1-Hydroxyethylidene-1, 1-Diphosphonic Acid from India: Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 62465-62470 [E8-25026]
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Federal Register / Vol. 73, No. 204 / Tuesday, October 21, 2008 / Notices
62465
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DEPARTMENT OF COMMERCE
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1–Hydroxyethylidene–1, 1–
Diphosphonic Acid from India: Notice
of Preliminary Determination of Sales
at Less Than Fair Value and
Postponement of Final Determination
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (the Department)
preliminarily determines that 1–
hydroxyethylidene–1, 1–diphosphonic
acid (HEDP) from India is being, or is
likely to be, sold in the United States at
less than fair value (LTFV), as provided
in section 733(b) of the Tariff Act of
1930, as amended (the Act). The
estimated margins of sales at LTFV are
listed in the ‘‘Preliminary
Determination’’ section of this notice.
Interested parties are invited to
comment on this preliminary
determination. Pursuant to requests
from interested parties, we are
postponing for 60 days the final
AGENCY:
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Federal Register / Vol. 73, No. 204 / Tuesday, October 21, 2008 / Notices
determination and extending
provisional measures from a four-month
period to not more than six months.
Accordingly, we will make our final
determination not later than 135 days
after publication of the preliminary
determination.
EFFECTIVE DATE:
October 21, 2008.
FOR FURTHER INFORMATION CONTACT:
Brian Smith and Gemal Brangman, AD/
CVD Operations, Office 2, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone (202) 482–1766 and (202)
482–3773, respectively.
SUPPLEMENTARY INFORMATION:
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Background
On April 8, 2008, the Department
initiated an antidumping duty
investigation of HEDP from India. See
1–Hydroxyethylidene–1, 1–
Diphosphonic Acid from the Republic of
India and the People’s Republic of
China: Initiation of Antidumping Duty
Investigations, 73 FR 20023 (April 14,
2008) (Initiation Notice). The petitioner
in this investigation is Compass
Chemical Co. (the Petitioner).
The Department set aside a period of
time for parties to raise issues regarding
product coverage and encouraged all
parties to submit comments within 20
calendar days of publication of the
Initiation Notice. See Initiation Notice,
73 FR at 20023; see also Antidumping
Duties; Countervailing Duties; Final
Rule, 62 FR 27296, 27323 (May 19,
1997).
On May 12, 2008, the United States
International Trade Commission (ITC)
preliminarily determined that there is a
reasonable indication that imports of
HEDP from India are materially injuring
the U.S. industry and the ITC notified
the Department of its findings. See 1–
Hydroxyethylidene–1, 1–Diphosphonic
Acid (HEDP) from China and India
Investigation Nos. 731–TA–1146–1147
(Preliminary), 73 FR 28507 (May 16,
2008).
On May 6, 2008, we selected
Aquapharm Chemicals Private Limited
(Aquapharm) as the mandatory
respondent in this proceeding. See
Memorandum from James Maeder,
Office Director, to Stephen J. Claeys,
Deputy Assistant Secretary, entitled:
‘‘Antidumping Duty Investigation of 1–
Hydroxyethylidene–1, 1–Diphosphonic
Acid from India—Selection of
Respondents for Individual Review,’’
dated May 6, 2008. We subsequently
issued the antidumping questionnaire to
Aquapharm on May 9, 2008.
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On June 16, 2008, Aquapharm
submitted its response to section A of
the questionnaire (i.e., the section
involving general information). On July
15, 2008, Aquapharm responded to
sections B and C of the questionnaire
(i.e., the sections involving sales to the
home and U.S. markets, respectively).
On July 30, 2008, the petitioner made
a timely request pursuant to 19 CFR
351.205(e) for a 50-day postponement of
the preliminary determination in this
investigation. On August 22, 2008,
pursuant to section 733(c)(1)(A) of the
Act, the Department postponed the
preliminary determination until no later
than October 15, 2008. See 1–
Hydroxyethylidene–1, 1–Diphosphonic
Acid from the Republic of India and the
People’s Republic of China:
Postponement of Preliminary
Determinations of Antidumping Duty
Investigations, 73 FR 49646 (August 22,
2008).
During August and September 2008,
the Department requested additional
information from Aquapharm regarding
its responses to sections A through C of
the questionnaire. Aquapharm provided
this information in September and
October 2008.
On October 1, 2008, Aquapharm
requested that in the event of an
affirmative preliminary determination
in this investigation, the Department: 1)
postpone its final determination by 60
days in accordance with 19 CFR
351.210(2)(ii) and 735(a)(2)(A) of the
Act; and 2) extend the application of the
provisional measures prescribed under
19 CFR 351.210(e)(2) from a four-month
period to a six-month period.
On October 6, 2008, the petitioner
requested that in the event of a negative
preliminary determination in this
investigation, the Department postpone
the final determination by 60 days in
accordance with 19 CFR 351.210(b)(2)(i)
and section 735(a)(2)(B) of the Act.
Postponement of Final Determination
and Extension of Provisional Measures
Section 735(a)(2) of the Act provides
that a final determination may be
postponed until not later than 135 days
after the date of the publication of the
preliminary determination if, in the
event of an affirmative preliminary
determination, a request for such
postponement is made by exporters,
who account for a significant proportion
of exports of the subject merchandise, or
in the event of a negative preliminary
determination, a request for such
postponement is made by the petitioner.
The Department’s regulations, at 19 CFR
351.210(e)(2), require that requests by
respondents for postponement of a final
determination be accompanied by a
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request for extension of provisional
measures from a four-month period to
not more than six months.
On October 1, 2008, Aquapharm
requested that in the event of an
affirmative preliminary determination
in this investigation, the Department
postpone its final determination by 60
days. At the same time, Aquapharm
requested that the Department extend
the application of the provisional
measures prescribed under 19 CFR
351.210(e)(2) from a four-month period
to a six-month period. In accordance
with section 733(d) of the Act and 19
CFR 351.210(b), because (1) our
preliminary determination is
affirmative, (2) the requesting exporter
accounts for a significant proportion of
exports of the subject merchandise, and
(3) no compelling reasons for denial
exist, we are granting this request and
are postponing the final determination
until no later than 135 days after the
publication of this notice in the Federal
Register. Suspension of liquidation will
be extended accordingly.
Period of Investigation
The period of investigation (POI) is
January 1, 2007, to December 31, 2007.
This period corresponds to the four
most recent fiscal quarters prior to the
month of the filing of the petition.
Scope of Investigation
The merchandise covered by this
investigation includes all grades of
aqueous, acidic (non–neutralized)
concentrations of 1–hydroxyethylidene–
1, 1–diphosphonic acid1, also referred
to as hydroxethlylidenediphosphonic
acid, hydroxyethanediphosphonic acid,
acetodiphosphonic acid, and etidronic
acid. The CAS (Chemical Abstract
Service) registry number for HEDP is
2809–21–4. The merchandise subject to
this investigation is currently classified
in the Harmonized Tariff Schedule of
the United States (HTSUS) at
subheading 2931.00.9043. It may also
enter under HTSUS subheading
2811.19.6090. While HTSUS
subheadings are provided for
convenience and customs purposes
only, the written description of the
scope of this investigation is dispositive.
Scope Comments
In accordance with the preamble to
the Department’s regulations (see
Antidumping Duties; Countervailing
Duties; Final Rule, 62 FR 27296, 27323
(May 19, 1997)), in our Initiation Notice
we set aside a period of time for parties
to raise issues regarding product
coverage, and encouraged all parties to
1C
2H8O7P2
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or C(CH3)(OH)(PO3H2)2
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submit comments within 20 calendar
days of publication of the Initiation
Notice. No parties submitted scope
comments in this proceeding.
Fair Value Comparisons
To determine whether sales of HEDP
from India to the United States were
made at LTFV, we compared the export
price (EP) or constructed export price
(CEP) to normal value (NV), as
described in the ‘‘Export Price and
Constructed Export Price’’ and ‘‘Normal
Value’’ sections of this notice. In
accordance with section 777A(d)(1) of
the Act, we compared POI weighted–
average EPs and CEPs to POI weighted–
average NVs. See discussion below.
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U.S. Date of Sale
It is the Department’s normal practice
to use the date of invoice as the date of
sale. The Department’s regulations
provide that the Department may use a
date other than the date of invoice if it
is satisfied that a different date better
reflects the date on which the exporter
or producer establishes the material
terms of sale (e.g., price and quantity).
See 19 CFR 351.401(i); see also Allied
Tube and Conduit Corp. v. United
States, 132 F. Supp. 2d 1087, 1090–92
(CIT 2001). Aquapharm reported invoice
date as its date of sale for its home
market sales during the POI. However
for its U.S. sales during the POI,
Aquapharm reported either the invoice
date, the date of what it claimed was a
‘‘long–term contract,’’ or purchase order
date as the date of sale. For its sales of
HEDP in drums made to one U.S.
customer (hereafter referred to as
‘‘Customer A’’) during the POI and sales
of HEDP in bulk form made to the same
customer after February 2, 2007,
Aquapharm used the date of an email
acceptance of its price/quantity offer
from the customer (which Aquapharm
refers to as a ‘‘long–term contract’’ in its
questionnaire responses) as the date of
sale, claiming that the essential terms of
sale did not change after the email
acceptance.2 For its sales of HEDP in
2 The sales process associated with Customer A
is as follows: Customer A sends a request for
proposal (RFP) to Aquapharm via email for certain
projected annual quantities of HEDP. Aquapharm
emails its RFP price offer for the stated quantities
back to the customer. Aquapharm claims that the
terms of sale do not change after the customer has
accepted Aquapharm’s offer via email. Customer A
requires that Aquapharm maintain inventory in the
United States at an unaffiliated warehouse for
logistical convenience. Aquapharm issues two
invoices for sales made to Customer A: it issues the
first invoice upon shipment of the subject
merchandise to the unaffiliated U.S. warehouse
(this invoice does not go to the U.S. customer) and
then issues a corresponding invoice to the customer
at the time of delivery of the subject merchandise
from the U.S. warehouse to the customer.
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bulk form made to Customer A before
February 2, 2007, Aquapharm based the
date of sale on the date of the sales
invoice issued at the time the HEDP was
shipped from India, because it did not
have a ‘‘long–term contract’’ in place
with Customer A for HEDP in bulk form
before February 2, 2007. For its POI
HEDP sales to another U.S. customer
(hereafter referred to as ‘‘Customer B’’),
Aquapharm used the date of the
purchase order from the customer as the
date of sale, claiming that the essential
terms of sale did not change after receipt
of the customer’s purchase order.
In this case, our examination of the
submitted sample sales documentation
relevant to Customer A indicates that
the ‘‘long–term contract’’ referred to by
Aquapharm is actually an exchange of
emails with its customer conveying the
RFP, RFP offer and acceptance of the
RFP offer. This email exchange is not
clear with respect to certain terms of
sale (e.g., payment terms), and there is
no evidence on the record to suggest
that it was binding on the parties. With
respect to the submitted sales
documentation relevant to Customer B,
the purchase order does not appear to
establish all essential terms of sale (e.g.,
payment terms). Moreover, the
respondent has not sufficiently
demonstrated that material changes to
the purchase order and/or ‘‘long–term
contract’’ were not possible. In addition,
with respect to the sales made to
Customer A, the respondent has not
sufficiently demonstrated that changes
to the material terms of sale between the
issuance of the invoice at the time of
shipment of the subject merchandise
from India (‘‘first invoice’’) and the
invoice to the customer were not
possible.
Therefore, for purposes of the
preliminary determination, we have
used the date of the sales invoice issued
to the U.S. customer as the date of sale
for all of the respondent’s POI U.S. sales
of HEDP. As discussed above, the terms
of the purchase order or ‘‘long–term
contract’’ did not appear to be binding
on the parties, nor did it appear to
establish all essential terms of sale.
Furthermore, the respondent has not
sufficiently demonstrated its claim that
in the normal course of business no
Irrespective of its date of sale claims with respect
to sales made to Customer A, Aquapharm initially
reported all U.S. sales made to Customer A
pursuant to invoices issued at the time of shipment
from India which fell within the POI, not invoices
actually issued to the customer at the time of
delivery which fell within the POI. Pursuant to the
Department’s request, Aquapharm subsequently
revised its U.S. sales reporting to also include any
sales of subject merchandise made to Customer A
for which the date of the sales invoice issued to the
customer fell within the POI.
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62467
changes to the material terms of sale are
possible between the date of ‘‘long–term
contract’’ or purchase order, and the
date of invoice to the customer.
U.S. Sales Type Designation
Section 772(a) of the Act defines EP
as ‘‘the price at which the subject
merchandise is first sold (or agreed to be
sold) before the date of importation by
the producer or exporter of the subject
merchandise outside the United States
to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States .’’ (Emphasis added.) Section
772(b) defines CEP as ‘‘the price at
which the subject merchandise is first
sold (or agreed to be sold) in the United
States before or after the date of
importation by or for the account of the
producer or exporter of such
merchandise or by a seller affiliated
with the producer or exporter, to a
purchaser not affiliated with the
producer or exporter .’’ (Emphasis
added.)
Aquapharm characterized its U.S.
sales to Customer A as EP sales, and its
sales to Customer B as both EP and CEP
depending on the sales/distribution
channel.3 With respect to its sales to
Customer A, Aquapharm claims that
because the essential terms of sale are
set by it in India on the date of ‘‘long–
term contract’’ (or date of ‘‘first invoice’’
in the case of sales of HEDP in bulk
form before February 2, 2007) prior to
importation of the subject merchandise
into the United States, these sales
should be classified as EP sales.
However, only after the merchandise
enters the United States, is placed in an
unaffiliated warehouse and is released
for delivery to Customer A does
Aquapharm issue the sales invoice to
Customer A.
Given that we have preliminarily
determined that the date of the sales
invoice issued to the U.S. customer is
the appropriate basis for the U.S. date of
sale, Aquapharm’s EP sales
classification with respect to Customer
A no longer holds because the invoice
is issued to the customer, and thus the
sale is made, after the merchandise is
imported into the United States.
Therefore, for the preliminary
determination, we are treating all of
Aquapharm’s U.S. sales to Customer A
as CEP sales transactions, consistent
with the definition of CEP under section
772(b) of the Act, because the sales were
made after importation of the subject
merchandise into the United States.
3 We have accepted Aquapharm’s sales type
designation for sales made to Customer B for
purposes of the preliminary determination.
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Normal Value
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Export Price and Constructed Export
Price
In accordance with section 772(a) of
the Act, we calculated EP for those sales
where the subject merchandise was sold
to the first unaffiliated purchaser in the
United States prior to importation by
the exporter or producer outside the
United States. We based EP on the
packed price to unaffiliated purchasers
in the United States. Where appropriate,
we adjusted prices for billing
adjustments. We made deductions for
movement expenses in accordance with
section 772(c)(2)(A) of the Act; these
included, where appropriate, foreign
inland freight from plant to the port of
exportation, foreign inland insurance,
foreign brokerage and handling, U.S.
brokerage and handling, international
freight, U.S. inland freight to customer,
marine insurance, and U.S. customs
duties (including harbor maintenance
fees and merchandise processing fees).
Pursuant to section 772(b) of the Act,
we calculated CEP for those sales where
the subject merchandise was sold in the
United States after the date of
importation by or for the account of the
producer or exporter to a purchaser not
affiliated with the producer or exporter.
We based CEP on the packed
delivered prices to unaffiliated
purchasers in the United States. When
appropriate, we adjusted prices for
billing adjustments. We made
deductions for movement expenses, in
accordance with section 772(c)(2)(A) of
the Act; these included, where
appropriate, foreign inland freight from
plant to the port of exportation, foreign
inland insurance, foreign brokerage and
handling, U.S. brokerage and handling,
international freight, marine insurance,
U.S. customs duties (including harbor
maintenance fees and merchandise
processing fees), and warehouse
expenses. Consistent with the U.S. date
of sale determination discussed above,
we treated warehouse expenses as pre–
sale expenses associated with the
movement of the subject merchandise to
the U.S. market. In accordance with
section 772(d)(1) of the Act and 19 CFR
351.402(b), we deducted those selling
expenses associated with economic
activities occurring in the United States,
including direct selling expenses (i.e.,
credit expenses, commissions, and bank
charges), and indirect selling expenses
(including inventory carrying costs). We
also deducted from CEP an amount for
profit in accordance with sections
772(d)(3) and (f) of the Act. See
Calculation Memorandum dated
October 15, 2008, for further discussion
of the CEP profit calculation.
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A. Home Market Viability and
Comparison Market Selection
To determine whether there was a
sufficient volume of sales in the home
market to serve as a viable basis for
calculating NV (i.e., the aggregate
volume of home market sales of the
foreign like product is equal to or
greater than five percent of the aggregate
volume of U.S. sales), we compared
Aquapharm’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. Based on
this comparison, we determined that
Aquapharm had a viable home market
during the POI. Consequently, we based
NV on home market sales.
B. Level of Trade
In accordance with section
773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on
sales in the comparison market at the
same level of trade (LOT) as the EP or
CEP. Pursuant to 19 CFR 351.412(c)(1),
the NV LOT is that of the starting–price
sales in the comparison market or, when
NV is based on constructed value, that
of the sales from which we derive
selling, general and administrative
expenses, and profit. For EP, the U.S.
LOT is also the level of the starting–
price sale, which is usually from
exporter to importer. For CEP, it is the
level of the constructed sale from the
exporter to the importer.
To determine whether NV sales are at
a different LOT than EP or CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. See 19 CFR
351.412(c)(2). If the comparison–market
sales are at a different LOT, and the
difference affects price comparability, as
manifested in a pattern of consistent
price differences between the sales on
which NV is based and comparisonmarket sales at the LOT of the export
transaction, we make an LOT
adjustment under section 773(a)(7)(A) of
the Act. Finally, for CEP sales, if the NV
level is more remote from the factory
than the CEP level and there is no basis
for determining whether the difference
in levels between NV and CEP affects
price comparability, we adjust NV
under section 773(a)(7)(B) of the Act
(the CEP–offset provision). See 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).
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In this investigation, we obtained
information from Aquapharm regarding
the marketing stages involved in making
its reported home market and U.S. sales,
including a description of the selling
activities performed by the respondent
for each channel of distribution.
As discussed above in the ‘‘U.S. Date
of Sale’’ and ‘‘U.S. Sales Type
Designation’’ sections of this notice, for
purposes of this preliminary
determination, we relied on the sales
invoice issued to the U.S. customer for
determining the U.S. date of sale and
Aquapharm’s U.S. sales reporting
requirement. As a result of relying on
the sales invoice to the U.S. customer as
the basis for determining the date of
sale, we also designated all of
Aquapharm’s sales to Customer A as
CEP sales. Therefore, we have taken this
sales reclassification determination into
account in our preliminary LOT
analysis below.
Aquapharm had CEP sales in the U.S.
market through the following channel of
distribution: sales through an
unaffiliated U.S. selling agent to two
unaffiliated U.S. distributors of HEDP
maintained in inventory at an
unaffiliated U.S. warehouse (Channel 1).
In addition, Aquapharm had EP sales in
the U.S. market through the following
channel of distribution: direct sales/
shipments to an unaffiliated U.S.
distributor (Channel 2).
We examined the selling activities
performed for both U.S. sales channels
and found that Aquapharm performed
the following selling functions for each
channel: sales forecasting, order input/
processing, direct sales personnel,
packing, freight and delivery services,
inventory maintenance, technical
assistance, warranty service, and after–
sales service. These selling activities can
be generally grouped into four selling
function categories for analysis: 1) sales
and marketing; 2) freight and delivery;
3) warehousing and inventory; and 4)
warranty and technical support.
Accordingly, based on the four selling
function categories, we find that
Aquapharm performed sales and
marketing, freight and delivery services,
and warranty and technical services for
U.S. sales. Although Aquapharm
performed additional freight and
delivery functions (such as repacking)
and warehousing functions for its sales
through Channel 1, we did not find
these differences to be material selling
function distinctions which are
significant enough to warrant a separate
LOT in the U.S. market. Therefore, we
preliminarily determine that there is
one LOT in the U.S. market because
Aquapharm performed essentially the
same selling functions for all U.S. sales.
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mstockstill on PROD1PC66 with NOTICES
With respect to the home market,
Aquapharm made sales through the
following channels of distribution: 1)
sales to unaffiliated end–users (Channel
1); and 2) sales to unaffiliated
distributors (Channel 2). We examined
the selling activities performed for each
home market sales channel and found
that Aquapharm performed the
following selling functions for sales
made through both channels: sales
forecasting, order input/processing,
advertising, direct sales personnel,
sales/marketing support, market
research, packing, freight and delivery
services, inventory maintenance,
technical assistance, and warranty
service. Accordingly, based on the four
selling function categories, we find that
Aquapharm performed sales and
marketing, freight and delivery services,
inventory maintenance and
warehousing, and warranty and
technical services in the home market.
Moreover, we did not find any
significant distinctions between the
selling functions Aquapharm performed
in each home market channel to warrant
a separate LOT in the home market.
Therefore, we preliminarily determine
that there is one LOT in the home
market because Aquapharm performed
essentially the same selling functions
for all home market sales.
Finally, we compared the U.S. LOT to
the home market LOT and found that
the selling functions performed for
home market sales are either performed
at the same degree of intensity as, or
vary only slightly from, the selling
functions performed for U.S. sales.
Specifically, we found that with respect
to the four selling function categories,
there are only slight differences in the
level of intensity between the home and
U.S. markets which are not a sufficient
basis to determine separate LOTs
between the two markets. Therefore, we
find that the single NV LOT and single
U.S. LOT are the same. Accordingly, we
matched U.S. and home market sales at
the same LOT.
C. Calculation of Normal Value Based
on Comparison Market Prices
We based NV for Aquapharm on
delivered prices to unaffiliated
customers in the home market. We
made deductions, where appropriate,
from the starting price for inland freight
expenses and inland insurance
expenses, under section 773(a)(6)(B)(ii)
of the Act. Where appropriate, we also
added freight and insurance revenue to
the starting price.
Pursuant to section 773(a)(6)(C)(iii) of
the Act and 19 CFR 351.410(b), we
made, where appropriate,
circumstance–of-sale adjustments for
VerDate Aug<31>2005
17:06 Oct 20, 2008
Jkt 217001
imputed credit expenses and bank
charges. We also 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 the other.
Specifically, for comparisons to CEP, we
made an adjustment to NV for home
market indirect selling expenses and
inventory carry costs to offset U.S.
commissions. We also deducted home
market packing costs and added U.S.
packing costs, in accordance with
sections 773(a)(6)(A) and (B) of the Act.
Currency Conversion
We made currency conversions into
U.S. dollars in accordance with section
773A(a) of the Act based on exchange
rates in effect on the dates of the U.S.
sales, as certified by the Federal Reserve
Bank.
Verification
As provided in section 782(i) of the
Act, we intend to verify all information
relied upon in making our final
determination for Aquapharm.
62469
section 776 of the Act. Aquapharm is
the only respondent in this investigation
for which the Department calculated a
company–specific rate. Therefore, for
purposes of determining the ‘‘All
Others’’ rate and pursuant to section
735(c)(5)(4) of the Act, we are using the
weighted–average dumping margin
calculated for Aquapharm, as referenced
above. See, e.g., Notice of Final
Determination of Sales at Less Than
Fair Value: Stainless Steel Sheet and
Strip in Coils From Italy, 64 FR 30750,
30755 (June 8, 1999); Final Affirmative
Countervailing Duty Determination:
Pure Magnesium From Israel, 66 FR
49351, 49353 (September 27, 2001); and
Notice of Final Determination of Sales
at Less Than Fair Value: Coated Free
Sheet Paper from Indonesia, 72 FR
60636 (October 25, 2007).
Disclosure
We will disclose the calculations
performed in connection with our
preliminary determination to parties in
this proceeding in accordance with 19
CFR 351.224(b).
ITC Notification
In accordance with section 733(f) of
the Act, we have notified the ITC of the
The weighted–average dumping
Department’s preliminary affirmative
margins in the preliminary
determination. If the Department’s final
determination are as follows:
determination is affirmative, pursuant to
Weighted–Average section 735(b)(2) of the Act, the ITC will
Manufacturer/Exporter
Margin (percent)
determine before the later of 120 days
after the date of this preliminary
Aquapharm Chemicals
determination or 45 days after our final
Pvt. Ltd. .....................
3.91
determination whether imports of HEDP
All Others ......................
3.91
from India are materially injuring, or
threaten material injury to, the U.S.
Suspension of Liquidation
industry. Because we have postponed
In accordance with section 733(d)(2)
the deadline for our final determination
of the Act, we are directing CBP to
to 135 days from the date of the
suspend liquidation of all entries of
publication of this preliminary
HEDP from India as described in the
determination, the ITC will make its
‘‘Scope of Investigation’’ section that are final determination within 45 days of
entered, or withdrawn from warehouse, our final determination.
for consumption on or after the date of
publication of this notice in the Federal Public Comment
Interested parties are invited to
Register. We are also instructing CBP to
comment on the preliminary
require a cash deposit or the posting of
determination. Interested parties may
a bond equal to the weighted–average
submit case briefs to the Department no
dumping margins, as indicated above.
later than seven days after the date of
These suspension–of-liquidation
the issuance of the verification report in
instructions will remain in effect until
this proceeding. Rebuttal briefs, the
further notice.
content of which is limited to the issues
All Others Rate
raised in the case briefs, must be filed
Section 735(c)(5)(4) of the Act
within five days from the deadline date
provides that the estimated ‘‘All Others’’ for the submission of case briefs. A list
rate shall be an amount equal to the
of authorities used, a table of contents,
weighted average of the estimated
and an executive summary of issues
weighted–average dumping margins
should accompany any briefs submitted
established for exporters and producers
to the Department. Executive summaries
individually investigated, excluding any should be limited to five pages total,
zero or de minimis margins, and any
including footnotes. Further, we request
margins determined entirely under
that parties submitting briefs and
Preliminary Determination
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
E:\FR\FM\21OCN1.SGM
21OCN1
62470
Federal Register / Vol. 73, No. 204 / Tuesday, October 21, 2008 / Notices
rebuttal briefs provide the Department
with a copy of the public version of
such briefs on diskette. In accordance
with section 774 of the Act, the
Department will hold a public hearing,
if timely requested, to afford interested
parties an opportunity to comment on
arguments raised in case or rebuttal
briefs, provided that such a hearing is
requested by an interested party. If a
timely request for a hearing is made in
this investigation, we intend to hold the
hearing two days after the rebuttal brief
deadline date at the U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230, at
a time and in a room to be determined.
Parties should confirm by telephone, the
date, time, and location of the hearing
48 hours before the scheduled date.
Interested parties who wish to request
a hearing, or to participate in a hearing
if one is requested, must submit a
written request to the Assistant
Secretary for Import Administration,
U.S. Department of Commerce, Room
1870, within 30 days of the 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 the issues
to be discussed. At the hearing, oral
presentations will be limited to issues
raised in the briefs.
This determination is issued and
published pursuant to sections 733(f)
and 777(i)(1) of the Act.
Dated: October 15, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
[FR Doc. E8–25026 Filed 10–20–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–934]
1-Hydroxyethylidene-1,1-Diphosphonic
Acid From the People’s Republic of
China: Preliminary Determination of
Sales at Less Than Fair Value and
Postponement of Final Determination
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: October 21, 2008.
SUMMARY: The Department of Commerce
(the ‘‘Department’’) preliminarily
determines that 1-hydroxyethylidene-1,
1-diphosphonic acid (‘‘HEDP’’) from the
People’s Republic of China (‘‘PRC’’) is
being, or is likely to be, sold in the
United States at less than fair value
(‘‘LTFV’’), as provided in section 733 of
mstockstill on PROD1PC66 with NOTICES
AGENCY:
VerDate Aug<31>2005
17:06 Oct 20, 2008
Jkt 217001
the Tariff Act of 1930, as amended (the
‘‘Act’’). The estimated dumping margins
are shown in the ‘‘Preliminary
Determination Margins’’ section of this
notice.
FOR FURTHER INFORMATION CONTACT:
Maisha Cryor or Shawn Higgins, AD/
CVD Operations, Office 4, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–5831 and (202)
482–0679, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 19, 2008, the Department
received a petition concerning imports
of HEDP from the PRC filed in proper
form by Compass Chemical
International LLC (‘‘Petitioner’’). See
‘‘Request for the Imposition of
Antidumping Duties on Imports of 1Hydroxyethylidene-1, 1-Diphosphonic
Acid from the People’s Republic of
China and Republic of India,’’ dated
March 19, 2008 (‘‘Petition’’). The
Department initiated an antidumping
duty investigation of HEDP from the
PRC on April 8, 2008. See 1Hydroxyethylidene-1, 1-Diphosphonic
Acid From the Republic of India and the
People’s Republic of China: Initiation of
Antidumping Duty Investigations, 73 FR
20023 (April 14, 2008) (‘‘Initiation
Notice’’).
On April 9, 2008, the Department
requested quantity and value (‘‘Q&V’’)
information from the 10 companies that
are identified in the Petition as potential
producers or exporters of HEDP from
the PRC. See Exhibit AD–3 of the
Petition. The Department received
timely responses to its Q&V
questionnaire from the following
companies: Changzhou Wujin Fine
Chemical Factory Co., Ltd. (‘‘Wujin Fine
Chemical’’), Changzhou Kewei Fine
Chemical Factory (‘‘Kewei’’), BWA
Water Additives U.S. LLC (‘‘BWA’’),
Nanjing University of Chemical
Technology Changzhou Wujin Water
Quality Stabilizer Factory Ltd. (‘‘Wujin
Water’’), and Jiangsu Jianghai Chemical
Group Co., Ltd (‘‘Jiangsu Jianghai’’).1 Six
companies to which the Department
sent the Q&V questionnaire received the
questionnaire but did not respond.
These non-responsive companies were
Kelien Chemical Co., Ltd., Cathay
Pigments/Advanced Chemical Ltd.,
1 Because Jiangsu Jianghai was not identified in
the Petition as a potential producer or exporter of
HEDP from the PRC, the Department did not send
Jiangsu a Q&V questionnaire publicly available on
our Web site for producers and exporters of HEDP
from the PRC that were not named in the Petition.
PO 00000
Frm 00010
Fmt 4703
Sfmt 4703
Jiangyin Boxin Chemical Co., Ltd.,
Changzhou Kejia Chemical Co., Ltd.,
Shandong Taihe Water Treatment Co.,
Ltd., and Hebei Fuhui Water Treatment
Co., Ltd. (‘‘Non-Responsive
Companies’’).
On May 2, 2008, the International
Trade Commission (‘‘ITC’’)
preliminarily determined that there is a
reasonable indication that an industry
in the United States is materially
injured by reason of imports of HEDP
from the PRC. See 1-Hydroxyethylidene1, 1-Diphosphonic Acid From China
and India, Investigation Nos. 731-TA–
1146 and 731–TA–1147 (Preliminary),
73 FR 28507 (May 16, 2008).
On May 30, 2008, the Department
selected Wujin Water and Kewei as
mandatory respondents and issued
antidumping questionnaires to the
companies. See Memorandum regarding
‘‘Selection of Respondents in the
Antidumping Investigation of 1Hydroxyethylidene, 1-Diphosphonic
Acid from the People’s Republic of
China,’’ dated May 30, 2008
(‘‘Respondent Selection
Memorandum’’). See also letter
regarding ‘‘Public Treatment of BWA’s
Supplier,’’ dated April 14, 2008. Wujin
Water submitted timely responses to the
Department’s antidumping
questionnaire on June 23, 2008, and July
25, 2008. On June 10, 2008, the
Department received separate-rate
applications from Jiangsu Jianghai,
Wujin Fine Chemical, and Kewei. On
June 25, 2008, Kewei notified the
Department that it decided to no longer
participate in this investigation, and did
not intend to submit responses to the
Department’s antidumping
questionnaire. See memorandum
regarding ‘‘Phone Conversation with
Counsel to Changzhou Kewei Fine
Chemical Factory Co., Ltd.,’’ dated June
30, 2008 (‘‘Kewei Withdrawal
Memorandum’’).
The Department issued supplemental
questionnaires to, and received
responses from, Wujin Water, Wujin
Fine Chemical, and Jiangsu Jianghai
from June through October 2008.
Petitioner submitted comments to the
Department regarding Wujin Water’s
responses to sections C and D of the
antidumping questionnaire in August
and September 2008.
On June 17, 2008, the Department
released a memorandum to interested
parties which listed potential surrogate
countries and invited interested parties
to comment on surrogate country and
surrogate value selection. From June
through September 2008, Petitioner and
Wujin Water submitted comments on
the appropriate surrogate country and
surrogate values.
E:\FR\FM\21OCN1.SGM
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Agencies
[Federal Register Volume 73, Number 204 (Tuesday, October 21, 2008)]
[Notices]
[Pages 62465-62470]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25026]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
(A-533-847)
1-Hydroxyethylidene-1, 1-Diphosphonic Acid from India: Notice of
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (the Department) preliminarily
determines that 1-hydroxyethylidene-1, 1-diphosphonic acid (HEDP) from
India is being, or is likely to be, sold in the United States at less
than fair value (LTFV), as provided in section 733(b) of the Tariff Act
of 1930, as amended (the Act). The estimated margins of sales at LTFV
are listed in the ``Preliminary Determination'' section of this notice.
Interested parties are invited to comment on this preliminary
determination. Pursuant to requests from interested parties, we are
postponing for 60 days the final
[[Page 62466]]
determination and extending provisional measures from a four-month
period to not more than six months. Accordingly, we will make our final
determination not later than 135 days after publication of the
preliminary determination.
EFFECTIVE DATE: October 21, 2008.
FOR FURTHER INFORMATION CONTACT: Brian Smith and Gemal Brangman, AD/CVD
Operations, Office 2, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-1766
and (202) 482-3773, respectively.
SUPPLEMENTARY INFORMATION:
Background
On April 8, 2008, the Department initiated an antidumping duty
investigation of HEDP from India. See 1-Hydroxyethylidene-1, 1-
Diphosphonic Acid from the Republic of India and the People's Republic
of China: Initiation of Antidumping Duty Investigations, 73 FR 20023
(April 14, 2008) (Initiation Notice). The petitioner in this
investigation is Compass Chemical Co. (the Petitioner).
The Department set aside a period of time for parties to raise
issues regarding product coverage and encouraged all parties to submit
comments within 20 calendar days of publication of the Initiation
Notice. See Initiation Notice, 73 FR at 20023; see also Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997).
On May 12, 2008, the United States International Trade Commission
(ITC) preliminarily determined that there is a reasonable indication
that imports of HEDP from India are materially injuring the U.S.
industry and the ITC notified the Department of its findings. See 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid (HEDP) from China and India
Investigation Nos. 731-TA-1146-1147 (Preliminary), 73 FR 28507 (May 16,
2008).
On May 6, 2008, we selected Aquapharm Chemicals Private Limited
(Aquapharm) as the mandatory respondent in this proceeding. See
Memorandum from James Maeder, Office Director, to Stephen J. Claeys,
Deputy Assistant Secretary, entitled: ``Antidumping Duty Investigation
of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from India--Selection of
Respondents for Individual Review,'' dated May 6, 2008. We subsequently
issued the antidumping questionnaire to Aquapharm on May 9, 2008.
On June 16, 2008, Aquapharm submitted its response to section A of
the questionnaire (i.e., the section involving general information). On
July 15, 2008, Aquapharm responded to sections B and C of the
questionnaire (i.e., the sections involving sales to the home and U.S.
markets, respectively).
On July 30, 2008, the petitioner made a timely request pursuant to
19 CFR 351.205(e) for a 50-day postponement of the preliminary
determination in this investigation. On August 22, 2008, pursuant to
section 733(c)(1)(A) of the Act, the Department postponed the
preliminary determination until no later than October 15, 2008. See 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid from the Republic of India and
the People's Republic of China: Postponement of Preliminary
Determinations of Antidumping Duty Investigations, 73 FR 49646 (August
22, 2008).
During August and September 2008, the Department requested
additional information from Aquapharm regarding its responses to
sections A through C of the questionnaire. Aquapharm provided this
information in September and October 2008.
On October 1, 2008, Aquapharm requested that in the event of an
affirmative preliminary determination in this investigation, the
Department: 1) postpone its final determination by 60 days in
accordance with 19 CFR 351.210(2)(ii) and 735(a)(2)(A) of the Act; and
2) extend the application of the provisional measures prescribed under
19 CFR 351.210(e)(2) from a four-month period to a six-month period.
On October 6, 2008, the petitioner requested that in the event of a
negative preliminary determination in this investigation, the
Department postpone the final determination by 60 days in accordance
with 19 CFR 351.210(b)(2)(i) and section 735(a)(2)(B) of the Act.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters, who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. The Department's regulations, at 19 CFR 351.210(e)(2),
require that requests by respondents for postponement of a final
determination be accompanied by a request for extension of provisional
measures from a four-month period to not more than six months.
On October 1, 2008, Aquapharm requested that in the event of an
affirmative preliminary determination in this investigation, the
Department postpone its final determination by 60 days. At the same
time, Aquapharm requested that the Department extend the application of
the provisional measures prescribed under 19 CFR 351.210(e)(2) from a
four-month period to a six-month period. In accordance with section
733(d) of the Act and 19 CFR 351.210(b), because (1) our preliminary
determination is affirmative, (2) the requesting exporter accounts for
a significant proportion of exports of the subject merchandise, and (3)
no compelling reasons for denial exist, we are granting this request
and are postponing the final determination until no later than 135 days
after the publication of this notice in the Federal Register.
Suspension of liquidation will be extended accordingly.
Period of Investigation
The period of investigation (POI) is January 1, 2007, to December
31, 2007. This period corresponds to the four most recent fiscal
quarters prior to the month of the filing of the petition.
Scope of Investigation
The merchandise covered by this investigation includes all grades
of aqueous, acidic (non-neutralized) concentrations of 1-
hydroxyethylidene-1, 1-diphosphonic acid\1\, also referred to as
hydroxethlylidenediphosphonic acid, hydroxyethanediphosphonic acid,
acetodiphosphonic acid, and etidronic acid. The CAS (Chemical Abstract
Service) registry number for HEDP is 2809-21-4. The merchandise subject
to this investigation is currently classified in the Harmonized Tariff
Schedule of the United States (HTSUS) at subheading 2931.00.9043. It
may also enter under HTSUS subheading 2811.19.6090. While HTSUS
subheadings are provided for convenience and customs purposes only, the
written description of the scope of this investigation is dispositive.
---------------------------------------------------------------------------
\1\ C[bdi2]H[bdi8]O[bdi7]P[bdi2] or
C(CH[bdi3])(OH)(PO[bdi3]H[bdi2])[bdi2]
---------------------------------------------------------------------------
Scope Comments
In accordance with the preamble to the Department's regulations
(see Antidumping Duties; Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997)), in our Initiation Notice we set aside a
period of time for parties to raise issues regarding product coverage,
and encouraged all parties to
[[Page 62467]]
submit comments within 20 calendar days of publication of the
Initiation Notice. No parties submitted scope comments in this
proceeding.
Fair Value Comparisons
To determine whether sales of HEDP from India to the United States
were made at LTFV, we compared the export price (EP) or constructed
export price (CEP) to normal value (NV), as described in the ``Export
Price and Constructed Export Price'' and ``Normal Value'' sections of
this notice. In accordance with section 777A(d)(1) of the Act, we
compared POI weighted-average EPs and CEPs to POI weighted-average NVs.
See discussion below.
U.S. Date of Sale
It is the Department's normal practice to use the date of invoice
as the date of sale. The Department's regulations provide that the
Department may use a date other than the date of invoice if it is
satisfied that a different date better reflects the date on which the
exporter or producer establishes the material terms of sale (e.g.,
price and quantity). See 19 CFR 351.401(i); see also Allied Tube and
Conduit Corp. v. United States, 132 F. Supp. 2d 1087, 1090-92 (CIT
2001). Aquapharm reported invoice date as its date of sale for its home
market sales during the POI. However for its U.S. sales during the POI,
Aquapharm reported either the invoice date, the date of what it claimed
was a ``long-term contract,'' or purchase order date as the date of
sale. For its sales of HEDP in drums made to one U.S. customer
(hereafter referred to as ``Customer A'') during the POI and sales of
HEDP in bulk form made to the same customer after February 2, 2007,
Aquapharm used the date of an email acceptance of its price/quantity
offer from the customer (which Aquapharm refers to as a ``long-term
contract'' in its questionnaire responses) as the date of sale,
claiming that the essential terms of sale did not change after the
email acceptance.\2\ For its sales of HEDP in bulk form made to
Customer A before February 2, 2007, Aquapharm based the date of sale on
the date of the sales invoice issued at the time the HEDP was shipped
from India, because it did not have a ``long-term contract'' in place
with Customer A for HEDP in bulk form before February 2, 2007. For its
POI HEDP sales to another U.S. customer (hereafter referred to as
``Customer B''), Aquapharm used the date of the purchase order from the
customer as the date of sale, claiming that the essential terms of sale
did not change after receipt of the customer's purchase order.
---------------------------------------------------------------------------
\2\ The sales process associated with Customer A is as follows:
Customer A sends a request for proposal (RFP) to Aquapharm via email
for certain projected annual quantities of HEDP. Aquapharm emails
its RFP price offer for the stated quantities back to the customer.
Aquapharm claims that the terms of sale do not change after the
customer has accepted Aquapharm's offer via email. Customer A
requires that Aquapharm maintain inventory in the United States at
an unaffiliated warehouse for logistical convenience. Aquapharm
issues two invoices for sales made to Customer A: it issues the
first invoice upon shipment of the subject merchandise to the
unaffiliated U.S. warehouse (this invoice does not go to the U.S.
customer) and then issues a corresponding invoice to the customer at
the time of delivery of the subject merchandise from the U.S.
warehouse to the customer. Irrespective of its date of sale claims
with respect to sales made to Customer A, Aquapharm initially
reported all U.S. sales made to Customer A pursuant to invoices
issued at the time of shipment from India which fell within the POI,
not invoices actually issued to the customer at the time of delivery
which fell within the POI. Pursuant to the Department's request,
Aquapharm subsequently revised its U.S. sales reporting to also
include any sales of subject merchandise made to Customer A for
which the date of the sales invoice issued to the customer fell
within the POI.
---------------------------------------------------------------------------
In this case, our examination of the submitted sample sales
documentation relevant to Customer A indicates that the ``long-term
contract'' referred to by Aquapharm is actually an exchange of emails
with its customer conveying the RFP, RFP offer and acceptance of the
RFP offer. This email exchange is not clear with respect to certain
terms of sale (e.g., payment terms), and there is no evidence on the
record to suggest that it was binding on the parties. With respect to
the submitted sales documentation relevant to Customer B, the purchase
order does not appear to establish all essential terms of sale (e.g.,
payment terms). Moreover, the respondent has not sufficiently
demonstrated that material changes to the purchase order and/or ``long-
term contract'' were not possible. In addition, with respect to the
sales made to Customer A, the respondent has not sufficiently
demonstrated that changes to the material terms of sale between the
issuance of the invoice at the time of shipment of the subject
merchandise from India (``first invoice'') and the invoice to the
customer were not possible.
Therefore, for purposes of the preliminary determination, we have
used the date of the sales invoice issued to the U.S. customer as the
date of sale for all of the respondent's POI U.S. sales of HEDP. As
discussed above, the terms of the purchase order or ``long-term
contract'' did not appear to be binding on the parties, nor did it
appear to establish all essential terms of sale. Furthermore, the
respondent has not sufficiently demonstrated its claim that in the
normal course of business no changes to the material terms of sale are
possible between the date of ``long-term contract'' or purchase order,
and the date of invoice to the customer.
U.S. Sales Type Designation
Section 772(a) of the Act defines EP as ``the price at which the
subject merchandise is first sold (or agreed to be sold) before the
date of importation by the producer or exporter of the subject
merchandise outside the United States to an unaffiliated purchaser in
the United States or to an unaffiliated purchaser for exportation to
the United States .'' (Emphasis added.) Section 772(b) defines CEP as
``the price at which the subject merchandise is first sold (or agreed
to be sold) in the United States before or after the date of
importation by or for the account of the producer or exporter of such
merchandise or by a seller affiliated with the producer or exporter, to
a purchaser not affiliated with the producer or exporter .'' (Emphasis
added.)
Aquapharm characterized its U.S. sales to Customer A as EP sales,
and its sales to Customer B as both EP and CEP depending on the sales/
distribution channel.\3\ With respect to its sales to Customer A,
Aquapharm claims that because the essential terms of sale are set by it
in India on the date of ``long-term contract'' (or date of ``first
invoice'' in the case of sales of HEDP in bulk form before February 2,
2007) prior to importation of the subject merchandise into the United
States, these sales should be classified as EP sales. However, only
after the merchandise enters the United States, is placed in an
unaffiliated warehouse and is released for delivery to Customer A does
Aquapharm issue the sales invoice to Customer A.
---------------------------------------------------------------------------
\3\ We have accepted Aquapharm's sales type designation for
sales made to Customer B for purposes of the preliminary
determination.
---------------------------------------------------------------------------
Given that we have preliminarily determined that the date of the
sales invoice issued to the U.S. customer is the appropriate basis for
the U.S. date of sale, Aquapharm's EP sales classification with respect
to Customer A no longer holds because the invoice is issued to the
customer, and thus the sale is made, after the merchandise is imported
into the United States. Therefore, for the preliminary determination,
we are treating all of Aquapharm's U.S. sales to Customer A as CEP
sales transactions, consistent with the definition of CEP under section
772(b) of the Act, because the sales were made after importation of the
subject merchandise into the United States.
[[Page 62468]]
Export Price and Constructed Export Price
In accordance with section 772(a) of the Act, we calculated EP for
those sales where the subject merchandise was sold to the first
unaffiliated purchaser in the United States prior to importation by the
exporter or producer outside the United States. We based EP on the
packed price to unaffiliated purchasers in the United States. Where
appropriate, we adjusted prices for billing adjustments. We made
deductions for movement expenses in accordance with section
772(c)(2)(A) of the Act; these included, where appropriate, foreign
inland freight from plant to the port of exportation, foreign inland
insurance, foreign brokerage and handling, U.S. brokerage and handling,
international freight, U.S. inland freight to customer, marine
insurance, and U.S. customs duties (including harbor maintenance fees
and merchandise processing fees).
Pursuant to section 772(b) of the Act, we calculated CEP for those
sales where the subject merchandise was sold in the United States after
the date of importation by or for the account of the producer or
exporter to a purchaser not affiliated with the producer or exporter.
We based CEP on the packed delivered prices to unaffiliated
purchasers in the United States. When appropriate, we adjusted prices
for billing adjustments. We made deductions for movement expenses, in
accordance with section 772(c)(2)(A) of the Act; these included, where
appropriate, foreign inland freight from plant to the port of
exportation, foreign inland insurance, foreign brokerage and handling,
U.S. brokerage and handling, international freight, marine insurance,
U.S. customs duties (including harbor maintenance fees and merchandise
processing fees), and warehouse expenses. Consistent with the U.S. date
of sale determination discussed above, we treated warehouse expenses as
pre-sale expenses associated with the movement of the subject
merchandise to the U.S. market. In accordance with section 772(d)(1) of
the Act and 19 CFR 351.402(b), we deducted those selling expenses
associated with economic activities occurring in the United States,
including direct selling expenses (i.e., credit expenses, commissions,
and bank charges), and indirect selling expenses (including inventory
carrying costs). We also deducted from CEP an amount for profit in
accordance with sections 772(d)(3) and (f) of the Act. See Calculation
Memorandum dated October 15, 2008, for further discussion of the CEP
profit calculation.
Normal Value
A. Home Market Viability and Comparison Market Selection
To determine whether there was a sufficient volume of sales in the
home market to serve as a viable basis for calculating NV (i.e., the
aggregate volume of home market sales of the foreign like product is
equal to or greater than five percent of the aggregate volume of U.S.
sales), we compared Aquapharm'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. Based
on this comparison, we determined that Aquapharm had a viable home
market during the POI. Consequently, we based NV on home market sales.
B. Level of Trade
In accordance with section 773(a)(1)(B) of the Act, to the extent
practicable, we determine NV based on sales in the comparison market at
the same level of trade (LOT) as the EP or CEP. Pursuant to 19 CFR
351.412(c)(1), the NV LOT is that of the starting-price sales in the
comparison market or, when NV is based on constructed value, that of
the sales from which we derive selling, general and administrative
expenses, and profit. For EP, the U.S. LOT is also the level of the
starting-price sale, which is usually from exporter to importer. For
CEP, it is the level of the constructed sale from the exporter to the
importer.
To determine whether NV sales are at a different LOT than EP or CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the
unaffiliated customer. See 19 CFR 351.412(c)(2). If the comparison-
market sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and comparison-
market sales at the LOT of the export transaction, we make an LOT
adjustment under section 773(a)(7)(A) of the Act. Finally, for CEP
sales, if the NV level is more remote from the factory than the CEP
level and there is no basis for determining whether the difference in
levels between NV and CEP affects price comparability, we adjust NV
under section 773(a)(7)(B) of the Act (the CEP-offset provision). See
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).
In this investigation, we obtained information from Aquapharm
regarding the marketing stages involved in making its reported home
market and U.S. sales, including a description of the selling
activities performed by the respondent for each channel of
distribution.
As discussed above in the ``U.S. Date of Sale'' and ``U.S. Sales
Type Designation'' sections of this notice, for purposes of this
preliminary determination, we relied on the sales invoice issued to the
U.S. customer for determining the U.S. date of sale and Aquapharm's
U.S. sales reporting requirement. As a result of relying on the sales
invoice to the U.S. customer as the basis for determining the date of
sale, we also designated all of Aquapharm's sales to Customer A as CEP
sales. Therefore, we have taken this sales reclassification
determination into account in our preliminary LOT analysis below.
Aquapharm had CEP sales in the U.S. market through the following
channel of distribution: sales through an unaffiliated U.S. selling
agent to two unaffiliated U.S. distributors of HEDP maintained in
inventory at an unaffiliated U.S. warehouse (Channel 1). In addition,
Aquapharm had EP sales in the U.S. market through the following channel
of distribution: direct sales/shipments to an unaffiliated U.S.
distributor (Channel 2).
We examined the selling activities performed for both U.S. sales
channels and found that Aquapharm performed the following selling
functions for each channel: sales forecasting, order input/processing,
direct sales personnel, packing, freight and delivery services,
inventory maintenance, technical assistance, warranty service, and
after-sales service. These selling activities can be generally grouped
into four selling function categories for analysis: 1) sales and
marketing; 2) freight and delivery; 3) warehousing and inventory; and
4) warranty and technical support. Accordingly, based on the four
selling function categories, we find that Aquapharm performed sales and
marketing, freight and delivery services, and warranty and technical
services for U.S. sales. Although Aquapharm performed additional
freight and delivery functions (such as repacking) and warehousing
functions for its sales through Channel 1, we did not find these
differences to be material selling function distinctions which are
significant enough to warrant a separate LOT in the U.S. market.
Therefore, we preliminarily determine that there is one LOT in the U.S.
market because Aquapharm performed essentially the same selling
functions for all U.S. sales.
[[Page 62469]]
With respect to the home market, Aquapharm made sales through the
following channels of distribution: 1) sales to unaffiliated end-users
(Channel 1); and 2) sales to unaffiliated distributors (Channel 2). We
examined the selling activities performed for each home market sales
channel and found that Aquapharm performed the following selling
functions for sales made through both channels: sales forecasting,
order input/processing, advertising, direct sales personnel, sales/
marketing support, market research, packing, freight and delivery
services, inventory maintenance, technical assistance, and warranty
service. Accordingly, based on the four selling function categories, we
find that Aquapharm performed sales and marketing, freight and delivery
services, inventory maintenance and warehousing, and warranty and
technical services in the home market. Moreover, we did not find any
significant distinctions between the selling functions Aquapharm
performed in each home market channel to warrant a separate LOT in the
home market. Therefore, we preliminarily determine that there is one
LOT in the home market because Aquapharm performed essentially the same
selling functions for all home market sales.
Finally, we compared the U.S. LOT to the home market LOT and found
that the selling functions performed for home market sales are either
performed at the same degree of intensity as, or vary only slightly
from, the selling functions performed for U.S. sales. Specifically, we
found that with respect to the four selling function categories, there
are only slight differences in the level of intensity between the home
and U.S. markets which are not a sufficient basis to determine separate
LOTs between the two markets. Therefore, we find that the single NV LOT
and single U.S. LOT are the same. Accordingly, we matched U.S. and home
market sales at the same LOT.
C. Calculation of Normal Value Based on Comparison Market Prices
We based NV for Aquapharm on delivered prices to unaffiliated
customers in the home market. We made deductions, where appropriate,
from the starting price for inland freight expenses and inland
insurance expenses, under section 773(a)(6)(B)(ii) of the Act. Where
appropriate, we also added freight and insurance revenue to the
starting price.
Pursuant to section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410(b), we made, where appropriate, circumstance-of-sale
adjustments for imputed credit expenses and bank charges. We also 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 the other. Specifically,
for comparisons to CEP, we made an adjustment to NV for home market
indirect selling expenses and inventory carry costs to offset U.S.
commissions. We also deducted home market packing costs and added U.S.
packing costs, in accordance with sections 773(a)(6)(A) and (B) of the
Act.
Currency Conversion
We made currency conversions into U.S. dollars in accordance with
section 773A(a) of the Act based on exchange rates in effect on the
dates of the U.S. sales, as certified by the Federal Reserve Bank.
Verification
As provided in section 782(i) of the Act, we intend to verify all
information relied upon in making our final determination for
Aquapharm.
Preliminary Determination
The weighted-average dumping margins in the preliminary
determination are as follows:
------------------------------------------------------------------------
Weighted-Average
Manufacturer/Exporter Margin (percent)
------------------------------------------------------------------------
Aquapharm Chemicals Pvt. Ltd........................ 3.91
All Others.......................................... 3.91
------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we are directing
CBP to suspend liquidation of all entries of HEDP from India as
described in the ``Scope of Investigation'' section that are entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. We are also
instructing CBP to require a cash deposit or the posting of a bond
equal to the weighted-average dumping margins, as indicated above.
These suspension-of-liquidation instructions will remain in effect
until further notice.
All Others Rate
Section 735(c)(5)(4) of the Act provides that the estimated ``All
Others'' rate shall be an amount equal to the weighted average of the
estimated weighted-average dumping margins established for exporters
and producers individually investigated, excluding any zero or de
minimis margins, and any margins determined entirely under section 776
of the Act. Aquapharm is the only respondent in this investigation for
which the Department calculated a company-specific rate. Therefore, for
purposes of determining the ``All Others'' rate and pursuant to section
735(c)(5)(4) of the Act, we are using the weighted-average dumping
margin calculated for Aquapharm, as referenced above. See, e.g., Notice
of Final Determination of Sales at Less Than Fair Value: Stainless
Steel Sheet and Strip in Coils From Italy, 64 FR 30750, 30755 (June 8,
1999); Final Affirmative Countervailing Duty Determination: Pure
Magnesium From Israel, 66 FR 49351, 49353 (September 27, 2001); and
Notice of Final Determination of Sales at Less Than Fair Value: Coated
Free Sheet Paper from Indonesia, 72 FR 60636 (October 25, 2007).
Disclosure
We will disclose the calculations performed in connection with our
preliminary determination to parties in this proceeding in accordance
with 19 CFR 351.224(b).
ITC Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of the Department's preliminary affirmative determination. If the
Department's final determination is affirmative, pursuant to section
735(b)(2) of the Act, the ITC will determine before the later of 120
days after the date of this preliminary determination or 45 days after
our final determination whether imports of HEDP from India are
materially injuring, or threaten material injury to, the U.S. industry.
Because we have postponed the deadline for our final determination to
135 days from the date of the publication of this preliminary
determination, the ITC will make its final determination within 45 days
of our final determination.
Public Comment
Interested parties are invited to comment on the preliminary
determination. Interested parties may submit case briefs to the
Department no later than seven days after the date of the issuance of
the verification report in this proceeding. Rebuttal briefs, the
content of which is limited to the issues raised in the case briefs,
must be filed within five days from the deadline date for the
submission of case briefs. A list of authorities used, a table of
contents, and an executive summary of issues should accompany any
briefs submitted to the Department. Executive summaries should be
limited to five pages total, including footnotes. Further, we request
that parties submitting briefs and
[[Page 62470]]
rebuttal briefs provide the Department with a copy of the public
version of such briefs on diskette. In accordance with section 774 of
the Act, the Department will hold a public hearing, if timely
requested, to afford interested parties an opportunity to comment on
arguments raised in case or rebuttal briefs, provided that such a
hearing is requested by an interested party. If a timely request for a
hearing is made in this investigation, we intend to hold the hearing
two days after the rebuttal brief deadline date at the U.S. Department
of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC
20230, at a time and in a room to be determined. Parties should confirm
by telephone, the date, time, and location of the hearing 48 hours
before the scheduled date.
Interested parties who wish to request a hearing, or to participate
in a hearing if one is requested, must submit a written request to the
Assistant Secretary for Import Administration, U.S. Department of
Commerce, Room 1870, within 30 days of the 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 the issues to
be discussed. At the hearing, oral presentations will be limited to
issues raised in the briefs.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: October 15, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-25026 Filed 10-20-08; 8:45 am]
BILLING CODE 3510-DS-S