Certain Sodium and Potassium Phosphate Salts From the People's Republic of China: Initiation of Countervailing Duty Investigation, 54778-54781 [E9-25571]

Download as PDF 54778 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices • Proposed Draft Annex on Leafy Green Vegetables, Including Leafy Herbs, to the Code of Hygienic Practice for Fresh Fruits and Vegetables at Step 4; • Proposed Draft Code of Hygienic Practice for Vibrio spp. in Seafood at Step 4; • Proposed Draft Annex on Control Measures for Vibrio parahaemolyticus and Vibrio vulnificus in Molluscan Shellfish; • Proposed Draft Code of Hygienic Practice for Control of Viruses in Food at Step 4; • Inconsistencies Arising in Documents Elaborated by the CCFH and Adopted by the Codex; • Discussion of the Report of the Ad Hoc Working Group for Establishment of CCFH Work Priorities. Each issue listed will be fully described in documents distributed, or to be distributed, by the Secretariat prior to the meeting. Members of the public may access copies of these documents (see ADDRESSES). CPrice-Sewell on DSKGBLS3C1PROD with NOTICES Public Meeting At the October 28, 2009, public meeting, draft U.S. positions on the agenda items will be described and discussed, and attendees will have the opportunity to pose questions and offer comments. Written comments may be offered at the meeting or sent to the U.S. Delegate for the 41st Session of the CCFH, Donald Zink (see ADDRESSES). Written comments should state that they relate to activities of the 41st Session of the CCFH. Additional Public Notification Public awareness of all segments of rulemaking and policy development is important. Consequently, in an effort to ensure that minorities, women, and persons with disabilities are aware of this notice, FSIS will announce it online through the FSIS Web page located at https://www.fsis.usda.gov/regulations/ 2009_Notices_Index/. FSIS will also make copies of this Federal Register publication available through the FSIS Constituent Update, which is used to provide information regarding FSIS policies, procedures, regulations, Federal Register notices, FSIS public meetings, and other types of information that could affect or would be of interest to constituents and stakeholders. The FSIS Constituent Update is communicated via Listserv, a free electronic mail subscription service for industry, trade groups, consumer interest groups, health professionals, and other individuals who have asked to be included. The FSIS Constituent Update is also available on the FSIS VerDate Nov<24>2008 15:24 Oct 22, 2009 Jkt 220001 Web page. Through the Listserv and Web page, FSIS is able to provide information to a much broader and more diverse audience. In addition, FSIS offers an electronic mail subscription service which provides automatic and customized access to selected food safety news and information. This service is available at https:// www.fsis.usda.gov/news_and_events/ email_subscription/. Options range from recalls to export information to regulations, directives and notices. Customers can add or delete subscriptions themselves, and have the option to password protect their accounts. Done at Washington, DC, on October 20, 2009. Karen Stuck, U.S. Manager for Codex Alimentarius. [FR Doc. E9–25527 Filed 10–22–09; 8:45 am] BILLING CODE 3410–DM–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–963] Certain Sodium and Potassium Phosphate Salts From the People’s Republic of China: Initiation of Countervailing Duty Investigation AGENCY: Import Administration, International Trade Administration, Department of Commerce. DATES: Effective Date: October 23, 2009. FOR FURTHER INFORMATION CONTACT: Yasmin Nair or Joseph Shuler, AD/CVD Operations, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482–3813 and (202) 482–1293, respectively. SUPPLEMENTARY INFORMATION: The Petition APPALACHIAN STATES LOW-LEVEL RADIOACTIVE WASTE COMMISSION Annual Meeting Time and Date: 10 a.m.–12:30 p.m. November 6, 2009. Place: Harrisburg Hilton and Towers, One North Second Street, Harrisburg, PA 17101. Status: The meeting will be open to the public. Matters to be Considered: Portions Open to the Public: The primary purpose of this meeting is to (1) review the independent auditors’ report of Commission’s financial statements for fiscal year 2008–2009; (2) Review the Low-Level Radioactive Waste (LLRW) Disposal and Storage information for 2008; (3) Consider a proposed budget for fiscal year 2010–2011; (4) Review regional and national issues regarding LLRW storage, management and disposal; and (5) Elect the Commission’s Officers. Portions Closed to the Public: Executive Session, if deemed necessary, will be announced at the meeting. Contact Person for More Information: Rich Janati, Administrator of the Commission, at 717–787–2163. Rich Janati, Administrator, Appalachian Compact Commission. [FR Doc. E9–25502 Filed 10–22–09; 8:45 am] BILLING CODE P PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 On September 24, 2009, the Department of Commerce (‘‘Department’’) received a petition filed in proper form by ICL Performance Products LP and Prayon, Inc. (collectively, ‘‘Petitioners’’), domestic producers of certain sodium and potassium phosphate salts.1 In response to the Department’s requests, Petitioners provided timely information supplementing the Petition on October 1, 2009. In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (‘‘the Act’’), Petitioners allege that manufacturers, producers, or exporters of sodium and potassium phosphate salts in the People’s Republic of China (‘‘PRC’’) receive countervailable subsidies within the meaning of section 701 of the Act, and that such imports are materially injuring, or threatening material injury to, an industry in the United States. The Department finds that Petitioners filed the Petition on behalf of the domestic industry because they are interested parties as defined in section 771(9)(C) and (D) of the Act, and Petitioners have demonstrated sufficient industry support with respect to the countervailing duty (‘‘CVD’’) investigation (see ‘‘Determination of Industry Support for the Petition’’ section below). 1 See Petition for the Imposition of Antidumping and Countervailing Duties Pursuant to Sections 701 and 731 of the Tariff Act of 1930, as Amended: Certain Sodium and Potassium Phosphate Salts from the People’s Republic of China, dated September 24, 2009 (‘‘Petition’’). E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices Period of Investigation The period of investigation is January 1, 2008, through December 31, 2008. CPrice-Sewell on DSKGBLS3C1PROD with NOTICES Scope of Investigation The phosphate salts covered by this investigation include Sodium Tripolyphosphate (‘‘STPP’’), whether anhydrous or in solution, anhydrous Monopotassium Phosphate (‘‘MKP’’), anhydrous Dipotassium Phosphate (‘‘DKP’’) and Tetrapotassium Pyrophosphate (‘‘TKPP’’), whether anhydrous or in solution (collectively ‘‘phosphate salts’’). STPP, also known as Sodium triphosphate, Tripoly or Pentasodium triposphate, is a sodium polyphosphate with the formula Na5O10P3. The American Chemical Society, Chemical Abstract Service (‘‘CAS’’) registry number for STPP is 7758–29–4. STPP is typically 25% phosphorus, 31% sodium and and 57% diphosphorus pentoxide (P2O5). STPP is classified under heading 2835.31.0000, HTSUS. TKPP, also known as normal potassium pyrophosphate, Diphosphoric acid or Tetrapotassium salt, is a potassium salt with the formula K4P2O7. The CAS registry number for TKPP is 7320–34–5. TKPP is typically 18.7% phosphorus and 47.3% potassium. It is generally greater than or equal to 43.0% P2O5 content. TKPP is classified under heading 2835.39.1000, HTSUS. MKP, also known as Potassium dihydrogen phosphate, KDP, or Monobasic potassium phosphate, is a potassium salt with the formula KH2PO4. The CAS registry number for MKP is 7778–77–0. MKP is typically 22.7% phosphorus, 28.7% potassium and 52% P2O5. MKP is classified under heading 2835.24.0000, HTSUS. DKP, also known as Dipotassium salt, Dipotassium hydrogen orthophosphate or Potassium phosphate, dibasic, has a chemical formula of K2HPO4. The CAS registry number for DKP is 7758–11–4. DKP is typically 17.8% phosphorus, 44.8% potassium and 40% P2O5 content. DKP is classified under heading 2835.24.0000, HTSUS. The products covered by this investigation include the foregoing phosphate salts in all grades, whether food grade or technical grade. The product covered by this investigation includes anhydrous MKP and DKP without regard to the physical form, whether crushed, granule, powder or fines. Also covered are all forms of STPP and TKPP, whether crushed, granule, powder, fines or solution. For purposes of the investigation, the narrative description is dispositive, not VerDate Nov<24>2008 15:24 Oct 22, 2009 Jkt 220001 the tariff heading, American Chemical Society, CAS registry number or CAS name, or the specific percentage chemical composition identified above. Comments on Scope of Investigation During our review of the Petition, we discussed the scope with Petitioners to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. Moreover, as discussed in the preamble to the Department’s regulations (Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), we are setting aside a period for interested parties to raise issues regarding product coverage. The Department encourages all interested parties to submit such comments by November 3, 2009, twenty calendar days from the signature date of this notice. Comments should be addressed to Import Administration’s APO/Dockets Unit, Room 1870, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230. The period of scope consultations is intended to provide the Department with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations. Consultations Pursuant to section 702(b)(4)(A)(ii) of the Act, on September 25, 2009, the Department invited representatives of the Government of the PRC for consultations with respect to the CVD petition. The Government of the PRC did not request such consultations. On October 13, 2009, the GOC requested that the Department extend the deadline for consultations. The Department responded that it could not extend this deadline for pre-initiation consultations, but would consult with the GOC in the course of this proceeding if initiated, as required by Article 13.2 of the Subsidies and Countervailing Measures Agreement. Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the Petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition. Moreover, section 702(c)(4)(D) PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 54779 of the Act provides that, if the Petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, the Department shall: (i) Poll the industry or rely on other information in order to determine if there is support for the Petition, as required by subparagraph (A), or (ii) determine industry support using a statistically valid sampling method. Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs the Department to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (‘‘ITC’’), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both the Department and the ITC must apply the same statutory definition regarding the domestic like product (section 771(10) of the Act), they do so for different purposes and pursuant to a separate and distinct authority. In addition, the Department’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law. See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 (1989). Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this subtitle.’’ Although the reference point from which the domestic like product analysis begins is usually ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the Petition), Petitioners submit that there is one class or kind of merchandise, but four domestic like products. The four like products, when considered together, correspond to the product scope description. Based on our analysis of the information submitted on the record, we have determined that STPP, MKP, DKP, and TKPP constitute four domestic like products and we have analyzed industry support in terms E:\FR\FM\23OCN1.SGM 23OCN1 CPrice-Sewell on DSKGBLS3C1PROD with NOTICES 54780 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices of those domestic like products. For a discussion of the domestic like product analysis in this case, see ‘‘Countervailing Duty Investigation Initiation Checklist: Certain Sodium and Potassium Phosphate Salts from the People’s Republic of China (‘‘Initiation Checklist’’), at Attachment II, Analysis of Industry Support for the Petitions Covering Certain Sodium and Potassium Phosphate Salts from the People’s Republic of China, on file in the Central Records Unit (‘‘CRU’’), Room 1117 of the main Department of Commerce building. With regard to section 702(c)(4)(A) of the Act, in determining whether Petitioners have standing (i.e., the domestic workers and producers supporting the Petition account for (1) at least 25 percent of the total production of the domestic like product and (2) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition), we considered the industry support data contained in the Petition with reference to the domestic like products. To establish industry support, Petitioners provided their own production volume of the domestic like products for calendar year 2008, and compared that to total production volume of the domestic like products for the industry. We have relied upon data Petitioners provided for purposes of measuring industry support. For further discussion, see Initiation Checklist at Attachment II. The Department’s review of the data provided in the Petition, supplemental submissions, and other information readily available to the Department indicates that Petitioners have established industry support for each of the four like products. First, the Petition establishes support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like products and, as such, the Department is not required to take further action in order to evaluate industry support (e.g., polling). See section 702(c)(4)(D) of the Act and Initiation Checklist at Attachment II. Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the relevant domestic like product. See Initiation Checklist at Attachment II. Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of VerDate Nov<24>2008 15:24 Oct 22, 2009 Jkt 220001 the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the relevant domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition. Accordingly, the Department determines that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. See Initiation Checklist at Attachment II. The Department finds that Petitioners filed the Petition on behalf of the domestic industry because they are interested parties as defined in sections 771(9)(C) of the Act and have demonstrated sufficient industry support with respect to the countervailing duty investigation that they are requesting the Department initiate. See Initiation Checklist at Attachment II. Injury Test Because the PRC is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from the PRC materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation Petitioners allege that imports of certain sodium and potassium phosphate salts from the PRC are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the domestic industry producing certain sodium and potassium phosphate salts. In addition, Petitioners allege that subsidized imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act. Petitioners contend that the industries’ injured condition is illustrated by reduced market share, underselling and price depressing and suppressing effects, lost sales and revenue, reduced production, reduced capacity and capacity utilization, reduced shipments, reduced employment, and an overall decline in financial performance. We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation. See Initiation Checklist at Attachment III (Analysis of Injury Allegations and PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 Evidence of Material Injury and Causation). Initiation of Countervailing Duty Investigation Section 702(b) of the Act requires the Department to initiate a CVD proceeding whenever an interested party files a petition on behalf of an industry that: (1) Alleges the elements necessary for an imposition of a duty under section 701(a) of the Act; and (2) is accompanied by information reasonably available to the Petitioner(s) supporting the allegations. The Department has examined the CVD petition on sodium and potassium phosphate salts from the PRC and finds that it complies with the requirements of section 702(b) of the Act. Therefore, in accordance with section 702(b) of the Act, we are initiating a CVD investigation to determine whether manufacturers, producers, or exporters of sodium and potassium phosphate salts in the PRC receive countervailable subsidies. For a discussion of evidence supporting our initiation determination, see Initiation Checklist. We are including in our investigation the following programs alleged in the Petition to have provided countervailable subsidies to producers and exporters of the subject merchandise in the PRC: A. Income Tax Programs 1. ‘‘Two Free, Three Half’’ Tax Exemption for Foreign Invested Enterprises (‘‘FIEs’’). 2. Income Tax Subsidies for FIEs Based on Geographic Location. 3. Income Tax Exemption Programs For Export-Oriented FIEs. 4. Local Income Tax Exemption or Reduction Program for ‘‘Productive’’ FIEs. 5. Preferential Tax Subsidies for Research and Development by FIEs. 6. Reduced Income Tax Rate for Highand New-Technology Enterprises. 7. Income Tax Credit on Purchases of Domestically Produced Equipment. 8. Reduction in or Exemption from the Fixed Assets Investment Orientation Regulatory Tax. B. Grant Programs 1. Subsidies to Loss-Making StateOwned Enterprises (‘‘SOEs’’) by the Government of China (‘‘GOC’’) at the National Level. 2. Subsidies to Loss-Making SOEs by the GOC at the Provincial Level. 3. Grants Pursuant to the State Key Technology Renovation Project Fund. 4. Grants Pursuant to the ‘‘Famous Brands’’ Program. E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 74, No. 204 / Friday, October 23, 2009 / Notices C. Tariff and Indirect Tax Exemption Programs 1. Value Added Tax (‘‘VAT’’) Refunds for FIEs Purchasing Domestically Produced Equipment. D. VAT and Tariff Exemptions on Imported Equipment E. Preferential Lending Policies 1. Discounted Loans for Export Oriented Industries (‘‘Honorable Enterprises’’). F. Government Restraints on Exports of Yellow Phosphorus For further information explaining why the Department is investigating these programs, see Initiation Checklist. We are not including in our investigation the following program alleged to benefit producers and exporters of the subject merchandise in the PRC: Provision of Electricity for Less Than Adequate Remuneration Petitioners allege that the GOC, through the National Development and Reform Commission, regulates the power rates for certain industries, including the yellow phosphorus industry and that differential rates are provided to the yellow phosphorus industry. Petitioners have not provided information that supports the allegation that differential pricing of electricity is provided to producers of the subject merchandise. Consequently, we do not plan on investigating this program. CPrice-Sewell on DSKGBLS3C1PROD with NOTICES Respondent Selection For this investigation, the Department expects to select respondents based on U.S. Customs and Border Protection (‘‘CBP’’) data for U.S. imports during the period of investigation. We intend to release the CBP data under the Administrative Protective Order (‘‘APO’’) to all parties with access to information protected by APO within five days of the announcement of the initiation of this investigation. Interested parties may submit comments regarding the CBP data and respondent selection within seven calendar days of publication of this notice. We intend to make our decision regarding respondent selection within 20 days of publication of this Federal Register notice. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found on the Department’s Web site at https://ia.ita.doc.gov/apo. VerDate Nov<24>2008 15:24 Oct 22, 2009 Jkt 220001 Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act, a copy of the public version of the Petition has been provided to the Government of the PRC. As soon as and to the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, consistent with section 351.203(c)(2) of the Department’s regulations. ITC Notification We have notified the ITC of our initiation, as required by section 702(d) of the Act and 19 CFR 351.203(c)(1). Preliminary Determination by the ITC The ITC will preliminarily determine, within 25 days after the date on which it receives notice of the initiation, whether there is a reasonable indication that imports of subsidized sodium and potassium phosphate salts from the PRC are causing material injury, or threatening to cause material injury, to a U.S. industry. See section 703(a)(2) of the Act. A negative ITC determination will result in the investigation being terminated; otherwise, the investigation will proceed according to statutory and regulatory time limits. This notice is issued and published pursuant to section 777(i) of the Act and 19 CFR 351.203(c)(1). Dated: October 14, 2009. Ronald K. Lorentzen, Acting Assistant Secretary for Import Administration. Attachment I Scope of the Investigation The phosphate salts covered by this investigation include Sodium Tripolyphosphate (STPP), whether anhydrous or in solution, anhydrous Monopotassium Phosphate (MKP), anhydrous Dipotassium Phosphate (DKP) and Tetrapotassium Pyrophosphate (TKPP), whether anhydrous or in solution (collectively ‘‘phosphate salts’’). STPP, also known as Sodium triphosphate, Tripoly or Pentasodium triposphate, is a sodium polyphosphate with the formula Na5O10P3. The American Chemical Society, Chemical Abstract Service (‘‘CAS’’) registry number for STPP is 7758–29–4. STPP is typically 25% phosphorus, 31% sodium and and 57% diphosphorus pentoxide (P2O5). STPP is classified under heading 2835.31.0000, HTSUS. TKPP, also known as normal potassium pyrophosphate, Diphosphoric acid or Tetrapotassium salt, is a potassium salt with the formula K4P2O7. The CAS registry number for PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 54781 TKPP is 7320–34–5. TKPP is typically 18.7% phosphorus and 47.3% potassium. It is generally greater than or equal to 43.0% P2O5 content. TKPP is classified under heading 2835.39.1000, HTSUS. MKP, also known as Potassium dihydrogen phosphate, KDP, or Monobasic potassium phosphate, is a potassium salt with the formula KH2PO4. The CAS registry number for MKP is 7778–77–0. MKP is typically 22.7% phosphorus, 28.7% potassium and 52% P2O5. MKP is classified under heading 2835.24.0000, HTSUS. DKP, also known as Dipotassium salt, Dipotassium hydrogen orthophosphate or Potassium phosphate, dibasic, has a chemical formula of K2HPO4. The CAS registry number for DKP is 7758–11–4. DKP is typically 17.8% phosphorus, 44.8% potassium and 40% P2O5 content. DKP is classified under heading 2835.24.0000, HTSUS. The products covered by this investigation include the foregoing phosphate salts in all grades, whether food grade or technical grade. The product covered by this investigation includes anhydrous MKP and DKP without regard to the physical form, whether crushed, granule, powder or fines. Also covered are all forms of STPP and TKPP, whether crushed, granule, powder, fines or solution. For purposes of the investigation, the narrative description is dispositive, not the tariff heading, American Chemical Society, CAS registry number or CAS name, or the specific percentage chemical composition identified above. [FR Doc. E9–25571 Filed 10–22–09; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE National Institute of Standards and Technology [Docket Number: 0910051336–91337–01] Draft Report on the Collapse of the Dallas Cowboys Indoor Practice Facility, May 2, 2009; Request for Comments AGENCY: National Institute of Standards and Technology, Department of Commerce. ACTION: Notice; request for comments. SUMMARY: The National Institute of Standards and Technology (NIST) seeks comments on the draft report of its study of the Dallas Cowboys Indoor Practice Facility Collapse, May 2, 2009. DATES: Comments must be received on or before 12 noon Eastern Time, November 6, 2009. E:\FR\FM\23OCN1.SGM 23OCN1

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[Federal Register Volume 74, Number 204 (Friday, October 23, 2009)]
[Notices]
[Pages 54778-54781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25571]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-963]


Certain Sodium and Potassium Phosphate Salts From the People's 
Republic of China: Initiation of Countervailing Duty Investigation

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

DATES: Effective Date: October 23, 2009.

FOR FURTHER INFORMATION CONTACT: Yasmin Nair or Joseph Shuler, AD/CVD 
Operations, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-3813 and (202) 482-1293, 
respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On September 24, 2009, the Department of Commerce (``Department'') 
received a petition filed in proper form by ICL Performance Products LP 
and Prayon, Inc. (collectively, ``Petitioners''), domestic producers of 
certain sodium and potassium phosphate salts.\1\ In response to the 
Department's requests, Petitioners provided timely information 
supplementing the Petition on October 1, 2009.
---------------------------------------------------------------------------

    \1\ See Petition for the Imposition of Antidumping and 
Countervailing Duties Pursuant to Sections 701 and 731 of the Tariff 
Act of 1930, as Amended: Certain Sodium and Potassium Phosphate 
Salts from the People's Republic of China, dated September 24, 2009 
(``Petition'').
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (``the Act''), Petitioners allege that manufacturers, 
producers, or exporters of sodium and potassium phosphate salts in the 
People's Republic of China (``PRC'') receive countervailable subsidies 
within the meaning of section 701 of the Act, and that such imports are 
materially injuring, or threatening material injury to, an industry in 
the United States.
    The Department finds that Petitioners filed the Petition on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C) and (D) of the Act, and Petitioners have 
demonstrated sufficient industry support with respect to the 
countervailing duty (``CVD'') investigation (see ``Determination of 
Industry Support for the Petition'' section below).

[[Page 54779]]

Period of Investigation

    The period of investigation is January 1, 2008, through December 
31, 2008.

Scope of Investigation

    The phosphate salts covered by this investigation include Sodium 
Tripolyphosphate (``STPP''), whether anhydrous or in solution, 
anhydrous Monopotassium Phosphate (``MKP''), anhydrous Dipotassium 
Phosphate (``DKP'') and Tetrapotassium Pyrophosphate (``TKPP''), 
whether anhydrous or in solution (collectively ``phosphate salts'').
    STPP, also known as Sodium triphosphate, Tripoly or Pentasodium 
triposphate, is a sodium polyphosphate with the formula 
Na5O10P3. The American Chemical 
Society, Chemical Abstract Service (``CAS'') registry number for STPP 
is 7758-29-4. STPP is typically 25% phosphorus, 31% sodium and and 57% 
diphosphorus pentoxide (P2O5). STPP is classified 
under heading 2835.31.0000, HTSUS.
    TKPP, also known as normal potassium pyrophosphate, Diphosphoric 
acid or Tetrapotassium salt, is a potassium salt with the formula 
K4P2O7. The CAS registry number for 
TKPP is 7320-34-5. TKPP is typically 18.7% phosphorus and 47.3% 
potassium. It is generally greater than or equal to 43.0% 
P2O5 content. TKPP is classified under heading 
2835.39.1000, HTSUS.
    MKP, also known as Potassium dihydrogen phosphate, KDP, or 
Monobasic potassium phosphate, is a potassium salt with the formula 
KH2PO4. The CAS registry number for MKP is 7778-
77-0. MKP is typically 22.7% phosphorus, 28.7% potassium and 52% 
P2O5. MKP is classified under heading 
2835.24.0000, HTSUS.
    DKP, also known as Dipotassium salt, Dipotassium hydrogen 
orthophosphate or Potassium phosphate, dibasic, has a chemical formula 
of K2HPO4. The CAS registry number for DKP is 
7758-11-4. DKP is typically 17.8% phosphorus, 44.8% potassium and 40% 
P2O5 content. DKP is classified under heading 
2835.24.0000, HTSUS.
    The products covered by this investigation include the foregoing 
phosphate salts in all grades, whether food grade or technical grade. 
The product covered by this investigation includes anhydrous MKP and 
DKP without regard to the physical form, whether crushed, granule, 
powder or fines. Also covered are all forms of STPP and TKPP, whether 
crushed, granule, powder, fines or solution.
    For purposes of the investigation, the narrative description is 
dispositive, not the tariff heading, American Chemical Society, CAS 
registry number or CAS name, or the specific percentage chemical 
composition identified above.

Comments on Scope of Investigation

    During our review of the Petition, we discussed the scope with 
Petitioners to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Moreover, as 
discussed in the preamble to the Department's regulations (Antidumping 
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 
1997)), we are setting aside a period for interested parties to raise 
issues regarding product coverage. The Department encourages all 
interested parties to submit such comments by November 3, 2009, twenty 
calendar days from the signature date of this notice. Comments should 
be addressed to Import Administration's APO/Dockets Unit, Room 1870, 
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230. The period of scope consultations is intended to 
provide the Department with ample opportunity to consider all comments 
and to consult with parties prior to the issuance of the preliminary 
determinations.

Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, on September 25, 
2009, the Department invited representatives of the Government of the 
PRC for consultations with respect to the CVD petition. The Government 
of the PRC did not request such consultations. On October 13, 2009, the 
GOC requested that the Department extend the deadline for 
consultations. The Department responded that it could not extend this 
deadline for pre-initiation consultations, but would consult with the 
GOC in the course of this proceeding if initiated, as required by 
Article 13.2 of the Subsidies and Countervailing Measures Agreement.

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the Petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the Petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the Petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the Petition, as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission 
(``ITC''), which is responsible for determining whether ``the domestic 
industry'' has been injured, must also determine what constitutes a 
domestic like product in order to define the industry. While both the 
Department and the ITC must apply the same statutory definition 
regarding the domestic like product (section 771(10) of the Act), they 
do so for different purposes and pursuant to a separate and distinct 
authority. In addition, the Department's determination is subject to 
limitations of time and information. Although this may result in 
different definitions of the like product, such differences do not 
render the decision of either agency contrary to law. See USEC, Inc. v. 
United States, 132 F. Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel 
Corp. Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff'd 
865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Although the reference point from which the 
domestic like product analysis begins is usually ``the article subject 
to an investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
Petition), Petitioners submit that there is one class or kind of 
merchandise, but four domestic like products.
    The four like products, when considered together, correspond to the 
product scope description. Based on our analysis of the information 
submitted on the record, we have determined that STPP, MKP, DKP, and 
TKPP constitute four domestic like products and we have analyzed 
industry support in terms

[[Page 54780]]

of those domestic like products. For a discussion of the domestic like 
product analysis in this case, see ``Countervailing Duty Investigation 
Initiation Checklist: Certain Sodium and Potassium Phosphate Salts from 
the People's Republic of China (``Initiation Checklist''), at 
Attachment II, Analysis of Industry Support for the Petitions Covering 
Certain Sodium and Potassium Phosphate Salts from the People's Republic 
of China, on file in the Central Records Unit (``CRU''), Room 1117 of 
the main Department of Commerce building.
    With regard to section 702(c)(4)(A) of the Act, in determining 
whether Petitioners have standing (i.e., the domestic workers and 
producers supporting the Petition account for (1) at least 25 percent 
of the total production of the domestic like product and (2) more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition), we considered the industry support data contained in the 
Petition with reference to the domestic like products. To establish 
industry support, Petitioners provided their own production volume of 
the domestic like products for calendar year 2008, and compared that to 
total production volume of the domestic like products for the industry. 
We have relied upon data Petitioners provided for purposes of measuring 
industry support. For further discussion, see Initiation Checklist at 
Attachment II.
    The Department's review of the data provided in the Petition, 
supplemental submissions, and other information readily available to 
the Department indicates that Petitioners have established industry 
support for each of the four like products. First, the Petition 
establishes support from domestic producers (or workers) accounting for 
more than 50 percent of the total production of the domestic like 
products and, as such, the Department is not required to take further 
action in order to evaluate industry support (e.g., polling). See 
section 702(c)(4)(D) of the Act and Initiation Checklist at Attachment 
II. Second, the domestic producers (or workers) have met the statutory 
criteria for industry support under section 702(c)(4)(A)(i) of the Act 
because the domestic producers (or workers) who support the Petition 
account for at least 25 percent of the total production of the relevant 
domestic like product. See Initiation Checklist at Attachment II. 
Finally, the domestic producers (or workers) have met the statutory 
criteria for industry support under section 702(c)(4)(A)(ii) of the Act 
because the domestic producers (or workers) who support the Petition 
account for more than 50 percent of the production of the relevant 
domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petition. Accordingly, 
the Department determines that the Petition was filed on behalf of the 
domestic industry within the meaning of section 702(b)(1) of the Act. 
See Initiation Checklist at Attachment II.
    The Department finds that Petitioners filed the Petition on behalf 
of the domestic industry because they are interested parties as defined 
in sections 771(9)(C) of the Act and have demonstrated sufficient 
industry support with respect to the countervailing duty investigation 
that they are requesting the Department initiate. See Initiation 
Checklist at Attachment II.

Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from the PRC materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    Petitioners allege that imports of certain sodium and potassium 
phosphate salts from the PRC are benefitting from countervailable 
subsidies and that such imports are causing, or threaten to cause, 
material injury to the domestic industry producing certain sodium and 
potassium phosphate salts. In addition, Petitioners allege that 
subsidized imports exceed the negligibility threshold provided for 
under section 771(24)(A) of the Act.
    Petitioners contend that the industries' injured condition is 
illustrated by reduced market share, underselling and price depressing 
and suppressing effects, lost sales and revenue, reduced production, 
reduced capacity and capacity utilization, reduced shipments, reduced 
employment, and an overall decline in financial performance. We have 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, and causation, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation. See 
Initiation Checklist at Attachment III (Analysis of Injury Allegations 
and Evidence of Material Injury and Causation).

Initiation of Countervailing Duty Investigation

    Section 702(b) of the Act requires the Department to initiate a CVD 
proceeding whenever an interested party files a petition on behalf of 
an industry that: (1) Alleges the elements necessary for an imposition 
of a duty under section 701(a) of the Act; and (2) is accompanied by 
information reasonably available to the Petitioner(s) supporting the 
allegations.
    The Department has examined the CVD petition on sodium and 
potassium phosphate salts from the PRC and finds that it complies with 
the requirements of section 702(b) of the Act. Therefore, in accordance 
with section 702(b) of the Act, we are initiating a CVD investigation 
to determine whether manufacturers, producers, or exporters of sodium 
and potassium phosphate salts in the PRC receive countervailable 
subsidies. For a discussion of evidence supporting our initiation 
determination, see Initiation Checklist.
    We are including in our investigation the following programs 
alleged in the Petition to have provided countervailable subsidies to 
producers and exporters of the subject merchandise in the PRC:

A. Income Tax Programs

    1. ``Two Free, Three Half'' Tax Exemption for Foreign Invested 
Enterprises (``FIEs'').
    2. Income Tax Subsidies for FIEs Based on Geographic Location.
    3. Income Tax Exemption Programs For Export-Oriented FIEs.
    4. Local Income Tax Exemption or Reduction Program for 
``Productive'' FIEs.
    5. Preferential Tax Subsidies for Research and Development by FIEs.
    6. Reduced Income Tax Rate for High- and New-Technology 
Enterprises.
    7. Income Tax Credit on Purchases of Domestically Produced 
Equipment.
    8. Reduction in or Exemption from the Fixed Assets Investment 
Orientation Regulatory Tax.

B. Grant Programs

    1. Subsidies to Loss-Making State-Owned Enterprises (``SOEs'') by 
the Government of China (``GOC'') at the National Level.
    2. Subsidies to Loss-Making SOEs by the GOC at the Provincial 
Level.
    3. Grants Pursuant to the State Key Technology Renovation Project 
Fund.
    4. Grants Pursuant to the ``Famous Brands'' Program.

[[Page 54781]]

C. Tariff and Indirect Tax Exemption Programs

    1. Value Added Tax (``VAT'') Refunds for FIEs Purchasing 
Domestically Produced Equipment.

D. VAT and Tariff Exemptions on Imported Equipment

E. Preferential Lending Policies

    1. Discounted Loans for Export Oriented Industries (``Honorable 
Enterprises'').

F. Government Restraints on Exports of Yellow Phosphorus

For further information explaining why the Department is investigating 
these programs, see Initiation Checklist.
    We are not including in our investigation the following program 
alleged to benefit producers and exporters of the subject merchandise 
in the PRC:

Provision of Electricity for Less Than Adequate Remuneration

    Petitioners allege that the GOC, through the National Development 
and Reform Commission, regulates the power rates for certain 
industries, including the yellow phosphorus industry and that 
differential rates are provided to the yellow phosphorus industry. 
Petitioners have not provided information that supports the allegation 
that differential pricing of electricity is provided to producers of 
the subject merchandise. Consequently, we do not plan on investigating 
this program.

Respondent Selection

    For this investigation, the Department expects to select 
respondents based on U.S. Customs and Border Protection (``CBP'') data 
for U.S. imports during the period of investigation. We intend to 
release the CBP data under the Administrative Protective Order 
(``APO'') to all parties with access to information protected by APO 
within five days of the announcement of the initiation of this 
investigation. Interested parties may submit comments regarding the CBP 
data and respondent selection within seven calendar days of publication 
of this notice. We intend to make our decision regarding respondent 
selection within 20 days of publication of this Federal Register 
notice.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Department's Web site at https://ia.ita.doc.gov/apo.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act, a copy of 
the public version of the Petition has been provided to the Government 
of the PRC. As soon as and to the extent practicable, we will attempt 
to provide a copy of the public version of the Petition to each 
exporter named in the Petition, consistent with section 351.203(c)(2) 
of the Department's regulations.

ITC Notification

    We have notified the ITC of our initiation, as required by section 
702(d) of the Act and 19 CFR 351.203(c)(1).

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 25 days after the date 
on which it receives notice of the initiation, whether there is a 
reasonable indication that imports of subsidized sodium and potassium 
phosphate salts from the PRC are causing material injury, or 
threatening to cause material injury, to a U.S. industry. See section 
703(a)(2) of the Act. A negative ITC determination will result in the 
investigation being terminated; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c)(1).

    Dated: October 14, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Attachment I

Scope of the Investigation

    The phosphate salts covered by this investigation include Sodium 
Tripolyphosphate (STPP), whether anhydrous or in solution, anhydrous 
Monopotassium Phosphate (MKP), anhydrous Dipotassium Phosphate (DKP) 
and Tetrapotassium Pyrophosphate (TKPP), whether anhydrous or in 
solution (collectively ``phosphate salts'').
    STPP, also known as Sodium triphosphate, Tripoly or Pentasodium 
triposphate, is a sodium polyphosphate with the formula 
Na5O10P3. The American Chemical 
Society, Chemical Abstract Service (``CAS'') registry number for STPP 
is 7758-29-4. STPP is typically 25% phosphorus, 31% sodium and and 57% 
diphosphorus pentoxide (P2O5). STPP is classified 
under heading 2835.31.0000, HTSUS.
    TKPP, also known as normal potassium pyrophosphate, Diphosphoric 
acid or Tetrapotassium salt, is a potassium salt with the formula 
K4P2O7. The CAS registry number for 
TKPP is 7320-34-5. TKPP is typically 18.7% phosphorus and 47.3% 
potassium. It is generally greater than or equal to 43.0% 
P2O5 content. TKPP is classified under heading 
2835.39.1000, HTSUS.
    MKP, also known as Potassium dihydrogen phosphate, KDP, or 
Monobasic potassium phosphate, is a potassium salt with the formula 
KH2PO4. The CAS registry number for MKP is 7778-
77-0. MKP is typically 22.7% phosphorus, 28.7% potassium and 52% 
P2O5. MKP is classified under heading 
2835.24.0000, HTSUS.
    DKP, also known as Dipotassium salt, Dipotassium hydrogen 
orthophosphate or Potassium phosphate, dibasic, has a chemical formula 
of K2HPO4. The CAS registry number for DKP is 
7758-11-4. DKP is typically 17.8% phosphorus, 44.8% potassium and 40% 
P2O5 content. DKP is classified under heading 
2835.24.0000, HTSUS.
    The products covered by this investigation include the foregoing 
phosphate salts in all grades, whether food grade or technical grade. 
The product covered by this investigation includes anhydrous MKP and 
DKP without regard to the physical form, whether crushed, granule, 
powder or fines. Also covered are all forms of STPP and TKPP, whether 
crushed, granule, powder, fines or solution.
    For purposes of the investigation, the narrative description is 
dispositive, not the tariff heading, American Chemical Society, CAS 
registry number or CAS name, or the specific percentage chemical 
composition identified above.

[FR Doc. E9-25571 Filed 10-22-09; 8:45 am]
BILLING CODE 3510-DS-P
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