Solid Urea From the Russian Federation: Preliminary Results and Extension of Time Limit for Final Results of the Antidumping Duty New-Shipper Review, 72988-72992 [07-6155]
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Federal Register / Vol. 72, No. 246 / Wednesday, December 26, 2007 / Notices
of the functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden
(including hours and cost) of the
proposed collection of information; (c)
ways to enhance the quality, utility and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the collection of information
on respondents, including through the
use of automated collection techniques
or other forms of information
technology.
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval of this information collection;
they will also become a matter of public
record.
Dated: December 18, 2007.
Gwellnar Banks,
Management Analyst, Office of the Chief
Information Officer.
[FR Doc. E7–24882 Filed 12–21–07; 8:45 am]
BILLING CODE 3510–FP–P
DEPARTMENT OF COMMERCE
International Trade Administration
A–570–912
Certain New Pneumatic Off-the-Road
Tires From the People’s Republic of
China: Postponement of Preliminary
Determination of Antidumping Duty
Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 26,
2007.
FOR FURTHER INFORMATION CONTACT:
Contact Laurel LaCivita at (202) 482–
4243 or Charles Riggle at(202) 482–
0650, AD/CVD Operations, Office 8,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
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AGENCY:
Background
On August 6, 2007, the Department of
Commerce (‘‘Department’’) published
the initiation of the antidumping duty
investigation of certain new pneumatic
off-the-road tires from the People’s
Republic of China (‘‘PRC’’). See
Initiation of Antidumping Duty
Investigation: Certain New Pneumatic
Off-the-Road Tires From the People’s
Republic of China, 72 FR 43591 (August
6, 2007) (‘‘Notice of Initiation’’). The
notice of initiation stated that we would
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make our preliminary determination for
this antidumping duty investigation no
later than 140 days after the date of
issuance of the initiation. Currently, the
preliminary determination is due
December 17, 2007.
Postponement of Preliminary
Determination
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BILLING CODE 3510–DS–M
DEPARTMENT OF COMMERCE
On November 15, 2007, the Titan Tire
Corporation, a subsidiary of Titan
International, Inc. (‘‘Titan’’), and the
United Steel, Paper and Forestry,
Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers
International Union, AFL–CIO–CLC
(‘‘USW’’) (collectively, ‘‘Petitioners’’),
made a timely request pursuant to 19
CFR 351.205(e) for a 50-day
postponement of the preliminary
determination. Petitioners requested
postponement of the preliminary
determination because it will provide
the Department additional time to
evaluate the questionnaire responses.
Petitioners argue that issues have
emerged concerning potential PRC
government involvement in the export
and other commercial activities of
certain of certain respondents. Finally,
Petitioners argue that if the Department
issues supplemental questionnaires to
the mandatory respondents and the
separate-rates companies, those
responses would be due in December,
which would not provide the
Department or the parties sufficient time
for analysis and comment, or permit the
Department to issue further
supplemental questionnaires prior to
the currently scheduled December 17,
2007, preliminary determination.
Under section 733(c)(1)(A) of the
Tariff Act of 1930, as amended (‘‘the
Act’’), if Petitioners make a timely
request for a postponement of the
preliminary determination, the
Department may postpone the
preliminary determination under
subsection (b)(1) until no later than the
190th day after the initiation of the
investigation.
Therefore, for reasons identified by
Petitioners, we are postponing the
preliminary determination under
section 733(c)(1)(A) of the Act by 50
days to February 5, 2008. Pursuant to
735(a) of the Act, the deadline for the
final determination will continue to be
75 days after the date of the preliminary
determination, or if extended, up to 135
days after the date of publication of the
preliminary determination in the
Federal Register.
This notice is issued and published
pursuant to sections 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
PO 00000
Dated: November 29, 2007.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. 07–5968 Filed 12–21–07; 8:45 am]
International Trade Administration
[A–821–801]
Solid Urea From the Russian
Federation: Preliminary Results and
Extension of Time Limit for Final
Results of the Antidumping Duty NewShipper Review
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 26,
2007.
SUMMARY: The Department of Commerce
(the Department) is conducting a newshipper review of the antidumping duty
order on solid urea from the Russian
Federation manufactured and exported
by MCC EuroChem (EuroChem). The
period of review (POR) is July 1, 2006,
through December 31, 2006. We
preliminarily determine that, during the
POR, EuroChem did not sell the subject
merchandise at less than normal value.
We invite interested parties to
comment on these preliminary results.
Parties who submit argument in this
proceeding are requested to submit with
the argument (1) a statement of the issue
and (2) a brief summary of the
argument.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
Thomas Schauer or Minoo Hatten, AD/
CVD Operations, Office 5, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0410 and (202)
482–1690, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 14, 1987, the Department
published the antidumping duty order
on solid urea from the Union of Soviet
Socialist Republics. See Antidumping
Duty Order; Urea From the Union of
Soviet Socialist Republics, 52 FR 26367
(July 14, 1987). Following the break-up
of the Soviet Union, the antidumpng
duty order on solid urea from the Soviet
Union was transferred to the individual
members of the Commonwealth of
Independent States. See Solid Urea from
the Union of Soviet Socialist Republics;
Transfer of the AD Order on Solid Urea
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from the Union of Soviet Socialist
Republics to the Commonwealth of
Independent States and the Baltic States
and Opportunity to Comment, 57 FR
28828 (June 29, 1992). The rate
established in the less-than-fair-value
investigation for the Soviet Union was
applied to each new independent state,
including The Russian Federation.
On January 25, 2007, in accordance
with 19 CFR 351.214(c), the Department
received a timely request from
EuroChem for a new-shipper review of
the antidumping duty order on solid
urea from The Russian Federation. On
February 27, 2007, the Department
found that the request for review with
respect to EuroChem met all of the
regulatory requirements set forth in 19
CFR 351.214(b) and initiated an
antidumping duty new-shipper review
covering the period July 1, 2006,
through December 31, 2006. See Solid
Urea from Russia: Notice of Initiation of
Antidumping Duty New-shipper Review,
72 FR 9930 (March 6, 2007).
On August 24, 2007, the Department
published an extension of the time
period for issuing the preliminary
results of the new-shipper review by an
additional 113 days to December 17,
2007, in accordance with section
751(a)(2)(B)(iv) of the Tariff Act of 1930,
as amended (the Act), and 19 CFR
351.214(I)(2). See Solid Urea From
Russia: Extension of time Limit for
Preliminary Results of Antidumping
Duty New-Shipper Review, 72 FR 48617
(August 24, 2007).
On September 27, 2007, the petitioner
argued that the Department has the
authority to rescind the new-shipper
review and the sale under the
concurrent administrative review.1 The
petitioner urged the Department to
exercise this authority because of the
novelty and complexity of the issues
before the Department 17, 2007, we
issued a decision memorandum in
which we determined not to rescind the
new-shipper review.
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Scope of the Order
The merchandise under review is
solid aurea, a high-nitrogen content
fertilizer which is produced by reacting
ammonia with carbon dioxide. The
product is currently classified under the
Harmonized Tariff Schedules of the
United States (HTSUS) item number
3102.10.00.00. Previously such
merchandise was classified under item
number 480.3000 of the Tariff
1 We have initiated a concurrent administrative
review which covers the same entry as is covered
by this new-shipper review. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Request for Revocation
in Part, 72 FR 48613 (August 24, 2007).
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Schedules of the United States.
Although the HTSUS subheading is
provided for convenience and customs
purposes, the written description of the
merchandise is dispositive.
Bona Fide Analysis
Consistent with our practice, we
analyzed whether the single U.S.
transaction reported by EuroChem
during the POR was a bona fide sale.
Among the factors we examined were
the price of the U.S. sale and the nature
of EuroChem’s reported U.S. customer.
Based on our analysis, we preliminarily
determine that EuroChem’s sale
constitutes a bona fide transaction. For
our complete analysis, see the
memorandum from Thomas Schauer to
the File entitled ‘‘Analysis of
EuroChem’s Bona Fides As A New
Shipper’’ dated December 17, 2007, on
file in room B–09 of the main
Department of Commerce building.
Qualification for New-Shipper Review
On February 16, 2007, the Ad Hoc
Committee of Domestic Nitrogen
Producers (the petitioner) alleged that
EuroChem was not entitled to a newshipper review and requested that the
Department rescind this review. On
February 26, 2007, we received
comments from EuroChem on this
allegation, as well as reply comments
from the petitioner on February 27,
2007.
The petitioners contend that the
antidumping statue requires that a ‘‘new
shipper’’ demonstrate that neither it nor
its affiliates shipped during the period
of investigation (POI). The petitioner
asserts that EuroChem’s affiliates,
namely the plants producing solid urea
which it owns, exported solid urea to
the United States during the POI. The
petitioner bases its assertion on its claim
that both plants were among the urea
producers included in the Soviet-wide
entity that the Department examined in
the less-than-fair-value investigation.
The petitioner contends further that the
change in ownership of the plants and
The Russian Federation’s transition to a
market economy do not entitle
EuroChem to a new-shipper review.
Citing Solid Urea from the Russian
Federation; Final Results of the
Expedited Sunset Review of the
Antidumping Duty Order, 70 FR 24528
(May 10, 2005) (Expedited Sunset
Review), and accompanying Issues and
Decision Memorandum at pages 8–10,
the petitioner argues that neither
privitization nor other changes in
ownership result in the removal of a
producer of subject merchandise from
being subject to an existing order unless
that company was found to be a
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successor to an already revoked or
excluded company.
While it is true that the physical
plants now owned and operated by
EuroChem were in existence and
produced solid urea during the POI, the
question before us is whether EuroChem
as an entity qualifies for a new-shipper
review. The Department’s position in
the Expedited Sunset Review to which
the petitioner cites was not in response
to determining whether a party could
qualify as a new shipper. Rather, the
Department addressed the following
argument in the
Expedited Sunset Review:
{T}he extraordinary facts involved in this
sunset review—the fact the country (the
Soviet Union) and entity (Soyuzpromexport)
involved in the original investigation and
order no longer exist, the changes that have
occurred in Russia and the fact that the
margins were based on a methodology that
no longer applies to Russia—means that there
has never been a valid determination of
dumping against existing producers of solid
urea from Russia and necessitates that the
Department refrain from relying on margins
derived from the original investigation and
consider other information in its sunset
review. Such information, respondent
interested parties argue, demonstrates that
dumping is not likely to continue or recur if
the order on solid urea from Russian were
revoked.
Id.
Thus, the position to which the
petitioner cites had to do with whether
the margins the Department found in
the less-than-fair value investigation are
likely to continue. The Department
stated that ‘‘{a}ntidumping duty
determinations are country-wide’’ and
that the ‘‘order on solid urea from the
Soviet Union covered all subject
merchandise exported from the Soviet
Union to be United States and applied
to all producers of solid urea in the
Soviet Union.’’ Id. This would be true
regardless of whether the production
facilities existed at the time of the POI.
Thus, we did not speak to the issue we
are considering in this review.
In order to ascertain whether
EuroChem qualifies for a new-shipper
review, we must ascertain whether it is
the same entity, or a successor thereof,
as existed during the POI. In making a
successor-in-interest determination, the
Department examines several factors
including, but not limited to, changes in
the following: (1) Management; (2)
production facilities; (3) supplier
relationships; (4) customer base. See,
e.g., Notice of Initiation and Preliminary
Results of Antidumping Duty Changed
Circumstances Review: Certain Orange
Juice From Brazil, 72 FR 1798, 51799
(September 11, 2007) (unchanged in
final, 72 FR 59512 (October 22, 207)).
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While no single factor or combination of
these factors will necessarily provide a
dispositive indication of a successor-ininterest relationship, generally the
Department will consider the new
company to be the successor to the
previous company if the new company’s
resulting operation is not materially
dissimilar to that of its predecessor. Id.
Thus, if the evidence demonstrates that,
with respect to the production and sale
of the subject merchandise, the new
company operates as the same business
entity as the former company, the
Department will accord the new
company the same antidumping
treatment as its predecessor. Id. By
inference, then, if the evidence happens
to demonstrate that the new company
does not operate as the same business
entity as the former company, the
Department will treat the new company
as a different entity than its predecessor.
As a preliminary matter, the
ownership of the production facilities in
question has changed completely since
the POI. During the POI, the plants were
wholly owned and operated by the
Soviet government. See EuroChem’s
questionnaire response dated May 8,
2007, at pages 154 and 169. As of 2001,
the Russian government divested itself
of all interest in either plant. See
EuroChem’s supplemental response
dated July 11, 2007, in answer to
question 3 under Appendix V (page
numbers not provided in submission).
EuroChem, a privately owned entity,
began to acquire ownership interest in
these plants in 2002. See EuroChem’s
questionnaire response dated May 8,
2007, at pages 154 and 169.
With respect to management, the top
management of the two plants has
changed completely since the POI. See
EuroChem’s questionnaire response
dated May 8, 2007, at pages 116–7. In
addition, the production facilities have
undergone extensive modernization
since the POI, including significant
upgrades undertaken by EuroChem. See
EuroChem’s questionnaire response
dated May 8, 2007, at pages 153–4, 168,
and Confidential Exhibit 16.
With respect to suppliers and
customers, EuroChem reported that the
plants did not keep records that would
permit a comparison of the supplier
relationships and customer base that
existed during the POI (1986) and the
present because, under Russian law, the
maximum period for archiving such
documents is five years. See
EuroChem’s supplemental response
dated September 24, 2007, in answer to
questions 1 and 2 under ‘‘Suppliers and
Distributors’’ (page numbers not
provided in submission).
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Jkt 214001
Although we do not have usable
information regarding the supplier
relationships or the customer base, we
find that the ownership and
management of the production facilities
at issue have changed completely since
the POI. Moreover, there have been
significant upgrades to the plants since
the POI. As a result of these facts, we
preliminarily determine that EuroChem
is not the successor-in-interest to the
Soviet entity we examined in the lessthan-fair-value investigation.
Accordingly, we preliminarily
determine that, based on the facts on the
record of this review, EuroChem and its
plants are entitled to a new-shipper
review.
Comparisons to Normal Value
To determine whether EuroChem’s
sale of solid urea from The Russian
Federation was made in the United
States at less than normal value, we
compared that export price to the
normal value, as described in the
‘‘Export Price’’ and ‘‘Normal Value’’
sections of this notice.
When making this comparison in
accordance with section 771(16) of the
Act, we considered all products sold in
the home market as described in the
‘‘Scope of the Order’’ section of this
notice, above, that were in the ordinary
course of trade for purposes of
determining an appropriate product
comparison to the U.S. sale. Because we
did not find sales of identical
merchandise in the home market made
in the ordinary course of trade, we
compared the U.S. sale to those homemarket sales of the most similar
merchandise that were most
contemporaneous with the U.S. sale in
accordance with 19 CFR 351.414(e).
Pursuant to section 777A(d)(2) of the
Act, we compared the export price of
the single U.S. transaction to the
weighted-average price of sales of the
foreign like product for the calendar
month that corresponds most closely to
the calendar month of the individual
export sale.
Product Comparisons
In accordance with section 771(16) of
the Act, we compared products
produced by EuroChem and sold in the
U.S. and home markets on the basis of
the comparison product which was
closest in terms of the physical
characteristics to the product sold in the
United States. These characteristics, in
the order of importance, are for, grade,
nitrogen content, size, ureaformaldehyde content, other additive/
conditioning agent, and biuret content.
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Export Price
We used the export price for
EuroChem’s U.S. sale in accordance
with section 772(a) of the Act because
the subject merchandise was sold
directly to the first unaffiliated
purchaser in the United States prior to
importation and the use of our
constructed export-price methodology
was not otherwise warranted based on
the facts of the record. We based export
price on the packed price to the first
unaffiliated purchaser in the United
States. We made deductions from the
starting price for foreign inland-freight
expenses, foreign brokerage and
handling expenses, ocean-freight
expenses, U.S. customs duties, and U.S.
brokerage and handling expenses in
accordance with section 772(c)(2)(A) of
the Act.
Regarding the U.S. date of sale,
EuroChem argued that we should use
the contract date as the date of sale for
its U.S. sale. The Department’s
regulations at 19 CFR 351.401(i) state
that the Department will normally use
the date of invoice as the date of sale,
unless a different date better reflects the
date on which the material terms of sale
are established. We have analyzed the
data on the record and preliminarily
find that the material terms of the sale
were set at the contract date, given that
the terms did not change prior to
invoicing. Further, because this is the
first time that the Department is
conducting a review of EuroChem, there
is no prior evidence on the record that
the terms of sale were changeable after
the contract date. Therefore, in
accordance with our practice, we
preliminarily find that the appropriate
U.S. date of sale is the contract date. See
Certain Steel Concrete Reinforcing Bars
from Turkey; Preliminary Results and
Partial Recession of Antidumping Duty
Administrative Review, 71 FR 26455,
26458 (May 5, 2006) (unchanged in
final, 71 FR 65082 (November 7, 2006)).
Normal Value
A. Home-Market Viability and Selection
of Comparison Market
In order to determine whether there is
a sufficient volume of sales in the home
market to serve as a viable basis for
calculating normal value (i.e., the
aggregate volume of home-market sales
of the foreign like product is five
percent or more of the aggregate volume
of U.S. sales), we compared the volume
of EuroChem’s home-market sales of the
foreign like product to the volume of its
U.S. sale of subject merchandise, in
accordance with section 773(a)(1)(c) of
the Act. Based on this comparison, we
determined that EuroChem had a viable
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home market during the POR.
Consequently, we based normal value
on home-market sales to unaffiliated
purchasers made in the usual quantities
in the ordinary course of trade.
B. Cost of Production
Pursuant to section 773(b)(2)(A)(I) of
the Act, there were reasonable grounds
to believe or suspect that EuroChem
made home-market sales at prices below
its cost of production (COP) during the
POR based on information contained in
the cost allegation filed properly by the
petitioner. As a result, the Department
initiated an investigation to determine
whether EuroChem made home-market
sales during the POR at prices below its
COP. See the Memorandum from
Thomas Schauer and Michael Harrison
entitled, ‘‘The Petitioner’s Allegation of
Sales Below the Cost of Production for
EuroChem’’ dated August 27, 2007
(EuroChem Cost-Allegation Memo).
In its June 5, 2007, cost allegation, the
petitioner alleged that EuroChem’s
reported costs cannot be used to
determine whether EuroChem made
sales in the home market below its cost
of production because natural gas is an
important raw-material input into solid
urea and prices in the Russian natural
gas market are distorted. In the
EuroChem Cost-Allegation Memo, we
found that ‘‘the evidence on the record
indicates that the Russian natural gas
sector is still, as a whole, in the early
stages or reform and is a sector where
prices may be based neither on market
principles nor on long-term cost
recovery’’ and, ‘‘{b}ecause of these
potential market distortions in the gas
segment, further scrutiny of EuroChem’s
gas costs is warranted.’’ See EuroChem
Cost-Allegation Memo at 9.
On September 19, 2007, we sent a
letter to interested parties soliciting
comments on whether and how to
adjust EuroChem’s natural-gas costs. On
November 5, 2007, we received
comments form the government of The
Russian Federation and on November 7,
2007, we received comments from the
petitioner and from EuroChem. We
received rebuttal comments from
EuroChem on November 19, 2007, and
from the petitioner on December 7,
2007.
We continue to consider the
comments made by interested parties,
some of which came in as recently as
December 7, 2007. Due to the
complexity of this issue, we are still in
the process of analyzing all of the data
and arguments and, thus, we have not
had an opportunity to perform the cost
test for these preliminary results.
Because we did not perform the cost test
and because we found contemporaneous
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home-market matches of merchandise
identical to the U.S. sale, we did not use
EuroChem’s cost-of-production or
constructed-value (CV) information in
calculating the margin for these
preliminary results of new-shipper
review.
Before we issue the final results of
this new-shipper review, we will issue
a decision memorandum with respect to
the issue of natural gas. At that point,
we will perform the cost test on
EuroChem’s home-market sales and, if
appropriate, recalculate EuroChem’s
margin. We will also incorporate the
CV, if necessary, into our margin
recalculation. We will then disclose our
calculations to interested parties and we
will provide all interested parties with
adequate time to comment on this issue.
C. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine normal value
based on sales in the comparison market
at the same level of trade as export
price. The normal-value level of trade is
that of the starting-price sales in the
comparison market or, when normal
value is based on constructed value, that
of the sales from which we derive
selling expenses, general and
administrative expenses, and profit. See
19 CFR 351.412(C)(1)(iii). For export
price, the U.S. level of trade is also the
level of the starting-price sale, which is
usually from the exporter to the
unaffiliated U.S. customer. See 19 CFR
351.412(c)(1)(i).
To determine whether normal-value
sales are at a different level of trade than
export-price sales, we examine stages in
the market process and selling functions
along the chain of distribution between
the producer and the unaffiliated
customer. If the comparison-market
sales are at a different level of trade and
the difference affects price
comparability, as manifested in a
pattern of consistent price differences
between the sales on which normal
value is based and comparison-market
sales at the level of trade of the export
transaction, we make a level-of-trade
adjustment under section 773(a)(7)(A) of
the Act.
EuroChem claimed that is sold solid
urea at a single level of trade in its home
market. Specifically, EuroChem
performed the same selling process and
functions for all of its home-market
sales. After analyzing the data on the
record with respect to these functions,
we find that EuroChem made all homemarket sales at a single marketing stage
(i.e., one level for trade) in the home
market. In addition, because EuroChem
only reported one U.S. sale during the
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72991
POR, we find that there is a single
marketing stage (i.e., one level of trade)
in the U.S. market. Furthermore,
because EuroChem performed different
levels of personnel training/exchange,
distributor/dealer training, order input/
processing, direct sales, personnel and
sales/marketing support for homemarket sales than for the U.S. sale, we
find that EuroChem’s U.S. sale was
made at a different level of trade than
its home-market sales. See, e.g., Notice
of Final Determination of Sales at Less
Than Fair Value: Certain Cut-to-Length
Carbon Steel Plate from South Africa,
62 FR 61731, 61732 (November 19,
1997), and Ball Bearings and Parts
Thereof from France, Germany, Italy,
Japan, Singapore, and the United
Kingdom: Preliminary Results of
Antidumping Duty Administrative
Reviews and Intent to Rescind Review in
Part, 72 FR 31271, 31276 (June 6, 2007)
(unchanged in final, 72 FR 58053
(October 12, 2007)).
Although the level of trade of
EuroChem’s home-market sales is
different than the level of trade of its
U.S. sale, we are unable to make a
determination that there is a pattern of
price differences between the levels of
trade because there is only one level of
trade in the home market. Furthermore,
because there is no home-market level
of trade which corresponds to the U.S.
level of trade, we are unable to quantify
a level-of-trade adjustment.
Accordingly, we are unable to make a
level-of-trade adjustment. See, e.g.,
Antifriction Bearings (Other Than
Tapered Roller Bearings) and Parts
Thereof From France, Germany, Italy,
Japan, Singapore, and the United
Kingdom; Final Results of Antidumping
Duty Administrative Reviews. 62 FR
2081, 2106 (January 15, 1997).
D. Calculation of Normal Value
We based normal value on the starting
prices to home-market customers.
Pursuant to section 773(a)(6)(B)(ii) of
the Act, we deducted inland-freight
expenses EuroChem incurred on its
home-market sales. Pursuant to section
773(a)(6)(C)(iii) of the Act, we made
circumstance-of-sale adjustments for
imputed credit expenses. Pursuant to
section 773(a)(6) of the Act, we
deducted home-market packing costs
and added U.S. packing costs. Because
we calculated normal value using sales
of similar merchandise, we also made
adjustments for differences in cost
attributable to differences in physical
characteristics of the merchandise
pursuant to section 773(a)(6)(C)(ii) of
the Act and 19 CFR 351.411.
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72992
Federal Register / Vol. 72, No. 246 / Wednesday, December 26, 2007 / Notices
Verifications
We conducted a sales verfication of
EuroChem from October 22, 2007,
through October 24, 2007. We have
made changes, as appropriate, to
EuroChem’s data to reflect our
verification findings. See the sales
verification report dated November 13,
2007, and the computer programs
attached to the preliminary results
analysis memorandum dated December
17, 2007, for the specific changes we
made. In addition, we intend to conduct
a verfication of EuroChem’s cost
submission after we issue these
preliminary results.
Preliminary Results of Review
As a result of this review, we
preliminarily determine that a dumping
margin of 0.00 percent exists for
EuroChem for the period July 1, 2006,
through December 31, 2006.
pwalker on PROD1PC71 with NOTICES
Extension of Time Limit for Final
Results of the New-Shipper Review
Section 751(a)(2)(B)(iv) of the Act
requires the Department to issue the
final results of a new-shipper review of
an antidumping duty order within 90
days after the date the preliminary
determination is issued. The Act
provides further that, if the case is
extraordinarily complicated, the
Department may extend the 90-day
period to 150 days.
We determine that this new-shipper
review is extraordinarily complicated
and that it is not possible to complete
the final results within 90 days of
issuance of these preliminary results.
Specifically, we find that the issues
associated with whether and how to
adjust EuroChem’s natural-gas costs are
extraordinarily complicated.
Therefore, in accordance with section
751(a)(2)(B)(iv) of the Act and 19 CFR
351.214(i)(2), we are extending the time
period for issuing the final results of
this review by 60 days to May 15, 2008.
Public Comment
We will disclose the documents
resulting from our analysis to parties in
this review within five days of the date
of publication of this notice. Any
interested party may request a hearing
within 30 days of the publication of this
notice in the Federal Register. If a
hearing is requested, the Department
will notify interested parties of the
hearing schedule.
Interested parties are invited to
comment on the preliminary results of
this review. Because we have not yet
made a determination with respect to
the treatment of costs for natural gas, we
will notify interested parties of the
schedule for filing case briefs and
VerDate Aug<31>2005
17:33 Dec 21, 2007
Jkt 214001
rebuttal briefs after we issue the
decision memorandum, which will
include an explanation of our decision,
a cost calculation, sales-below-cost test,
and margin recalculation.
We intend to issue the final results of
this new-shipper review, including the
results of our analysis of issues raised in
the written comments, within 150 days
after the date on which the preliminary
results are issued. See 19 CFR
351.214(I)(1).
Assessment Rates
The Department shall determine, and
U.S. Customs and Border Protection
(CBP) shall assess, antidumping duties
on all appropriate entries, in accordance
with 19 CFR 351.212. The Department
will issue assessment instructions for
EuroChem directly to CBP 15 days after
the date of publication of the final
results of this new-shipper review.
Because we found no margin for the
U.S. sale subject to this new-shipper
review, we preliminarily intend to
instruct CBP to liquidate the entry
without regard to antidumping duties. If
we calculate a margin for the U.S. sale
subject to this review for final results of
review, because we have entered the
value of EuroChem’s U.S. sale, we will
calculate an importer-specific
assessment rate based on the ratio of the
total amount of antidumping duties
calculated for the examined sale to the
total entered value of the sale pursuant
to 19 CFR 351.212(b)(1).
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003 (68 FR 23954). This
clarification applies to entries of subject
merchandise during the POR produced
by EuroChem where EuroChem did not
know that its merchandise was destined
for the United States. In such instances,
we will instruct CBP to liquidate
unreviewed entries at the all-others rate
if there is no rate for the intermediate
company(ies) involved in the
transaction. For a full discussion of this
clarification, see Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003).
Cash-Deposit Requirements
The following cash-deposit
requirements will be effective for all
shipments of the subject merchandise
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
the new-shipper review, as provided by
section 751(a)(2)(C) of the Act: (1) The
cash-deposit rate for EuroChem (i.e., for
subject merchandise both manufactured
and exported by EuroChem) will be that
established in the final results of this
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
review, except if the rate is less than
0.50 percent, and therefore, de minimis
within the meaning of 19 CFR
351.106(c)(1), in which case the cashdeposit rate will be zero; (2) for
previously reviewed or investigated
companies not listed above, the cashdeposit rate will continue to be the
company-specific rate published for the
most recent period; (3) if the exporter is
not a firm covered in this review or the
original less-than-fair-value (LTFV)
investigation but the manufacturer is,
the cash-deposit rate will be the rate
established for the most recent period
for the manufacturer of the
merchandise; and (4) the cash-deposit
rate for all other manufacturers or
exporters will continue to be 64.93
percent, the all-others rate established
in the LTFV investigation. See Urea
From the Union of Soviet Socialist
Republics; Final Determination of Sales
at Less Than Fair Value, 52 FR 19557
(May 26, 1987). These cash-deposit
rates, when imposed, shall remain in
effect until further notice.
Notification to Importers
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(2)(B) and 777(i)(1) of the Act and
19 CFR 351.214.
Dated: December 17, 2007.
David M. Spooner,
Assistant Secretary, for Import
Administration.
[FR Doc. 07–6155 Filed 12–21–07; 8:45 am]
BILLING CODE 3510-D5-M
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XE57
Fisheries of the Exclusive Economic
Zone Off Alaska; Groundfish Fisheries
in the Bering Sea, Aleutian Islands and
Gulf of Alaska
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
AGENCY:
E:\FR\FM\26DEN1.SGM
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Agencies
[Federal Register Volume 72, Number 246 (Wednesday, December 26, 2007)]
[Notices]
[Pages 72988-72992]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-6155]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-821-801]
Solid Urea From the Russian Federation: Preliminary Results and
Extension of Time Limit for Final Results of the Antidumping Duty New-
Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 26, 2007.
SUMMARY: The Department of Commerce (the Department) is conducting a
new-shipper review of the antidumping duty order on solid urea from the
Russian Federation manufactured and exported by MCC EuroChem
(EuroChem). The period of review (POR) is July 1, 2006, through
December 31, 2006. We preliminarily determine that, during the POR,
EuroChem did not sell the subject merchandise at less than normal
value.
We invite interested parties to comment on these preliminary
results. Parties who submit argument in this proceeding are requested
to submit with the argument (1) a statement of the issue and (2) a
brief summary of the argument.
FOR FURTHER INFORMATION CONTACT: Thomas Schauer or Minoo Hatten, AD/CVD
Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0410 and (202) 482-1690, respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 14, 1987, the Department published the antidumping duty
order on solid urea from the Union of Soviet Socialist Republics. See
Antidumping Duty Order; Urea From the Union of Soviet Socialist
Republics, 52 FR 26367 (July 14, 1987). Following the break-up of the
Soviet Union, the antidumpng duty order on solid urea from the Soviet
Union was transferred to the individual members of the Commonwealth of
Independent States. See Solid Urea from the Union of Soviet Socialist
Republics; Transfer of the AD Order on Solid Urea
[[Page 72989]]
from the Union of Soviet Socialist Republics to the Commonwealth of
Independent States and the Baltic States and Opportunity to Comment, 57
FR 28828 (June 29, 1992). The rate established in the less-than-fair-
value investigation for the Soviet Union was applied to each new
independent state, including The Russian Federation.
On January 25, 2007, in accordance with 19 CFR 351.214(c), the
Department received a timely request from EuroChem for a new-shipper
review of the antidumping duty order on solid urea from The Russian
Federation. On February 27, 2007, the Department found that the request
for review with respect to EuroChem met all of the regulatory
requirements set forth in 19 CFR 351.214(b) and initiated an
antidumping duty new-shipper review covering the period July 1, 2006,
through December 31, 2006. See Solid Urea from Russia: Notice of
Initiation of Antidumping Duty New-shipper Review, 72 FR 9930 (March 6,
2007).
On August 24, 2007, the Department published an extension of the
time period for issuing the preliminary results of the new-shipper
review by an additional 113 days to December 17, 2007, in accordance
with section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.214(I)(2). See Solid Urea From Russia:
Extension of time Limit for Preliminary Results of Antidumping Duty
New-Shipper Review, 72 FR 48617 (August 24, 2007).
On September 27, 2007, the petitioner argued that the Department
has the authority to rescind the new-shipper review and the sale under
the concurrent administrative review.\1\ The petitioner urged the
Department to exercise this authority because of the novelty and
complexity of the issues before the Department 17, 2007, we issued a
decision memorandum in which we determined not to rescind the new-
shipper review.
---------------------------------------------------------------------------
\1\ We have initiated a concurrent administrative review which
covers the same entry as is covered by this new-shipper review. See
Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Request for Revocation in Part, 72 FR 48613 (August 24,
2007).
---------------------------------------------------------------------------
Scope of the Order
The merchandise under review is solid aurea, a high-nitrogen
content fertilizer which is produced by reacting ammonia with carbon
dioxide. The product is currently classified under the Harmonized
Tariff Schedules of the United States (HTSUS) item number
3102.10.00.00. Previously such merchandise was classified under item
number 480.3000 of the Tariff Schedules of the United States. Although
the HTSUS subheading is provided for convenience and customs purposes,
the written description of the merchandise is dispositive.
Bona Fide Analysis
Consistent with our practice, we analyzed whether the single U.S.
transaction reported by EuroChem during the POR was a bona fide sale.
Among the factors we examined were the price of the U.S. sale and the
nature of EuroChem's reported U.S. customer. Based on our analysis, we
preliminarily determine that EuroChem's sale constitutes a bona fide
transaction. For our complete analysis, see the memorandum from Thomas
Schauer to the File entitled ``Analysis of EuroChem's Bona Fides As A
New Shipper'' dated December 17, 2007, on file in room B-09 of the main
Department of Commerce building.
Qualification for New-Shipper Review
On February 16, 2007, the Ad Hoc Committee of Domestic Nitrogen
Producers (the petitioner) alleged that EuroChem was not entitled to a
new-shipper review and requested that the Department rescind this
review. On February 26, 2007, we received comments from EuroChem on
this allegation, as well as reply comments from the petitioner on
February 27, 2007.
The petitioners contend that the antidumping statue requires that a
``new shipper'' demonstrate that neither it nor its affiliates shipped
during the period of investigation (POI). The petitioner asserts that
EuroChem's affiliates, namely the plants producing solid urea which it
owns, exported solid urea to the United States during the POI. The
petitioner bases its assertion on its claim that both plants were among
the urea producers included in the Soviet-wide entity that the
Department examined in the less-than-fair-value investigation. The
petitioner contends further that the change in ownership of the plants
and The Russian Federation's transition to a market economy do not
entitle EuroChem to a new-shipper review. Citing Solid Urea from the
Russian Federation; Final Results of the Expedited Sunset Review of the
Antidumping Duty Order, 70 FR 24528 (May 10, 2005) (Expedited Sunset
Review), and accompanying Issues and Decision Memorandum at pages 8-10,
the petitioner argues that neither privitization nor other changes in
ownership result in the removal of a producer of subject merchandise
from being subject to an existing order unless that company was found
to be a successor to an already revoked or excluded company.
While it is true that the physical plants now owned and operated by
EuroChem were in existence and produced solid urea during the POI, the
question before us is whether EuroChem as an entity qualifies for a
new-shipper review. The Department's position in the Expedited Sunset
Review to which the petitioner cites was not in response to determining
whether a party could qualify as a new shipper. Rather, the Department
addressed the following argument in the
Expedited Sunset Review:
{T{time} he extraordinary facts involved in this sunset review--
the fact the country (the Soviet Union) and entity (Soyuzpromexport)
involved in the original investigation and order no longer exist,
the changes that have occurred in Russia and the fact that the
margins were based on a methodology that no longer applies to
Russia--means that there has never been a valid determination of
dumping against existing producers of solid urea from Russia and
necessitates that the Department refrain from relying on margins
derived from the original investigation and consider other
information in its sunset review. Such information, respondent
interested parties argue, demonstrates that dumping is not likely to
continue or recur if the order on solid urea from Russian were
revoked.
Id.
Thus, the position to which the petitioner cites had to do with
whether the margins the Department found in the less-than-fair value
investigation are likely to continue. The Department stated that
``{a{time} ntidumping duty determinations are country-wide'' and that
the ``order on solid urea from the Soviet Union covered all subject
merchandise exported from the Soviet Union to be United States and
applied to all producers of solid urea in the Soviet Union.'' Id. This
would be true regardless of whether the production facilities existed
at the time of the POI. Thus, we did not speak to the issue we are
considering in this review.
In order to ascertain whether EuroChem qualifies for a new-shipper
review, we must ascertain whether it is the same entity, or a successor
thereof, as existed during the POI. In making a successor-in-interest
determination, the Department examines several factors including, but
not limited to, changes in the following: (1) Management; (2)
production facilities; (3) supplier relationships; (4) customer base.
See, e.g., Notice of Initiation and Preliminary Results of Antidumping
Duty Changed Circumstances Review: Certain Orange Juice From Brazil, 72
FR 1798, 51799 (September 11, 2007) (unchanged in final, 72 FR 59512
(October 22, 207)).
[[Page 72990]]
While no single factor or combination of these factors will necessarily
provide a dispositive indication of a successor-in-interest
relationship, generally the Department will consider the new company to
be the successor to the previous company if the new company's resulting
operation is not materially dissimilar to that of its predecessor. Id.
Thus, if the evidence demonstrates that, with respect to the production
and sale of the subject merchandise, the new company operates as the
same business entity as the former company, the Department will accord
the new company the same antidumping treatment as its predecessor. Id.
By inference, then, if the evidence happens to demonstrate that the new
company does not operate as the same business entity as the former
company, the Department will treat the new company as a different
entity than its predecessor.
As a preliminary matter, the ownership of the production facilities
in question has changed completely since the POI. During the POI, the
plants were wholly owned and operated by the Soviet government. See
EuroChem's questionnaire response dated May 8, 2007, at pages 154 and
169. As of 2001, the Russian government divested itself of all interest
in either plant. See EuroChem's supplemental response dated July 11,
2007, in answer to question 3 under Appendix V (page numbers not
provided in submission). EuroChem, a privately owned entity, began to
acquire ownership interest in these plants in 2002. See EuroChem's
questionnaire response dated May 8, 2007, at pages 154 and 169.
With respect to management, the top management of the two plants
has changed completely since the POI. See EuroChem's questionnaire
response dated May 8, 2007, at pages 116-7. In addition, the production
facilities have undergone extensive modernization since the POI,
including significant upgrades undertaken by EuroChem. See EuroChem's
questionnaire response dated May 8, 2007, at pages 153-4, 168, and
Confidential Exhibit 16.
With respect to suppliers and customers, EuroChem reported that the
plants did not keep records that would permit a comparison of the
supplier relationships and customer base that existed during the POI
(1986) and the present because, under Russian law, the maximum period
for archiving such documents is five years. See EuroChem's supplemental
response dated September 24, 2007, in answer to questions 1 and 2 under
``Suppliers and Distributors'' (page numbers not provided in
submission).
Although we do not have usable information regarding the supplier
relationships or the customer base, we find that the ownership and
management of the production facilities at issue have changed
completely since the POI. Moreover, there have been significant
upgrades to the plants since the POI. As a result of these facts, we
preliminarily determine that EuroChem is not the successor-in-interest
to the Soviet entity we examined in the less-than-fair-value
investigation. Accordingly, we preliminarily determine that, based on
the facts on the record of this review, EuroChem and its plants are
entitled to a new-shipper review.
Comparisons to Normal Value
To determine whether EuroChem's sale of solid urea from The Russian
Federation was made in the United States at less than normal value, we
compared that export price to the normal value, as described in the
``Export Price'' and ``Normal Value'' sections of this notice.
When making this comparison in accordance with section 771(16) of
the Act, we considered all products sold in the home market as
described in the ``Scope of the Order'' section of this notice, above,
that were in the ordinary course of trade for purposes of determining
an appropriate product comparison to the U.S. sale. Because we did not
find sales of identical merchandise in the home market made in the
ordinary course of trade, we compared the U.S. sale to those home-
market sales of the most similar merchandise that were most
contemporaneous with the U.S. sale in accordance with 19 CFR
351.414(e). Pursuant to section 777A(d)(2) of the Act, we compared the
export price of the single U.S. transaction to the weighted-average
price of sales of the foreign like product for the calendar month that
corresponds most closely to the calendar month of the individual export
sale.
Product Comparisons
In accordance with section 771(16) of the Act, we compared products
produced by EuroChem and sold in the U.S. and home markets on the basis
of the comparison product which was closest in terms of the physical
characteristics to the product sold in the United States. These
characteristics, in the order of importance, are for, grade, nitrogen
content, size, urea-formaldehyde content, other additive/conditioning
agent, and biuret content.
Export Price
We used the export price for EuroChem's U.S. sale in accordance
with section 772(a) of the Act because the subject merchandise was sold
directly to the first unaffiliated purchaser in the United States prior
to importation and the use of our constructed export-price methodology
was not otherwise warranted based on the facts of the record. We based
export price on the packed price to the first unaffiliated purchaser in
the United States. We made deductions from the starting price for
foreign inland-freight expenses, foreign brokerage and handling
expenses, ocean-freight expenses, U.S. customs duties, and U.S.
brokerage and handling expenses in accordance with section 772(c)(2)(A)
of the Act.
Regarding the U.S. date of sale, EuroChem argued that we should use
the contract date as the date of sale for its U.S. sale. The
Department's regulations at 19 CFR 351.401(i) state that the Department
will normally use the date of invoice as the date of sale, unless a
different date better reflects the date on which the material terms of
sale are established. We have analyzed the data on the record and
preliminarily find that the material terms of the sale were set at the
contract date, given that the terms did not change prior to invoicing.
Further, because this is the first time that the Department is
conducting a review of EuroChem, there is no prior evidence on the
record that the terms of sale were changeable after the contract date.
Therefore, in accordance with our practice, we preliminarily find that
the appropriate U.S. date of sale is the contract date. See Certain
Steel Concrete Reinforcing Bars from Turkey; Preliminary Results and
Partial Recession of Antidumping Duty Administrative Review, 71 FR
26455, 26458 (May 5, 2006) (unchanged in final, 71 FR 65082 (November
7, 2006)).
Normal Value
A. Home-Market Viability and Selection of Comparison Market
In order to determine whether there is a sufficient volume of sales
in the home market to serve as a viable basis for calculating normal
value (i.e., the aggregate volume of home-market sales of the foreign
like product is five percent or more of the aggregate volume of U.S.
sales), we compared the volume of EuroChem's home-market sales of the
foreign like product to the volume of its U.S. sale of subject
merchandise, in accordance with section 773(a)(1)(c) of the Act. Based
on this comparison, we determined that EuroChem had a viable
[[Page 72991]]
home market during the POR. Consequently, we based normal value on
home-market sales to unaffiliated purchasers made in the usual
quantities in the ordinary course of trade.
B. Cost of Production
Pursuant to section 773(b)(2)(A)(I) of the Act, there were
reasonable grounds to believe or suspect that EuroChem made home-market
sales at prices below its cost of production (COP) during the POR based
on information contained in the cost allegation filed properly by the
petitioner. As a result, the Department initiated an investigation to
determine whether EuroChem made home-market sales during the POR at
prices below its COP. See the Memorandum from Thomas Schauer and
Michael Harrison entitled, ``The Petitioner's Allegation of Sales Below
the Cost of Production for EuroChem'' dated August 27, 2007 (EuroChem
Cost-Allegation Memo).
In its June 5, 2007, cost allegation, the petitioner alleged that
EuroChem's reported costs cannot be used to determine whether EuroChem
made sales in the home market below its cost of production because
natural gas is an important raw-material input into solid urea and
prices in the Russian natural gas market are distorted. In the EuroChem
Cost-Allegation Memo, we found that ``the evidence on the record
indicates that the Russian natural gas sector is still, as a whole, in
the early stages or reform and is a sector where prices may be based
neither on market principles nor on long-term cost recovery'' and,
``{b{time} ecause of these potential market distortions in the gas
segment, further scrutiny of EuroChem's gas costs is warranted.'' See
EuroChem Cost-Allegation Memo at 9.
On September 19, 2007, we sent a letter to interested parties
soliciting comments on whether and how to adjust EuroChem's natural-gas
costs. On November 5, 2007, we received comments form the government of
The Russian Federation and on November 7, 2007, we received comments
from the petitioner and from EuroChem. We received rebuttal comments
from EuroChem on November 19, 2007, and from the petitioner on December
7, 2007.
We continue to consider the comments made by interested parties,
some of which came in as recently as December 7, 2007. Due to the
complexity of this issue, we are still in the process of analyzing all
of the data and arguments and, thus, we have not had an opportunity to
perform the cost test for these preliminary results. Because we did not
perform the cost test and because we found contemporaneous home-market
matches of merchandise identical to the U.S. sale, we did not use
EuroChem's cost-of-production or constructed-value (CV) information in
calculating the margin for these preliminary results of new-shipper
review.
Before we issue the final results of this new-shipper review, we
will issue a decision memorandum with respect to the issue of natural
gas. At that point, we will perform the cost test on EuroChem's home-
market sales and, if appropriate, recalculate EuroChem's margin. We
will also incorporate the CV, if necessary, into our margin
recalculation. We will then disclose our calculations to interested
parties and we will provide all interested parties with adequate time
to comment on this issue.
C. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine normal value based on sales in the comparison
market at the same level of trade as export price. The normal-value
level of trade is that of the starting-price sales in the comparison
market or, when normal value is based on constructed value, that of the
sales from which we derive selling expenses, general and administrative
expenses, and profit. See 19 CFR 351.412(C)(1)(iii). For export price,
the U.S. level of trade is also the level of the starting-price sale,
which is usually from the exporter to the unaffiliated U.S. customer.
See 19 CFR 351.412(c)(1)(i).
To determine whether normal-value sales are at a different level of
trade than export-price sales, we examine stages in the market process
and selling functions along the chain of distribution between the
producer and the unaffiliated customer. If the comparison-market sales
are at a different level of trade and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which normal value is based and
comparison-market sales at the level of trade of the export
transaction, we make a level-of-trade adjustment under section
773(a)(7)(A) of the Act.
EuroChem claimed that is sold solid urea at a single level of trade
in its home market. Specifically, EuroChem performed the same selling
process and functions for all of its home-market sales. After analyzing
the data on the record with respect to these functions, we find that
EuroChem made all home-market sales at a single marketing stage (i.e.,
one level for trade) in the home market. In addition, because EuroChem
only reported one U.S. sale during the POR, we find that there is a
single marketing stage (i.e., one level of trade) in the U.S. market.
Furthermore, because EuroChem performed different levels of personnel
training/exchange, distributor/dealer training, order input/processing,
direct sales, personnel and sales/marketing support for home-market
sales than for the U.S. sale, we find that EuroChem's U.S. sale was
made at a different level of trade than its home-market sales. See,
e.g., Notice of Final Determination of Sales at Less Than Fair Value:
Certain Cut-to-Length Carbon Steel Plate from South Africa, 62 FR
61731, 61732 (November 19, 1997), and Ball Bearings and Parts Thereof
from France, Germany, Italy, Japan, Singapore, and the United Kingdom:
Preliminary Results of Antidumping Duty Administrative Reviews and
Intent to Rescind Review in Part, 72 FR 31271, 31276 (June 6, 2007)
(unchanged in final, 72 FR 58053 (October 12, 2007)).
Although the level of trade of EuroChem's home-market sales is
different than the level of trade of its U.S. sale, we are unable to
make a determination that there is a pattern of price differences
between the levels of trade because there is only one level of trade in
the home market. Furthermore, because there is no home-market level of
trade which corresponds to the U.S. level of trade, we are unable to
quantify a level-of-trade adjustment. Accordingly, we are unable to
make a level-of-trade adjustment. See, e.g., Antifriction Bearings
(Other Than Tapered Roller Bearings) and Parts Thereof From France,
Germany, Italy, Japan, Singapore, and the United Kingdom; Final Results
of Antidumping Duty Administrative Reviews. 62 FR 2081, 2106 (January
15, 1997).
D. Calculation of Normal Value
We based normal value on the starting prices to home-market
customers. Pursuant to section 773(a)(6)(B)(ii) of the Act, we deducted
inland-freight expenses EuroChem incurred on its home-market sales.
Pursuant to section 773(a)(6)(C)(iii) of the Act, we made circumstance-
of-sale adjustments for imputed credit expenses. Pursuant to section
773(a)(6) of the Act, we deducted home-market packing costs and added
U.S. packing costs. Because we calculated normal value using sales of
similar merchandise, we also made adjustments for differences in cost
attributable to differences in physical characteristics of the
merchandise pursuant to section 773(a)(6)(C)(ii) of the Act and 19 CFR
351.411.
[[Page 72992]]
Verifications
We conducted a sales verfication of EuroChem from October 22, 2007,
through October 24, 2007. We have made changes, as appropriate, to
EuroChem's data to reflect our verification findings. See the sales
verification report dated November 13, 2007, and the computer programs
attached to the preliminary results analysis memorandum dated December
17, 2007, for the specific changes we made. In addition, we intend to
conduct a verfication of EuroChem's cost submission after we issue
these preliminary results.
Preliminary Results of Review
As a result of this review, we preliminarily determine that a
dumping margin of 0.00 percent exists for EuroChem for the period July
1, 2006, through December 31, 2006.
Extension of Time Limit for Final Results of the New-Shipper Review
Section 751(a)(2)(B)(iv) of the Act requires the Department to
issue the final results of a new-shipper review of an antidumping duty
order within 90 days after the date the preliminary determination is
issued. The Act provides further that, if the case is extraordinarily
complicated, the Department may extend the 90-day period to 150 days.
We determine that this new-shipper review is extraordinarily
complicated and that it is not possible to complete the final results
within 90 days of issuance of these preliminary results. Specifically,
we find that the issues associated with whether and how to adjust
EuroChem's natural-gas costs are extraordinarily complicated.
Therefore, in accordance with section 751(a)(2)(B)(iv) of the Act
and 19 CFR 351.214(i)(2), we are extending the time period for issuing
the final results of this review by 60 days to May 15, 2008.
Public Comment
We will disclose the documents resulting from our analysis to
parties in this review within five days of the date of publication of
this notice. Any interested party may request a hearing within 30 days
of the publication of this notice in the Federal Register. If a hearing
is requested, the Department will notify interested parties of the
hearing schedule.
Interested parties are invited to comment on the preliminary
results of this review. Because we have not yet made a determination
with respect to the treatment of costs for natural gas, we will notify
interested parties of the schedule for filing case briefs and rebuttal
briefs after we issue the decision memorandum, which will include an
explanation of our decision, a cost calculation, sales-below-cost test,
and margin recalculation.
We intend to issue the final results of this new-shipper review,
including the results of our analysis of issues raised in the written
comments, within 150 days after the date on which the preliminary
results are issued. See 19 CFR 351.214(I)(1).
Assessment Rates
The Department shall determine, and U.S. Customs and Border
Protection (CBP) shall assess, antidumping duties on all appropriate
entries, in accordance with 19 CFR 351.212. The Department will issue
assessment instructions for EuroChem directly to CBP 15 days after the
date of publication of the final results of this new-shipper review.
Because we found no margin for the U.S. sale subject to this new-
shipper review, we preliminarily intend to instruct CBP to liquidate
the entry without regard to antidumping duties. If we calculate a
margin for the U.S. sale subject to this review for final results of
review, because we have entered the value of EuroChem's U.S. sale, we
will calculate an importer-specific assessment rate based on the ratio
of the total amount of antidumping duties calculated for the examined
sale to the total entered value of the sale pursuant to 19 CFR
351.212(b)(1).
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003 (68 FR 23954). This clarification applies to entries of
subject merchandise during the POR produced by EuroChem where EuroChem
did not know that its merchandise was destined for the United States.
In such instances, we will instruct CBP to liquidate unreviewed entries
at the all-others rate if there is no rate for the intermediate
company(ies) involved in the transaction. For a full discussion of this
clarification, see Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003).
Cash-Deposit Requirements
The following cash-deposit requirements will be effective for all
shipments of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the publication date of the
final results of the new-shipper review, as provided by section
751(a)(2)(C) of the Act: (1) The cash-deposit rate for EuroChem (i.e.,
for subject merchandise both manufactured and exported by EuroChem)
will be that established in the final results of this review, except if
the rate is less than 0.50 percent, and therefore, de minimis within
the meaning of 19 CFR 351.106(c)(1), in which case the cash-deposit
rate will be zero; (2) for previously reviewed or investigated
companies not listed above, the cash-deposit rate will continue to be
the company-specific rate published for the most recent period; (3) if
the exporter is not a firm covered in this review or the original less-
than-fair-value (LTFV) investigation but the manufacturer is, the cash-
deposit rate will be the rate established for the most recent period
for the manufacturer of the merchandise; and (4) the cash-deposit rate
for all other manufacturers or exporters will continue to be 64.93
percent, the all-others rate established in the LTFV investigation. See
Urea From the Union of Soviet Socialist Republics; Final Determination
of Sales at Less Than Fair Value, 52 FR 19557 (May 26, 1987). These
cash-deposit rates, when imposed, shall remain in effect until further
notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping duties prior to liquidation
of the relevant entries during this review period. Failure to comply
with this requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing this notice in accordance with
sections 751(a)(2)(B) and 777(i)(1) of the Act and 19 CFR 351.214.
Dated: December 17, 2007.
David M. Spooner,
Assistant Secretary, for Import Administration.
[FR Doc. 07-6155 Filed 12-21-07; 8:45 am]
BILLING CODE 3510-D5-M