonstrate an absence of de jure control including its list of
shareholders, business license, and the Company Law of the People's
Republic of China, as revised Ocotber 27, 2005 (Company Law). Other
than limiting Hanchem to activities referenced in the business license,
we found no restrictive stipulations associated with the license. In
addition, in previous cases the Department has analyzed the Company Law
and found that it establishes an absence of de jure control. See, e.g.,
Certain Non-Frozen Apple Juice Concentrate from the People's Republic
of China: Final Results, Partial Rescission and Termination of a
Partial Deferral of the 2002-2003 Administrative Review, 69 FR 65148,
65150 (November 10, 2004). We have no information in this segment of
the proceeding that would cause us to reconsider this determination.
Therefore, based on the foregoing, we have preliminarily found an
absence of de jure control for Hanchem.
B. Absence of De Facto Control
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
Final Determination of Sales at Less Than Fair Value: Certain Preserved
Mushrooms from the People's Republic of China, 63 FR 72255 (December
31, 1998). 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.
The Department typically considers four factors in evaluating
whether a particular exporter is subject to de facto government control
of its export functions: (1) Whether the exporter sets its own export
prices independent of the government and without the approval of a
government authority; (2) whether the exporter has authority to
negotiate and sign contracts and other agreements; (3) whether the
exporter has autonomy from the government in making decisions regarding
the selection of its management; and (4) whether the exporter retains
the proceeds of its export sales and makes independent decisions
regarding disposition of profits or financing of losses. See, e.g.,
Notice of Final Determination of Sales at Less Than Fair Value:
Furfuryl Alcohol From the People's Republic of China, 60 FR 22544,
22545 (May 8, 1995).
With regard to de facto control, Hanchem reported that: (1) It
independently set prices for sales to the United States with customers
and these prices are not subject to review by any government
organization; (2) it did not coordinate with other exporters or
producers to set the price or to determine to which market the
companies will sell subject merchandise; (3) the PRC Chamber of
Commerce does not coordinate the export activities of Hanchem; (4) its
general manager has the authority to contractually bind it to sell
subject merchandise; (5) its shareholders appoint its general manager;
(6) there is no restriction on its use of export revenues; and (7) its
shareholders ultimately determine the disposition of its profits.
Additionally, Hanchem's questionnaire responses did not suggest that
pricing is coordinated among exporters. Furthermore, our analysis of
Hanchem's questionnaire responses reveals no other information
indicating government control of its export activities. Therefore,
based on the information on the record, we preliminarily determine that
there is an absence of de facto government control with respect to
Hanchem's export functions, and that Hanchem has met the criteria for
the application of a separate rate.
Normal Value Comparisons
To determine whether sales of CVP 23 to the United States by
Hanchem were made at less than NV, we compared export price (EP) to NV,
as described in the ``Export Price'' and ``Normal Value'' sections of
this notice, pursuant to section 771(35) of the Act.
Export Price
Because Hanchem sold subject merchandise to unaffiliated purchasers
in the United States prior to importation into the United States (or to
unaffiliated resellers outside the United States with knowledge that
the merchandise was destined for the United States) and use of a
constructed export price methodology is not otherwise indicated, we
have used EP in accordance with section 772(a) of the Act.
We calculated EP for Hanchem based on FOB port prices to
unaffiliated purchaser(s) in the United States. We made deductions from
the U.S. sale price for movement expenses, in accordance with section
772(c)(2)(A) of the Act, consisting of inland freight from the plant to
the port of exportation. To value truck freight, we used the freight
rates published by the Indian Freight Exchange, available at https://
www.infreight.com. The truck freight rates are contemporaneous with the
POR; therefore, we made no adjustments for inflation. See the November
1, 2006, memorandum to the file entitled, ``U.S. Price and Factors of
Production Adjustments for the Preliminary
[[Page 65076]]
Results'' (Preliminary Calculation Memorandum), and the Factor
Valuation Memorandum.
Normal Value
Section 773(c)(1) of the Act provides that, in the case of a NME,
the Department shall determine NV using an FOP methodology if the
merchandise is exported from a NME country and the 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.
The Department will base NV on FOP because the presence of
government controls on various aspects of these economies renders price
comparisons and the calculation of production costs invalid under our
normal methodologies. Therefore, we calculated NV based on FOP in
accordance with sections 773(c)(3) and (4) of the Act and 19 CFR
351.408(c). The FOPs include: (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 used the
FOPs reported by respondents for materials, energy, labor, and packing.
In accordance with 19 CFR 351.408(c)(1), when a producer sources an
input from a market-economy country and pays for it in market-economy
currency, the Department will normally value the factor using the
actual price paid for the input. See 19 CFR 351.408(c)(1); see also
Lasko Metal Products v. United States, 43 F.3d 1442, 1445-1446 (Fed.
Cir. 1994) (affirming the Department's use of market-based prices to
value certain FOPs). Where a portion of the input is purchased from a
market-economy supplier and the remainder from a NME supplier, the
Department will normally use the price paid for the inputs sourced from
market-economy suppliers to value all of the input, provided the volume
of the market-economy inputs as a share of total purchases from all
sources is ``meaningful.'' See Antidumping Duties; Countervailing
Duties; Final rule, 62 FR 27295, 27366 (May 19, 1997); Shakeproof v.
United States, 268 F.3d 1376, 1382 (Fed. Cir. 2001). See also 19 CFR
351.408(c)(1).
With regard to both the Indian import-based surrogate values and
the market-economy input values, we have disregarded prices that we
have reason to believe or suspect may be subsidized. See Omnibus Trade
and Competitiveness Act of 1988 (OCTA), Conference Report to Accompany
H.R. 3, H. Report No. 100-578, 590-91, 1988 U.S. Code and Adm. N. 1547,
1623 (1988) (H.R. Rep. 100-578 (1988)); Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished, From the People's Republic of
China; Final Results of 1999-2000 Administrative Review, Partial
Rescission of Review, and Determination Not to Revoke Order in Part, 66
FR 57420 (November 15, 2001), and accompanying Issues and Decision
Memorandum at Comment 1. We have found that India, Indonesia, South
Korea, and Thailand maintain broadly available, non-industry-specific
export subsidies, and it is reasonable to infer that exports to all
markets from these countries may be subsidized. See Certain Frozen Fish
Fillets from the Socialist Republic of Vietnam: Preliminary Results and
Preliminary Partial Rescission of Antidumping Duty Administrative
Review, 70 FR 54007, 54011 (September 13, 2005) (unchanged in final
results); and China National Machinery Import & Export Corporation v.
United States, 293 F. Supp. 2d 1334 (CIT 2003), aff'd 104 Fed. App. 183
(Fed. Cir. 2004).
We are also guided by the statute's legislative history that
explains that it is not necessary to conduct a formal investigation to
ensure that such prices are not subsidized. See H.R. Rep. 100-578
(1988). Rather, the Department bases its decision on information that
is available to it at the time it is making its determination.
Therefore, we have not used prices from these countries either in
calculating the Indian import-based surrogate values or in calculating
market-economy input values. See Factor Valuation Memorandum.
Factor Valuations
To calculate NV, we multiplied the reported per-unit factor
quantities by publicly available Indian surrogate values. In selecting
the surrogate values, we considered the quality, specificity, and
contemporaneity of the data. As appropriate, we adjusted input prices
by including freight costs to make them delivered prices. Specifically,
we added to the Indian import 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 port of export
to the factory where appropriate (i.e., where the sales terms for the
market-economy inputs were not delivered to the factory). This
adjustment is in accordance with the decision of the Court of Appeals
for the Federal Circuit in Sigma Corp. v. United States, 117 F. 3d 1401
(Fed. Cir. 1997).
We valued benzene, bromoethane, chlorobenzene, benzene sulfonyl
chloride, caustic soda, caustic soda solution, chloranil, solvent,
nekal, ethyl alcohol, methyl alcohol, sodium sulfide, trithylamine,
catalyst, paper bags, plastic film, plastic bags, pallets, and steam
coal using India import statistics as published by the World Trade
Atlas. We valued hydrochloric acid, nitric acid, salt, and dimethyl
formamide using Indian domestic market prices reported in Chemical
Weekly. Where necessary, we adjusted the surrogate values to reflect
inflation/deflation using the Indian Wholesale Price Index as published
in the International Financial Statistics of the International Monetary
Fund. We further adjusted these prices to account for freight costs
incurred between the supplier and respondent. The Factor Valuation
Memorandum includes a detailed description of all surrogate values used
for the respondent.
Hanchem reported that meaningful percentages of its purchases of o-
dichlorobenzene and carbazole were sourced from market-economy
countries and paid for in market-economy currencies. Pursuant to 19 CFR
351.408(c)(1), we used the actual price paid by Hanchem for these
inputs. We adjusted these values to account for freight costs incurred
between the supplier and respondent. See Factor Valuation Memorandum
and Preliminary Calculation Memorandum. We obtained surrogate
electricity rates from retail pricing data for India found in the
International Energy Agency's ``Energy Prices & Taxes Quarterly
Statistics 2003'' report which we inflated to the POR. We valued water
using rates from the Maharashtra Industrial Development Corporation.
For direct labor, indirect labor, and packing labor, consistent
with 19 CFR 351.408(c)(3), we used the PRC regression-based wage rate
as reported on Import Administration's Web site, Expected Wages of
Selected NME Countries, revised in November 2005. See Expected Wages of
Selected NME Countries (revised November 2005) (available at https://
ia.ita.doc.gov/wages). The source of these wage rate data on the Import
Administration's Web site is the Yearbook of Labour Statistics 2003,
ILO (Geneva: 2003), Chapter 5B: Wages in Manufacturing. Because this
regression-based wage rate does not separate the labor rates into
different skill levels or types of labor, we have applied the same wage
rate to all skill levels and types of labor reported by the respondent.
See Factor Valuation Memorandum and Preliminary Calculation Memorandum.
To determine factory overhead, depreciation, selling, general, and
administrative expenses, interest expenses, and profit for the finished
[[Page 65077]]
product, we relied on rates derived from the financial statements of
Pidilite Industries, Ltd., an Indian producer of comparable
merchandise. We applied these ratios to Hanchem's costs (determined as
noted above) for materials, labor, and energy. See Factor Valuation
Memorandum and Preliminary Calculation Memorandum.
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales, as certified by the Federal Reserve Bank.
Preliminary Results of Review
The weighted-average dumping margin is as follows:
------------------------------------------------------------------------
Margin
Manufacturer/producer/exporter percentage
------------------------------------------------------------------------
Tianjin Hanchem International Trading Co., Ltd............. 0.00
------------------------------------------------------------------------
Disclosure
The Department will disclose calculations performed for these
preliminary results to the parties within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b). Any
interested party may request a hearing within 30 days of publication of
these preliminary results. See 19 CFR 351.310(c). Any hearing, if
requested, will generally be held two days after the scheduled date for
submission of rebuttal briefs. See 19 CFR 351.310(d). Interested
parties may submit case briefs and/or written comments no later than 30
days after the date of publication of these preliminary results of
review. See 19 CFR 351.309(c)(ii). Rebuttal briefs and rebuttals to
written comments, limited to issues raised in such briefs or comments,
may be filed no later than 37 days after the date of publication. See
19 CFR 351.309(d). Further, parties submitting written comments should
provide the Department with an additional copy of those comments on
diskette. The Department will issue the final results of this
administrative review, which will include the results of its analysis
of issues raised in any comments, and at a hearing, within 120 days of
publication of these preliminary results, pursuant to section
751(a)(3)(A) of the Act.
Assessment Rates
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries.
The Department intends to issue assessment instructions to CBP 15 days
after the date of publication of the final results of review.
Pursuant to 19 CFR 351.212(b)(1), we will calculate, where
applicable, the importer-specific ad valorem duty assessment rate based
on the ratio of the total amount of the dumping margins calculated for
the examined sales to the total entered value of those same sales. We
will instruct CBP to assess antidumping duties on all appropriate
entries covered by this review if any importer-specific assessment rate
calculated in the final results of this review is above de minimis.
Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this administrative review for all
shipments of the subject merchandise 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 Hanchem, the
cash deposit rate will be that established in the final results of this
review (except, if the rate is zero or de minimis, no cash deposit will
be required); (2) for previously investigated or reviewed PRC and non-
PRC exporters not listed above that have separate rates, the cash
deposit rate will continue to be the exporter-specific rate published
for the most recent period; (3) for all PRC exporters of subject
merchandise which have not been found to be entitled to a separate
rate, the cash deposit rate will be the PRC-wide rate of 217.94
percent; and (4) for all non-PRC exporters of subject merchandise which
have not received their own rate, the cash deposit rate will be the
rate applicable to the PRC exporters that supplied that non-PRC
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 preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) 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 this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing these preliminary results of review
in accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19
CFR 351.221(b).
Dated: November 1, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-18787 Filed 11-6-06; 8:45 am]
BILLING CODE 3510-DS-P