Notice of Preliminary Determination of Sales at Less Than Fair Value: Glycine From the Republic of Korea, 52345-52349 [E7-18071]
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Federal Register / Vol. 72, No. 177 / Thursday, September 13, 2007 / Notices
ebenthall on PRODPC61 with NOTICES
Automotive Replacement Glass
Windshields from the People’s Republic
of China, 67 FR 16087 (April 4, 2002)
(‘‘Order’’). The final judgment in this
case was not in harmony with the
Department’s Final Determination of
Sales at Less Than Fair Value: Certain
Automotive Replacement Glass
Windshields From the People’s Republic
of China, 67 FR 6482 (February 12,
2002) (‘‘Final Determination’’), and
accompanying Issues and Decisions
Memorandum (‘‘Decision Memo’’), as
amended at 67 FR 11670 (March 15,
2002), covering the period of
investigation (‘‘POI’’), July 1, 2000
through December 31, 2000.
EFFECTIVE DATE: July 8, 2007.
FOR FURTHER INFORMATION CONTACT:
Gene Degnan, AD/CVD Operations,
Office 8, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW,
Washington DC 20230; telephone (202)
482–0414.
SUPPLEMENTARY INFORMATION:
Background
Plaintiffs, Fuyao Glass Industry Group
Co., Ltd. (‘‘Fuyao’’) and Xinyi
Automotive Glass Co., Ltd. (‘‘Xinyi’’),
initially in separate lawsuits, contested
several aspects of the Final
Determination, including the
Department’s decision to disregard
certain market economy inputs. On
August 6, 2002, all law suits challenging
the Final Determination, including
Xinyi’s lawsuit, were consolidated into
Fuyao Glass Industry Group Co., Ltd. v.
United States, Consol. Court No. 02–
00282, 2006 Ct. Int’l Trade Lexis 21,
Slip Op. 2006–21 (CIT February 15,
2006) (‘‘Fuyao Glass III’’). On February
15, 2006, while the cases were still
consolidated, the court remanded the
Department’s decision regarding certain
market economy inputs to the
Department. In its remand to the
Department, the Court concluded with
respect to the standard applied in the
Department’s analysis, that the
Department must conduct its analysis
‘‘in accordance with the court’s finding
with respect to the use of the word ’are’
rather than ’may be’ when applying its
subsidized price methodology.’’ Fuyao
Glass III, Slip Op. P. 9. The Court
further directed the Department to
either (1) ‘‘concur with the court’s
conclusions with respect to substantial
evidence, or (2) re–open the record . .
.’’ Fuyao Glass III, Slip Op. p. 7. The
Court concluded that it does not find
the Department’s determination, that
prices from Korea and Indonesia are
subsidized, is supported by substantial
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record evidence. See Fuyao Glass III,
Slip Op. p. 16. Pursuant to the Court’s
ruling, and under respectful protest, the
Department concurred that the record
evidence does not contain substantial
evidence to support a conclusion that
prices from Korea and Indonesia are
subsidized. See Viraj Group v. United
States, 343 F.3d 1371, 1376 (Fed. Cir.
2003). Because the Court found that the
evidence on the record does not support
the Department’s determination to
disregard prices from Korea and
Indonesia, in the remand results, the
Department determined to calculate the
dumping margin for Fuyao and Xinyi
based upon prices the plaintiffs actually
paid to suppliers located in Korea and
Indonesia.
On January 8, 2007, Xinyi’s action
was severed from the consolidated
action. See Court Order of January 8,
2007, in Ct. No. 02–00282. On June 28,
2007, the court issued a final judgment,
wherein it affirmed the Department’s
third remand results with respect to
Xinyi’s action.
Timken Notice
In its decision in Timken Co., v.
United States, 893 F.2d 337, 341 (Fed.
Cir. 1990) (‘‘Timken’’), the United States
Court of Appeals for the Federal Circuit
held that, pursuant to section 516A(e) of
the Tariff Act of 1930, as amended (‘‘the
Act’’), the Department must publish a
notice of a court decision that is not ‘‘in
harmony’’ with a Department
determination. The Court’s decision in
Xinyi on June 28, 2007, constitutes a
final decision of that court that is not in
harmony with the Department’s Final
Determination. This notice is published
in fulfillment of the publication
requirements of Timken. Accordingly,
the Department will issue revised
instructions to U.S. Customs and Border
Protection if the Court’s decision is not
appealed or if it is affirmed on appeal.
This notice is issued and published in
accordance with section 516A(c)(1) of
the Act.
Dated: September 7, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E7–18069 Filed 9–12–07; 8:45 am]
BILLING CODE 3510–DS–S
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DEPARTMENT OF COMMERCE
International Trade Administration
[A–580–858]
Notice of Preliminary Determination of
Sales at Less Than Fair Value: Glycine
From the Republic of Korea
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 13,
2007.
SUMMARY: We preliminarily determine
that imports of glycine from the
Republic of Korea are being, or are
likely to be, sold in the United States at
less than fair value, as provided in
section 733 of the Tariff Act of 1930, as
amended. Interested parties are invited
to comment on this preliminary
determination. We will make our final
determination within 75 days after the
date of this preliminary determination.
FOR FURTHER INFORMATION CONTACT:
Dmitry Vladimirov or Richard
Rimlinger, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202)
482–0665 and (202) 482–4477,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
On April 26, 2007, the Department of
Commerce (the Department) published
in the Federal Register the initiation of
an antidumping investigation on glycine
from the Republic of Korea. See Glycine
from India, Japan, and the Republic of
Korea: Initiation of Antidumping Duty
Investigations, 72 FR 20816 (April 26,
2007) (Initiation Notice). The
Department set aside a period for all
interested parties to raise issues
regarding product coverage. See
Initiation Notice. We did not receive
comments regarding product coverage
from any interested party.
On May 21, 2007, we selected Korea
Bio-Gen Co., Ltd. (Korea Bio-Gen) as the
mandatory respondent in this
investigation. See the Memorandum to
Laurie Parkhill entitled ‘‘Antidumping
Duty Investigation Glycine from the
Republic of Korea—Respondent
Selection,’’ dated May 21, 2007.
On May 25, 2007, the International
Trade Commission (ITC) issued its
affirmative preliminary determination
that there is a reasonable indication that
an industry in the United States is
materially injured by reason of imports
of glycine from the Republic of Korea.
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See Glycine from India, Japan, and
Korea, 72 FR 29352 (May 25, 2007).
Period of Investigation
The period of investigation is January
1, 2006, through December 31, 2006.
Scope of Investigation
The merchandise covered by this
investigation is glycine, which in its
solid (i.e., crystallized) form is a freeflowing crystalline material. Glycine is
used as a sweetener/taste enhancer,
buffering agent, reabsorbable amino
acid, chemical intermediate, metal
complexing agent, dietary supplement,
and is used in certain pharmaceuticals.
The scope of this investigation covers
glycine in any form and purity level.
Although glycine blended with other
materials is not covered by the scope of
this investigation, glycine to which
relatively small quantities of other
materials have been added is covered by
the scope. Glycine’s chemical
composition is C2H5NO2 and is
normally classified under subheading
2922.49.4020 of the Harmonized Tariff
Schedule of the United States (HTSUS).
The scope of this investigation also
covers precursors of dried crystalline
glycine, including, but not limited to,
glycine slurry (i.e., glycine in a noncrystallized form) and sodium glycinate.
Glycine slurry is classified under the
same HTSUS subheading as crystallized
glycine (2922.49.4020) and sodium
glycinate is classified under subheading
HTSUS 2922.49.8000.
While HTSUS subheadings are
provided for convenience and customs
purposes, our written description of the
scope of this investigation is dispositive.
Issuance of Questionnaire
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On June 21, 2007, we issued Sections
A, B, C, D, and E 1 of the antidumping
questionnaire to Korea Bio-Gen. We did
not receive a response from Korea BioGen by the close of business on July 16,
2007, the established deadline.
On July 19, 2007, we issued a letter
to Korea Bio-Gen extending the deadline
for submission of the antidumping
1 Section A of the antidumping duty
questionnaire requests general information
concerning a company’s corporate structure and
business practices, the merchandise under
investigation, and the manner in which it sells that
merchandise in all of its markets. Section B requests
a complete listing of all of the company’s homemarket sales of the foreign like product or, if the
home market is not viable, of sales of the foreign
like product in the most appropriate third-country
market. Section C requests a complete listing of the
company’s U.S. sales of subject merchandise.
Section D requests information of the cost of
production of the foreign like product and the
constructed value of the merchandise under
investigation. Section E requests information on
further-manufacturing activities.
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questionnaire response to July 26, 2007,
thereby affording it additional time to
respond. We have not received any
response to our questionnaire or any
other communication from Korea BioGen since we issued the questionnaire
to it.
In our July 19, 2007, letter to Korea
Bio-Gen, we also informed it that any
submissions that were not filed in
accordance with 19 CFR 351.303 and
304 of our regulations would be deemed
untimely filed pursuant to 19 CFR
351.302 and that we may use facts
otherwise available for Korea Bio-Gen’s
antidumping margin in this
investigation pursuant to sections 776(a)
and (b) of the Tariff Act of 1930, as
amended (the Act).
Use of Facts Otherwise Available
For the reasons discussed below, we
determine that the use of adverse facts
available (AFA) is appropriate for the
preliminary determination with respect
to Korea Bio-Gen.
A. Use of Facts Available
Section 776(a)(2) of the Act provides
that, if an interested party withholds
information requested by the
administering authority, fails to provide
such information by the deadlines for
submission of the information and in
the form or manner requested, subject to
subsections (c)(1) and (e) of section 782,
significantly impedes a proceeding
under this title, or provides such
information but the information cannot
be verified as provided in 782(i), the
administering authority shall use,
subject to section 782(d) of the Act, facts
otherwise available in reaching the
applicable determination. Section
782(d) of the Act provides that, if the
administering authority determines that
a response to a request for information
does not comply with the request, the
administering authority shall promptly
inform the responding party and
provide an opportunity to remedy the
deficient submission. Section 782(e) of
the Act states further that the
Department shall not decline to
consider submitted information if all of
the following requirements are met: (1)
The information is submitted by the
established deadline; (2) the information
can be verified; (3) the information is
not so incomplete that it cannot serve as
a reliable basis for reaching the
applicable determination; (4) the
interested party has demonstrated that it
acted to the best of its ability; and (5)
the information can be used without
undue difficulties.
In this case, Korea Bio-Gen did not
provide pertinent information we
requested that is necessary to calculate
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an antidumping margin for the
preliminary determination. Specifically,
Korea Bio-Gen failed to respond to our
questionnaire entirely, thereby
withholding, among other things, homemarket and U.S. sales information that
is necessary for reaching the applicable
determination, pursuant to section
776(a)(2)(A) of the Act. Thus, in
reaching our preliminary determination,
pursuant to sections 776(a)(2)(A), (B),
and (C) of the Act, we have based the
dumping margin on facts otherwise
available for Korea Bio-Gen.
B. Application of Adverse Inferences for
Facts Available
In applying the facts otherwise
available, section 776(b) of the Act
provides that, if the administering
authority finds that an interested party
has failed to cooperate by not acting to
the best of its ability to comply with a
request for information from the
administering authority, in reaching the
applicable determination under this
title, the administering authority may
use an inference adverse to the interests
of that party in selecting from among the
facts otherwise available. See, e.g.,
Notice of Preliminary Determination of
Sales at Less Than Fair Value, and
Postponement of Final Determination:
Certain Circular Welded Carbon-Quality
Line Pipe From Mexico, 69 FR 59892
(October 6, 2004).
Adverse inferences are appropriate
‘‘to ensure that the party does not obtain
a more favorable result by failing to
cooperate than if it had cooperated
fully.’’ See Statement of Administrative
Action accompanying the Uruguay
Round Agreements Act, H.R. Doc. No.
103–316, vol.1 (1994) at 870 (SAA).
Further, ‘‘affirmative evidence of bad
faith on the part of a respondent is not
required before the Department may
make an adverse inference.’’ See
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27340 (May 19,
1997). Although the Department
provided Korea Bio-Gen with notice
informing it of the consequences of its
failure to respond adequately to the
questionnaire in this case, pursuant to
section 782(d) of the Act, Korea Bio-Gen
did not respond to the questionnaire.
This constitutes a failure on the part of
Korea Bio-Gen to cooperate to the best
of its ability to comply with a request
for information by the Department
within the meaning of section 776(b) of
the Act. Because Korea Bio-Gen did not
provide the information requested,
section 782(e) of the Act is not
applicable. Based on the above, the
Department has preliminarily
determined that Korea Bio-Gen failed to
cooperate to the best of its ability and,
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therefore, in selecting from among the
facts otherwise available, an adverse
inference is warranted. See, e.g., Notice
of Final Determination of Sales at Less
than Fair Value: Circular Seamless
Stainless Steel Hollow Products from
Japan, 65 FR 42985 (July 12, 2000) (the
Department applied total AFA where
the respondent failed to respond to the
antidumping questionnaire).
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C. Selection and Corroboration of
Information Used as Facts Available
Where the Department applies AFA
because a respondent failed to cooperate
by not acting to the best of its ability to
comply with a request for information,
section 776(b) of the Act authorizes the
Department to rely on information
derived from the petition, a final
determination, a previous
administrative review, or other
information placed on the record. See
also 19 CFR 351.308(c) and the SAA at
829–831. It is the Department’s practice
to use the highest calculated rate from
the petition in an investigation when a
respondent fails to act to the best of its
ability to provide the necessary
information and there are no other
respondents. See, e.g., Notice of
Preliminary Determination of Sales at
Less Than Fair Value and Postponement
of Final Determination: Purified
Carboxymethylcellulose From Finland,
69 FR 77216 (December 27, 2004)
(unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Purified
Carboxymethylcellulose From Finland,
70 FR 28279 (May 17, 2005)). Therefore,
because an adverse inference is
warranted, we have assigned to Korea
Bio-Gen the highest margin alleged in
the petition, as recalculated in the
Initiation Notice, of 138.83 percent (see
Petition for the Imposition of
Antidumping Duties on Imports of
Glycine from India, Japan, and the
Republic of Korea filed on March 30,
2007 (Petition), and April 3, 12, 13, 17,
and 18, 2007, supplements to the
Petition filed on behalf of Geo Specialty
Chemicals, Inc. (the petitioner)), as
recalculated in the April 19, 2007,
‘‘Office of AD/CVD Operations Initiation
Checklist for the Antidumping Duty
Petition on Glycine from the Republic of
Korea’’ (Initiation Checklist) on file in
Import Administration’s Central
Records Unit, Room 1870, U.S.
Department of Commerce, 14th Street
and Constitution Avenue, NW.,
Washington, DC 20230. We included the
range of margins we re-calculated in the
Initiation Checklist in the notice of
initiation of this investigation. See
Initiation Notice, 72 FR at 20819.
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When using facts otherwise available,
section 776(c) of the Act provides that,
when the Department relies on
secondary information (such as the
petition) rather than on information
obtained in the course of an
investigation, it must corroborate, to the
extent practicable, information from
independent sources that are reasonably
available at its disposal.
The SAA clarifies that ‘‘corroborate’’
means the Department will satisfy itself
that the secondary information to be
used has probative value. See SAA at
870. As stated in Tapered Roller
Bearings and Parts Thereof, Finished
and Unfinished, from Japan, and
Tapered Roller Bearings, Four Inches or
Less in Outside Diameter, and
Components Thereof, from Japan;
Preliminary Results of Antidumping
Duty Administrative Reviews and
Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November
6, 1996) (unchanged in Tapered Roller
Bearings and Parts Thereof, Finished
and Unfinished, From Japan, and
Tapered Roller Bearings, Four Inches or
Less in Outside Diameter, and
Components Thereof, From Japan; Final
Results of Antidumping Duty
Administrative Reviews and
Termination in Part, 62 FR 11825,
11843 (March 13, 1997)), to corroborate
secondary information, the Department
will examine, to the extent practicable,
the reliability and relevance of the
information used. The Department’s
regulations state that independent
sources used to corroborate such
evidence may include, for example,
published price lists, official import
statistics and customs data, and
information obtained from interested
parties during the particular
investigation. See 19 CFR 351.308(d)
and the SAA at 870.
For the purposes of this investigation,
to the extent appropriate information
was available, we reviewed the
adequacy and accuracy of the
information in the Petition during our
pre-initiation analysis and for purposes
of this preliminary determination. See
Initiation Checklist. We examined
evidence supporting the calculations in
the Petition to determine the probative
value of the margins alleged in the
Petition for use as AFA for purposes of
this preliminary determination. During
our pre-initiation analysis, we examined
the key elements of the export-price and
normal-value calculations used in the
Petition to derive margins. During our
pre-initiation analysis, we also
examined information from various
independent sources provided either
voluntarily in the Petition or, based on
our requests, in supplements to the
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52347
Petition, that corroborates key elements
of the export-price and normal-value
calculations used in the Petition to
derive estimated margins.
Specifically, the petitioner calculated
an export price using the U.S. price
quote it obtained for food-grade glycine
from the Republic of Korea for sale to
a large customer in the United States
during 2006. We obtained affidavits
from persons who obtained the U.S.
price quote. See Initiation Checklist at
6–8. The petitioner also calculated a
second export price using the average
monthly Customs Unit Values (AUVs)
‘F.O.B. foreign port,’ of glycine imports
from the Republic of Korea for
consumption in the United States,
classified under HTSUS number
2922.49.4020 for year 2006, gathered
from the Bureau of the Census IM145
import statistics. The petitioner used
information from PIERS Global
Intelligence Services to demonstrate that
most, if not all, entries of glycine during
2006 were of the food-grade glycine.
U.S. official import statistics are sources
that we consider reliable. See, e.g.,
Notice of Preliminary Determination of
Sales at Less Than Fair Value:
Superalloy Degassed Chromium from
Japan, 70 FR 48538 (August 18, 2005),
and applicable Memorandum to the File
from Dmitry Vladimirov entitled
‘‘Preliminary Determination in the
Antidumping Duty Investigation of
Superalloy Degassed Chromium from
Japan: Corroboration of Total Adverse
Facts Available Rate,’’ dated August 11,
2005 (Chromium from Japan)
(unchanged in Notice of Final
Determination of Sales at Less Than
Fair Value: Superalloy Degassed
Chromium from Japan, 70 FR 65886
(November 1, 2005)). We then compared
the U.S. price quote to the AUVs for
2006 and confirmed that the value of the
U.S. price quote was consistent with
2006 U.S. import prices. See Initiation
Checklist at 6–8. Further, we obtained
no other information that would make
us question the reliability of the pricing
information provided in the Petition.
The petitioner adjusted export prices
for foreign inland freight, international
freight, U.S. inland freight, distributor
mark-up, and credit charges. The
petitioner used publicly available data,
such as PIERS Global Intelligence
Services, information at https://
www.freightcenter.com, data queries
from USITC Interactive Tariff and Trade
DataWeb, etc., to estimate charges for
foreign inland freight, international
freight, and U.S. inland freight. See
Initiation Checklist at 6–8. These are
sources of information that we consider
reliable. Further, we obtained no other
information that would make us
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question the reliability of the adjusted
information provided in the Petition. In
addition, because the petitioner
reported that there were no credit
expenses in the home market, our
regulations at 19 CFR 351.410(c) do not
require an adjustment for differences in
circumstances of sale in the instant case.
Therefore, the net U.S. prices we recalculated in the Initiation Checklist did
not include an adjustment for U.S.
credit expenses. As such, it was not
necessary to corroborate the petitioner’s
calculation of U.S. credit expenses. The
petitioner estimated the distributor
mark-up based on GEO Specialty
Chemicals, Inc.’s sales personnel’s
knowledge of distributor mark-ups in
the domestic glycine industry. The
petitioner provided an affidavit from
persons attesting to the validity of the
distributor mark-up value the petitioner
used in the calculation of net U.S. price.
See Initiation Checklist at 6–8.
Based on our examination of the
aforementioned information, we
consider the petitioner’s calculation of
net U.S. prices corroborated.
With respect to normal value, the
petitioner claimed that, despite
extensive efforts to determine prices in
the Republic of Korea, it was not able
to obtain usable price information for
the year 2006 either for sales of glycine
in the Republic of Korea or for sales of
the Korean-origin glycine in third
markets. The petitioner provided an
affidavit from an economic consultant
attesting to this fact. See Initiation
Checklist at 8. We also examined the
efforts that were made to obtain pricing
information of the Korean-origin
glycine. See Memorandum to the File
entitled ‘‘Telephone Call to Market
Research Firm Regarding the
Antidumping Petition on Glycine from
Korea,’’ dated April 19, 2007.
Consequently, the petitioner based
normal value for the Korean sales of a
certain grade glycine on constructed
value.
Pursuant to section 773(b)(3) of the
Act, the cost of production consists of
the cost of manufacturing (COM),
selling, general and administrative
(SG&A) expenses, financial expenses,
and packing expenses. As we stated in
the Initiation Notice, to calculate the
COM, the petitioner multiplied the
usage quantity of each input needed to
produce one metric ton of glycine by the
value of that input. The petitioner
obtained all of the quantity and value
data it used to calculate the COM from
public sources. Specifically, the
petitioner obtained the input-usage
factors from the public record of the
1997–1998 administrative review of
antidumping duty order on glycine from
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the People’s Republic of China. See
Initiation Notice, 72 FR 20819. The
producer in the 1997–1998 review
produced glycine by the same
production method utilized by
producers in the Republic of Korea. In
exhibit O of its April 13, 2007,
supplement to the Petition, the
petitioner provided a declaration from a
chemist and a director of technology at
Specialty Chemicals, Inc., who
acknowledged that, once the particular
production process is chosen, the
consumption quantities of inputs are
dictated by the particular steps and
chemistry of the process. As such, the
petitioner claimed, the inputconsumption factors it had used in its
cost-of-production/constructed-value
build-up that were reported by a
Chinese glycine producer in the 1997–
1998 administrative review are equally
valid as a basis for estimating the inputs
needed during the current period of
investigation and, thus, for developing
an accurate cost of producing glycine.
See April 13, 2007, supplement to the
Petition at page 2 and exhibit O.
The petitioner obtained the values for
the inputs from various public sources.
Specifically, the petitioner valued raw
materials using import statistics in the
World Trade Data Atlas for the year
2006, exclusive of imports from nonmarket and heavily subsidized
economies, which is the latest Korean
import data available. See Initiation
Checklist at 8–9. The petitioner valued
labor costs using year 2004 average perhour wages for the Republic of Korea
using the International Labour
Organization’s Yearbook of Labour
Statistics and per-capita gross national
income obtained from the World Bank.
The petitioner did not adjust labor data
for wage inflation. See Initiation
Checklist at 8. The petitioner valued
electricity and water consumption using
data from page 43 of the Key World
Energy Statistics 2003, published by the
International Energy Agency. The
petitioner did not adjust electricity data
for inflation. See Initiation Checklist at
8–9. The petitioner calculated average
factory overhead, SG&A, and the
financial-expense ratios based on
current audited financial statements of a
publically traded Korean producer of
lysine and threonine which are amino
acids similar to glycine. See Initiation
Checklist at 10–12. Because the
petitioner used constructed value to
determine normal value, it added an
amount for profit calculated using the
same financial statements. See Initiation
Checklist at 10–12. The petitioner did
not report a home-market interest rate or
a home-market credit expense. Thus, we
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did not make an adjustment to normal
value for home-market credit expenses.
Because the petitioner had
demonstrated, and we confirmed, the
validity of the input-usage quantities it
used in its cost-of-production/
constructed-value build-up, used public
sources of information, such as official
import statistics that we confirmed were
accurate to value inputs of production,
and used audited current financial
statements of a publicly traded Korean
producer of amino acids similar to
glycine to compute factory overhead,
SG&A, financial expense, and profit that
we confirmed were accurate, we
consider the petitioner’s calculation of
normal value, based on constructed
value, corroborated. Further, we
consider the petitioner’s calculation of
normal value corroborated because the
bulk of the calculations relied on
publicly available information or import
statistics which do not require further
corroboration. See, e.g., Chromium from
Japan. Therefore, because we confirmed
the accuracy and validity of the
information underlying the derivation of
margins in the Petition by examining
source documents as well as publically
available information, we preliminarily
determine that the margins in the
Petition are reliable for the purposes of
this investigation.
In making a determination as to the
relevance aspect of corroboration, the
Department will consider information
reasonably at its disposal as to whether
there are circumstances that would
render a margin not relevant. Where
circumstances indicate that the selected
margin is not appropriate as adverse
facts available, the Department will
disregard the margin and determine an
appropriate margin. For example, in
Fresh Cut Flowers from Mexico: Final
Results of Antidumping Duty
Administrative Review, 61 FR 6812
(February 22, 1996), the Department
disregarded the highest margin as ‘‘best
information available’’ (the predecessor
to ‘‘facts available’’) because the margin
was based on another company’s
uncharacteristic business expense that
resulted in an unusually high dumping
margin.
In Am. Silicon Techs. v. United
States, 273 F. Supp. 2d 1342, 1346 (CIT
2003), the court found that the adverse
facts-available rate bore a ‘‘rational
relationship’’ to the respondent’s
‘‘commercial practices,’’ and was,
therefore, relevant. In the pre-initiation
stage of this investigation, we confirmed
that the calculation of margins in the
Petition reflects commercial practices of
the particular industry during the
period of investigation. Further, no
information has been presented in the
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ebenthall on PRODPC61 with NOTICES
investigation that calls into question the
relevance of this information. As such,
we preliminarily determine that the
highest margin in the Petition, which we
determined during our pre-initiation
analysis was based on adequate and
accurate information and which we
have corroborated for purposes of this
preliminary determination, is relevant
as the adverse facts-available rate for
Korea Bio-Gen in this investigation.
Similar to our position in
Polyethylene Retail Carrier Bags from
Thailand: Preliminary Results of
Antidumping Duty Administrative
Review, 71 FR 53405 (September 11,
2006) (unchanged in Polyethylene Retail
Carrier Bags from Thailand: Final
Results of Antidumping Duty
Administrative Review, 72 FR 1982
(January 17, 2007)), because this is the
first proceeding involving Korea BioGen, there are no probative alternatives.
Accordingly, by using information that
was corroborated in the pre-initiation
stage of this investigation and
preliminarily determined to be relevant
to Korea Bio-Gen in this investigation,
we have corroborated the adverse factsavailable rate ‘‘to the extent
practicable.’’ See section 776(c) of the
Act, 19 CFR 351.308(d), and NSK Ltd. v.
United States, 346 F. Supp. 2d 1312,
1336 (CIT 2004) (stating, ‘‘pursuant to
the ‘to the extent practicable’ language
* * * the corroboration requirement
itself is not mandatory when not
feasible’’). Therefore, we find that the
estimated margin of 138.83 percent in
the Initiation Notice has probative
value. Consequently, in selecting AFA
with respect to Korea Bio-Gen, we have
applied the margin rate of 138.83
percent, the highest estimated dumping
margin set forth in the notice of
initiation. See Initiation Notice.
All-Others Rate
Section 735(c)(5)(B) of the Act
provides that, where the estimated
weighted-averaged dumping margins
established for all exporters and
producers individually investigated are
zero or de minimis or are determined
entirely under section 776 of the Act,
the Department may use any reasonable
method to establish the estimated allothers rate for exporters and producers
not individually investigated. Our
recent practice under these
circumstances has been to assign, as the
all-others rate, the simple average of the
margins in the petition. See Notice of
Final Determinations of Sales at Less
Than Fair Value: Certain Cold-Rolled
Flat-Rolled Carbon-Quality Steel
Products From Argentina, Japan and
Thailand, 65 FR 5520, 5527–28
(February 4, 2000); see also Notice of
VerDate Aug<31>2005
15:29 Sep 12, 2007
Jkt 211001
Final Determination of Sales at Less
Than Fair Value: Stainless Steel Plate in
Coil from Canada, 64 FR 15457 (March
31, 1999), and Notice of Final
Determination of Sales at Less Than
Fair Value: Stainless Steel Plate in Coil
from Italy, 64 FR 15458, 15459 (March
31, 1999). Consistent with our practice
we calculated a simple average of the
rates in the Petition, as recalculated in
the Initiation Checklist at Attachment VI
and as listed in the Initiation Notice,
and assigned this rate to all other
manufacturers/exporters. For details of
these calculations, see the memorandum
from Dmitry Vladimirov to File entitled
‘‘Antidumping Duty Investigation on
Glycine from the Republic of Korea—
Analysis Memo for All-Others Rate,’’
dated September 6, 2007.
Suspension of Liquidation
In accordance with section 733(d) of
the Act, we are directing U.S. Customs
and Border Protection (CBP) to suspend
liquidation of all entries of glycine from
the Republic of Korea that are entered,
or withdrawn from warehouse, for
consumption on or after the date of
publication of this notice in the Federal
Register. We will instruct CBP to
require a cash deposit or the posting of
a bond equal to the margins, as
indicated in the chart below. These
suspension-of-liquidation instructions
will remain in effect until further notice.
The dumping margins are as follows:
Manufacturer or exporter
Korea Bio-Gen Co., Ltd. ...............
All Others ......................................
Margin
(percent)
138.83
138.60
International Trade Commission
Notification
In accordance with section 733(f) of
the Act, we have notified the ITC of our
preliminary determination of sales at
less than fair value. If our final
antidumping determination is
affirmative, the ITC will determine
whether the imports covered by that
determination are materially injuring, or
threatening material injury to, the U.S.
industry. The deadline for the
Commission’s determination would be
the later of 120 days after the date of this
preliminary determination or 45 days
after the date of our final determination.
Public Comment
Case briefs for this investigation must
be submitted no later than 30 days after
the publication of this notice. Rebuttal
briefs must be filed within five days
after the deadline for submission of case
briefs. A list of authorities used, a table
of contents, and an executive summary
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
52349
of issues should accompany any briefs
submitted to the Department. Executive
summaries should be limited to five
pages total, including footnotes.
Section 774 of the Act provides that
the Department will hold a hearing to
afford interested parties an opportunity
to comment on arguments raised in case
or rebuttal briefs, provided that such a
hearing is requested by an interested
party. If a request for a hearing is made
in an investigation, the hearing
normally will be held two days after the
deadline for submission of the rebuttal
briefs at the U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230.
Parties should confirm by telephone the
time, date, and place of the hearing 48
hours before the scheduled time.
Interested parties who wish to request
a hearing, or to participate if one is
requested, must submit a written
request within 30 days of the
publication of this notice. Requests
should specify the number of
participants and provide a list of the
issues to be discussed. Oral
presentations will be limited to issues
raised in the briefs. We will make our
final determination within 75 days after
the date of this preliminary
determination.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Act.
Dated: September 6, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E7–18071 Filed 9–12–07; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–588–868]
Notice of Preliminary Determination of
Sales at Less Than Fair Value: Glycine
from Japan
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 13, 2007.
SUMMARY: We preliminarily determine
that imports of glycine from Japan are
being, or are likely to be, sold in the
United States at less than fair value, as
provided in section 733 of the Tariff Act
of 1930, as amended. Interested parties
are invited to comment on this
preliminary determination. We will
make our final determination within 75
days after the date of this preliminary
determination.
AGENCY:
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Agencies
[Federal Register Volume 72, Number 177 (Thursday, September 13, 2007)]
[Notices]
[Pages 52345-52349]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18071]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-858]
Notice of Preliminary Determination of Sales at Less Than Fair
Value: Glycine From the Republic of Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 13, 2007.
SUMMARY: We preliminarily determine that imports of glycine from the
Republic of Korea are being, or are likely to be, sold in the United
States at less than fair value, as provided in section 733 of the
Tariff Act of 1930, as amended. Interested parties are invited to
comment on this preliminary determination. We will make our final
determination within 75 days after the date of this preliminary
determination.
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov or Richard
Rimlinger, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-0665 and (202) 482-4477,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On April 26, 2007, the Department of Commerce (the Department)
published in the Federal Register the initiation of an antidumping
investigation on glycine from the Republic of Korea. See Glycine from
India, Japan, and the Republic of Korea: Initiation of Antidumping Duty
Investigations, 72 FR 20816 (April 26, 2007) (Initiation Notice). The
Department set aside a period for all interested parties to raise
issues regarding product coverage. See Initiation Notice. We did not
receive comments regarding product coverage from any interested party.
On May 21, 2007, we selected Korea Bio-Gen Co., Ltd. (Korea Bio-
Gen) as the mandatory respondent in this investigation. See the
Memorandum to Laurie Parkhill entitled ``Antidumping Duty Investigation
Glycine from the Republic of Korea--Respondent Selection,'' dated May
21, 2007.
On May 25, 2007, the International Trade Commission (ITC) issued
its affirmative preliminary determination that there is a reasonable
indication that an industry in the United States is materially injured
by reason of imports of glycine from the Republic of Korea.
[[Page 52346]]
See Glycine from India, Japan, and Korea, 72 FR 29352 (May 25, 2007).
Period of Investigation
The period of investigation is January 1, 2006, through December
31, 2006.
Scope of Investigation
The merchandise covered by this investigation is glycine, which in
its solid (i.e., crystallized) form is a free-flowing crystalline
material. Glycine is used as a sweetener/taste enhancer, buffering
agent, reabsorbable amino acid, chemical intermediate, metal complexing
agent, dietary supplement, and is used in certain pharmaceuticals. The
scope of this investigation covers glycine in any form and purity
level. Although glycine blended with other materials is not covered by
the scope of this investigation, glycine to which relatively small
quantities of other materials have been added is covered by the scope.
Glycine's chemical composition is
C2H5NO2 and is normally classified
under subheading 2922.49.4020 of the Harmonized Tariff Schedule of the
United States (HTSUS).
The scope of this investigation also covers precursors of dried
crystalline glycine, including, but not limited to, glycine slurry
(i.e., glycine in a non-crystallized form) and sodium glycinate.
Glycine slurry is classified under the same HTSUS subheading as
crystallized glycine (2922.49.4020) and sodium glycinate is classified
under subheading HTSUS 2922.49.8000.
While HTSUS subheadings are provided for convenience and customs
purposes, our written description of the scope of this investigation is
dispositive.
Issuance of Questionnaire
On June 21, 2007, we issued Sections A, B, C, D, and E \1\ of the
antidumping questionnaire to Korea Bio-Gen. We did not receive a
response from Korea Bio-Gen by the close of business on July 16, 2007,
the established deadline.
---------------------------------------------------------------------------
\1\ Section A of the antidumping duty questionnaire requests
general information concerning a company's corporate structure and
business practices, the merchandise under investigation, and the
manner in which it sells that merchandise in all of its markets.
Section B requests a complete listing of all of the company's home-
market sales of the foreign like product or, if the home market is
not viable, of sales of the foreign like product in the most
appropriate third-country market. Section C requests a complete
listing of the company's U.S. sales of subject merchandise. Section
D requests information of the cost of production of the foreign like
product and the constructed value of the merchandise under
investigation. Section E requests information on further-
manufacturing activities.
---------------------------------------------------------------------------
On July 19, 2007, we issued a letter to Korea Bio-Gen extending the
deadline for submission of the antidumping questionnaire response to
July 26, 2007, thereby affording it additional time to respond. We have
not received any response to our questionnaire or any other
communication from Korea Bio-Gen since we issued the questionnaire to
it.
In our July 19, 2007, letter to Korea Bio-Gen, we also informed it
that any submissions that were not filed in accordance with 19 CFR
351.303 and 304 of our regulations would be deemed untimely filed
pursuant to 19 CFR 351.302 and that we may use facts otherwise
available for Korea Bio-Gen's antidumping margin in this investigation
pursuant to sections 776(a) and (b) of the Tariff Act of 1930, as
amended (the Act).
Use of Facts Otherwise Available
For the reasons discussed below, we determine that the use of
adverse facts available (AFA) is appropriate for the preliminary
determination with respect to Korea Bio-Gen.
A. Use of Facts Available
Section 776(a)(2) of the Act provides that, if an interested party
withholds information requested by the administering authority, fails
to provide such information by the deadlines for submission of the
information and in the form or manner requested, subject to subsections
(c)(1) and (e) of section 782, significantly impedes a proceeding under
this title, or provides such information but the information cannot be
verified as provided in 782(i), the administering authority shall use,
subject to section 782(d) of the Act, facts otherwise available in
reaching the applicable determination. Section 782(d) of the Act
provides that, if the administering authority determines that a
response to a request for information does not comply with the request,
the administering authority shall promptly inform the responding party
and provide an opportunity to remedy the deficient submission. Section
782(e) of the Act states further that the Department shall not decline
to consider submitted information if all of the following requirements
are met: (1) The information is submitted by the established deadline;
(2) the information can be verified; (3) the information is not so
incomplete that it cannot serve as a reliable basis for reaching the
applicable determination; (4) the interested party has demonstrated
that it acted to the best of its ability; and (5) the information can
be used without undue difficulties.
In this case, Korea Bio-Gen did not provide pertinent information
we requested that is necessary to calculate an antidumping margin for
the preliminary determination. Specifically, Korea Bio-Gen failed to
respond to our questionnaire entirely, thereby withholding, among other
things, home-market and U.S. sales information that is necessary for
reaching the applicable determination, pursuant to section 776(a)(2)(A)
of the Act. Thus, in reaching our preliminary determination, pursuant
to sections 776(a)(2)(A), (B), and (C) of the Act, we have based the
dumping margin on facts otherwise available for Korea Bio-Gen.
B. Application of Adverse Inferences for Facts Available
In applying the facts otherwise available, section 776(b) of the
Act provides that, if the administering authority finds that an
interested party has failed to cooperate by not acting to the best of
its ability to comply with a request for information from the
administering authority, in reaching the applicable determination under
this title, the administering authority may use an inference adverse to
the interests of that party in selecting from among the facts otherwise
available. See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value, and Postponement of Final Determination: Certain
Circular Welded Carbon-Quality Line Pipe From Mexico, 69 FR 59892
(October 6, 2004).
Adverse inferences are appropriate ``to ensure that the party does
not obtain a more favorable result by failing to cooperate than if it
had cooperated fully.'' See Statement of Administrative Action
accompanying the Uruguay Round Agreements Act, H.R. Doc. No. 103-316,
vol.1 (1994) at 870 (SAA). Further, ``affirmative evidence of bad faith
on the part of a respondent is not required before the Department may
make an adverse inference.'' See Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27340 (May 19, 1997). Although the Department
provided Korea Bio-Gen with notice informing it of the consequences of
its failure to respond adequately to the questionnaire in this case,
pursuant to section 782(d) of the Act, Korea Bio-Gen did not respond to
the questionnaire. This constitutes a failure on the part of Korea Bio-
Gen to cooperate to the best of its ability to comply with a request
for information by the Department within the meaning of section 776(b)
of the Act. Because Korea Bio-Gen did not provide the information
requested, section 782(e) of the Act is not applicable. Based on the
above, the Department has preliminarily determined that Korea Bio-Gen
failed to cooperate to the best of its ability and,
[[Page 52347]]
therefore, in selecting from among the facts otherwise available, an
adverse inference is warranted. See, e.g., Notice of Final
Determination of Sales at Less than Fair Value: Circular Seamless
Stainless Steel Hollow Products from Japan, 65 FR 42985 (July 12, 2000)
(the Department applied total AFA where the respondent failed to
respond to the antidumping questionnaire).
C. Selection and Corroboration of Information Used as Facts Available
Where the Department applies AFA because a respondent failed to
cooperate by not acting to the best of its ability to comply with a
request for information, section 776(b) of the Act authorizes the
Department to rely on information derived from the petition, a final
determination, a previous administrative review, or other information
placed on the record. See also 19 CFR 351.308(c) and the SAA at 829-
831. It is the Department's practice to use the highest calculated rate
from the petition in an investigation when a respondent fails to act to
the best of its ability to provide the necessary information and there
are no other respondents. See, e.g., Notice of Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination: Purified Carboxymethylcellulose From Finland, 69
FR 77216 (December 27, 2004) (unchanged in Notice of Final
Determination of Sales at Less Than Fair Value: Purified
Carboxymethylcellulose From Finland, 70 FR 28279 (May 17, 2005)).
Therefore, because an adverse inference is warranted, we have assigned
to Korea Bio-Gen the highest margin alleged in the petition, as
recalculated in the Initiation Notice, of 138.83 percent (see Petition
for the Imposition of Antidumping Duties on Imports of Glycine from
India, Japan, and the Republic of Korea filed on March 30, 2007
(Petition), and April 3, 12, 13, 17, and 18, 2007, supplements to the
Petition filed on behalf of Geo Specialty Chemicals, Inc. (the
petitioner)), as recalculated in the April 19, 2007, ``Office of AD/CVD
Operations Initiation Checklist for the Antidumping Duty Petition on
Glycine from the Republic of Korea'' (Initiation Checklist) on file in
Import Administration's Central Records Unit, Room 1870, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230. We included the range of margins we re-calculated
in the Initiation Checklist in the notice of initiation of this
investigation. See Initiation Notice, 72 FR at 20819.
When using facts otherwise available, section 776(c) of the Act
provides that, when the Department relies on secondary information
(such as the petition) rather than on information obtained in the
course of an investigation, it must corroborate, to the extent
practicable, information from independent sources that are reasonably
available at its disposal.
The SAA clarifies that ``corroborate'' means the Department will
satisfy itself that the secondary information to be used has probative
value. See SAA at 870. As stated in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, from Japan, and Tapered Roller
Bearings, Four Inches or Less in Outside Diameter, and Components
Thereof, from Japan; Preliminary Results of Antidumping Duty
Administrative Reviews and Partial Termination of Administrative
Reviews, 61 FR 57391, 57392 (November 6, 1996) (unchanged in Tapered
Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan,
and Tapered Roller Bearings, Four Inches or Less in Outside Diameter,
and Components Thereof, From Japan; Final Results of Antidumping Duty
Administrative Reviews and Termination in Part, 62 FR 11825, 11843
(March 13, 1997)), to corroborate secondary information, the Department
will examine, to the extent practicable, the reliability and relevance
of the information used. The Department's regulations state that
independent sources used to corroborate such evidence may include, for
example, published price lists, official import statistics and customs
data, and information obtained from interested parties during the
particular investigation. See 19 CFR 351.308(d) and the SAA at 870.
For the purposes of this investigation, to the extent appropriate
information was available, we reviewed the adequacy and accuracy of the
information in the Petition during our pre-initiation analysis and for
purposes of this preliminary determination. See Initiation Checklist.
We examined evidence supporting the calculations in the Petition to
determine the probative value of the margins alleged in the Petition
for use as AFA for purposes of this preliminary determination. During
our pre-initiation analysis, we examined the key elements of the
export-price and normal-value calculations used in the Petition to
derive margins. During our pre-initiation analysis, we also examined
information from various independent sources provided either
voluntarily in the Petition or, based on our requests, in supplements
to the Petition, that corroborates key elements of the export-price and
normal-value calculations used in the Petition to derive estimated
margins.
Specifically, the petitioner calculated an export price using the
U.S. price quote it obtained for food-grade glycine from the Republic
of Korea for sale to a large customer in the United States during 2006.
We obtained affidavits from persons who obtained the U.S. price quote.
See Initiation Checklist at 6-8. The petitioner also calculated a
second export price using the average monthly Customs Unit Values
(AUVs) `F.O.B. foreign port,' of glycine imports from the Republic of
Korea for consumption in the United States, classified under HTSUS
number 2922.49.4020 for year 2006, gathered from the Bureau of the
Census IM145 import statistics. The petitioner used information from
PIERS Global Intelligence Services to demonstrate that most, if not
all, entries of glycine during 2006 were of the food-grade glycine.
U.S. official import statistics are sources that we consider reliable.
See, e.g., Notice of Preliminary Determination of Sales at Less Than
Fair Value: Superalloy Degassed Chromium from Japan, 70 FR 48538
(August 18, 2005), and applicable Memorandum to the File from Dmitry
Vladimirov entitled ``Preliminary Determination in the Antidumping Duty
Investigation of Superalloy Degassed Chromium from Japan: Corroboration
of Total Adverse Facts Available Rate,'' dated August 11, 2005
(Chromium from Japan) (unchanged in Notice of Final Determination of
Sales at Less Than Fair Value: Superalloy Degassed Chromium from Japan,
70 FR 65886 (November 1, 2005)). We then compared the U.S. price quote
to the AUVs for 2006 and confirmed that the value of the U.S. price
quote was consistent with 2006 U.S. import prices. See Initiation
Checklist at 6-8. Further, we obtained no other information that would
make us question the reliability of the pricing information provided in
the Petition.
The petitioner adjusted export prices for foreign inland freight,
international freight, U.S. inland freight, distributor mark-up, and
credit charges. The petitioner used publicly available data, such as
PIERS Global Intelligence Services, information at https://
www.freightcenter.com, data queries from USITC Interactive Tariff and
Trade DataWeb, etc., to estimate charges for foreign inland freight,
international freight, and U.S. inland freight. See Initiation
Checklist at 6-8. These are sources of information that we consider
reliable. Further, we obtained no other information that would make us
[[Page 52348]]
question the reliability of the adjusted information provided in the
Petition. In addition, because the petitioner reported that there were
no credit expenses in the home market, our regulations at 19 CFR
351.410(c) do not require an adjustment for differences in
circumstances of sale in the instant case. Therefore, the net U.S.
prices we re-calculated in the Initiation Checklist did not include an
adjustment for U.S. credit expenses. As such, it was not necessary to
corroborate the petitioner's calculation of U.S. credit expenses. The
petitioner estimated the distributor mark-up based on GEO Specialty
Chemicals, Inc.'s sales personnel's knowledge of distributor mark-ups
in the domestic glycine industry. The petitioner provided an affidavit
from persons attesting to the validity of the distributor mark-up value
the petitioner used in the calculation of net U.S. price. See
Initiation Checklist at 6-8.
Based on our examination of the aforementioned information, we
consider the petitioner's calculation of net U.S. prices corroborated.
With respect to normal value, the petitioner claimed that, despite
extensive efforts to determine prices in the Republic of Korea, it was
not able to obtain usable price information for the year 2006 either
for sales of glycine in the Republic of Korea or for sales of the
Korean-origin glycine in third markets. The petitioner provided an
affidavit from an economic consultant attesting to this fact. See
Initiation Checklist at 8. We also examined the efforts that were made
to obtain pricing information of the Korean-origin glycine. See
Memorandum to the File entitled ``Telephone Call to Market Research
Firm Regarding the Antidumping Petition on Glycine from Korea,'' dated
April 19, 2007. Consequently, the petitioner based normal value for the
Korean sales of a certain grade glycine on constructed value.
Pursuant to section 773(b)(3) of the Act, the cost of production
consists of the cost of manufacturing (COM), selling, general and
administrative (SG&A) expenses, financial expenses, and packing
expenses. As we stated in the Initiation Notice, to calculate the COM,
the petitioner multiplied the usage quantity of each input needed to
produce one metric ton of glycine by the value of that input. The
petitioner obtained all of the quantity and value data it used to
calculate the COM from public sources. Specifically, the petitioner
obtained the input-usage factors from the public record of the 1997-
1998 administrative review of antidumping duty order on glycine from
the People's Republic of China. See Initiation Notice, 72 FR 20819. The
producer in the 1997-1998 review produced glycine by the same
production method utilized by producers in the Republic of Korea. In
exhibit O of its April 13, 2007, supplement to the Petition, the
petitioner provided a declaration from a chemist and a director of
technology at Specialty Chemicals, Inc., who acknowledged that, once
the particular production process is chosen, the consumption quantities
of inputs are dictated by the particular steps and chemistry of the
process. As such, the petitioner claimed, the input-consumption factors
it had used in its cost-of-production/constructed-value build-up that
were reported by a Chinese glycine producer in the 1997-1998
administrative review are equally valid as a basis for estimating the
inputs needed during the current period of investigation and, thus, for
developing an accurate cost of producing glycine. See April 13, 2007,
supplement to the Petition at page 2 and exhibit O.
The petitioner obtained the values for the inputs from various
public sources. Specifically, the petitioner valued raw materials using
import statistics in the World Trade Data Atlas for the year 2006,
exclusive of imports from non-market and heavily subsidized economies,
which is the latest Korean import data available. See Initiation
Checklist at 8-9. The petitioner valued labor costs using year 2004
average per-hour wages for the Republic of Korea using the
International Labour Organization's Yearbook of Labour Statistics and
per-capita gross national income obtained from the World Bank. The
petitioner did not adjust labor data for wage inflation. See Initiation
Checklist at 8. The petitioner valued electricity and water consumption
using data from page 43 of the Key World Energy Statistics 2003,
published by the International Energy Agency. The petitioner did not
adjust electricity data for inflation. See Initiation Checklist at 8-9.
The petitioner calculated average factory overhead, SG&A, and the
financial-expense ratios based on current audited financial statements
of a publically traded Korean producer of lysine and threonine which
are amino acids similar to glycine. See Initiation Checklist at 10-12.
Because the petitioner used constructed value to determine normal
value, it added an amount for profit calculated using the same
financial statements. See Initiation Checklist at 10-12. The petitioner
did not report a home-market interest rate or a home-market credit
expense. Thus, we did not make an adjustment to normal value for home-
market credit expenses.
Because the petitioner had demonstrated, and we confirmed, the
validity of the input-usage quantities it used in its cost-of-
production/constructed-value build-up, used public sources of
information, such as official import statistics that we confirmed were
accurate to value inputs of production, and used audited current
financial statements of a publicly traded Korean producer of amino
acids similar to glycine to compute factory overhead, SG&A, financial
expense, and profit that we confirmed were accurate, we consider the
petitioner's calculation of normal value, based on constructed value,
corroborated. Further, we consider the petitioner's calculation of
normal value corroborated because the bulk of the calculations relied
on publicly available information or import statistics which do not
require further corroboration. See, e.g., Chromium from Japan.
Therefore, because we confirmed the accuracy and validity of the
information underlying the derivation of margins in the Petition by
examining source documents as well as publically available information,
we preliminarily determine that the margins in the Petition are
reliable for the purposes of this investigation.
In making a determination as to the relevance aspect of
corroboration, the Department will consider information reasonably at
its disposal as to whether there are circumstances that would render a
margin not relevant. Where circumstances indicate that the selected
margin is not appropriate as adverse facts available, the Department
will disregard the margin and determine an appropriate margin. For
example, in Fresh Cut Flowers from Mexico: Final Results of Antidumping
Duty Administrative Review, 61 FR 6812 (February 22, 1996), the
Department disregarded the highest margin as ``best information
available'' (the predecessor to ``facts available'') because the margin
was based on another company's uncharacteristic business expense that
resulted in an unusually high dumping margin.
In Am. Silicon Techs. v. United States, 273 F. Supp. 2d 1342, 1346
(CIT 2003), the court found that the adverse facts-available rate bore
a ``rational relationship'' to the respondent's ``commercial
practices,'' and was, therefore, relevant. In the pre-initiation stage
of this investigation, we confirmed that the calculation of margins in
the Petition reflects commercial practices of the particular industry
during the period of investigation. Further, no information has been
presented in the
[[Page 52349]]
investigation that calls into question the relevance of this
information. As such, we preliminarily determine that the highest
margin in the Petition, which we determined during our pre-initiation
analysis was based on adequate and accurate information and which we
have corroborated for purposes of this preliminary determination, is
relevant as the adverse facts-available rate for Korea Bio-Gen in this
investigation.
Similar to our position in Polyethylene Retail Carrier Bags from
Thailand: Preliminary Results of Antidumping Duty Administrative
Review, 71 FR 53405 (September 11, 2006) (unchanged in Polyethylene
Retail Carrier Bags from Thailand: Final Results of Antidumping Duty
Administrative Review, 72 FR 1982 (January 17, 2007)), because this is
the first proceeding involving Korea Bio-Gen, there are no probative
alternatives. Accordingly, by using information that was corroborated
in the pre-initiation stage of this investigation and preliminarily
determined to be relevant to Korea Bio-Gen in this investigation, we
have corroborated the adverse facts-available rate ``to the extent
practicable.'' See section 776(c) of the Act, 19 CFR 351.308(d), and
NSK Ltd. v. United States, 346 F. Supp. 2d 1312, 1336 (CIT 2004)
(stating, ``pursuant to the `to the extent practicable' language * * *
the corroboration requirement itself is not mandatory when not
feasible''). Therefore, we find that the estimated margin of 138.83
percent in the Initiation Notice has probative value. Consequently, in
selecting AFA with respect to Korea Bio-Gen, we have applied the margin
rate of 138.83 percent, the highest estimated dumping margin set forth
in the notice of initiation. See Initiation Notice.
All-Others Rate
Section 735(c)(5)(B) of the Act provides that, where the estimated
weighted-averaged dumping margins established for all exporters and
producers individually investigated are zero or de minimis or are
determined entirely under section 776 of the Act, the Department may
use any reasonable method to establish the estimated all-others rate
for exporters and producers not individually investigated. Our recent
practice under these circumstances has been to assign, as the all-
others rate, the simple average of the margins in the petition. See
Notice of Final Determinations of Sales at Less Than Fair Value:
Certain Cold-Rolled Flat-Rolled Carbon-Quality Steel Products From
Argentina, Japan and Thailand, 65 FR 5520, 5527-28 (February 4, 2000);
see also Notice of Final Determination of Sales at Less Than Fair
Value: Stainless Steel Plate in Coil from Canada, 64 FR 15457 (March
31, 1999), and Notice of Final Determination of Sales at Less Than Fair
Value: Stainless Steel Plate in Coil from Italy, 64 FR 15458, 15459
(March 31, 1999). Consistent with our practice we calculated a simple
average of the rates in the Petition, as recalculated in the Initiation
Checklist at Attachment VI and as listed in the Initiation Notice, and
assigned this rate to all other manufacturers/exporters. For details of
these calculations, see the memorandum from Dmitry Vladimirov to File
entitled ``Antidumping Duty Investigation on Glycine from the Republic
of Korea--Analysis Memo for All-Others Rate,'' dated September 6, 2007.
Suspension of Liquidation
In accordance with section 733(d) of the Act, we are directing U.S.
Customs and Border Protection (CBP) to suspend liquidation of all
entries of glycine from the Republic of Korea that are entered, or
withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. We will instruct
CBP to require a cash deposit or the posting of a bond equal to the
margins, as indicated in the chart below. These suspension-of-
liquidation instructions will remain in effect until further notice.
The dumping margins are as follows:
------------------------------------------------------------------------
Margin
Manufacturer or exporter (percent)
------------------------------------------------------------------------
Korea Bio-Gen Co., Ltd....................................... 138.83
All Others................................................... 138.60
------------------------------------------------------------------------
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our preliminary determination of sales at less than fair value.
If our final antidumping determination is affirmative, the ITC will
determine whether the imports covered by that determination are
materially injuring, or threatening material injury to, the U.S.
industry. The deadline for the Commission's determination would be the
later of 120 days after the date of this preliminary determination or
45 days after the date of our final determination.
Public Comment
Case briefs for this investigation must be submitted no later than
30 days after the publication of this notice. Rebuttal briefs must be
filed within five days after the deadline for submission of case
briefs. A list of authorities used, a table of contents, and an
executive summary of issues should accompany any briefs submitted to
the Department. Executive summaries should be limited to five pages
total, including footnotes.
Section 774 of the Act provides that the Department will hold a
hearing to afford interested parties an opportunity to comment on
arguments raised in case or rebuttal briefs, provided that such a
hearing is requested by an interested party. If a request for a hearing
is made in an investigation, the hearing normally will be held two days
after the deadline for submission of the rebuttal briefs at the U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230. Parties should confirm by telephone the time,
date, and place of the hearing 48 hours before the scheduled time.
Interested parties who wish to request a hearing, or to participate
if one is requested, must submit a written request within 30 days of
the publication of this notice. Requests should specify the number of
participants and provide a list of the issues to be discussed. Oral
presentations will be limited to issues raised in the briefs. We will
make our final determination within 75 days after the date of this
preliminary determination.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: September 6, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-18071 Filed 9-12-07; 8:45 am]
BILLING CODE 3510-DS-P