Chlorinated Isocyanurates from Spain: Preliminary Results of Antidumping Duty Administrative Review, 39650-39655 [E8-15736]

Download as PDF 39650 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices jlentini on PROD1PC65 with NOTICES should calculate a LOT adjustment when sales by IRM are matched to sales by Sivaco. Ivaco also states that, if the Department determines that IRM’s U.S. CEP sales are at a different LOT from all Ivaco’s home market sales, the Department should grant a CEP offset. To determine whether there were multiple LOTs, we examined the selling functions performed by Ivaco for its customers. We found few differences in selling functions across the various channels of distribution and, based on this examination, we preliminarily determine that Ivaco sold merchandise at one LOT in both markets. See the Memorandum from Steve Bezirganian, ‘‘Level of Trade Analysis for Ivaco Rolling Mills 2004 L.P. and Sivaco Ontario, a division of Sivaco Wire Group 2004 L.P.: Carbon and Certain Alloy Steel Wire Rod from Canada (A– 122–840), October 1, 2006—September 30, 2007’’ (July 2, 2008). Consequently, there is no basis for calculating a LOT adjustment or a CEP offset. any such comments on diskette. An interested party may request a hearing within 30 days of publication of these preliminary results. See 19 CFR 351.310(c). Any hearing, if requested, will be held two days after the date for submission of rebuttal briefs, or the first working day thereafter. The Department will issue the final results of this administrative review, which will include the results of its analysis of issues raised in any such comments, within 120 days of publication of these preliminary results, pursuant to Section 751(a)(3) of the Act. Assessment Upon completion of this administrative review, pursuant to 19 CFR 351.212(b), the Department will calculate an assessment rate on all appropriate entries. The Department will issue assessment instructions directly to CBP on or after 41 days following the publication of the final results of review, pursuant to 19 CFR 356.8(a). We will calculate importerCurrency Conversion specific duty assessment rates on the basis of the ratio of the total amount of We made currency conversions into antidumping duties calculated for the U.S. dollars in accordance with section examined sales to the total entered 773A of the Act, based on exchange value of the examined sales for that rates in effect on the date of the U.S. sale, as provided by the Federal Reserve importer. The Department clarified its Bank. ‘‘automatic assessment’’ regulation on Preliminary Results of Review May 6, 2003. See Antidumping and Countervailing Duty Proceedings: As a result of this review, we Assessment of Antidumping Duties, 68 preliminarily determine the following FR 23954 (May 6, 2003) (Assessment weighted-average margin exists for the Policy Notice). This clarification will period October 1, 2006, through apply to entries of subject merchandise September 30, 2007: during the period of review produced by companies included in these final Weighted-average Producer/exporter margin (percentage) results where the reviewed companies did not know the merchandise it sold to Ivaco ........................... 2.33 the intermediary (e.g., a reseller, trading company, or exporter) was destined for In accordance with 19 CFR the United States. In such instances, we 351.224(b), the Department will disclose will instruct CBP to liquidate calculations performed within five days unreviewed entries at the all-others rate of publication of this notice. Interested if there was no rate calculated in this parties may submit case briefs and/or review for the intermediary involved in written comments no later than 30 days the transaction. See id., 68 FR at 23954. after the date of publication of these Cash Deposit Requirements preliminary results. See 19 CFR 351.309(c)(ii). Rebuttal briefs and The following deposit rates will be rebuttals to written comments, limited effective upon publication of the final to issues raised in such briefs or results of this administrative review for comments, may be filed no later than all shipments of steel wire rod from five days after submission of case briefs. Canada entered, or withdrawn from See 19 CFR 351.309(d). Parties who warehouse, for consumption on or after submit arguments are requested to the publication date, as provided by submit with the argument: (1) A section 751(a)(1) of the Act: (1) The cash statement of the issues; (2) a brief deposit rate for Ivaco will be the rate summary of the arguments; and (3) a established in the final results of this table of authorities. Further, parties review, except if a rate is less than 0.5 submitting written comments should percent, and therefore de minimis, the provide the Department with an cash deposit will be zero; (2) for additional copy of the public version of previously reviewed or investigated VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 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, a prior review, or the less-than-fair-value (LTFV) investigation, but the manufacturer is, the cash deposit rate will be the rate established for the most recent period for the manufacturer of the merchandise; and (4) if neither the exporter nor the manufacturer is a firm covered in this or any previous review conducted by the Department, the cash deposit rate will be 8.11 percent, the allothers rate established in the LTFV investigation. These cash deposit requirements, when imposed, shall remain in effect until publication of the final results of the next administrative review. This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entities 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. These preliminary results are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act. Dated: July 2, 2008. David M. Spooner, Assistant Secretary for Import Administration. [FR Doc. E8–15753 Filed 7–9–08; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration (A–469–814) Chlorinated Isocyanurates from Spain: Preliminary Results of Antidumping Duty Administrative Review Import Administration, International Trade Administration, Department of Commerce. SUMMARY: In response to timely requests by Biolab, Inc., Clearon Corporation and Occidental Chemical Corporation (collectively, ‘‘Petitioners’’), and ´ Aragonesas Industrias y Energıa S.A. (‘‘Aragonesas’’), the Department of Commerce (‘‘Department’’) is conducting an administrative review of the antidumping duty order on chlorinated isocyanurates (‘‘chlorinated AGENCY: E:\FR\FM\10JYN1.SGM 10JYN1 jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices isos’’) from Spain with respect to Aragonesas. The period of review (‘‘POR’’) is June 1, 2006 through May 31, 2007. The Department preliminarily determines that Aragonesas made U.S. sales of chlorinated isos at prices less than normal value (‘‘NV’’). See Preliminary Results of Review section, below. If these preliminary results are adopted in our final results of administrative review, the Department will instruct U.S. Customs and Border Protection (‘‘CBP’’) to assess antidumping duties on all appropriate entries. Interested parties are invited to comment on these preliminary results. See Disclosure and Public Hearing section, below. We will issue the final results of review no later than 120 days from the date of publication of this notice. EFFECTIVE DATE: July 10, 2008. FOR FURTHER INFORMATION CONTACT: Scott Lindsay, AD/CVD Operations, Office 6, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482–0780. SUPPLEMENTARY INFORMATION: On June 24, 2005, the Department published in the Federal Register an antidumping duty order on chlorinated isos from Spain. See Chlorinated Isocyanurates from Spain: Notice of Antidumping Duty Order, 70 FR 36562 (June 24, 2005). In response to timely requests filed by Petitioners and Aragonesas, the Department published a notice of initiation of an administrative review. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part, 72 FR 41057 (July 26, 2007). The POR for this administrative review is June 1, 2006 through May 31, 2007. On August 24, 2007, the Department issued an antidumping duty questionnaire to Aragonesas. On September 25, 2007, the Department received Aragonesas’s response to section A of the antidumping questionnaire. On October 12, 2007, the Department received Aragonesas’s response to sections B and C of the antidumping questionnaire. On October 23, 2007, the Department received Aragonesas’s response to section D of the antidumping questionnaire. We issued supplemental questionnaires to Aragonesas on November 19, 2007, December 3, 2007, January 3, 2008, and May 15, 2008. Aragonesas filed a timely response to each questionnaire. The Department extended the time limit for the preliminary results by 120 VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 days. See Chlorinated Isocyanurates from Spain: Extension of Time Limit for Preliminary Results of Antidumping Duty Administrative Review, 73 FR 12079 (March 6, 2008). Scope of the Order The products covered by this order are chlorinated isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric acid, described as chlorinated s–triazine triones. There are three primary chemical compositions of chlorinated isocyanurates: (1) trichloroisocyanuric acid (Cl3(NCO)3), (2) sodium dichloroisocyanurate (dihydrate) (NaCl2(NCO)3 2H2O), and (3) sodium dichloroisocyanurate (anhydrous) (NaCl2(NCO)3). Chlorinated isocyanurates are available in powder, granular, and tableted forms. This order covers all chlorinated isocyanurates. Chlorinated isocyanurates are currently classifiable under subheadings 2933.69.6015, 2933.69.6021, and 2933.69.6050 of the Harmonized Tariff Schedule of the United States (‘‘HTSUS’’). The tariff classification 2933.69.6015 covers sodium dichloroisocyanurates (anhydrous and dihydrate forms) and trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and 2933.69.6050 represent basket categories that include chlorinated isocyanurates and other compounds including an unfused triazine ring. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this order is dispositive. Date of Sale Aragonesas reported invoice date as the date of sale for U.S. sales. The Department’s regulations state that ‘‘{i}n identifying the date of sale of the subject merchandise or foreign like product, the Secretary normally will use the date of invoice, as recorded in the exporter or producer’s records kept in the ordinary course of business. However, the Secretary may use a date other than the date of invoice if the Secretary is satisfied that a different date better reflects the date on which the exporter or producer establishes the material terms of sale.’’ See 19 CFR 351.401(i). We examined the questionnaire responses and the sales documentation placed on the record by Aragonesas, and determine that invoice date is the appropriate date of sale in both the U.S. and home markets. However, in accordance with the Department’s practice, whenever shipment date precedes invoice date, we used shipment date as the date of sale. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 39651 See, e.g., Stainless Steel Sheet and Strip in Coils from the Republic of Korea; Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review, 71 FR 18074, 18079–80 (April 10, 2006), remaining unchanged in Stainless Steel Sheet and Strip in Coils from the Republic of Korea; Final Results and Rescission of Antidumping Duty Administrative Review in Part, 72 FR 4486 (January 31, 2007); and Certain Steel Concrete Reinforcing Bars From Turkey; Final Results of Antidumping Duty Administrative Review and New Shipper Review and Determination To Revoke in Part, 72 FR 62630, (November 6, 2007) and accompanying Issues and Decision Memorandum at Issue 2, where the Department finds ‘‘that it is appropriate to use the earlier of shipment or invoice date as Colakoglu’s and Habas’ U.S. date of sale in the instant review, consistent with the date– of-sale methodology established in the previous review.’’ Accordingly, because Aragonesas has reported that shipment date for its U.S. sales always precedes invoice date, we are using shipment date as the date of sale for its U.S. sales. Comparisons to Normal Value To determine whether Aragonesas sold chlorinated isos in the United States at prices less than NV, the Department compared the export price (‘‘EP’’) of individual U.S. sales to the weighted–average NV of sales of the foreign like product made in the ordinary course of trade in a month contemporaneous with the month in which the U.S. sale was made. See section 777A(d)(2) of the Tariff Act of 1930 (‘‘the Act’’); see also section 773(a)(1)(B)(i) of the Act. Section 771(16) of the Act defines foreign like product as merchandise that is identical or similar to subject merchandise and produced by the same person and in the same country as the subject merchandise. Thus, we considered all products covered by the scope of the order that were produced by the same person and in the same country as the subject merchandise, and sold by Aragonesas in the home market during the POR, to be foreign like products for the purpose of determining appropriate product comparisons to chlorinated isos sold in the United States. Product Comparisons In accordance with section 771(16) of the Act, the Department considered all products produced by the respondent, covered by the description in the ‘‘Scope of the Order’’ section above, to be foreign like products for purposes of E:\FR\FM\10JYN1.SGM 10JYN1 39652 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices determining appropriate product comparisons to U.S. sales. Pursuant to 19 CFR 351.414(e)(2), the Department compared U.S. sales made by Aragonesas to sales made in the home market within the contemporaneous window period, which extends from three months prior to the U.S. sale until two months after the sale. Where there were no sales of identical merchandise in the comparison market made in the ordinary course of trade to compare to U.S. sales, the Department compared U.S. sales to sales of the most similar foreign like product made in the ordinary course of trade. In making the product comparisons, the Department used the physical characteristics determined by the Department and reported by Aragonesas, to match foreign like products to U.S. sales: chemical structure, free available chlorine content, physical form, and packaging. Export Price The Department based the price of Aragonesas’s U.S. sales on EP methodology, in accordance with section 772(a) of the Act, because the subject merchandise was sold directly by Aragonesas to the first unaffiliated purchaser in the United States prior to importation and the constructed export price (‘‘CEP’’) methodology was not otherwise indicated. We based EP on packed prices to unaffiliated purchasers in the United States. Aragonesas reported its U.S. sales on a delivered, duty paid basis. We made deductions from the starting price, where appropriate, for foreign inland freight, international freight, foreign inland and marine insurance, foreign and U.S. brokerage and handling, U.S. inland freight, commissions and U.S. duty, in accordance with section 772(c)(2) of the Act and 19 CFR 351.402. jlentini on PROD1PC65 with NOTICES Normal Value After testing home market viability, whether home market sales to affiliates were at arm’s–length prices, and whether home market sales were at below–cost prices, we calculated NV for Aragonesas as noted in the ‘‘Calculation of Normal Value Based on Comparison Market Prices’’ section of this notice. A. Home Market Viability In order to determine whether there was a sufficient volume of sales in the home market to serve as a viable basis for calculating NV, the Department compared Aragonesas’s volume of home market sales of the foreign like product to the volume of U.S. sales of the subject merchandise, in accordance with section 773(a)(1)(C) of the Act. We VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 excluded sales of merchandise that were not foreign like product for reasons that are of a business proprietary nature. See Memorandum to Barbara E. Tillman, Director, AD/CVD Operations, Office 6, ‘‘Whether Certain Merchandise Sold By ´ Aragonesas Industrias y Energıa, S.A. Constitutes Subject Merchandise and Foreign Like Product,’’ dated June 30, 2008 (‘‘Foreign Like Product Memorandum’’). Because Aragonesas’s aggregate volume of home market sales of the foreign like product was greater than five percent of its aggregate volume of U.S. sales for the subject merchandise, the Department determined that its home market was viable. publication date of the initiation of this review. In the Final LTFV Determination, the Department disregarded sales made at prices that were below COP. As a result, in accordance with section 773(b)(2)(A)(ii) of the Act, in this review the Department determined that there are reasonable grounds to believe or suspect that Aragonesas1 sold the foreign like product at prices below the cost of producing the product during the instant POR. Accordingly, the Department required that Aragonesas provide a response to Section D of the questionnaire. B. Arm’s–Length Test The Department may calculate NV based on a sale to an affiliated party only if it is satisfied that the price to the affiliated party is comparable to the prices at which sales are made to parties not affiliated with the exporter or producer, i.e., sales at arm’s–length. See 19 CFR 351.403(c). Sales to affiliated customers for consumption in the home market that are determined not to be at arm’s–length are excluded from our analysis. In this proceeding, Aragonesas reported sales of the foreign like product to affiliated customers. To test whether these sales were made at arm’s–length prices, the Department compared the prices of sales of comparable merchandise to affiliated and unaffiliated customers, net of all movement charges, direct selling expenses, and packing. Pursuant to 19 CFR 351.403(c), and in accordance with the Department’s practice, when the prices charged to an affiliated party were, on average, between 98 and 102 percent of the prices charged to unaffiliated parties for merchandise comparable to that sold to the affiliated party, we determined that the sales to the affiliated party were at arm’s–length. See Antidumping Proceedings: Affiliated Party Sales in the Ordinary Course of Trade, 67 FR 69186, 69187 (November 15, 2002). Where Aragonesas’s sales to affiliated home market customers did not pass the arm’s–length test, we excluded those sales from our analysis. See section 773(b)(1) of the Act. In accordance with section 773(b)(3) of the Act, for each product, sorted by control number, sold by Aragonesas during the POR, the Department calculated Aragonesas’s weighted– average COP based on the sum of its materials and fabrication costs, plus amounts for general and administrative (‘‘G&A’’) expenses and interest expenses. See ‘‘Test of Comparison Market Sales Prices’’ section below for treatment of home market selling expenses. We relied on the COP information provided by Aragonesas in its questionnaire responses. C. Cost of Production Analysis We calculated a margin for Delsa S.A. (Delsa) in Chlorinated Isocyanurates From Spain: Notice of Final Determination of Sales at Less Than Fair Value, 70 FR 24506, 24511 (May 10, 2005) (‘‘Final LTFV Determination’’), which was the most recently completed segment of this proceeding as of the PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 1. Calculation of Cost of Production 2. Test of Comparison Market Sales Prices In order to determine whether sales were made at prices below the COP, on a product–specific basis, the Department compared Aragonesas’s adjusted weighted–average COP to the home market sales of the foreign like product, as required under section 773(b) of the Act. In accordance with sections 773(b)(1)(A) and (B) of the Act, in determining whether to disregard home market sales made at prices less than the COP, we examined whether such sales were made: (1) in substantial quantities within an extended period of time; and (2) at prices which permitted the recovery of all costs within a reasonable period of time in the normal course of trade. The prices were inclusive of billing adjustments and exclusive of any applicable movement charges, discounts and rebates, direct and indirect selling expenses, and packing expenses, revised where appropriate. 1 The Department determined Aragonesas to be the successor-in-interest to Delsa. See Chlorinated Isocyanurates from Spain: Preliminary Results of Antidumping Duty Administrative Review, 72 FR 37189 (July 9, 2007) (unchanged in final results, see Chlorinated Isocyanurates from Spain: Final Results of Antidumping Duty Administrative Review, 72 FR 64194 (November 17, 2007)). E:\FR\FM\10JYN1.SGM 10JYN1 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices jlentini on PROD1PC65 with NOTICES 3. Results of the COP Test Pursuant to section 773(b)(2)(C) of the Act, where less than 20 percent of a respondent’s home market sales of a given product are at prices less than the COP, the Department does not disregard any below cost sales of that product, because the Department determines that in such instances the below cost sales were not made within an extended period of time and in ‘‘substantial quantities.’’ Where 20 percent or more of a respondent’s sales of a given product are at prices less than the COP, the Department disregards the below cost sales because they: (1) were made within an extended period of time in ‘‘substantial quantities,’’ in accordance with sections 773(b)(2)(B) and (C) of the Act; and (2) based on our comparison of prices to the weighted–average COPs for the POR, were at prices which would not permit the recovery of all costs within a reasonable period of time, in accordance with section 773(b)(2)(D) of the Act. Based on the results of our test, we found that, for certain products, more than 20 percent of Aragonesas’s home market sales were at prices less than the COP and, in addition, such sales did not provide for the recovery of costs within a reasonable period of time. We therefore excluded these sales and used the remaining sales as the basis for determining NV, in accordance with section 773(b)(1) of the Act. D. Calculation of Normal Value Based on Comparison Market Prices We based NV on the prices at which the foreign like product was first sold by Aragonesas for consumption in the home market, in the usual commercial quantities, in the ordinary course of trade, and, to the extent possible, at the same level of trade (‘‘LOT’’) as the comparison U.S. sale. We excluded sales of merchandise that were not foreign like product, for reasons that are of a business proprietary nature. See Foreign Like Product Memorandum. We calculated NV for Aragonesas using the reported gross unit prices to unaffiliated purchasers, or where appropriate, affiliated purchasers. Aragonesas reported that it offers its home market customers the following terms of delivery: carriage insurance paid, carriage paid, delivered duty paid, delivered duty unpaid, ex–works, and free carrier. Where appropriate, the Department made adjustments to the starting price for billing adjustments. We also deducted home market movement expenses pursuant to section 773(a)(6)(B) of the Act. We deducted, where appropriate, discounts and rebates, pursuant to section VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 773(a)(6)(B)(ii) of the Act. See Memorandum from Scott Lindsay, International Trade Compliance Analyst, to the File, ‘‘Calculation Memorandum for the Preliminary Results for Aragonesas Industrias y Energia S.A.,’’ dated June 30, 2008. We also made adjustments for differences in costs attributable to differences in the physical characteristics of the merchandise, in accordance with section 773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. In addition, the Department made adjustments under section 773(a)(6)(C)(iii) of the Act and 19 CFR 351.410 for differences in circumstances of sale for imputed credit and warranty expenses. We also deducted home market packing costs and added U.S. packing costs, in accordance with section 773(a)(6)(A) and (B) of the Act. We also made the appropriate adjustment for commissions paid in the home market pursuant to 773(a)(6)(C)(iii) of the Act and19 CFR 351.410(c). We made adjustments, in accordance with 19 CFR 351.410(e), for indirect selling expenses incurred on comparison market or U.S. sales where commissions were granted on sales in one market but not in the other (i.e., commission offset). Specifically, where commissions are incurred in one market, but not in the other, we limited the amount of such allowance to the amount of either the indirect selling expenses incurred in the one market or the commissions allowed in the other market, whichever is less. Level of Trade In accordance with section 773(a)(1)(B) of the Act, to the extent practicable, the Department determines NV based on sales in the comparison market at the same LOT as the EP or CEP sales in the U.S. market (Aragonesas had only EP sales in the U.S. market). The NV LOT is based on the starting price of the sales in the comparison market. Where NV is based on CV, the Department determines the NV LOT based on the LOT of the sales from which the Department derives selling expenses, general and administrative expenses, and profit for CV, where possible. See Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Fresh Atlantic Salmon From Chile, 63 FR 2664–2670 (January 16, 1998) (unchanged in final determination, see Notice of Final Determination of Sales at Less Than Fair Value: Fresh Atlantic Salmon from Chile, 63 FR 31411, (June 9, 1998)). For EP sales, the U.S. LOT is based on the PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 39653 starting price of the sales to the U.S. market. To determine whether NV sales are at a different LOT than EP sales, the Department examines stages in the marketing process and level of selling functions along the chain of distribution between the producer and the customer. See 19 CFR 351.412(c)(2). Substantial differences in selling activities are a necessary, but not sufficient, condition for determining that there is a difference in the stages of marketing. Id.; see also Notice of Final Determination of Sales at Less Than Fair Value: Certain Cut–toLength Carbon Steel Plate From South Africa, 62 FR 61731, 61732 (November 19, 1997). When the Department is unable to match U.S. sales to foreign like product sales in the comparison market at the same LOT as the EP sale, the Department may compare the U.S. sales to sales at a different LOT in the comparison market. In comparing EP sales at a different LOT in the comparison market, where the difference affects price comparability, as manifested by a pattern of consistent price differences between comparison– market sales at the NV LOT and comparison–market sales at the LOT of the export transaction, the Department makes an LOT adjustment under section 773(a)(7)(A) of the Act. In this administrative review, Aragonesas had only EP sales in the U.S. market, thus the CEP methodology was not employed in this review. The Department obtained information from Aragonesas regarding the marketing stages involved in making the reported home market and U.S. sales, including a description of the selling activities performed for each channel of distribution. Aragonesas reported that it made EP sales in the U.S. market through a single distribution channel (i.e., sales to industrial users). Because all sales in the United States are made through a single distribution channel, we preliminarily determine that there is one LOT in the U.S. market. Aragonesas reported that it made sales in the home market through three channels of distribution (i.e., industrial customers, retail customers, and distributors). We compared the selling functions performed by Aragonesas for these three distribution channels and found that Aragonesas performed similar selling activities in the home market for the retail and distributor channels of distribution, and fewer selling activities for industrial home market customers. Thus, we preliminarily find that the retail and distributor channels of distribution constitute one NV LOT, while the channel of distribution for industrial customers is a second NV E:\FR\FM\10JYN1.SGM 10JYN1 39654 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices jlentini on PROD1PC65 with NOTICES LOT. Moreover, we preliminarily find that the NV LOT for retail and industrial purchasers is at a more advanced stage than the NV LOT for industrial customers. See Memorandum from Scott Lindsay, International Trade Compliance Analyst, through Thomas Gilgunn, Program Manager, to Barbara E. Tillman, Director, AD/CVD Operations, Office 6, ‘‘Level of Trade Analysis: Aragonesas Industrias y ´ Energıa S.A. (Aragonesas),’’ dated June 30, 2008 (LOT Memorandum). Finally, the Department compared the EP LOT to the two home market LOTs. The Department finds that selling activities performed by Aragonesas for industrial users in the U.S. market and home market are similar. Because selling activities for industrial users in the U.S. market (the only LOT in the U.S. market) and industrial users in the home market are similar, the Department preliminarily determines that, for sales to the U.S. and home markets during the POR that were made at this same LOT (i.e., sales to industrial users), the Department will not make an LOT adjustment to NV. However, where the Department matches sales between the U.S. and home markets where the home market sale is made at a more advanced LOT (i.e., retail and distributor channels of distribution) than the sale in the U.S. market, the Department will grant an LOT adjustment to NV because there is a consistent pattern of price differences. For additional details regarding the Department=s LOT analysis, see LOT Memorandum. shipments of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the publication date of the final results of this administrative review, as provided by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for the company listed above 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 participating in this review, 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 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 24.83 percent, the ‘‘All Others’’ rate made effective by the LTFV investigation. See Final LTFV Determination. These requirements, when imposed, shall remain in effect until further notice. Assessment Rates Upon publication of the final results of this review, the Department shall determine, and CBP shall assess, antidumping duties on all appropriate entries. Pursuant to 19 CFR 351.212(b)(1), the Department calculates an assessment rate for each importer of the subject merchandise for each Currency Conversion respondent. In accordance with 19 CFR Pursuant to section 773A(a) of the 351.212(b)(1), we will calculate Act, we converted amounts expressed in importer–specific assessment rates on foreign currencies into U.S. dollar the basis of the ratio of the total amount amounts based on the exchange rates in of antidumping duties calculated for the effect on the dates of the U.S. sales, as examined sales and the total entered reported by the Federal Reserve Bank of value of the examined sales. These rates the United States. will be assessed uniformly on all entries of the respective importers made during Preliminary Results of Review the POR if these preliminary results are As a result of this review, the adopted in the final results of review. Department preliminarily determines The Department intends to issue that the weighted–average dumping appropriate assessment instructions margin for the period June 1, 2006, directly to CBP 15 days after the date of through May 31, 2007, is as follows: publication of the final results of this review. WeightedThe Department clarified its Average ‘‘automatic assessment’’ regulation on Manufacturer/Exporter Margin May 6, 2003. See Antidumping and (percentage) Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 ´ Aragonesas Industrias y Energıa FR 23954 (May 6, 2003) (Assessment S.A. ......................................... 4.16 Policy Notice). This clarification applies to entries of subject merchandise during Cash Deposit Requirements the POR produced by any company The following cash deposit included in the final results of review requirements will be effective for all for which the reviewed company did VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 not know that the merchandise it sold to the intermediary (e.g., a reseller, trading company, or exporter) was destined for the United States. In such instances, the Department will instruct CBP to liquidate unreviewed entries at the ‘‘All Others’’ rate if there is no rate for the intermediary involved in the transaction. See Assessment Policy Notice for a full discussion of this clarification. Disclosure and Public Hearing We will disclose the calculations used in our analysis to parties to this segment of the proceeding within five days of the public announcement of this notice. See 19 CFR 351.224(b). Interested parties who wish to request a hearing, or to participate if one is requested, must submit a written request to the Assistant Secretary for Import Administration, Room B–099, within 30 days of the date of publication of this notice. Requests should contain: (1) the party=s name, address and telephone number; (2) the number of participants; and (3) a list of issues to be discussed. See 19 CFR 351.310(c). Pursuant to 19 CFR 351.309, interested parties may submit written comments in response to these preliminary results. Unless the time period is extended by the Department, case briefs are to be submitted within 30 days after the date of publication of this notice in the Federal Register (see 19 CFR 351.309(c)). Rebuttal briefs, which must be limited to arguments raised in case briefs, are to be submitted no later than five days after the time limit for filing case briefs. See 19 CFR 351.309(d). Parties who submit arguments in this proceeding are requested to submit with the argument: (1) a statement of the issues; (2) a brief summary of the argument; and (3) a table of authorities cited. Further, we request that parties submitting written comments provide the Department with a diskette containing an electronic copy of the public version of such comments. Case and rebuttal briefs must be served on interested parties, in accordance with 19 CFR 351.303(f). Unless extended, the Department will issue the final results of this administrative review, including the results of its analysis of issues raised in any written briefs, not later than 120 days after the date of publication of this notice, pursuant to section 751(a)(3)(A) of the Act. 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 E:\FR\FM\10JYN1.SGM 10JYN1 Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary’s presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. This administrative review and notice are published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221. Dated: June 30, 2008. David M. Spooner, Assistant Secretary for Import Administration. [FR Doc. E8–15736 Filed 7–9–08; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration [A–533–809] Certain Forged Stainless Steel Flanges From India; Final Results of Antidumping Duty Changed Circumstances Review Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) has determined, pursuant to section 751(b) of the Tariff Act of 1930, as amended (the Tariff Act), that India Steel Works, Ltd. (India Steel) is the successor-in-interest to Isibars, Ltd. (Isibars). As a result, India Steel will be accorded the same treatment previously accorded to Isibars in regard to the antidumping duty order on certain forged stainless steel flanges from India as of the date of publication of this notice in the Federal Register. DATES: Effective Date: July 10, 2008. FOR FURTHER INFORMATION CONTACT: Fred Baker or Robert James, AD/CVD Operations, Office 7, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482–2924 or (202) 482– 0649, respectively. SUPPLEMENTARY INFORMATION: jlentini on PROD1PC65 with NOTICES AGENCY: Background On February 26, 2008, India Steel requested that the Department conduct a changed circumstances review of the antidumping duty order on stainless steel flanges from India pursuant to section 751(b) of the Tariff Act and 19 CFR 351.216. In its request, India Steel claimed that the entity previously VerDate Aug<31>2005 16:58 Jul 09, 2008 Jkt 214001 known to the Department as Isibars had changed its name to India Steel, and that India Steel should therefore be assigned the same antidumping duty cash deposit rate as Isibars. In response to this request, the Department initiated a changed circumstances review of the antidumping duty order on forged stainless steel flanges from India. See Notice of Initiation of Antidumping Duty Changed Circumstances Review: Certain Forged Stainless Steel Flanges from India, 73 FR 14959 (March 20, 2008). On March 20, 2008, the Department issued a questionnaire to India Steel requesting information about its relation to Isibars. The Department received India Steel’s response on April 16, 2008. On May 19, 2008, the Department preliminarily determined that India Steel was the successor-ininterest to Isibars. See Certain Forged Stainless Steel Flanges from India; Preliminary Results of Antidumping Duty Changed Circumstances Review, 73 FR 28798 (May 19, 2008) (Preliminary Results). We invited parties to comment on the Preliminary Results. We received no comments. Scope of the Order The products covered by this order are certain forged stainless steel flanges, both finished and not finished, generally manufactured to specification ASTM A–182, and made in alloys such as 304, 304L, 316, and 316L. The scope includes five general types of flanges. They are weld-neck, used for butt-weld line connection; threaded, used for threaded line connections; slip-on and lap joint, used with stub-ends/butt-weld line connections; socket weld, used to fit pipe into a machined recession; and blind, used to seal off a line. The sizes of the flanges within the scope range generally from one to six inches; however, all sizes of the abovedescribed merchandise are included in the scope. Specifically excluded from the scope of this order are cast stainless steel flanges. Cast stainless steel flanges generally are manufactured to specification ASTM A–351. The flanges subject to this order are currently classifiable under subheadings 7307.21.1000 and 7307.21.5000 of the Harmonized Tariff Schedule (HTS). Although the HTS subheading is provided for convenience and customs purposes, the written description of the merchandise under review is dispositive. Final Results of Changed Circumstances Review For the reasons stated in the Preliminary Results, and because the Department did not receive any PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 39655 comments during the comment period following the preliminary results of this review, the Department continues to find that India Steel is the successor-ininterest to Isibars for antidumping duty cash deposit purposes. Instructions to U.S. Customs and Border Protection The Department will instruct CBP to suspend liquidation of all shipments of the subject merchandise produced and exported by India Steel entered, or withdrawn from warehouse, for consumption on or after the publication date of this notice at zero percent (i.e., Isibar’s cash deposit rate). This deposit rate shall remain in effect until publication of the final results of the next administrative review in which India Steel participates. This notice also serves as a reminder to parties subject to administrative protective orders (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.306. Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. This notice in accordance with sections 751(b) and 777(i)(1) of the Tariff Act, and section 351.221(c)(3)(i) of the Department’s regulations. Dated: July 2, 2008. David M. Spooner, Assistant Secretary for Import Administration. [FR Doc. E8–15734 Filed 7–9–08; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–803] Heavy Forged Hand Tools, Finished or Unfinished, With or Without Handles, From the People’s Republic of China: Notice of Extension of Time Limit for the Final Results of Antidumping Duty Administrative Review Import Administration, International Trade Administration, Department of Commerce. DATES: Effective Date: July 10, 2008. FOR FURTHER INFORMATION CONTACT: Javier Barrientos, AD/CVD Operations, Office 9, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., AGENCY: E:\FR\FM\10JYN1.SGM 10JYN1

Agencies

[Federal Register Volume 73, Number 133 (Thursday, July 10, 2008)]
[Notices]
[Pages 39650-39655]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15736]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-469-814)


Chlorinated Isocyanurates from Spain: Preliminary Results of 
Antidumping Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to timely requests by Biolab, Inc., Clearon 
Corporation and Occidental Chemical Corporation (collectively, 
``Petitioners''), and Aragonesas Industrias y Energ[iacute]a S.A. 
(``Aragonesas''), the Department of Commerce (``Department'') is 
conducting an administrative review of the antidumping duty order on 
chlorinated isocyanurates (``chlorinated

[[Page 39651]]

isos'') from Spain with respect to Aragonesas. The period of review 
(``POR'') is June 1, 2006 through May 31, 2007.
    The Department preliminarily determines that Aragonesas made U.S. 
sales of chlorinated isos at prices less than normal value (``NV''). 
See Preliminary Results of Review section, below. If these preliminary 
results are adopted in our final results of administrative review, the 
Department will instruct U.S. Customs and Border Protection (``CBP'') 
to assess antidumping duties on all appropriate entries. Interested 
parties are invited to comment on these preliminary results. See 
Disclosure and Public Hearing section, below. We will issue the final 
results of review no later than 120 days from the date of publication 
of this notice.

EFFECTIVE DATE: July 10, 2008.

FOR FURTHER INFORMATION CONTACT: Scott Lindsay, AD/CVD Operations, 
Office 6, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone (202) 482-0780.

SUPPLEMENTARY INFORMATION: On June 24, 2005, the Department published 
in the Federal Register an antidumping duty order on chlorinated isos 
from Spain. See Chlorinated Isocyanurates from Spain: Notice of 
Antidumping Duty Order, 70 FR 36562 (June 24, 2005). In response to 
timely requests filed by Petitioners and Aragonesas, the Department 
published a notice of initiation of an administrative review. See 
Initiation of Antidumping and Countervailing Duty Administrative 
Reviews and Request for Revocation in Part, 72 FR 41057 (July 26, 
2007). The POR for this administrative review is June 1, 2006 through 
May 31, 2007.
    On August 24, 2007, the Department issued an antidumping duty 
questionnaire to Aragonesas. On September 25, 2007, the Department 
received Aragonesas's response to section A of the antidumping 
questionnaire. On October 12, 2007, the Department received 
Aragonesas's response to sections B and C of the antidumping 
questionnaire. On October 23, 2007, the Department received 
Aragonesas's response to section D of the antidumping questionnaire. We 
issued supplemental questionnaires to Aragonesas on November 19, 2007, 
December 3, 2007, January 3, 2008, and May 15, 2008. Aragonesas filed a 
timely response to each questionnaire.
    The Department extended the time limit for the preliminary results 
by 120 days. See Chlorinated Isocyanurates from Spain: Extension of 
Time Limit for Preliminary Results of Antidumping Duty Administrative 
Review, 73 FR 12079 (March 6, 2008).

Scope of the Order

    The products covered by this order are chlorinated isocyanurates. 
Chlorinated isocyanurates are derivatives of cyanuric acid, described 
as chlorinated s-triazine triones. There are three primary chemical 
compositions of chlorinated isocyanurates: (1) trichloroisocyanuric 
acid (Cl3(NCO)3), (2) sodium dichloroisocyanurate (dihydrate) 
(NaCl2(NCO)3 2H2O), and (3) sodium dichloroisocyanurate (anhydrous) 
(NaCl2(NCO)3). Chlorinated isocyanurates are available in powder, 
granular, and tableted forms. This order covers all chlorinated 
isocyanurates.
    Chlorinated isocyanurates are currently classifiable under 
subheadings 2933.69.6015, 2933.69.6021, and 2933.69.6050 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). The tariff 
classification 2933.69.6015 covers sodium dichloroisocyanurates 
(anhydrous and dihydrate forms) and trichloroisocyanuric acid. The 
tariff classifications 2933.69.6021 and 2933.69.6050 represent basket 
categories that include chlorinated isocyanurates and other compounds 
including an unfused triazine ring. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the scope of this order is dispositive.

Date of Sale

    Aragonesas reported invoice date as the date of sale for U.S. 
sales. The Department's regulations state that ``{i{time} n identifying 
the date of sale of the subject merchandise or foreign like product, 
the Secretary normally will use the date of invoice, as recorded in the 
exporter or producer's records kept in the ordinary course of business. 
However, the Secretary may use a date other than the date of invoice if 
the Secretary is satisfied that a different date better reflects the 
date on which the exporter or producer establishes the material terms 
of sale.'' See 19 CFR 351.401(i). We examined the questionnaire 
responses and the sales documentation placed on the record by 
Aragonesas, and determine that invoice date is the appropriate date of 
sale in both the U.S. and home markets.
    However, in accordance with the Department's practice, whenever 
shipment date precedes invoice date, we used shipment date as the date 
of sale. See, e.g., Stainless Steel Sheet and Strip in Coils from the 
Republic of Korea; Preliminary Results and Partial Rescission of 
Antidumping Duty Administrative Review, 71 FR 18074, 18079-80 (April 
10, 2006), remaining unchanged in Stainless Steel Sheet and Strip in 
Coils from the Republic of Korea; Final Results and Rescission of 
Antidumping Duty Administrative Review in Part, 72 FR 4486 (January 31, 
2007); and Certain Steel Concrete Reinforcing Bars From Turkey; Final 
Results of Antidumping Duty Administrative Review and New Shipper 
Review and Determination To Revoke in Part, 72 FR 62630, (November 6, 
2007) and accompanying Issues and Decision Memorandum at Issue 2, where 
the Department finds ``that it is appropriate to use the earlier of 
shipment or invoice date as Colakoglu's and Habas' U.S. date of sale in 
the instant review, consistent with the date-of-sale methodology 
established in the previous review.'' Accordingly, because Aragonesas 
has reported that shipment date for its U.S. sales always precedes 
invoice date, we are using shipment date as the date of sale for its 
U.S. sales.

Comparisons to Normal Value

    To determine whether Aragonesas sold chlorinated isos in the United 
States at prices less than NV, the Department compared the export price 
(``EP'') of individual U.S. sales to the weighted-average NV of sales 
of the foreign like product made in the ordinary course of trade in a 
month contemporaneous with the month in which the U.S. sale was made. 
See section 777A(d)(2) of the Tariff Act of 1930 (``the Act''); see 
also section 773(a)(1)(B)(i) of the Act.
    Section 771(16) of the Act defines foreign like product as 
merchandise that is identical or similar to subject merchandise and 
produced by the same person and in the same country as the subject 
merchandise. Thus, we considered all products covered by the scope of 
the order that were produced by the same person and in the same country 
as the subject merchandise, and sold by Aragonesas in the home market 
during the POR, to be foreign like products for the purpose of 
determining appropriate product comparisons to chlorinated isos sold in 
the United States.

Product Comparisons

    In accordance with section 771(16) of the Act, the Department 
considered all products produced by the respondent, covered by the 
description in the ``Scope of the Order'' section above, to be foreign 
like products for purposes of

[[Page 39652]]

determining appropriate product comparisons to U.S. sales. Pursuant to 
19 CFR 351.414(e)(2), the Department compared U.S. sales made by 
Aragonesas to sales made in the home market within the contemporaneous 
window period, which extends from three months prior to the U.S. sale 
until two months after the sale. Where there were no sales of identical 
merchandise in the comparison market made in the ordinary course of 
trade to compare to U.S. sales, the Department compared U.S. sales to 
sales of the most similar foreign like product made in the ordinary 
course of trade. In making the product comparisons, the Department used 
the physical characteristics determined by the Department and reported 
by Aragonesas, to match foreign like products to U.S. sales: chemical 
structure, free available chlorine content, physical form, and 
packaging.

Export Price

    The Department based the price of Aragonesas's U.S. sales on EP 
methodology, in accordance with section 772(a) of the Act, because the 
subject merchandise was sold directly by Aragonesas to the first 
unaffiliated purchaser in the United States prior to importation and 
the constructed export price (``CEP'') methodology was not otherwise 
indicated. We based EP on packed prices to unaffiliated purchasers in 
the United States. Aragonesas reported its U.S. sales on a delivered, 
duty paid basis. We made deductions from the starting price, where 
appropriate, for foreign inland freight, international freight, foreign 
inland and marine insurance, foreign and U.S. brokerage and handling, 
U.S. inland freight, commissions and U.S. duty, in accordance with 
section 772(c)(2) of the Act and 19 CFR 351.402.

Normal Value

    After testing home market viability, whether home market sales to 
affiliates were at arm's-length prices, and whether home market sales 
were at below-cost prices, we calculated NV for Aragonesas as noted in 
the ``Calculation of Normal Value Based on Comparison Market Prices'' 
section of this notice.

A. Home Market Viability

    In order to determine whether there was a sufficient volume of 
sales in the home market to serve as a viable basis for calculating NV, 
the Department compared Aragonesas's volume of home market sales of the 
foreign like product to the volume of U.S. sales of the subject 
merchandise, in accordance with section 773(a)(1)(C) of the Act. We 
excluded sales of merchandise that were not foreign like product for 
reasons that are of a business proprietary nature. See Memorandum to 
Barbara E. Tillman, Director, AD/CVD Operations, Office 6, ``Whether 
Certain Merchandise Sold By Aragonesas Industrias y Energ[iacute]a, 
S.A. Constitutes Subject Merchandise and Foreign Like Product,'' dated 
June 30, 2008 (``Foreign Like Product Memorandum''). Because 
Aragonesas's aggregate volume of home market sales of the foreign like 
product was greater than five percent of its aggregate volume of U.S. 
sales for the subject merchandise, the Department determined that its 
home market was viable.

B. Arm's-Length Test

    The Department may calculate NV based on a sale to an affiliated 
party only if it is satisfied that the price to the affiliated party is 
comparable to the prices at which sales are made to parties not 
affiliated with the exporter or producer, i.e., sales at arm's-length. 
See 19 CFR 351.403(c). Sales to affiliated customers for consumption in 
the home market that are determined not to be at arm's-length are 
excluded from our analysis. In this proceeding, Aragonesas reported 
sales of the foreign like product to affiliated customers. To test 
whether these sales were made at arm's-length prices, the Department 
compared the prices of sales of comparable merchandise to affiliated 
and unaffiliated customers, net of all movement charges, direct selling 
expenses, and packing. Pursuant to 19 CFR 351.403(c), and in accordance 
with the Department's practice, when the prices charged to an 
affiliated party were, on average, between 98 and 102 percent of the 
prices charged to unaffiliated parties for merchandise comparable to 
that sold to the affiliated party, we determined that the sales to the 
affiliated party were at arm's-length. See Antidumping Proceedings: 
Affiliated Party Sales in the Ordinary Course of Trade, 67 FR 69186, 
69187 (November 15, 2002). Where Aragonesas's sales to affiliated home 
market customers did not pass the arm's-length test, we excluded those 
sales from our analysis. See section 773(b)(1) of the Act.

C. Cost of Production Analysis

    We calculated a margin for Delsa S.A. (Delsa) in Chlorinated 
Isocyanurates From Spain: Notice of Final Determination of Sales at 
Less Than Fair Value, 70 FR 24506, 24511 (May 10, 2005) (``Final LTFV 
Determination''), which was the most recently completed segment of this 
proceeding as of the publication date of the initiation of this review. 
In the Final LTFV Determination, the Department disregarded sales made 
at prices that were below COP. As a result, in accordance with section 
773(b)(2)(A)(ii) of the Act, in this review the Department determined 
that there are reasonable grounds to believe or suspect that 
Aragonesas\1\ sold the foreign like product at prices below the cost of 
producing the product during the instant POR. Accordingly, the 
Department required that Aragonesas provide a response to Section D of 
the questionnaire.
---------------------------------------------------------------------------

    \1\ The Department determined Aragonesas to be the successor-in-
interest to Delsa. See Chlorinated Isocyanurates from Spain: 
Preliminary Results of Antidumping Duty Administrative Review, 72 FR 
37189 (July 9, 2007) (unchanged in final results, see Chlorinated 
Isocyanurates from Spain: Final Results of Antidumping Duty 
Administrative Review, 72 FR 64194 (November 17, 2007)).
---------------------------------------------------------------------------

1. Calculation of Cost of Production
    In accordance with section 773(b)(3) of the Act, for each product, 
sorted by control number, sold by Aragonesas during the POR, the 
Department calculated Aragonesas's weighted-average COP based on the 
sum of its materials and fabrication costs, plus amounts for general 
and administrative (``G&A'') expenses and interest expenses. See ``Test 
of Comparison Market Sales Prices'' section below for treatment of home 
market selling expenses. We relied on the COP information provided by 
Aragonesas in its questionnaire responses.
2. Test of Comparison Market Sales Prices
    In order to determine whether sales were made at prices below the 
COP, on a product-specific basis, the Department compared Aragonesas's 
adjusted weighted-average COP to the home market sales of the foreign 
like product, as required under section 773(b) of the Act. In 
accordance with sections 773(b)(1)(A) and (B) of the Act, in 
determining whether to disregard home market sales made at prices less 
than the COP, we examined whether such sales were made: (1) in 
substantial quantities within an extended period of time; and (2) at 
prices which permitted the recovery of all costs within a reasonable 
period of time in the normal course of trade. The prices were inclusive 
of billing adjustments and exclusive of any applicable movement 
charges, discounts and rebates, direct and indirect selling expenses, 
and packing expenses, revised where appropriate.

[[Page 39653]]

3. Results of the COP Test
    Pursuant to section 773(b)(2)(C) of the Act, where less than 20 
percent of a respondent's home market sales of a given product are at 
prices less than the COP, the Department does not disregard any below 
cost sales of that product, because the Department determines that in 
such instances the below cost sales were not made within an extended 
period of time and in ``substantial quantities.'' Where 20 percent or 
more of a respondent's sales of a given product are at prices less than 
the COP, the Department disregards the below cost sales because they: 
(1) were made within an extended period of time in ``substantial 
quantities,'' in accordance with sections 773(b)(2)(B) and (C) of the 
Act; and (2) based on our comparison of prices to the weighted-average 
COPs for the POR, were at prices which would not permit the recovery of 
all costs within a reasonable period of time, in accordance with 
section 773(b)(2)(D) of the Act. Based on the results of our test, we 
found that, for certain products, more than 20 percent of Aragonesas's 
home market sales were at prices less than the COP and, in addition, 
such sales did not provide for the recovery of costs within a 
reasonable period of time. We therefore excluded these sales and used 
the remaining sales as the basis for determining NV, in accordance with 
section 773(b)(1) of the Act.
D. Calculation of Normal Value Based on Comparison Market Prices
    We based NV on the prices at which the foreign like product was 
first sold by Aragonesas for consumption in the home market, in the 
usual commercial quantities, in the ordinary course of trade, and, to 
the extent possible, at the same level of trade (``LOT'') as the 
comparison U.S. sale. We excluded sales of merchandise that were not 
foreign like product, for reasons that are of a business proprietary 
nature. See Foreign Like Product Memorandum. We calculated NV for 
Aragonesas using the reported gross unit prices to unaffiliated 
purchasers, or where appropriate, affiliated purchasers. Aragonesas 
reported that it offers its home market customers the following terms 
of delivery: carriage insurance paid, carriage paid, delivered duty 
paid, delivered duty unpaid, ex-works, and free carrier. Where 
appropriate, the Department made adjustments to the starting price for 
billing adjustments. We also deducted home market movement expenses 
pursuant to section 773(a)(6)(B) of the Act. We deducted, where 
appropriate, discounts and rebates, pursuant to section 
773(a)(6)(B)(ii) of the Act. See Memorandum from Scott Lindsay, 
International Trade Compliance Analyst, to the File, ``Calculation 
Memorandum for the Preliminary Results for Aragonesas Industrias y 
Energia S.A.,'' dated June 30, 2008. We also made adjustments for 
differences in costs attributable to differences in the physical 
characteristics of the merchandise, in accordance with section 
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. In addition, the 
Department made adjustments under section 773(a)(6)(C)(iii) of the Act 
and 19 CFR 351.410 for differences in circumstances of sale for imputed 
credit and warranty expenses. We also deducted home market packing 
costs and added U.S. packing costs, in accordance with section 
773(a)(6)(A) and (B) of the Act.
    We also made the appropriate adjustment for commissions paid in the 
home market pursuant to 773(a)(6)(C)(iii) of the Act and19 CFR 
351.410(c). We made adjustments, in accordance with 19 CFR 351.410(e), 
for indirect selling expenses incurred on comparison market or U.S. 
sales where commissions were granted on sales in one market but not in 
the other (i.e., commission offset). Specifically, where commissions 
are incurred in one market, but not in the other, we limited the amount 
of such allowance to the amount of either the indirect selling expenses 
incurred in the one market or the commissions allowed in the other 
market, whichever is less.

Level of Trade

    In accordance with section 773(a)(1)(B) of the Act, to the extent 
practicable, the Department determines NV based on sales in the 
comparison market at the same LOT as the EP or CEP sales in the U.S. 
market (Aragonesas had only EP sales in the U.S. market). The NV LOT is 
based on the starting price of the sales in the comparison market. 
Where NV is based on CV, the Department determines the NV LOT based on 
the LOT of the sales from which the Department derives selling 
expenses, general and administrative expenses, and profit for CV, where 
possible. See Notice of Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination: Fresh Atlantic 
Salmon From Chile, 63 FR 2664-2670 (January 16, 1998) (unchanged in 
final determination, see Notice of Final Determination of Sales at Less 
Than Fair Value: Fresh Atlantic Salmon from Chile, 63 FR 31411, (June 
9, 1998)). For EP sales, the U.S. LOT is based on the starting price of 
the sales to the U.S. market.
    To determine whether NV sales are at a different LOT than EP sales, 
the Department examines stages in the marketing process and level of 
selling functions along the chain of distribution between the producer 
and the customer. See 19 CFR 351.412(c)(2). Substantial differences in 
selling activities are a necessary, but not sufficient, condition for 
determining that there is a difference in the stages of marketing. Id.; 
see also 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). When the Department is unable to 
match U.S. sales to foreign like product sales in the comparison market 
at the same LOT as the EP sale, the Department may compare the U.S. 
sales to sales at a different LOT in the comparison market. In 
comparing EP sales at a different LOT in the comparison market, where 
the difference affects price comparability, as manifested by a pattern 
of consistent price differences between comparison-market sales at the 
NV LOT and comparison-market sales at the LOT of the export 
transaction, the Department makes an LOT adjustment under section 
773(a)(7)(A) of the Act.
    In this administrative review, Aragonesas had only EP sales in the 
U.S. market, thus the CEP methodology was not employed in this review. 
The Department obtained information from Aragonesas regarding the 
marketing stages involved in making the reported home market and U.S. 
sales, including a description of the selling activities performed for 
each channel of distribution. Aragonesas reported that it made EP sales 
in the U.S. market through a single distribution channel (i.e., sales 
to industrial users). Because all sales in the United States are made 
through a single distribution channel, we preliminarily determine that 
there is one LOT in the U.S. market. Aragonesas reported that it made 
sales in the home market through three channels of distribution (i.e., 
industrial customers, retail customers, and distributors). We compared 
the selling functions performed by Aragonesas for these three 
distribution channels and found that Aragonesas performed similar 
selling activities in the home market for the retail and distributor 
channels of distribution, and fewer selling activities for industrial 
home market customers. Thus, we preliminarily find that the retail and 
distributor channels of distribution constitute one NV LOT, while the 
channel of distribution for industrial customers is a second NV

[[Page 39654]]

LOT. Moreover, we preliminarily find that the NV LOT for retail and 
industrial purchasers is at a more advanced stage than the NV LOT for 
industrial customers. See Memorandum from Scott Lindsay, International 
Trade Compliance Analyst, through Thomas Gilgunn, Program Manager, to 
Barbara E. Tillman, Director, AD/CVD Operations, Office 6, ``Level of 
Trade Analysis: Aragonesas Industrias y Energ[iacute]a S.A. 
(Aragonesas),'' dated June 30, 2008 (LOT Memorandum).
    Finally, the Department compared the EP LOT to the two home market 
LOTs. The Department finds that selling activities performed by 
Aragonesas for industrial users in the U.S. market and home market are 
similar. Because selling activities for industrial users in the U.S. 
market (the only LOT in the U.S. market) and industrial users in the 
home market are similar, the Department preliminarily determines that, 
for sales to the U.S. and home markets during the POR that were made at 
this same LOT (i.e., sales to industrial users), the Department will 
not make an LOT adjustment to NV. However, where the Department matches 
sales between the U.S. and home markets where the home market sale is 
made at a more advanced LOT (i.e., retail and distributor channels of 
distribution) than the sale in the U.S. market, the Department will 
grant an LOT adjustment to NV because there is a consistent pattern of 
price differences. For additional details regarding the Department=s 
LOT analysis, see LOT Memorandum.

Currency Conversion

    Pursuant to section 773A(a) of the Act, we converted amounts 
expressed in foreign currencies into U.S. dollar amounts based on the 
exchange rates in effect on the dates of the U.S. sales, as reported by 
the Federal Reserve Bank of the United States.

Preliminary Results of Review

    As a result of this review, the Department preliminarily determines 
that the weighted-average dumping margin for the period June 1, 2006, 
through May 31, 2007, is as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               Average
                   Manufacturer/Exporter                       Margin
                                                            (percentage)
------------------------------------------------------------------------
Aragonesas Industrias y Energ[iacute]a S.A................         4.16
------------------------------------------------------------------------

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 this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) the cash deposit rate for the company 
listed above 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 participating in this review, 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 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 24.83 percent, the ``All Others'' rate made effective by 
the LTFV investigation. See Final LTFV Determination. These 
requirements, when imposed, shall remain in effect until further 
notice.

Assessment Rates

    Upon publication of the final results of this review, the 
Department shall determine, and CBP shall assess, antidumping duties on 
all appropriate entries. Pursuant to 19 CFR 351.212(b)(1), the 
Department calculates an assessment rate for each importer of the 
subject merchandise for each respondent. In accordance with 19 CFR 
351.212(b)(1), we will calculate importer-specific assessment rates on 
the basis of the ratio of the total amount of antidumping duties 
calculated for the examined sales and the total entered value of the 
examined sales. These rates will be assessed uniformly on all entries 
of the respective importers made during the POR if these preliminary 
results are adopted in the final results of review. The Department 
intends to issue appropriate assessment instructions directly to CBP 15 
days after the date of publication of the final results of this review.
    The Department clarified its ``automatic assessment'' regulation on 
May 6, 2003. See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment 
Policy Notice). This clarification applies to entries of subject 
merchandise during the POR produced by any company included in the 
final results of review for which the reviewed company did not know 
that the merchandise it sold to the intermediary (e.g., a reseller, 
trading company, or exporter) was destined for the United States. In 
such instances, the Department will instruct CBP to liquidate 
unreviewed entries at the ``All Others'' rate if there is no rate for 
the intermediary involved in the transaction. See Assessment Policy 
Notice for a full discussion of this clarification.

Disclosure and Public Hearing

    We will disclose the calculations used in our analysis to parties 
to this segment of the proceeding within five days of the public 
announcement of this notice. See 19 CFR 351.224(b). Interested parties 
who wish to request a hearing, or to participate if one is requested, 
must submit a written request to the Assistant Secretary for Import 
Administration, Room B-099, within 30 days of the date of publication 
of this notice. Requests should contain: (1) the party=s name, address 
and telephone number; (2) the number of participants; and (3) a list of 
issues to be discussed. See 19 CFR 351.310(c).
    Pursuant to 19 CFR 351.309, interested parties may submit written 
comments in response to these preliminary results. Unless the time 
period is extended by the Department, case briefs are to be submitted 
within 30 days after the date of publication of this notice in the 
Federal Register (see 19 CFR 351.309(c)). Rebuttal briefs, which must 
be limited to arguments raised in case briefs, are to be submitted no 
later than five days after the time limit for filing case briefs. See 
19 CFR 351.309(d). Parties who submit arguments in this proceeding are 
requested to submit with the argument: (1) a statement of the issues; 
(2) a brief summary of the argument; and (3) a table of authorities 
cited. Further, we request that parties submitting written comments 
provide the Department with a diskette containing an electronic copy of 
the public version of such comments. Case and rebuttal briefs must be 
served on interested parties, in accordance with 19 CFR 351.303(f).
    Unless extended, the Department will issue the final results of 
this administrative review, including the results of its analysis of 
issues raised in any written briefs, not later than 120 days after the 
date of publication of this notice, pursuant to section 751(a)(3)(A) of 
the Act.

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

[[Page 39655]]

regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This administrative review and notice are published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221.

    Dated: June 30, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-15736 Filed 7-9-08; 8:45 am]
BILLING CODE 3510-DS-S
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