Chlorinated Isocyanurates from Spain: Preliminary Results of Antidumping Duty Administrative Review, 39650-39655 [E8-15736]
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39650
Federal Register / Vol. 73, No. 133 / Thursday, July 10, 2008 / Notices
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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
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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:
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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
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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.
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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
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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.
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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
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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
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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)).
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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
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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
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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
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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
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16:58 Jul 09, 2008
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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
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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
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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
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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:
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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]
-----------------------------------------------------------------------
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