Sodium Nitrite from the People's Republic of China: Initiation of Countervailing Duty Investigation, 68568-68571 [E7-23573]
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68568
Federal Register / Vol. 72, No. 233 / Wednesday, December 5, 2007 / Notices
investigation. Note, however, that
one rate is calculated for the
exporter and all of the producers
which supplied subject
merchandise to it during the period
of investigation. This practice
applies both to mandatory
respondents receiving an
individually calculated separate
rate as well as the pool of non–
investigated firms receiving the
weighted–average of the
individually calculated rates. This
practice is referred to as the
application of ‘‘combination rates’’
because such rates apply to specific
combinations of exporters and one
or more producers. The cash–
deposit rate assigned to an exporter
will apply only to merchandise
both exported by the firm in
question and produced by a firm
that supplied the exporter during
the period of investigation.
(Emphasis added.)
Separate Rates and Combination Rates
Bulletin, at page 6.
Dated: November 28, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E7–23489 Filed 12–4–07; 8:45 am]
Distribution of Copies of the Petitions
Docket Number: 07–062. Applicant:
Battelle Memorial Institute, Richland, WA
99354. Instrument: Electron Microscope,
Model FIB/SEM. Manufacturer: FEI
Company, Netherlands. Intended Use: See
notice at 72 FR 63875, November 13, 2007.
Docket Number: 07–063. Applicant:
University of California, San Diego, La Jolla,
CA 92093–0608. Instrument: Electron
Microscope, Model Titan 80–300 C-Twin
STEM. Manufacturer: FEI Company,
Netherlands. Intended Use: See notice at 72
FR 63875, November 13, 2007.
Docket Number: 07–066. Applicant: St.
Jude Children’s Research Hospital, Memphis,
TN 38105. Instrument: Electron Microscope,
Model Tecnai G2 F20 TWIN. Manufacturer:
FEI Company, Netherlands. Intended Use:
See notice at 72 FR 63875, November 13,
2007.
Docket Number: 07–067. Applicant:
National Institute for Occupational Safety
and Health, Cincinnati, OH 45226.
Instrument: Electron Microscope, Model
JEM–2100F. Manufacturer: Jeol Ltd., Japan.
Intended Use: See notice at 72 FR 63875,
November 13, 2007.
Comments: None received. Decision:
Approved. No instrument of equivalent
scientific value to the foreign instrument, for
such purposes as these instruments are
intended to be used, was being manufactured
in the United States at the time the
instruments were ordered. Reasons: Each
foreign instrument is an electron microscope
and is intended for research or scientific
educational uses requiring an electron
microscope. We know of no electron
microscope, or any other instrument suited to
these purposes, which was being
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions
of the petitions have been provided to
the representatives of the Governments
of Germany and the PRC. We will
attempt to provide a copy of the public
version of the petitions to the foreign
producers/exporters, consistent with 19
CFR 351.203(c)(2).
International Trade Commission
Notification
We have notified the ITC of our
initiations, as required by section 732(d)
of the Act.
mstockstill on PROD1PC66 with NOTICES
Preliminary Determinations by the
International Trade Commission
The ITC will preliminarily determine,
no later than December 24, 2007,
whether there is a reasonable indication
that imports of sodium nitrite from
Germany and the PRC are materially
injuring, or threatening material injury
to, a U.S. industry. A negative ITC
determination with respect to either of
the investigations will result in that
investigation being terminated;
otherwise, these investigations will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
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BILLING CODE 3510–DS–S
manufactured in the United States at the time
of order of each instrument.
Faye Robinson,
Director, Statutory Import Programs Staff,
Import Administration.
[FR Doc. E7–23576 Filed 12–4–07; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
DEPARTMENT OF COMMERCE
International Trade Administration
Battelle Memorial Institute, et al.;
Notice of Consolidated Decision on
Applications for Duty-Free Entry of
Electron Microscopes
This is a decision consolidated
pursuant to Section 6(c) of the
Educational, Scientific, and Cultural
Materials Importation Act of 1966 (Pub.
L. 89–651, as amended by Pub. L. 106–
36, 80 Stat. 897; 15 CFR part 301).
Related records can be viewed between
8:30 a.m. and 5 p.m. in Room 2104, U.S.
Department of Commerce, 14th and
Constitution Avenue, NW., Washington,
DC.
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International Trade Administration
[C–570–926]
Sodium Nitrite from the People’s
Republic of China: Initiation of
Countervailing Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: (December 5, 2007.
FOR FURTHER INFORMATION CONTACT:
Sean Carey or Gene Calvert, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, N.W., Washington, D.C. 20230;
telephone: (202) 482–3964 and (202)
482–3586, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Initiation of Investigation:
The Petition
On November 8, 2007, the Department
of Commerce (the Department) received
a petition filed in proper form by
General Chemical LLC (petitioner). On
November 14 and November 15, 2007,
the Department issued requests for
additional information and clarification
of certain areas of the petition involving
general issues and the countervailable
subsidy allegations, respectively. Based
on the Department’s request, petitioner
filed additional information concerning
the petition on November 19 and
November 20, 2007.
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), petitioner alleges that
manufacturers, producers, or exporters
of sodium nitrite in the People’s
Republic of China (the PRC) received
countervailable subsidies within the
meaning of section 701 of the Act, and
that such imports are materially injuring
or threatening material injury to an
industry in the United States.
The Department finds that petitioner
filed this petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C) of the Act, and petitioner has
demonstrated sufficient industry
support with respect to the
countervailing duty investigation that it
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Federal Register / Vol. 72, No. 233 / Wednesday, December 5, 2007 / Notices
is requesting the Department to initiate
(see, infra, ‘‘Determination of Industry
Support for the Petition’’).
Period of Investigation
The anticipated period of
investigation (POI) is calendar year
2006. See 19 CFR 351.204(b)(2).
mstockstill on PROD1PC66 with NOTICES
Scope of Investigation
The merchandise covered by this
investigation is sodium nitrite in any
form, at any purity level. In addition,
the sodium nitrite covered by this
investigation may or may not contain an
anti–caking agent. Examples of names
commonly used to reference sodium
nitrite are nitrous acid, sodium salt,
anti–rust, diazotizing salts, erinitrit, and
filmerine. The chemical composition of
sodium nitrite is NaNO2 and it is
generally classified under subheading
2834.10.1000 of the Harmonized Tariff
Schedule of the United States (HTSUS).
The American Chemical Society
Chemical Abstract Service (CAS) has
assigned the name ‘‘sodium nitrite’’ to
sodium nitrite. The CAS registry
number is 7632–00–0. For purposes of
the scope of this investigation, the
narrative description is dispositive, not
the tariff heading, CAS registry number
or CAS name, which are provided for
convenience and customs purposes.
Comments on Scope of Investigation
During our review of the petition, we
discussed the scope with petitioner to
ensure that it is an accurate reflection of
the merchandise for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
regulations (Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997)), we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The Department encourages
all interested parties to submit such
comments within 20 calendar days of
the publication of this notice.
Comments should be addressed to
Import Administration’s Central
Records Unit (CRU), Room 1870, U.S.
Department of Commerce, 14th Street
and Constitution Avenue, N.W.,
Washington, D.C. 20230. The period of
scope consultations is intended to
provide the Department with ample
opportunity to consider all comments
and to consult with parties prior to the
issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of
the Act, the Department invited
representatives of the Government of the
People’s Republic of China (the GOC)
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for consultations with respect to the
countervailing duty petition. The
Department held these consultations in
Beijing, China with representatives of
the GOC on November 26, 2007. See the
Memorandum to the File, entitled,
‘‘Consultations with Officials from the
Government of the People’s Republic of
China on the Countervailing Duty
Petition: Sodium Nitrite from the
People’s Republic of China’’ (November
26, 2007), a public document on file in
the CRU.
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) at least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A), or (ii) determine
industry support using a statistically
valid sampling method.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law. See USEC, Inc. v.
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United States, 132 F. Supp. 2d 1, 8 (CIT
2001), citing Algoma Steel Corp. Ltd. v.
United States, 688 F. Supp. 639, 644
(1988), aff’d 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this subtitle.’’ Thus,
the reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation,’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
record, we have determined that sodium
nitrite constitutes a single domestic like
product and we have analyzed industry
support in terms of that domestic like
product. For a discussion of the
domestic like product analysis in this
case, see the Countervailing Duty
Investigation Initiation Checklist:
Sodium Nitrite from the People’s
Republic of China (PRC) (Initiation
Checklist), Industry Support at
Attachment II, on file in the CRU.
Our review of the data provided in the
Petition, supplemental submissions, and
other information readily available to
the Department indicates that the
Petitioner has established industry
support. To establish industry support,
the Petitioner demonstrated that it was
the sole producer of the domestic like
product in 2006. Therefore, the Petition
established support from domestic
producers (or workers) accounting for
more than 50 percent of the total
production of the domestic like product
and, as such, the Department is not
required to take further action in order
to evaluate industry support (e.g.,
polling). See Section 702(c)(4)(D) of the
Act. In addition, the domestic producers
have met the statutory criterion for
industry support under 702(c)(4)(A)(i)
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product. Finally, the domestic
producers have met the statutory
criterion for industry support under
702(c)(4)(A)(ii) because the domestic
producers (or workers) who support the
Petition account for more than 50
percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
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Petition. Accordingly, the Department
determines that the petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act. See CVD Initiation Checklist at
Attachment II (Industry Support).
The Department finds petitioner has
filed the petition on behalf of the
domestic industry because it is an
interested party as defined in sections
771(9)(C) of the Act and it has
demonstrated sufficient industry
support with respect to the
countervailing duty investigation that it
is requesting the Department to initiate.
See Initiation Checklist at Attachment II.
Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of the
subject merchandise from the PRC
materially injure, or threaten material
injury to, a U.S. industry.
mstockstill on PROD1PC66 with NOTICES
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the subsidized imports of the
subject merchandise. The petitioner
contends that the industry’s injured
condition is illustrated by reduced
market share, lost sales, reduced
production capacity and capacity
utilization rate, reduced shipments,
underselling and price depressing and
suppressing effects, lost revenue,
reduced employment, decline in
financial performance, and an increase
in import penetration. We have assessed
the allegations and supporting evidence
regarding material injury and causation,
and we have determined that these
allegations are properly supported by
adequate evidence and meet the
statutory requirements for initiation. See
Initiation Checklist at Attachment III
(Injury).
Subsidy Allegations
Section 702(b) of the Act requires the
Department to initiate a countervailing
duty proceeding whenever an interested
party files a petition on behalf of an
industry that (1) alleges the elements
necessary for an imposition of a duty
under section 701(a) of the Act and (2)
is accompanied by information
reasonably available to the petitioner
supporting the allegations. The
Department has examined the
countervailing duty petition on sodium
nitrite from the PRC and found that it
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complies with the requirements of
section 702(b) of the Act. Therefore, in
accordance with section 702(b) of the
Act, we are initiating a countervailing
duty investigation to determine whether
manufacturers, producers, or exporters
of sodium nitrite in the PRC receive
countervailable subsidies. For a
discussion of evidence supporting our
initiation determination, see Initiation
Checklist.
We are including in our investigation
the following programs alleged in the
petition to have provided
countervailable subsidies to producers
and exporters of the subject
merchandise:
GOC Loan Program
1. Loans and Interest Subsidies Related
to the Northeast Revitalization Program
GOC Grant Programs
2. The State Key Technology Renovation
Project Fund
3. Grants to Loss–Making State–Owned
Enterprises
GOC Provision of Goods or Services for
Less than Adequate Remuneration
4. Provision of Electricity to State–
Owned Enterprises (SOEs) for Less than
Adequate Remuneration
5. Provision of Land to SOEs for Less
than Adequate Remuneration
GOC Income Tax Programs
6. Income Tax Exemption for Export–
Oriented FIEs
7. Preferential Tax Policies for Foreign
Invested Enterprises (FIEs) (Two Free,
Three Half Program)
8. Reduced Income Tax Rates for FIEs
Based on Location
9. Corporate Income Tax Refund
Program for Reinvestment of FIE Profits
in Export–Oriented Enterprises
10. Reduced Income Tax Rate for New or
High Technology Enterprises
11. Preferential Tax Policies for
Research and Development by FIEs
12. Income Tax Credits on Purchases of
Domestically Produced Equipment by
Domestically Owned Companies
13. Income Tax Credits on Purchases of
Domestically Produced Equipment by
FIEs
14. Reduced Income Tax Rate for FIEs
Under the West Revitalization Program
15. Income Tax Reduction or Exemption
for Export–Oriented or High Technology
Enterprises under the West
Revitalization Program
16. Preferential Tax Policies Under the
West Revitalization Program
GOC Indirect Tax Programs and Import
Tariff Programs
17. VAT Rebate for FIE Purchases of
Domestically Produced Equipment
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18. VAT and Tariff Exemptions for FIEs
and Certain Domestic Enterprises Using
Imported Equipment in Encouraged
Industries
Provincial Loan Program
19. Reduced Interest Rate Loans
Provided by Liaoning Province
Provincial Grant Programs
20. Provincial Export Interest Subsidies
(Guangdong and Zhejiang Provinces)
21. Guangdong Province Funds for
Outward Expansion of Industries
Provincial and Local Provision of
Goods for Less than Adequate
Remuneration
22. Provision of Land for Less than
Adequate Remuneration (Jiangsu and
Zhejiang Provinces, and Chongqing
Municipality)
23. Provision of Electricity for Less than
Adequate Remuneration (Jiangsu and
Zhejiang Provinces)
24. Provision of Water for Less than
Adequate Remuneration (Zhejiang
Province)
Provincial and Local Income Tax
Programs
25. Income Tax Exemption and
Reduction Programs (Provinces of
Jiangsu, Zhejiang, Guangdong, and
Shandong; Municipalities of Beijing,
Tianjin, Shanghai, and Chongqing)For
further information explaining why the
Department is investigating these
programs, see the Initiation Checklist.
We are not including in our
investigation the following programs
alleged to benefit producers and
exporters of the subject merchandise in
the PRC:
GOC Loan Program
1. Government Policy Lending Program
Petitioner alleges that under the
GOC’s National Tenth Five-year Plan as
well as the Tenth and Eleventh Fiveyear plans of the Chemical Industry,
sodium nitrite producers may benefit
from the provision of loans by state–
owned commercial banks as part of the
GOC’s policy to encourage and to
advance the chemical industry. In
support of its allegation, Petitioner
provided translated copies of the ‘‘Tenth
Five-year Plan for National Economic
and Social Development,’’ and the
‘‘Tenth Five-year Plan of the Chemical
Industry and Its Development,’’ and a
short, translated excerpt of the
‘‘Eleventh Five-year Plan of the
Chemical Industry and Its
Development.’’ Our review of these
documents did not indicate that
financing or loans were available
pursuant to the GOC’s Chemical Policy.
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Accordingly, we find that petitioner has
not provided sufficient information to
warrant initiation of an investigation of
this program.
GOC Provision of Goods for Less than
Adequate Remuneration
2. Provision of Natural Gas and Water to
State–Owned Enterprises (SOEs) for
Less than Adequate Remuneration
Petitioner alleges that the GOC
provides natural gas and water to SOEs
and special industrial sectors at
subsidized prices. Petitioner further
alleges that end–user prices for natural
gas and for water are set by the National
Development and Reform Commission,
and rarely reflect the true market price
of these commodities. For purposes of
this initiation, we find that petitioner
has not sufficiently alleged the elements
necessary for a less than adequate
remuneration subsidy, as identified in
19 CFR 351.511. Petitioner has not
provided sufficient information
demonstrating that the GOC has
provided natural gas and water for less
than adequate remuneration and that
this program is specific. Accordingly,
we find that petitioner has not provided
sufficient information to warrant
initiation of an investigation of these
programs.
mstockstill on PROD1PC66 with NOTICES
GOC Indirect Tax Program and Import
Tariff Program
3. VAT Exemptions on Exports
Petitioner alleges that the GOC
enterprises are exempted from paying
import tariffs and VAT payments on
imported equipment provided that these
goods are not for resale. Petitioner notes
that in certain cases, a full 17–percent
VAT exemption will apply upon export.
Petitioner states that the program, by
definition, is conditioned upon export
performance, and therefore, is an export
subsidy. Petitioner further alleges that
this is a prohibited export subsidy if the
exemption or reduction of indirect taxes
on the exported product exceeds the
indirect taxes levied on the inputs into
the exported product. We find that
Petitioner has not sufficiently alleged
the elements necessary for the
imposition of a countervailing duty and
did not support the allegation with
reasonably available information.
Therefore, we are not initiating an
investigation of this program.
Application of the Countervailing Duty
Law to the PRC
The Department has treated the PRC
as a non–market economy (NME)
country in all past antidumping
investigations and administrative
reviews. In accordance with section
771(18)(C)(i) of the Act, any
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determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See e.g., Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished,
(TRBs) From the People’s Republic of
China: Preliminary Results of 2001–
2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500, 7500–
1 (February 14, 2003), unchanged in
TRBs from the People’s Republic of
China: Final Results of 2001–2001
Administrative Review, 68 FR 70488,
70488–89 (December 18, 2003).
In the final affirmative countervailing
duty determination on coated free sheet
paper from the PRC, the Department
determined that the current nature of
the PRC economy does not create
obstacles to applying the necessary
criteria in the countervailing duty law.
See Coated Free Sheet Paper from the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination, 72 FR 60645 (October
25, 2007), and the accompanying Issues
and Decision Memorandum, at
Comment 1. Therefore, because
petitioner has provided sufficient
allegations and support of its allegations
to meet the statutory criteria for
initiating a countervailing duty
investigation of sodium nitrite from the
PRC, initiation of a countervailing duty
investigation is warranted in this case.
Respondent Selection
For this investigation, the Department
expects to select respondents based on
U.S. Customs and Border Protection
(CBP) data for U.S. imports during the
POI. We intend to make our decision
regarding respondent selection within
20 days of publication of this Federal
Register notice. The Department invites
comments regarding the CBP data and
respondent selection within seven
calendar days of publication of this
Federal Register notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act, a copy of the
public version of the petition has been
provided to the GOC. To the extent
practicable, we will attempt to provide
a copy of the public version of the
petition to each exporter named in the
petition, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 702(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 25 days after the date on which
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68571
it receives notice of this initiation,
whether there is a reasonable indication
that imports of subsidized sodium
nitrite from the PRC are materially
injuring, or threatening material injury
to, a U.S. industry. See section 703(a)(2)
of the Act. A negative ITC determination
will result in the investigation being
terminated; otherwise, the investigation
will proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: November 28, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E7–23573 Filed 12–4–07; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XE01
U.S. Climate Change Science Program
Synthesis and Assessment Product
Draft Report 3.2 ‘‘Climate projections
for research and assessment based on
emissions scenarios developed
through the CCTP’’
National Oceanic and
Atmospheric Administration (NOAA),
Department of Commerce.
ACTION: Notice of availability and
request for public comments.
AGENCY:
SUMMARY: The National Oceanic and
Atmospheric Administration publishes
this notice to announce a 45-day public
comment period for the draft report
titled, U.S. Climate Change Science
Program Synthesis and Assessment
Product 3.2: ‘‘Climate projections for
research and assessment based on
emissions scenarios developed through
the CCTP’’.
This draft document is being released
solely for the purpose of predissemination peer review under
applicable information quality
guidelines. This document has not been
formally disseminated by NOAA. It does
not represent and should not be
construed to represent any Agency
policy or determination. After
consideration of comments received on
the draft report, a revised version along
with the comments received will be
published on the CCSP web site.
DATES: Comments must be received by
January 22, 2008.
ADDRESSES: The draft Synthesis and
Assessment Product 3.2: ‘‘Climate
projections for research and assessment
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]]>Agencies
[Federal Register Volume 72, Number 233 (Wednesday, December 5, 2007)]
[Notices]
[Pages 68568-68571]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23573]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-926]
Sodium Nitrite from the People's Republic of China: Initiation of
Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: (December 5, 2007.
FOR FURTHER INFORMATION CONTACT: Sean Carey or Gene Calvert, AD/CVD
Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, D.C. 20230; telephone: (202)
482-3964 and (202) 482-3586, respectively.
SUPPLEMENTARY INFORMATION:
Initiation of Investigation:
The Petition
On November 8, 2007, the Department of Commerce (the Department)
received a petition filed in proper form by General Chemical LLC
(petitioner). On November 14 and November 15, 2007, the Department
issued requests for additional information and clarification of certain
areas of the petition involving general issues and the countervailable
subsidy allegations, respectively. Based on the Department's request,
petitioner filed additional information concerning the petition on
November 19 and November 20, 2007.
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), petitioner alleges that manufacturers, producers, or
exporters of sodium nitrite in the People's Republic of China (the PRC)
received countervailable subsidies within the meaning of section 701 of
the Act, and that such imports are materially injuring or threatening
material injury to an industry in the United States.
The Department finds that petitioner filed this petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act, and petitioner has demonstrated
sufficient industry support with respect to the countervailing duty
investigation that it
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is requesting the Department to initiate (see, infra, ``Determination
of Industry Support for the Petition'').
Period of Investigation
The anticipated period of investigation (POI) is calendar year
2006. See 19 CFR 351.204(b)(2).
Scope of Investigation
The merchandise covered by this investigation is sodium nitrite in
any form, at any purity level. In addition, the sodium nitrite covered
by this investigation may or may not contain an anti-caking agent.
Examples of names commonly used to reference sodium nitrite are nitrous
acid, sodium salt, anti-rust, diazotizing salts, erinitrit, and
filmerine. The chemical composition of sodium nitrite is NaNO2 and it
is generally classified under subheading 2834.10.1000 of the Harmonized
Tariff Schedule of the United States (HTSUS). The American Chemical
Society Chemical Abstract Service (CAS) has assigned the name ``sodium
nitrite'' to sodium nitrite. The CAS registry number is 7632-00-0. For
purposes of the scope of this investigation, the narrative description
is dispositive, not the tariff heading, CAS registry number or CAS
name, which are provided for convenience and customs purposes.
Comments on Scope of Investigation
During our review of the petition, we discussed the scope with
petitioner to ensure that it is an accurate reflection of the
merchandise for which the domestic industry is seeking relief.
Moreover, as discussed in the preamble to the regulations (Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period for interested parties to raise
issues regarding product coverage. The Department encourages all
interested parties to submit such comments within 20 calendar days of
the publication of this notice. Comments should be addressed to Import
Administration's Central Records Unit (CRU), Room 1870, U.S. Department
of Commerce, 14th Street and Constitution Avenue, N.W., Washington,
D.C. 20230. The period of scope consultations is intended to provide
the Department with ample opportunity to consider all comments and to
consult with parties prior to the issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
invited representatives of the Government of the People's Republic of
China (the GOC) for consultations with respect to the countervailing
duty petition. The Department held these consultations in Beijing,
China with representatives of the GOC on November 26, 2007. See the
Memorandum to the File, entitled, ``Consultations with Officials from
the Government of the People's Republic of China on the Countervailing
Duty Petition: Sodium Nitrite from the People's Republic of China''
(November 26, 2007), a public document on file in the CRU.
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A), or (ii) determine industry support using a
statistically valid sampling method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United
States, 688 F. Supp. 639, 644 (1988), aff'd 865 F.2d 240 (Fed. Cir.
1989), cert. denied 492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this subtitle.'' Thus, the reference point from which the
domestic like product analysis begins is ``the article subject to an
investigation,'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that sodium nitrite constitutes a single
domestic like product and we have analyzed industry support in terms of
that domestic like product. For a discussion of the domestic like
product analysis in this case, see the Countervailing Duty
Investigation Initiation Checklist: Sodium Nitrite from the People's
Republic of China (PRC) (Initiation Checklist), Industry Support at
Attachment II, on file in the CRU.
Our review of the data provided in the Petition, supplemental
submissions, and other information readily available to the Department
indicates that the Petitioner has established industry support. To
establish industry support, the Petitioner demonstrated that it was the
sole producer of the domestic like product in 2006. Therefore, the
Petition established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, the Department is not required to
take further action in order to evaluate industry support (e.g.,
polling). See Section 702(c)(4)(D) of the Act. In addition, the
domestic producers have met the statutory criterion for industry
support under 702(c)(4)(A)(i) because the domestic producers (or
workers) who support the Petition account for at least 25 percent of
the total production of the domestic like product. Finally, the
domestic producers have met the statutory criterion for industry
support under 702(c)(4)(A)(ii) because the domestic producers (or
workers) who support the Petition account for more than 50 percent of
the production of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the
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Petition. Accordingly, the Department determines that the petition was
filed on behalf of the domestic industry within the meaning of section
702(b)(1) of the Act. See CVD Initiation Checklist at Attachment II
(Industry Support).
The Department finds petitioner has filed the petition on behalf of
the domestic industry because it is an interested party as defined in
sections 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the countervailing duty investigation
that it is requesting the Department to initiate. See Initiation
Checklist at Attachment II.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the subsidized imports of the
subject merchandise. The petitioner contends that the industry's
injured condition is illustrated by reduced market share, lost sales,
reduced production capacity and capacity utilization rate, reduced
shipments, underselling and price depressing and suppressing effects,
lost revenue, reduced employment, decline in financial performance, and
an increase in import penetration. We have assessed the allegations and
supporting evidence regarding material injury and causation, and we
have determined that these allegations are properly supported by
adequate evidence and meet the statutory requirements for initiation.
See Initiation Checklist at Attachment III (Injury).
Subsidy Allegations
Section 702(b) of the Act requires the Department to initiate a
countervailing duty proceeding whenever an interested party files a
petition on behalf of an industry that (1) alleges the elements
necessary for an imposition of a duty under section 701(a) of the Act
and (2) is accompanied by information reasonably available to the
petitioner supporting the allegations. The Department has examined the
countervailing duty petition on sodium nitrite from the PRC and found
that it complies with the requirements of section 702(b) of the Act.
Therefore, in accordance with section 702(b) of the Act, we are
initiating a countervailing duty investigation to determine whether
manufacturers, producers, or exporters of sodium nitrite in the PRC
receive countervailable subsidies. For a discussion of evidence
supporting our initiation determination, see Initiation Checklist.
We are including in our investigation the following programs
alleged in the petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise:
GOC Loan Program
1. Loans and Interest Subsidies Related to the Northeast Revitalization
Program
GOC Grant Programs
2. The State Key Technology Renovation Project Fund
3. Grants to Loss-Making State-Owned Enterprises
GOC Provision of Goods or Services for Less than Adequate Remuneration
4. Provision of Electricity to State-Owned Enterprises (SOEs) for Less
than Adequate Remuneration
5. Provision of Land to SOEs for Less than Adequate Remuneration
GOC Income Tax Programs
6. Income Tax Exemption for Export-Oriented FIEs
7. Preferential Tax Policies for Foreign Invested Enterprises (FIEs)
(Two Free, Three Half Program)
8. Reduced Income Tax Rates for FIEs Based on Location
9. Corporate Income Tax Refund Program for Reinvestment of FIE Profits
in Export-Oriented Enterprises
10. Reduced Income Tax Rate for New or High Technology Enterprises
11. Preferential Tax Policies for Research and Development by FIEs
12. Income Tax Credits on Purchases of Domestically Produced Equipment
by Domestically Owned Companies
13. Income Tax Credits on Purchases of Domestically Produced Equipment
by FIEs
14. Reduced Income Tax Rate for FIEs Under the West Revitalization
Program
15. Income Tax Reduction or Exemption for Export-Oriented or High
Technology Enterprises under the West Revitalization Program
16. Preferential Tax Policies Under the West Revitalization Program
GOC Indirect Tax Programs and Import Tariff Programs
17. VAT Rebate for FIE Purchases of Domestically Produced Equipment
18. VAT and Tariff Exemptions for FIEs and Certain Domestic Enterprises
Using Imported Equipment in Encouraged Industries
Provincial Loan Program
19. Reduced Interest Rate Loans Provided by Liaoning Province
Provincial Grant Programs
20. Provincial Export Interest Subsidies (Guangdong and Zhejiang
Provinces)
21. Guangdong Province Funds for Outward Expansion of Industries
Provincial and Local Provision of Goods for Less than Adequate
Remuneration
22. Provision of Land for Less than Adequate Remuneration (Jiangsu and
Zhejiang Provinces, and Chongqing Municipality)
23. Provision of Electricity for Less than Adequate Remuneration
(Jiangsu and Zhejiang Provinces)
24. Provision of Water for Less than Adequate Remuneration (Zhejiang
Province)
Provincial and Local Income Tax Programs
25. Income Tax Exemption and Reduction Programs (Provinces of Jiangsu,
Zhejiang, Guangdong, and Shandong; Municipalities of Beijing, Tianjin,
Shanghai, and Chongqing)For further information explaining why the
Department is investigating these programs, see the Initiation
Checklist.
We are not including in our investigation the following programs
alleged to benefit producers and exporters of the subject merchandise
in the PRC:
GOC Loan Program
1. Government Policy Lending Program
Petitioner alleges that under the GOC's National Tenth Five-year
Plan as well as the Tenth and Eleventh Five-year plans of the Chemical
Industry, sodium nitrite producers may benefit from the provision of
loans by state-owned commercial banks as part of the GOC's policy to
encourage and to advance the chemical industry. In support of its
allegation, Petitioner provided translated copies of the ``Tenth Five-
year Plan for National Economic and Social Development,'' and the
``Tenth Five-year Plan of the Chemical Industry and Its Development,''
and a short, translated excerpt of the ``Eleventh Five-year Plan of the
Chemical Industry and Its Development.'' Our review of these documents
did not indicate that financing or loans were available pursuant to the
GOC's Chemical Policy.
[[Page 68571]]
Accordingly, we find that petitioner has not provided sufficient
information to warrant initiation of an investigation of this program.
GOC Provision of Goods for Less than Adequate Remuneration
2. Provision of Natural Gas and Water to State-Owned Enterprises (SOEs)
for Less than Adequate Remuneration
Petitioner alleges that the GOC provides natural gas and water to
SOEs and special industrial sectors at subsidized prices. Petitioner
further alleges that end-user prices for natural gas and for water are
set by the National Development and Reform Commission, and rarely
reflect the true market price of these commodities. For purposes of
this initiation, we find that petitioner has not sufficiently alleged
the elements necessary for a less than adequate remuneration subsidy,
as identified in 19 CFR 351.511. Petitioner has not provided sufficient
information demonstrating that the GOC has provided natural gas and
water for less than adequate remuneration and that this program is
specific. Accordingly, we find that petitioner has not provided
sufficient information to warrant initiation of an investigation of
these programs.
GOC Indirect Tax Program and Import Tariff Program
3. VAT Exemptions on Exports
Petitioner alleges that the GOC enterprises are exempted from
paying import tariffs and VAT payments on imported equipment provided
that these goods are not for resale. Petitioner notes that in certain
cases, a full 17-percent VAT exemption will apply upon export.
Petitioner states that the program, by definition, is conditioned upon
export performance, and therefore, is an export subsidy. Petitioner
further alleges that this is a prohibited export subsidy if the
exemption or reduction of indirect taxes on the exported product
exceeds the indirect taxes levied on the inputs into the exported
product. We find that Petitioner has not sufficiently alleged the
elements necessary for the imposition of a countervailing duty and did
not support the allegation with reasonably available information.
Therefore, we are not initiating an investigation of this program.
Application of the Countervailing Duty Law to the PRC
The Department has treated the PRC as a non-market economy (NME)
country in all past antidumping investigations and administrative
reviews. In accordance with section 771(18)(C)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See e.g., Tapered Roller
Bearings and Parts Thereof, Finished and Unfinished, (TRBs) From the
People's Republic of China: Preliminary Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 7500,
7500-1 (February 14, 2003), unchanged in TRBs from the People's
Republic of China: Final Results of 2001-2001 Administrative Review, 68
FR 70488, 70488-89 (December 18, 2003).
In the final affirmative countervailing duty determination on
coated free sheet paper from the PRC, the Department determined that
the current nature of the PRC economy does not create obstacles to
applying the necessary criteria in the countervailing duty law. See
Coated Free Sheet Paper from the People's Republic of China: Final
Affirmative Countervailing Duty Determination, 72 FR 60645 (October 25,
2007), and the accompanying Issues and Decision Memorandum, at Comment
1. Therefore, because petitioner has provided sufficient allegations
and support of its allegations to meet the statutory criteria for
initiating a countervailing duty investigation of sodium nitrite from
the PRC, initiation of a countervailing duty investigation is warranted
in this case.
Respondent Selection
For this investigation, the Department expects to select
respondents based on U.S. Customs and Border Protection (CBP) data for
U.S. imports during the POI. We intend to make our decision regarding
respondent selection within 20 days of publication of this Federal
Register notice. The Department invites comments regarding the CBP data
and respondent selection within seven calendar days of publication of
this Federal Register notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act, a copy of
the public version of the petition has been provided to the GOC. To the
extent practicable, we will attempt to provide a copy of the public
version of the petition to each exporter named in the petition, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which it receives notice of this initiation, whether there is a
reasonable indication that imports of subsidized sodium nitrite from
the PRC are materially injuring, or threatening material injury to, a
U.S. industry. See section 703(a)(2) of the Act. A negative ITC
determination will result in the investigation being terminated;
otherwise, the investigation will proceed according to statutory and
regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: November 28, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-23573 Filed 12-4-07; 8:45 am]
BILLING CODE 3510-DS-S
