Purified Carboxymethylcellulose From Mexico: Notice of Preliminary Results of Antidumping Duty Administrative Review, 44095-44099 [E7-15324]
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Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Notices
the scheduled date for submission of
rebuttal briefs. See 19 CFR 351.310(d).
Parties who submit case briefs or
rebuttal briefs in this proceeding are
requested to submit with each argument
a statement of the issue, a summary of
the arguments not exceeding five pages,
and a table of statutes, regulations, and
cases cited. See 19 CFR 351.309(c)(2).
The Department will issue the final
results of this administrative review,
including the results of its analysis of
issues raised in any such written briefs
or at the hearing, if held, not later than
120 days after the date of publication of
this notice. See section 751(a)(3)(A) of
the Act.
Assessment Rates
Upon completion of this review, the
Department shall determine, and CBP
shall assess, antidumping duties on all
appropriate entries. Pursuant to 19 CFR
351.212(b)(1), the Department calculates
an assessment rate for each importer of
the subject merchandise covered by the
review.3 The Department intends to
issue assessment instructions to CBP 15
days after the date of publication of the
results of review.
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003). This
clarification will apply to entries of
subject merchandise during the POR
produced by CP Kelco and/or Noviant
AB and for which CP Kelco and/or
Noviant AB did not know another
company would export its merchandise
to the United States. In such instances,
we will instruct CBP to liquidate
unreviewed entries at the all–others rate
if there is no rate for the intermediate
company(ies) involved in the
transaction.
meaning of 19 CFR 351.106(c)(1), in
which case the cash deposit rate will be
zero; 2) if the exporter is not a firm
covered in this review or the less–thanfair–value (LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and 3) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
conducted by the Department, the cash
deposit rate will be the ‘‘all others’’ rate
of 25.29 percent from the LTFV
investigation. See Notice of
Anitdumping Duty Orders: Purified
Carboxymethylcellulose from Finland,
Mexico, and the Netherlands and
Sweden, 70 FR 39734 (July 11, 2005).
These deposit requirements, when
imposed, shall remain in effect until
further notice.
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under section
351.402(f)(2) of the Department’s
regulations 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.
This administrative review and this
notice are published in accordance with
sections 751(a)(1) and 777(i)(1) of the
Act.
Dated: July 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E7–15323 Filed 8–6–07; 8:45 am]
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BILLING CODE 3510–DS–S
Cash Deposit Requirements
The following cash–deposit rates will
be effective upon publication of the
final results of this review for all
shipments of purified
carboxymethylcellulose from Sweden
entered, or withdrawn from warehouse,
for consumption on or after publication
date, as provided for by section
751(a)(2)(C) of the Act: (1) for subject
merchandise produced by CP Kelco
and/or Noviant AB, the cash–deposit
rate will be the rate established in the
final results of this review, except if the
rate is less than 0.50 percent and,
therefore, de minimis within the
3 If for the final results we determine CP Kelco AB
to be the successor to Noviant AB, we will instruct
CBP to liquidate entries subject to this review using
CP Kelco’s final rate, accordingly.
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DEPARTMENT OF COMMERCE
International Trade Administration
(A–201–834)
Purified Carboxymethylcellulose From
Mexico: Notice of Preliminary Results
of Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
Quimica Amtex S.A. de C.V. (Amtex),
the Department of Commerce (the
Department) is conducting an
administrative review of the
antidumping duty order on purified
AGENCY:
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44095
carboxymethylcellulose (CMC) from
Mexico. The review covers exports of
the subject merchandise to the United
States produced and exported by
Amtex.
We preliminarily find that Amtex
made sales at less than fair value during
the POR. If these preliminary results are
adopted in our final results of this
review, we will instruct U.S. Customs
and Border Protection (CBP) to assess
antidumping duties based on
differences between the export price
(EP) or constructed export price (CEP)
and normal value (NV).
Interested parties are invited to
comment on these preliminary results.
Parties who submit arguments in this
proceeding are requested to submit with
the arguments: (1) a statement of the
issues, (2) a brief summary of the
arguments (no longer than five pages,
including footnotes) and (3) a table of
authorities.
EFFECTIVE DATE: August 7, 2007.
FOR FURTHER INFORMATION CONTACT:
Mark Flessner or Robert James, AD/CVD
Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–6312 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the
antidumping duty order on CMC from
Mexico on July 11, 2005. See Notice of
Antidumping Duty Orders: Purified
Carboxymethylcellulose from Finland,
Mexico, the Netherlands, and Sweden,
70 FR 39734 (July 11, 2005). On July 3,
2006, the Department published the
notice of opportunity to request
administrative review of CMC from
Mexico for the period December 27,
2004, through June 30, 2006. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation; Opportunity To Request
Administrative Review, 71 FR 37890
(July 3, 2006).
On July 17, 2006, Amtex requested a
review of its sales of CMC for the period
December 27, 2004, through June 30,
2006 (the POR). On August 30, 2006, the
Department published in the Federal
Register a notice of initiation of this
antidumping duty administrative
review. See Notice of Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocation in Part, 71 FR 51573
(August 30, 2006).
On September 11, 2006, the
Department issued its standard
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antidumping duty questionnaire to
Amtex. Amtex submitted its response to
section A of the Department’s
antidumping duty questionnaire on
October 10, 2006 (Amtex Section A
Response). Amtex submitted its
response to sections B and C of the
Department’s questionnaire on
November 13, 2006 (Amtex Sections B
and C Response).
On March 16, 2007, the Department
issued a supplemental questionnaire for
sections A, B, and C, to which Amtex
responded on April 13, 2007 (Amtex
Supplemental Response).
Because it was not practicable to
complete this review within the normal
time frame, on April 5, 2007, the
Department published in the Federal
Register a notice of the extension for the
preliminary results of this review. See
Purified Carboxymethylcellulose from
Finland, Sweden, the Netherlands, and
Mexico: Extension of Time Limits for
Preliminary Determinations of
Antidumping Duty Administrative
Reviews, 72 FR 16767 (April 5, 2007).
This extension established the deadline
for these preliminary results as July 31,
2007.
Because the Department requires
additional information from Amtex, a
letter was sent out specifying the
required data. See Letter from Robert M.
James to Jeffrey S. Neeley entitled,
‘‘Purified Carboxymethylcellulose
(CMC) from Mexico: Section A and B
Data Reporting,’’ dated July 30, 2007.
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Period of Review
The period of review (POR) is
December 27, 2004, through June 30,
2006.
Scope of the Order
The merchandise covered by this
order is all purified
carboxymethylcellulose (CMC),
sometimes also referred to as purified
sodium CMC, polyanionic cellulose, or
cellulose gum, which is a white to off–
white, non–toxic, odorless,
biodegradable powder, comprising
sodium CMC that has been refined and
purified to a minimum assay of 90
percent. Purified CMC does not include
unpurified or crude CMC, CMC
Fluidized Polymer Suspensions, and
CMC that is cross–linked through heat
treatment. Purified CMC is CMC that
has undergone one or more purification
operations which, at a minimum, reduce
the remaining salt and other by–product
portion of the product to less than ten
percent. The merchandise subject to this
order is classified in the Harmonized
Tariff Schedule of the United States at
subheading 3912.31.00. This tariff
classification is provided for
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convenience and customs purposes;
however, the written description of the
scope of the order is dispositive.
Date of Sale
The Department’s regulations state
that it will normally use the date of
invoice, as recorded in the exporter’s or
producer’s records kept in the ordinary
course of business, as the date of sale.
See 19 CFR 351.401(i). If the
Department can establish ‘‘a different
date that better reflects the date on
which the exporter or producer
establishes the material terms of sale,’’
the Department may choose a different
date. Id. As further discussed below, the
Department preliminarily determines
that the invoice date is the date of sale
provided the invoice is issued on or
before the shipment date; and that the
shipment date is the date of sale where
the invoice is issued after the shipment
date.
In both the home and U.S. markets,
Amtex bills some of its sales via
‘‘delayed invoices.’’ See Amtex
Supplemental Response at 16. Delivery
is made to the customer and a pro forma
invoice is issued, but the subject
merchandise remains in storage and
continues to be the property of Amtex
until withdrawn for consumption by the
customer (usually at the end of a
regular, monthly billing cycle), at which
time a final and definitive invoice is
issued. In Amtex’s normal books and
records this final invoice date, not the
pro forma invoice date, is recorded as
the date of sale. Id., at 24–26.
Therefore, for these preliminary
results, the Department will use the
earlier of either (a) the invoice date or
(b) shipment date as the date of sale for
Amtex’s NV, EP, and CEP sales. See
Analysis Memorandum for the
Preliminary Results of the
Administrative Review of the
Antidumping Duty Order on
Carboxymethylcellulose from Mexico
dated July 31, 2007 (Analysis
Memorandum), for further discussion of
date of sale. A public version of this
memorandum is on file in the
Department’s Central Records Unit
(CRU) located in Room B–099 of the
main Department of Commerce
Building, 14th Street and Constitution
Avenue, NW, Washington, DC 20230.
Fair Value Comparisons
To determine whether sales of CMC in
the United States were made at less than
fair value, we compared U.S. price to
normal value (NV), as described in the
‘‘Export price,’’ ‘‘Constructed Export
Price,’’ and ‘‘Normal Value’’ sections of
this notice. In accordance with section
777A(d)(2) of the Tariff Act of 1930, as
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amended (the Act), we calculated
monthly weighted–average NVs and
compared these to individual U.S.
transactions. Because we determined
Amtex made both EP and CEP sales
during the POR, we used both EP and
CEP as the basis for U.S. price in our
comparisons.
Product Comparisons
In accordance with section 771(16) of
the Act, we considered all products
produced by Amtex covered by the
description in the ‘‘Scope of the Order’’
section, above, and sold in the home
market during the POR, to be foreign
like products for purposes of
determining appropriate product
comparisons to U.S. sales. We relied on
five characteristics to match U.S. sales
of subject merchandise to comparison
sales of the foreign like product (listed
in order of priority): 1) grade; 2)
viscosity; 3) degree of substitution; 4)
particle size; and 5) solution gel
characteristics. Where there were no
sales of identical merchandise in the
home market to compare to U.S. sales,
we compared U.S. sales to the next most
similar foreign like product on the basis
of these product characteristics and the
reporting instructions listed in the
Department’s September 11, 2005
questionnaire. Because there were
contemporaneous sales of identical or
similar merchandise in the home market
suitable for comparison to all U.S. sales,
we did not compare any U.S. sales to
constructed value (CV). See the CV
section below.
Export Price (EP)
Section 772(a) of the Act defines EP
as ‘‘the price at which the subject
merchandise is first sold (or agreed to be
sold) before the date of importation by
the producer or exporter of subject
merchandise outside of the United
States to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States. . .,’’ as adjusted under section
772(c) of the Act. In accordance with
section 772(a) of the Act, we used EP for
a number of Amtex’s U.S. sales. We
preliminarily find that these sales are
properly classified as EP sales because
these sales were made before the date of
importation and were sales directly to
unaffiliated customers in the United
States, and because CEP methodology
was not otherwise indicated.
We based EP on the packed, delivered
duty paid, cost and freight (C&F) or free
on board (FOB) prices to unaffiliated
customers in the United States. Amtex
reported no price or billing adjustments,
and no discounts. We made deductions
for movement expenses in accordance
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with section 772(c)(2)(A) of the Act,
which included, where appropriate,
foreign inland freight from the mill to
the U.S. border, inland freight from the
border to the customer or warehouse,
and U.S. brokerage and handling. We
made adjustment for direct expenses
(credit expenses) in accordance with
section 772(c)(2)(A) of the Act.
Constructed Export Price (CEP)
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In accordance with section 772(b) of
the Act, CEP is the price at which the
subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of such merchandise, or by a
seller affiliated with the producer or
exporter, to a purchaser not affiliated
with the producer or exporter, as
adjusted under sections 772(c) and (d)
of the Act. In accordance with section
772(b) of the Act, we used CEP for a
number of Amtex’s U.S. sales because
Amtex sold merchandise to its affiliate
in the United States, Amtex Chemicals
LLC (Amtex Chemicals or ACUS),
which, in turn, sold subject
merchandise to unaffiliated U.S.
customers. See, e.g., Amtex Section A
Response at 10–11. We preliminarily
find these U.S. sales are properly
classified as CEP sales because they
occurred in the United States and were
made through Amtex’s U.S. affiliate,
Amtex Chemicals, to unaffiliated U.S.
customers.
We based CEP on the packed,
delivered duty paid or FOB warehouse
prices to unaffiliated purchasers in the
United States. Amtex reported no price
or billing adjustments, and no discounts
or rebates. We made deductions for
movement expenses in accordance with
section 772(c)(2)(A) of the Act, which
included, where appropriate, foreign
inland freight to the border, foreign
brokerage and handling, customs duties,
U.S. brokerage, U.S. inland freight, and
U.S. warehousing expenses. In
accordance with section 772(d)(1) of the
Act, we deducted those selling expenses
associated with economic activities
occurring in the United States,
including direct selling expenses (credit
costs), inventory carrying costs, and
indirect selling expenses.
However, no adjustment for CEP
profit was made for the reasons set forth
in the Analysis Memorandum. See
Analysis Memorandum at 14.
Normal Value
A. Selection of Comparison Market
In order to determine whether there
was a sufficient volume of sales in the
home market to serve as a viable basis
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for calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product was equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared the
respondent’s volume of home market
sales of the foreign like product to the
volume of U.S. sales of the subject
merchandise, in accordance with
section 773(a)(1) of the Act. Because
Amtex’s aggregate volume of home
market sales of the foreign like product
was greater than five percent of its
aggregate volume of U.S. sales of the
subject merchandise, we determined the
home market was viable. Therefore, we
have based NV on home market sales in
the usual commercial quantities and in
the ordinary course of trade.
B. Price–to-Price Comparisons
We calculated NV based on prices to
unaffiliated customers. Amtex reported
no billing adjustments, discounts or
rebates in the home market. We made
deductions for movement expenses
including, where appropriate, foreign
inland freight and insurance, pursuant
to section 773(a)(6)(B) of the Act. In
addition, when comparing sales of
similar merchandise, we made
adjustments for differences in cost
attributable to differences in physical
characteristics of the merchandise (i.e.,
DIFMER) pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR
351.411. We also made adjustments for
differences in circumstances of sale
(COS) in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for
imputed credit expenses. Finally, we
deducted home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Act.
C. Constructed Value (CV)
In accordance with section 773(a)(4)
of the Act, we base NV on CV if we are
unable to find a contemporaneous
comparison market match of such or
similar merchandise for the U.S. sale.
Section 773(e) of the Act provides that
CV shall be based on the sum of the cost
of materials and fabrication employed in
making the subject merchandise, SG&A
expenses, profit, and U.S. packing costs.
Since there was no cost allegation in
this administrative review, no section D
questionnaire was issued to Amtex.
Therefore, we relied upon the costs of
materials and fabrication as reported by
Amtex in its sections A, B, and C
responses and supplemental response to
calculate CV. However, Amtex’s
responses did not provide all the data
necessary for us to compute a CV profit.
Therefore we calculated a CV profit
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44097
using Amtex’s 2001–2002 audited
financial statements, as submitted in the
most recent segment of these
proceedings. See Frozen Concentrated
Orange Juice from Brazil: Final Results
and Partial Rescission of Antidumping
Duty Administrative Review, 66 FR
51008 (October 5, 2001) and the
accompanying Issues and Decision
Memorandum at Comment 3. For details
of this calculation, see Analysis
Memorandum. For these preliminary
results, we did not base NV on CV.
Level of Trade and CEP
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made
in the comparison market at the same
level of trade (LOT) as the export
transaction. The NV LOT is based on the
starting price of sales in the home
market or, when NV is based on
constructed value (CV), that of the sales
from which selling, general, and
administrative (SG&A) expenses and
profit are derived. With respect to CEP
transactions in the U.S. market, the CEP
LOT is defined as the level of the
constructed sale from the exporter to the
importer. See section 773(a)(7)(A) of the
Act.
To determine whether NV sales are at
a different LOT than CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the customer. See 19 CFR 351.412(c)(2).
If the comparison–market sales are at a
different LOT, and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and comparison–market sales at the
LOT of the export transaction, we make
a LOT adjustment under section
773(a)(7)(A) of the Act. For CEP sales, if
the NV level is more remote from the
factory than the CEP level and there is
no basis for determining whether the
difference in the levels between NV and
CEP affects price comparability, we
adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See,
e.g., Certain Hot–Rolled Flat–Rolled
Carbon Quality Steel Products from
Brazil; Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 17406, 17410 (April 6,
2005), results unchanged in Notice of
Final Results of Antidumping Duty
Administrative Review of Certain Hot–
Rolled Flat–Rolled Carbon Quality Steel
Products from Brazil, 70 FR 58683
(October 7, 2005); see also Final
Determination of Sales at Less Than
Fair Value: Greenhouse Tomatoes From
Canada, 67 FR 8781 (February 26, 2002)
and accompanying Issues and Decisions
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Memorandum at Comment 8. For CEP
sales, we consider only the selling
activities reflected in the price after the
deduction of expenses and CEP profit
under section 772(d) of the Act. See
Micron Technology, Inc. v. United
States, 243 F.3d 1301, 1314–1315 (Fed.
Cir. 2001). We expect that if the claimed
LOTs are the same, the functions and
activities of the seller should be similar.
Conversely, if a party claims that the
LOTs are different for different groups
of sales, the functions and activities of
the seller should be dissimilar. See
Porcelain–on-Steel Cookware from
Mexico: Final Results of Administrative
Review, 65 FR 30068 (May 10, 2000) and
accompanying Issues and Decisions
Memorandum at Comment 6.
Amtex reported that it had sold CMC
to end–users and distributors in the
home market and to end–users and
distributors in the United States. For the
home market, Amtex identified two
channels of distribution: end users
(channel 1) and distributors (channel 2).
See Amtex’s Section A Response at 8
and 9 and Exhibit A–6; see also Amtex
Sections B and C Response at B–20.
Amtex claimed a single level of trade in
the home market, stating that it
performs essentially the same selling
functions to either category of customer.
We obtained information from Amtex
regarding the marketing stages involved
in making its reported home market and
U.S. sales. Amtex provided a table
listing all selling activities it performs,
and comparing the levels of trade among
each channel of distribution in each
market. See Amtex Supplemental
Response at Exhibit A–6. We reviewed
Amtex’s claims concerning the intensity
to which all selling functions were
performed for each home market
channel of distribution and customer
category. For virtually all selling
functions, the selling activities of Amtex
were identical in both channels,
including sales forecasting, personnel
training, sales promotion, direct sales
personnel, technical assistance,
warranty service, after–sales service and
arranging delivery. Id. In fact, Amtex
described the level of performance as
identical across its home market end–
user and distributor channels of
distribution. See Amtex Sections B and
C Response at B–20; see also Amtex
Supplemental Response at 19 and at
Exhibit 6.
While we find some differences in the
selling functions performed between the
home market end–user and distributor
channels of distribution, such
differences are minor in that they are
not the principal selling functions but
rather particularized toward a few
customers and rarely performed. See
Amtex Supplemental Response at
Exhibit 6. Based on our analysis of all
Amtex’s home market selling functions,
we agree with Amtex’s characterization
of all its home market sales as being
made at the same level of trade, the NV
LOT.
In the U.S. market, Amtex reported
two levels of trade (i.e., EP and CEP
sales) through two channels of
distribution (i.e., end–users and
distributors). We examined the record
with respect to Amtex’s EP sales and
find that for all EP sales, Amtex
performed such selling functions as
sales forecasting, sales promotion, direct
sales personnel, technical assistance,
warranties, after–sales services and
arranging delivery. Id. In terms of the
number and intensity of selling
functions performed on EP sales, these
were indistinguishable between sales
from Amtex to end users and to
distributors. Id. Accordingly, we
preliminarily determine that all EP sales
were made at the same LOT.
We compared Amtex’s EP level of
trade to the single NV level of trade
found in the home market. While we
find differences in the levels of intensity
performed for some of these functions
between the home market NV level of
trade and the EP level of trade, such
differences are minor (particularized
toward a few customers and rarely
performed) and do not establish distinct
levels of trade within the home market.
Based on our analysis of all of Amtex’s
home market and EP selling functions,
we find these sales were made at the
same level of trade.
For CEP sales, however, we find that,
consistent with Amtex’s section B
response, the CEP LOT is more
advanced than the NV LOT. Id. The
information conveyed in the Selling
Functions Chart indicates that the
number and intensity of selling
functions performed by Amtex in
making its sales to Amtex Chemicals are
lower than the number and intensity of
selling functions Amtex performed for
its EP sales. However, Amtex’s
responses with regard to the home
market in section B indicate that
Amtex’s CEP sales are at a more
advanced marketing stage than are its
Producer
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Currency Conversions
Amtex reported certain home market
and U.S. sales prices and adjustments in
both U.S. dollars and Mexican pesos.
Therefore, we made peso–U.S. dollar
currency conversions, where
appropriate, based on the exchange rates
in effect on the date of the sale, as
certified by the Federal Reserve Board,
in accordance with section 773A(a) of
the Act.
Preliminary Results of Review
As a result of our review, we
preliminarily find the following
weighted–average dumping margin
exists for the period December 27, 2004
through June 30, 2005:
Weighted–Average Margin
(percent)
POR
Quimica Amtex, S.A. de C.V. ..............................................................................
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home market sales. Amtex states
directly that CEP sales are at a more
advanced stage than home market sales.
See Amtex Supplemental response at
49. Further, Amtex reports that for its
CEP sales most of the principal selling
functions in both markets are carried
out by a single employee in the Mexico
office who devotes a vastly
disproportional amount of time to these
CEP principal selling functions. See
Amtex Supplemental Response at 38;
see also Amtex Supplemental Exhibit
12. Contrary to what the section A
response indicates, the record evidence
submitted by Amtex itself establishes
that the CEP LOT (that is, sales from
Amtex to its U.S. affiliate) involves a
much more intense level of activity and
therefore constitutes a more advanced
stage of distribution than its NV LOT.
Because we found the home market
and U.S. CEP sales were made at
different LOTs, as Amtex claimed, we
examined whether a LOT adjustment or
a CEP offset may be appropriate in this
review. As we found only one LOT in
the home market, it was not possible to
make a LOT adjustment to home market
sales prices, because such an adjustment
is dependent on our ability to identify
a pattern of consistent price differences
between the home market sales on
which NV is based and home market
sales at the CEP LOT. See 19 CFR
351.412(d)(1)(ii). Furthermore, because
the CEP LOT is at a more advanced
stage of distribution than the NV LOT,
it is not possible to make a CEP offset
to NV in accordance with section
773(a)(7)(B) of the Act.
PO 00000
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E:\FR\FM\07AUN1.SGM
07AUN1
2.26
jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 151 / Tuesday, August 7, 2007 / Notices
The Department will disclose
calculations performed within five days
of the date of publication of this notice
in accordance with 19 CFR 351.224(b).
An interested party may request a
hearing within thirty days of
publication. See 19 CFR 351.310(c). Any
hearing, if requested, will be held 37
days after the date of publication, or the
first business day thereafter, unless the
Department alters the date pursuant to
19 CFR 351.310(d). Interested parties
may submit case briefs no later than 30
days after the date of publication of
these preliminary results of review. See
19 CFR 351.309(c)(1)(ii). Rebuttal briefs,
limited to issues raised in the case
briefs, may be filed no later than 35 days
after the date of publication of this
notice. See 19 CFR 351.309(d)(1). Parties
who submit arguments in these
proceedings are requested to submit
with the argument: 1) a statement of the
issue; 2) a brief summary of the
argument; and 3) a table of authorities.
Further, parties submitting written
comments must provide the Department
with an additional copy of the public
version of any such comments on
diskette. The Department will issue
final results of this administrative
review, including the results of our
analysis of the issues in any such
written comments or at a hearing,
within 120 days of publication of these
preliminary results.
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. Upon
completion of this administrative
review, pursuant to 19 CFR 351.212(b),
the Department will calculate an
assessment rate on all appropriate
entries. Amtex has reported entered
values for all of its sales of subject
merchandise to the U.S. during the POR.
Therefore, in accordance with 19 CFR
351.212(b)(1), we will calculate
importer–specific duty assessment rates
on the basis of the ratio of the total
amount of antidumping duties
calculated for the examined sales to the
total entered value of the examined
sales of that importer. These rates will
be assessed uniformly on all entries the
respective importers made during the
POR if these preliminary results are
adopted in the final results of review.
Where the assessment rate is above de
minimis, we will instruct CBP to assess
duties on all entries of subject
merchandise by that importer. In
accordance with 19 CFR 356.8(a), the
Department intends to issue appropriate
appraisement instructions directly to
CBP on or after 41 days following the
publication of the final results of
review.
VerDate Aug<31>2005
17:20 Aug 06, 2007
Jkt 211001
44099
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003). This
clarification will apply to entries of
subject merchandise during the POR
produced by the company included in
these preliminary results that the
company did not know were destined
for the United States. In such instances
we will instruct CBP to liquidate
unreviewed entries at the All Others
rate if there is no rate for the
intermediate company or companies
involved in the transaction.
Dated: July 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E7–15324 Filed 8–6–07; 8:45 am]
Cash Deposit Requirements
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
petitioner Aqualon Company, a division
of Hercules Incorporated (Aqualon), a
U.S. manufacturer of purified
carboxymethylcellulose (CMC), the
Department of Commerce (the
Department) is conducting an
administrative review of the
antidumping duty order on CMC from
the Netherlands. This administrative
review covers imports of subject
merchandise produced and exported by
Noviant B.V. and CP Kelco B.V.
(collectively, CP Kelco). The period of
review (POR) is December 27, 2004,
through June 30, 2006.
We preliminarily determine that sales
of subject merchandise by CP Kelco
have been made at less than normal
value (NV). If these preliminary results
are adopted in our final results, we will
instruct U.S. Customs and Border
Protection (CBP) to assess antidumping
duties on appropriate entries based on
the difference between the export price
(EP) or constructed export price (CEP)
and NV. Interested parties are invited to
comment on these preliminary results.
EFFECTIVE DATE: August 7, 2007.
FOR FURTHER INFORMATION CONTACT:
Stephen Bailey or Angelica Mendoza,
AD/CVD Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–0193 or (202) 482–
3019, respectively.
SUPPLEMENTARY INFORMATION:
Frm 00024
Fmt 4703
Sfmt 4703
DEPARTMENT OF COMMERCE
International Trade Administration
A–421–811
Purified Carboxymethylcellulose from
the Netherlands; Preliminary Results
of Antidumping Duty Administrative
Review
AGENCY:
Furthermore, the following cash
deposit requirements will be effective
for all shipments of CMC from Mexico
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
by section 751(a)(1) of the Act: 1) the
cash deposit rate for Amtex will be the
rate established in the final results of
review, unless that rate is less than or
equal to 0.50 percent (de minimis
within the meaning of 19 CFR
351.106(c)(1)), in which case the cash
deposit rate will be zero; 2) if the
exporter is not a firm covered in this
review or the less–than-fair–value
(LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and 3) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
conducted by the Department, the cash
deposit rate will be the ‘‘all others’’ rate
of 12.61 percent from the LTFV
investigation. See Notice of
Anitdumping Duty Orders: Purified
Carboxymethylcellulose from Finland,
Mexico, and the Netherlands and
Sweden, 70 FR 39734 (July 11, 2005).
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 this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
PO 00000
BILLING CODE 3510–DS–S
Background
On July 11, 2005, the Department
published the antidumping duty order
on CMC from the Netherlands. See
Notice of Antidumping Duty Orders:
Purified Carboxymethylcellulose from
Finland, Mexico, the Netherlands and
E:\FR\FM\07AUN1.SGM
07AUN1
Agencies
[Federal Register Volume 72, Number 151 (Tuesday, August 7, 2007)]
[Notices]
[Pages 44095-44099]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15324]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
(A-201-834)
Purified Carboxymethylcellulose From Mexico: Notice of
Preliminary Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Quimica Amtex S.A. de C.V.
(Amtex), the Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on purified
carboxymethylcellulose (CMC) from Mexico. The review covers exports of
the subject merchandise to the United States produced and exported by
Amtex.
We preliminarily find that Amtex made sales at less than fair value
during the POR. If these preliminary results are adopted in our final
results of this review, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties based on differences
between the export price (EP) or constructed export price (CEP) and
normal value (NV).
Interested parties are invited to comment on these preliminary
results. Parties who submit arguments in this proceeding are requested
to submit with the arguments: (1) a statement of the issues, (2) a
brief summary of the arguments (no longer than five pages, including
footnotes) and (3) a table of authorities.
EFFECTIVE DATE: August 7, 2007.
FOR FURTHER INFORMATION CONTACT: Mark Flessner or Robert James, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
6312 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the antidumping duty order on CMC from
Mexico on July 11, 2005. See Notice of Antidumping Duty Orders:
Purified Carboxymethylcellulose from Finland, Mexico, the Netherlands,
and Sweden, 70 FR 39734 (July 11, 2005). On July 3, 2006, the
Department published the notice of opportunity to request
administrative review of CMC from Mexico for the period December 27,
2004, through June 30, 2006. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation; Opportunity To Request
Administrative Review, 71 FR 37890 (July 3, 2006).
On July 17, 2006, Amtex requested a review of its sales of CMC for
the period December 27, 2004, through June 30, 2006 (the POR). On
August 30, 2006, the Department published in the Federal Register a
notice of initiation of this antidumping duty administrative review.
See Notice of Initiation of Antidumping and Countervailing Duty
Administrative Reviews and Requests for Revocation in Part, 71 FR 51573
(August 30, 2006).
On September 11, 2006, the Department issued its standard
[[Page 44096]]
antidumping duty questionnaire to Amtex. Amtex submitted its response
to section A of the Department's antidumping duty questionnaire on
October 10, 2006 (Amtex Section A Response). Amtex submitted its
response to sections B and C of the Department's questionnaire on
November 13, 2006 (Amtex Sections B and C Response).
On March 16, 2007, the Department issued a supplemental
questionnaire for sections A, B, and C, to which Amtex responded on
April 13, 2007 (Amtex Supplemental Response).
Because it was not practicable to complete this review within the
normal time frame, on April 5, 2007, the Department published in the
Federal Register a notice of the extension for the preliminary results
of this review. See Purified Carboxymethylcellulose from Finland,
Sweden, the Netherlands, and Mexico: Extension of Time Limits for
Preliminary Determinations of Antidumping Duty Administrative Reviews,
72 FR 16767 (April 5, 2007). This extension established the deadline
for these preliminary results as July 31, 2007.
Because the Department requires additional information from Amtex,
a letter was sent out specifying the required data. See Letter from
Robert M. James to Jeffrey S. Neeley entitled, ``Purified
Carboxymethylcellulose (CMC) from Mexico: Section A and B Data
Reporting,'' dated July 30, 2007.
Period of Review
The period of review (POR) is December 27, 2004, through June 30,
2006.
Scope of the Order
The merchandise covered by this order is all purified
carboxymethylcellulose (CMC), sometimes also referred to as purified
sodium CMC, polyanionic cellulose, or cellulose gum, which is a white
to off-white, non-toxic, odorless, biodegradable powder, comprising
sodium CMC that has been refined and purified to a minimum assay of 90
percent. Purified CMC does not include unpurified or crude CMC, CMC
Fluidized Polymer Suspensions, and CMC that is cross-linked through
heat treatment. Purified CMC is CMC that has undergone one or more
purification operations which, at a minimum, reduce the remaining salt
and other by-product portion of the product to less than ten percent.
The merchandise subject to this order is classified in the Harmonized
Tariff Schedule of the United States at subheading 3912.31.00. This
tariff classification is provided for convenience and customs purposes;
however, the written description of the scope of the order is
dispositive.
Date of Sale
The Department's regulations state that it will normally use the
date of invoice, as recorded in the exporter's or producer's records
kept in the ordinary course of business, as the date of sale. See 19
CFR 351.401(i). If the Department can establish ``a different date that
better reflects the date on which the exporter or producer establishes
the material terms of sale,'' the Department may choose a different
date. Id. As further discussed below, the Department preliminarily
determines that the invoice date is the date of sale provided the
invoice is issued on or before the shipment date; and that the shipment
date is the date of sale where the invoice is issued after the shipment
date.
In both the home and U.S. markets, Amtex bills some of its sales
via ``delayed invoices.'' See Amtex Supplemental Response at 16.
Delivery is made to the customer and a pro forma invoice is issued, but
the subject merchandise remains in storage and continues to be the
property of Amtex until withdrawn for consumption by the customer
(usually at the end of a regular, monthly billing cycle), at which time
a final and definitive invoice is issued. In Amtex's normal books and
records this final invoice date, not the pro forma invoice date, is
recorded as the date of sale. Id., at 24-26.
Therefore, for these preliminary results, the Department will use
the earlier of either (a) the invoice date or (b) shipment date as the
date of sale for Amtex's NV, EP, and CEP sales. See Analysis Memorandum
for the Preliminary Results of the Administrative Review of the
Antidumping Duty Order on Carboxymethylcellulose from Mexico dated July
31, 2007 (Analysis Memorandum), for further discussion of date of sale.
A public version of this memorandum is on file in the Department's
Central Records Unit (CRU) located in Room B-099 of the main Department
of Commerce Building, 14th Street and Constitution Avenue, NW,
Washington, DC 20230.
Fair Value Comparisons
To determine whether sales of CMC in the United States were made at
less than fair value, we compared U.S. price to normal value (NV), as
described in the ``Export price,'' ``Constructed Export Price,'' and
``Normal Value'' sections of this notice. In accordance with section
777A(d)(2) of the Tariff Act of 1930, as amended (the Act), we
calculated monthly weighted-average NVs and compared these to
individual U.S. transactions. Because we determined Amtex made both EP
and CEP sales during the POR, we used both EP and CEP as the basis for
U.S. price in our comparisons.
Product Comparisons
In accordance with section 771(16) of the Act, we considered all
products produced by Amtex covered by the description in the ``Scope of
the Order'' section, above, and sold in the home market during the POR,
to be foreign like products for purposes of determining appropriate
product comparisons to U.S. sales. We relied on five characteristics to
match U.S. sales of subject merchandise to comparison sales of the
foreign like product (listed in order of priority): 1) grade; 2)
viscosity; 3) degree of substitution; 4) particle size; and 5) solution
gel characteristics. Where there were no sales of identical merchandise
in the home market to compare to U.S. sales, we compared U.S. sales to
the next most similar foreign like product on the basis of these
product characteristics and the reporting instructions listed in the
Department's September 11, 2005 questionnaire. Because there were
contemporaneous sales of identical or similar merchandise in the home
market suitable for comparison to all U.S. sales, we did not compare
any U.S. sales to constructed value (CV). See the CV section below.
Export Price (EP)
Section 772(a) of the Act defines EP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of subject merchandise
outside of the United States to an unaffiliated purchaser in the United
States or to an unaffiliated purchaser for exportation to the United
States. . .,'' as adjusted under section 772(c) of the Act. In
accordance with section 772(a) of the Act, we used EP for a number of
Amtex's U.S. sales. We preliminarily find that these sales are properly
classified as EP sales because these sales were made before the date of
importation and were sales directly to unaffiliated customers in the
United States, and because CEP methodology was not otherwise indicated.
We based EP on the packed, delivered duty paid, cost and freight
(C&F) or free on board (FOB) prices to unaffiliated customers in the
United States. Amtex reported no price or billing adjustments, and no
discounts. We made deductions for movement expenses in accordance
[[Page 44097]]
with section 772(c)(2)(A) of the Act, which included, where
appropriate, foreign inland freight from the mill to the U.S. border,
inland freight from the border to the customer or warehouse, and U.S.
brokerage and handling. We made adjustment for direct expenses (credit
expenses) in accordance with section 772(c)(2)(A) of the Act.
Constructed Export Price (CEP)
In accordance with section 772(b) of the Act, CEP is the price at
which the subject merchandise is first sold (or agreed to be sold) in
the United States before or after the date of importation by or for the
account of the producer or exporter of such merchandise, or by a seller
affiliated with the producer or exporter, to a purchaser not affiliated
with the producer or exporter, as adjusted under sections 772(c) and
(d) of the Act. In accordance with section 772(b) of the Act, we used
CEP for a number of Amtex's U.S. sales because Amtex sold merchandise
to its affiliate in the United States, Amtex Chemicals LLC (Amtex
Chemicals or ACUS), which, in turn, sold subject merchandise to
unaffiliated U.S. customers. See, e.g., Amtex Section A Response at 10-
11. We preliminarily find these U.S. sales are properly classified as
CEP sales because they occurred in the United States and were made
through Amtex's U.S. affiliate, Amtex Chemicals, to unaffiliated U.S.
customers.
We based CEP on the packed, delivered duty paid or FOB warehouse
prices to unaffiliated purchasers in the United States. Amtex reported
no price or billing adjustments, and no discounts or rebates. We made
deductions for movement expenses in accordance with section
772(c)(2)(A) of the Act, which included, where appropriate, foreign
inland freight to the border, foreign brokerage and handling, customs
duties, U.S. brokerage, U.S. inland freight, and U.S. warehousing
expenses. In accordance with section 772(d)(1) of the Act, we deducted
those selling expenses associated with economic activities occurring in
the United States, including direct selling expenses (credit costs),
inventory carrying costs, and indirect selling expenses.
However, no adjustment for CEP profit was made for the reasons set
forth in the Analysis Memorandum. See Analysis Memorandum at 14.
Normal Value
A. Selection of Comparison Market
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating NV
(i.e., the aggregate volume of home market sales of the foreign like
product was equal to or greater than five percent of the aggregate
volume of U.S. sales), we compared the respondent's volume of home
market sales of the foreign like product to the volume of U.S. sales of
the subject merchandise, in accordance with section 773(a)(1) of the
Act. Because Amtex's aggregate volume of home market sales of the
foreign like product was greater than five percent of its aggregate
volume of U.S. sales of the subject merchandise, we determined the home
market was viable. Therefore, we have based NV on home market sales in
the usual commercial quantities and in the ordinary course of trade.
B. Price-to-Price Comparisons
We calculated NV based on prices to unaffiliated customers. Amtex
reported no billing adjustments, discounts or rebates in the home
market. We made deductions for movement expenses including, where
appropriate, foreign inland freight and insurance, pursuant to section
773(a)(6)(B) of the Act. In addition, when comparing sales of similar
merchandise, we made adjustments for differences in cost attributable
to differences in physical characteristics of the merchandise (i.e.,
DIFMER) pursuant to section 773(a)(6)(C)(ii) of the Act and 19 CFR
351.411. We also made adjustments for differences in circumstances of
sale (COS) in accordance with section 773(a)(6)(C)(iii) of the Act and
19 CFR 351.410. We made COS adjustments for imputed credit expenses.
Finally, we deducted home market packing costs and added U.S. packing
costs in accordance with sections 773(a)(6)(A) and (B) of the Act.
C. Constructed Value (CV)
In accordance with section 773(a)(4) of the Act, we base NV on CV
if we are unable to find a contemporaneous comparison market match of
such or similar merchandise for the U.S. sale. Section 773(e) of the
Act provides that CV shall be based on the sum of the cost of materials
and fabrication employed in making the subject merchandise, SG&A
expenses, profit, and U.S. packing costs. Since there was no cost
allegation in this administrative review, no section D questionnaire
was issued to Amtex. Therefore, we relied upon the costs of materials
and fabrication as reported by Amtex in its sections A, B, and C
responses and supplemental response to calculate CV. However, Amtex's
responses did not provide all the data necessary for us to compute a CV
profit. Therefore we calculated a CV profit using Amtex's 2001-2002
audited financial statements, as submitted in the most recent segment
of these proceedings. See Frozen Concentrated Orange Juice from Brazil:
Final Results and Partial Rescission of Antidumping Duty Administrative
Review, 66 FR 51008 (October 5, 2001) and the accompanying Issues and
Decision Memorandum at Comment 3. For details of this calculation, see
Analysis Memorandum. For these preliminary results, we did not base NV
on CV.
Level of Trade and CEP
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we base NV on sales made in the comparison market at the
same level of trade (LOT) as the export transaction. The NV LOT is
based on the starting price of sales in the home market or, when NV is
based on constructed value (CV), that of the sales from which selling,
general, and administrative (SG&A) expenses and profit are derived.
With respect to CEP transactions in the U.S. market, the CEP LOT is
defined as the level of the constructed sale from the exporter to the
importer. See section 773(a)(7)(A) of the Act.
To determine whether NV sales are at a different LOT than CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the customer.
See 19 CFR 351.412(c)(2). If the comparison-market sales are at a
different LOT, and the difference affects price comparability, as
manifested in a pattern of consistent price differences between the
sales on which NV is based and comparison-market sales at the LOT of
the export transaction, we make a LOT adjustment under section
773(a)(7)(A) of the Act. For CEP sales, if the NV level is more remote
from the factory than the CEP level and there is no basis for
determining whether the difference in the levels between NV and CEP
affects price comparability, we adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See, e.g., Certain Hot-Rolled Flat-
Rolled Carbon Quality Steel Products from Brazil; Preliminary Results
of Antidumping Duty Administrative Review, 70 FR 17406, 17410 (April 6,
2005), results unchanged in Notice of Final Results of Antidumping Duty
Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon Quality
Steel Products from Brazil, 70 FR 58683 (October 7, 2005); see also
Final Determination of Sales at Less Than Fair Value: Greenhouse
Tomatoes From Canada, 67 FR 8781 (February 26, 2002) and accompanying
Issues and Decisions
[[Page 44098]]
Memorandum at Comment 8. For CEP sales, we consider only the selling
activities reflected in the price after the deduction of expenses and
CEP profit under section 772(d) of the Act. See Micron Technology, Inc.
v. United States, 243 F.3d 1301, 1314-1315 (Fed. Cir. 2001). We expect
that if the claimed LOTs are the same, the functions and activities of
the seller should be similar. Conversely, if a party claims that the
LOTs are different for different groups of sales, the functions and
activities of the seller should be dissimilar. See Porcelain-on-Steel
Cookware from Mexico: Final Results of Administrative Review, 65 FR
30068 (May 10, 2000) and accompanying Issues and Decisions Memorandum
at Comment 6.
Amtex reported that it had sold CMC to end-users and distributors
in the home market and to end-users and distributors in the United
States. For the home market, Amtex identified two channels of
distribution: end users (channel 1) and distributors (channel 2). See
Amtex's Section A Response at 8 and 9 and Exhibit A-6; see also Amtex
Sections B and C Response at B-20. Amtex claimed a single level of
trade in the home market, stating that it performs essentially the same
selling functions to either category of customer.
We obtained information from Amtex regarding the marketing stages
involved in making its reported home market and U.S. sales. Amtex
provided a table listing all selling activities it performs, and
comparing the levels of trade among each channel of distribution in
each market. See Amtex Supplemental Response at Exhibit A-6. We
reviewed Amtex's claims concerning the intensity to which all selling
functions were performed for each home market channel of distribution
and customer category. For virtually all selling functions, the selling
activities of Amtex were identical in both channels, including sales
forecasting, personnel training, sales promotion, direct sales
personnel, technical assistance, warranty service, after-sales service
and arranging delivery. Id. In fact, Amtex described the level of
performance as identical across its home market end-user and
distributor channels of distribution. See Amtex Sections B and C
Response at B-20; see also Amtex Supplemental Response at 19 and at
Exhibit 6.
While we find some differences in the selling functions performed
between the home market end-user and distributor channels of
distribution, such differences are minor in that they are not the
principal selling functions but rather particularized toward a few
customers and rarely performed. See Amtex Supplemental Response at
Exhibit 6. Based on our analysis of all Amtex's home market selling
functions, we agree with Amtex's characterization of all its home
market sales as being made at the same level of trade, the NV LOT.
In the U.S. market, Amtex reported two levels of trade (i.e., EP
and CEP sales) through two channels of distribution (i.e., end-users
and distributors). We examined the record with respect to Amtex's EP
sales and find that for all EP sales, Amtex performed such selling
functions as sales forecasting, sales promotion, direct sales
personnel, technical assistance, warranties, after-sales services and
arranging delivery. Id. In terms of the number and intensity of selling
functions performed on EP sales, these were indistinguishable between
sales from Amtex to end users and to distributors. Id. Accordingly, we
preliminarily determine that all EP sales were made at the same LOT.
We compared Amtex's EP level of trade to the single NV level of
trade found in the home market. While we find differences in the levels
of intensity performed for some of these functions between the home
market NV level of trade and the EP level of trade, such differences
are minor (particularized toward a few customers and rarely performed)
and do not establish distinct levels of trade within the home market.
Based on our analysis of all of Amtex's home market and EP selling
functions, we find these sales were made at the same level of trade.
For CEP sales, however, we find that, consistent with Amtex's
section B response, the CEP LOT is more advanced than the NV LOT. Id.
The information conveyed in the Selling Functions Chart indicates that
the number and intensity of selling functions performed by Amtex in
making its sales to Amtex Chemicals are lower than the number and
intensity of selling functions Amtex performed for its EP sales.
However, Amtex's responses with regard to the home market in section B
indicate that Amtex's CEP sales are at a more advanced marketing stage
than are its home market sales. Amtex states directly that CEP sales
are at a more advanced stage than home market sales. See Amtex
Supplemental response at 49. Further, Amtex reports that for its CEP
sales most of the principal selling functions in both markets are
carried out by a single employee in the Mexico office who devotes a
vastly disproportional amount of time to these CEP principal selling
functions. See Amtex Supplemental Response at 38; see also Amtex
Supplemental Exhibit 12. Contrary to what the section A response
indicates, the record evidence submitted by Amtex itself establishes
that the CEP LOT (that is, sales from Amtex to its U.S. affiliate)
involves a much more intense level of activity and therefore
constitutes a more advanced stage of distribution than its NV LOT.
Because we found the home market and U.S. CEP sales were made at
different LOTs, as Amtex claimed, we examined whether a LOT adjustment
or a CEP offset may be appropriate in this review. As we found only one
LOT in the home market, it was not possible to make a LOT adjustment to
home market sales prices, because such an adjustment is dependent on
our ability to identify a pattern of consistent price differences
between the home market sales on which NV is based and home market
sales at the CEP LOT. See 19 CFR 351.412(d)(1)(ii). Furthermore,
because the CEP LOT is at a more advanced stage of distribution than
the NV LOT, it is not possible to make a CEP offset to NV in accordance
with section 773(a)(7)(B) of the Act.
Currency Conversions
Amtex reported certain home market and U.S. sales prices and
adjustments in both U.S. dollars and Mexican pesos. Therefore, we made
peso-U.S. dollar currency conversions, where appropriate, based on the
exchange rates in effect on the date of the sale, as certified by the
Federal Reserve Board, in accordance with section 773A(a) of the Act.
Preliminary Results of Review
As a result of our review, we preliminarily find the following
weighted-average dumping margin exists for the period December 27, 2004
through June 30, 2005:
----------------------------------------------------------------------------------------------------------------
Weighted-Average Margin
Producer POR (percent)
----------------------------------------------------------------------------------------------------------------
Quimica Amtex, S.A. de C.V.......................... 12/27/04 - 06/30/06 2.26
----------------------------------------------------------------------------------------------------------------
[[Page 44099]]
The Department will disclose calculations performed within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b). An interested party may request a hearing within thirty
days of publication. See 19 CFR 351.310(c). Any hearing, if requested,
will be held 37 days after the date of publication, or the first
business day thereafter, unless the Department alters the date pursuant
to 19 CFR 351.310(d). Interested parties may submit case briefs no
later than 30 days after the date of publication of these preliminary
results of review. See 19 CFR 351.309(c)(1)(ii). Rebuttal briefs,
limited to issues raised in the case briefs, may be filed no later than
35 days after the date of publication of this notice. See 19 CFR
351.309(d)(1). Parties who submit arguments in these proceedings are
requested to submit with the argument: 1) a statement of the issue; 2)
a brief summary of the argument; and 3) a table of authorities.
Further, parties submitting written comments must provide the
Department with an additional copy of the public version of any such
comments on diskette. The Department will issue final results of this
administrative review, including the results of our analysis of the
issues in any such written comments or at a hearing, within 120 days of
publication of these preliminary results.
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. Upon completion of this
administrative review, pursuant to 19 CFR 351.212(b), the Department
will calculate an assessment rate on all appropriate entries. Amtex has
reported entered values for all of its sales of subject merchandise to
the U.S. during the POR. Therefore, in accordance with 19 CFR
351.212(b)(1), we will calculate importer-specific duty assessment
rates on the basis of the ratio of the total amount of antidumping
duties calculated for the examined sales to the total entered value of
the examined sales of that importer. These rates will be assessed
uniformly on all entries the respective importers made during the POR
if these preliminary results are adopted in the final results of
review. Where the assessment rate is above de minimis, we will instruct
CBP to assess duties on all entries of subject merchandise by that
importer. In accordance with 19 CFR 356.8(a), the Department intends to
issue appropriate appraisement instructions directly to CBP on or after
41 days following the publication of the final results of review.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). This
clarification will apply to entries of subject merchandise during the
POR produced by the company included in these preliminary results that
the company did not know were destined for the United States. In such
instances we will instruct CBP to liquidate unreviewed entries at the
All Others rate if there is no rate for the intermediate company or
companies involved in the transaction.
Cash Deposit Requirements
Furthermore, the following cash deposit requirements will be
effective for all shipments of CMC from Mexico entered, or withdrawn
from warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act: 1) the cash deposit rate for Amtex will be the
rate established in the final results of review, unless that rate is
less than or equal to 0.50 percent (de minimis within the meaning of 19
CFR 351.106(c)(1)), in which case the cash deposit rate will be zero;
2) if the exporter is not a firm covered in this review or the less-
than-fair-value (LTFV) investigation, but the manufacturer is, the cash
deposit rate will be the rate established for the most recent period
for the manufacturer of the merchandise; and 3) if neither the exporter
nor the manufacturer is a firm covered in this or any previous review
conducted by the Department, the cash deposit rate will be the ``all
others'' rate of 12.61 percent from the LTFV investigation. See Notice
of Anitdumping Duty Orders: Purified Carboxymethylcellulose from
Finland, Mexico, and the Netherlands and Sweden, 70 FR 39734 (July 11,
2005).
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 this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Act.
Dated: July 31, 2007.
Stephen J. Claeys,
Acting Assistant Secretary for Import Administration.
[FR Doc. E7-15324 Filed 8-6-07; 8:45 am]
BILLING CODE 3510-DS-S