Purified Carboxymethylcellulose From Mexico: Notice of Preliminary Results of Antidumping Duty Administrative Review, 20313-20317 [2011-8741]
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Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
review Marsan Gida Sanayi ve Ticaret
A.S. (Marsan), in accordance with 19
CFR 351.213(b)(1). On August 31, 2010,
we published the notice of initiation of
review of Marsan. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Deferral of
Initiation of Administrative Review, 75
FR 53274 (August 31, 2010). The
preliminary results of review are
currently due April 4, 2011.
Extension of Time Limit of Preliminary
Results
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (the ‘‘Act’’),
requires that the Department make a
preliminary determination within 245
days after the last day of the anniversary
month of an order for which a review
is requested. Section 751(a)(3)(A) of the
Act further states that, if it is not
practicable to complete the review
within the time period specified, the
administering the authority may extend
the 245-day period to issue its
preliminary results to up to 365 days.
We determine that completion of the
preliminary results of this review within
the 245-day period is not practicable for
the following reasons. The Department
needs additional time to analyze
complex issues regarding affiliation and
knowledge of U.S. destination. Given
the complexity of these issues, and in
accordance with section 751(a)(3)(A) of
the Act, we are extending the time
period for issuing the preliminary
results of this review by 30 days.
Therefore, the preliminary results are
now due no later than May 4, 2011. The
final results continue to be due 120 days
after publication of the preliminary
results.
This notice is published pursuant to
sections 751(a)(3)(A) and 777(i)(1) of the
Act.
Dated: April 4, 2011.
Christian Marsh,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations.
[FR Doc. 2011–8566 Filed 4–11–11; 8:45 am]
BILLING CODE 3510–DS–M
DEPARTMENT OF COMMERCE
International Trade Administration
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[A–201–834]
Purified Carboxymethylcellulose From
Mexico: Notice of Preliminary Results
of Antidumping Duty Administrative
Review
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
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In response to a request from
petitioner Aqualon Company, a unit of
Hercules Incorporated (Aqualon), the
Department of Commerce (the
Department) is conducting an
administrative review of the
antidumping duty order on purified
carboxymethylcellulose (CMC) from
Mexico. The review covers exports of
the subject merchandise to the United
States produced and exported by
Quimica Amtex S.A. de C.V. (Amtex);
the period of review (POR) is July 1,
2009, through June 30, 2010.
We preliminarily find that Amtex has
made sales at less than normal value
(NV) during the POR. If these
preliminary results are adopted in our
final results of this review, we will
instruct U.S. Customs and Border
Protection (CBP) to assess antidumping
duties based on differences between the
export price (EP) or constructed export
price (CEP) and NV.
Interested parties are invited to
comment on these preliminary results.
Parties who submit arguments in this
proceeding are requested to submit with
the arguments: (1) A statement of the
issues, (2) a brief summary of the
arguments, and (3) a table of authorities.
DATES: Effective Date: April 12, 2011.
FOR FURTHER INFORMATION CONTACT:
Mark Flessner or Robert James, AD/CVD
Operations, Office 7, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–6312 or (202) 482–
0649, respectively.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The Department published the
antidumping duty order on CMC from
Mexico on July 11, 2005. See Notice of
Antidumping Duty Orders: Purified
Carboxymethylcellulose from Finland,
Mexico, the Netherlands, and Sweden,
70 FR 39734 (July 11, 2005). On July 1,
2010, the Department published the
notice of opportunity to request an
administrative review of CMC from
Mexico for the period of July 1, 2009,
through June 30, 2010. See
Antidumping or Countervailing Duty
Order, Finding, or Suspended
Investigation: Opportunity To Request
Administrative Review, 75 FR 38074
(July 1, 2010). On July 26, 2010,
petitioner Aqualon requested an
administrative review of Amtex. On
August 31, 2010, the Department
published in the Federal Register a
notice of initiation of this antidumping
duty administrative review. See
Initiation of Antidumping and
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20313
Countervailing Duty Administrative
Reviews and Deferral of Initiation of
Administrative Review, 75 FR 53274
(August 31, 2010).
On September 21, 2010, the
Department issued its standard
antidumping duty questionnaire to
Amtex. Amtex submitted its response to
section A of the Department’s
questionnaire on October 15, 2010
(Amtex Section A Response). Amtex
submitted corrections to its section A
response on October 18, 2010. Amtex
submitted its response to sections B and
C of the Department’s questionnaire on
November 29, 2010 (Amtex Sections B
and C Response). On March 7, 2011, the
Department issued a supplemental
section A, B, and C questionnaire to
Amtex. Amtex timely submitted its
response to the Department’s
supplemental section A, B, and C
questionnaire on March 14, 2011
(Amtex Supplemental Response).
Period of Review
The POR is July 1, 2009, through June
30, 2010.
Scope of the Order
The merchandise covered by this
order is all purified
carboxymethylcellulose (CMC),
sometimes also referred to as purified
sodium CMC, polyanionic cellulose, or
cellulose gum, which is a white to offwhite, non-toxic, odorless,
biodegradable powder, comprising
sodium CMC that has been refined and
purified to a minimum assay of 90
percent. Purified CMC does not include
unpurified or crude CMC, CMC
Fluidized Polymer Suspensions, and
CMC that is cross-linked through heat
treatment. Purified CMC is CMC that
has undergone one or more purification
operations which, at a minimum, reduce
the remaining salt and other by-product
portion of the product to less than ten
percent. The merchandise subject to this
order is classified in the Harmonized
Tariff Schedule of the United States at
subheading 3912.31.00. This tariff
classification is provided for
convenience and customs purposes;
however, the written description of the
scope of the order is dispositive.
Date of Sale
The Department’s regulations state
that it will normally use the date of
invoice, as recorded in the exporter’s or
producer’s records kept in the ordinary
course of business, as the date of sale.
See 19 CFR 351.401(i). However, if the
Department is satisfied that ‘‘a different
date * * * better reflects the date on
which the exporter or producer
establishes the material terms of sale,’’
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the Department may choose a different
date. Id. Amtex has reported the
commercial invoice (as differentiated
from pro forma invoice) as the invoice
date. See Amtex Section A Response at
A22. With regard to the invoice date,
Amtex bills some of its sales via
‘‘delayed invoices’’ in both the home and
U.S. markets. Id. In these instances,
delivery is made to the customer and a
pro forma invoice is issued. However,
the subject merchandise remains in
storage and continues to be the property
of Amtex until withdrawn for
consumption by the customer (usually
at the end of a regular, monthly billing
cycle), at which time a definitive
invoice is issued. Id. In Amtex’s normal
books and records, it is this definitive
invoice date (not the pro forma invoice
date) that is recorded as the date of sale.
Id. Therefore, the Department
preliminarily determines that the
definitive invoice date is the date of sale
provided that the definite invoice is
issued on or before the shipment date.
We have used the shipment date as the
date of sale where the invoice is issued
after the shipment date. See Purified
Carboxymethylcellulose from Mexico:
Preliminary Results Analysis
Memorandum for Quimica Amtex, S.A.
de C.V., dated April 2, 2011 (Analysis
Memorandum), for further discussion of
date of sale. A public version of this
memorandum is on file in the
Department’s Central Records Unit
(CRU) located in Room 7046 of the main
Department of Commerce Building, 14th
Street and Constitution Avenue, NW.,
Washington, DC 20230.
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Fair Value Comparisons
To determine whether sales of CMC in
the United States were made at less than
NV, we compared U.S. price to NV, as
described in the ‘‘Export Price,’’
‘‘Constructed Export Price,’’ and
‘‘Normal Value’’ sections of this notice.
In accordance with section 777A(d)(2)
of the Tariff Act of 1930, as amended
(the Act), we calculated monthly
weighted-average NVs and compared
these to individual U.S. transactions.
Because we determined Amtex made
both EP and CEP sales during the POR,
we used both EP and CEP as the basis
for U.S. price in our comparisons.
Product Comparisons
In accordance with section 771(16) of
the Act, we considered all products
produced by Amtex covered by the
description in the ‘‘Scope of the Order’’
section, above, and sold in the home
market during the POR, to be foreign
like products for purposes of
determining appropriate product
comparisons to U.S. sales. We relied on
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five characteristics to match U.S. sales
of subject merchandise to comparison
sales of the foreign like product (listed
in order of priority): (1) Grade; (2)
viscosity; (3) degree of substitution; (4)
particle size; and (5) solution gel
characteristics. Where there were no
sales of identical merchandise in the
home market to compare to U.S. sales,
we compared U.S. sales to the next most
similar foreign like product on the basis
of these product characteristics and the
reporting instructions listed in the
Department’s September 21, 2010,
questionnaire. Because there were
contemporaneous sales of identical or
similar merchandise in the home market
suitable for comparison to all U.S. sales,
we did not compare any U.S. sales to
constructed value (CV). However, in
accordance with our normal practice,
the CV calculation was performed in
case NV is based on CV for the final
results. See the CV section below.
Export Price (EP)
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 subject
merchandise outside of the United
States to an unaffiliated purchaser in the
United States or to an unaffiliated
purchaser for exportation to the United
States,’’ as adjusted under section 772(c)
of the Act. In accordance with section
772(a) of the Act, we used EP for a
number of Amtex’s U.S. sales because
these sales were made before the date of
importation and were sales directly to
unaffiliated customers in the United
States, and because CEP methodology
was not otherwise indicated.
We based EP on the packed, delivered
duty paid, cost and freight (C&F) or free
on board (FOB) prices to unaffiliated
customers in the United States. We
made deductions for movement
expenses in accordance with section
772(c)(2)(A) of the Act, which included,
where appropriate, foreign inland
freight from the mill to the U.S. border,
inland freight from the border to the
customer or warehouse, and U.S.
brokerage and handling. We made an
adjustment for direct selling expenses
(credit expenses) in accordance with
section 772(c)(2)(A) of the Act.
Constructed Export Price (CEP)
In accordance with section 772(b) of
the Act, CEP is ‘‘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
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exporter, to a purchaser not affiliated
with the producer or exporter,’’ as
adjusted under sections 772(c) and (d)
of the Act. In accordance with section
772(b) of the Act, we used CEP for a
number of Amtex’s U.S. sales because
Amtex sold merchandise to its affiliate
in the United States, Amtex Chemicals
LLC (Amtex Chemicals or ACUS),
which, in turn, sold subject
merchandise to unaffiliated U.S.
customers. See, e.g., Amtex’s Section A
Response at A2–A3, A10–A11, and
Exhibit A–6. We preliminarily find
these U.S. sales are properly classified
as CEP sales because they occurred in
the United States and were made
through Amtex’s U.S. affiliate, Amtex
Chemicals, to unaffiliated U.S.
customers.
We based CEP on the packed,
delivered duty paid or FOB warehouse
prices to unaffiliated purchasers in the
United States. We made deductions for
movement expenses in accordance with
section 772(c)(2)(A) of the Act, which
included, where appropriate, foreign
inland freight to the border, foreign
brokerage and handling, customs duties,
U.S. brokerage, U.S. inland freight, and
U.S. warehousing expenses. In
accordance with section 772(d)(1) of the
Act, we deducted those selling expenses
associated with economic activities
occurring in the United States,
including direct selling expenses (credit
costs), inventory carrying costs, and
indirect selling expenses. We made an
adjustment for CEP profit as set forth in
the Analysis Memorandum. See
Analysis Memorandum at 11.
Normal Value
A. Selection of Comparison Market
In order to determine whether there
was a sufficient volume of sales in the
home market to serve as a viable basis
for calculating NV, we compared the
respondent’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) of the Act. Because
Amtex’s aggregate volume of home
market sales of the foreign like product
was greater than five percent of its
aggregate volume of U.S. sales of the
subject merchandise, we determined the
home market was viable. See section
773(a)(1)(B) of the Act. Therefore, we
based NV on home market sales in the
usual commercial quantities and in the
ordinary course of trade.
B. Price-to-Price Comparisons
We calculated NV based on prices to
unaffiliated customers. Amtex reported
no billing adjustments, discounts or
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rebates in the home market. We made
deductions for movement expenses
including, where appropriate, foreign
inland freight and insurance, pursuant
to section 773(a)(6)(B) of the Act. In
addition, when comparing sales of
similar merchandise, we made
adjustments for differences in cost
attributable to differences in physical
characteristics of the merchandise (i.e.,
DIFMER) pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR
351.411. We also made adjustments for
differences in circumstances of sale
(COS) in accordance with section
773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for
imputed credit expenses. Finally, we
deducted home market packing costs
and added U.S. packing costs in
accordance with sections 773(a)(6)(A)
and (B) of the Act.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, we base NV on sales made
in the comparison market at the same
level of trade (LOT) as the export
transaction. The NV LOT is based on the
starting price of sales in the home
market or, when NV is based on CV, on
the LOT of the sales from which SG&A
expenses and profit are derived. With
respect to CEP transactions in the U.S.
market, the CEP LOT is defined as the
level of the constructed sale from the
exporter to the importer. See section 19
CFR 351.412(c)(1)(ii).
To determine whether NV sales are at
a different LOT than CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the 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 a
LOT adjustment under section
773(a)(7)(A) of the Act. 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 the 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,
e.g., Certain Hot-Rolled Flat-Rolled
Carbon Quality Steel Products from
Brazil; Preliminary Results of
Antidumping Duty Administrative
Review, 70 FR 17406, 17410 (April 6,
2005), unchanged in Notice of Final
Results of Antidumping Duty
Administrative Review: Certain Hot-
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Rolled Flat-Rolled Carbon Quality Steel
Products from Brazil, 70 FR 58683
(October 7, 2005); see also Final
Determination of Sales at Less Than
Fair Value: Greenhouse Tomatoes From
Canada, 67 FR 8781 (February 26,
2002), and accompanying Issues and
Decisions Memorandum at Comment 8.
For CEP sales, we consider only the
selling activities reflected in the price
after the deduction of expenses and CEP
profit under section 772(d)(3) of the Act.
See Micron Technology, Inc. v. United
States, 243 F.3d 1301, 1314–15 (Fed.
Cir. 2001). We expect that if the claimed
LOTs are the same, the functions and
activities of the seller should be similar.
Conversely, if a party claims that the
LOTs are different for different groups
of sales, the functions and activities of
the seller should be dissimilar. See
Porcelain-on-Steel Cookware from
Mexico: Final Results of Antidumping
Duty Administrative Review, 65 FR
30068 (May 10, 2000), and
accompanying Issues and Decisions
Memorandum at Comment 6.
Amtex reported it sold CMC to endusers and distributors in the home
market and to end-users and distributors
in the United States. For the home
market, Amtex identified two channels
of distribution: End users (channel 1)
and distributors (channel 2). See
Amtex’s Section A Response at A14.
Amtex claimed a single level of trade in
the home market, stating that it
performs virtually the same selling
functions to either category of customer.
Id.
We obtained information from Amtex
regarding the marketing stages involved
in making its reported home market and
U.S. sales. Amtex provided a table
listing all selling activities it performs,
and comparing the levels of trade among
each channel of distribution in each
market. See Amtex’s Section A
Response at Exhibit A–7. We reviewed
Amtex’s claims concerning the intensity
to which all selling functions were
performed for each home market
channel of distribution and customer
category. For virtually all selling
functions, the selling activities of Amtex
were identical in both channels,
including sales forecasting, personnel
training, sales promotion, direct sales
personnel, technical assistance,
warranty service, after-sales service and
arranging delivery. Id. Amtex described
the level of activity as independent of
channel of distribution. See Amtex’s
Section A Response at A15–A16.
While we find some differences in the
selling functions performed between the
home market end-user and distributor
channels of distribution, such
differences are minor in that they are
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20315
not the principal selling functions but
rather specific to a few customers and
rarely performed. See Amtex’s Section
A Response at Exhibit A–7. Based on
our analysis of all of Amtex’s home
market selling functions, we agree with
Amtex’s characterization of all its home
market sales as being made at the same
level of trade, the NV LOT.
In the U.S. market, Amtex reported a
single level of trade for EP sales and a
single level of trade for CEP sales
through two channels of distribution
(i.e., end-users and distributors) in each.
See Amtex Section C Response at C26.
We examined the record with respect to
Amtex’s EP sales and find that for all EP
sales, Amtex performed such selling
functions as sales forecasting, sales
promotion, U.S. sales personnel,
technical assistance, warranties, aftersales services and arranging delivery.
See Amtex’s Section A Response at
Exhibit A–7. In terms of the number and
intensity of selling functions performed
on EP sales, these were
indistinguishable between sales from
Amtex to end users and to distributors.
Id. Accordingly, we agree with Amtex
and preliminarily determine that all EP
sales were made at the same LOT.
We compared Amtex’s EP level of
trade to the single NV level of trade
found in the home market. However,
while we find differences in the levels
of intensity performed for some of these
functions between the home market NV
level of trade and the EP level of trade,
such differences are minor (specific to a
few customers and rarely performed)
and do not establish distinct levels of
trade between the home market and the
U.S. market. Based on our analysis of all
of Amtex’s home market and EP selling
functions, we find these sales were
made at the same level of trade.
For CEP sales, Amtex claims that the
number and intensity of selling
functions performed by Amtex in
making its sales to Amtex Chemicals are
lower than the number and intensity of
selling functions Amtex performed for
its EP sales, and further claims that CEP
sales are at a less advanced stage than
home market sales. See Amtex’s Section
A Response at A18. Amtex specifically
states that Amtex ‘‘made no sales in the
home market or other markets at the
same level of trade as its CEP sales for
the U.S.’’ Id. However, we find that the
CEP LOT is more advanced than the NV
LOT. Amtex’s Section C Response
indicates that Amtex’s CEP sales are at
a more advanced marketing stage than
are its home market sales. See Amtex
Sections B and C Response at C48.
Amtex reports that many of the
principal functions in both markets are
carried out by a single employee in the
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Mexico office. While U.S. employees of
Amtex Chemicals do perform important
selling functions, such as contacting
customers and negotiating prices, the
preponderance of overall selling
functions are, in fact, performed by the
Amtex employee in Mexico City. The
record indicates this employee devotes
a disproportionate amount of his efforts
on CEP sales, despite the fact that both
the Mexican home market and Amtex’s
EP market are considerably larger than
Amtex’s CEP market. From our analysis
of Amtex’s overall selling functions, it is
evident that the intensity of activity for
the principal functions is greater for
CEP sales than other sales. Id.; see also
Exhibit A–1. Accordingly, we
preliminarily determine that the CEP
LOT (that is, sales from Amtex to its
U.S. affiliate) involves a much more
advanced stage of distribution than the
NV LOT. See Analysis Memorandum at
4–7.
Because we found the home market
and U.S. CEP sales were made at
different LOTs, we examined whether a
LOT adjustment or a CEP offset may be
appropriate in this review. As we found
only one LOT in the home market, it
was not possible to make a LOT
adjustment to home market sales prices,
because such an adjustment is
dependent on our ability to identify a
pattern of consistent price differences
between the home market sales on
which NV is based and home market
sales at the CEP LOT. See 19 CFR
351.412(d)(1)(ii). Furthermore, because
the CEP LOT involves a much more
advanced stage of distribution than the
NV LOT, it is not possible to make a
CEP offset to NV in accordance with
section 773(a)(7)(B) of the Act.
Currency Conversions
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Amtex reported certain home market
and U.S. sales prices and adjustments in
both U.S. dollars and Mexican pesos.
Therefore, we made peso-U.S. dollar
currency conversions, where
appropriate, based on the exchange rates
in effect on the date of the sale, as
certified by the Federal Reserve Board,
in accordance with section 773A(a) of
the Act.
Preliminary Results of Review
As a result of our review, we
preliminarily find the following
weighted-average dumping margin
exists for the period July 1, 2009,
through June 30, 2010:
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Producer/Exporter
Weighted-average
margin
(percentage)
Quimica Amtex, S.A.
de C.V ...................
0.80
The Department will disclose
calculations performed within five days
of the date of publication of this notice
in accordance with 19 CFR 351.224(b).
An interested party may request a
hearing within thirty days of
publication. See 19 CFR 351.310(c).
Requests should contain the party’s
name, address, and telephone number,
the number of participants, and a list of
the issues to be discussed. At the
hearing, each party may make an
affirmative presentation only on issues
raised in that party’s case brief, and may
make rebuttal presentations only on
arguments included in that party’s
rebuttal brief. Any hearing, if requested,
will be held 37 days after the date of
publication, or the first business day
thereafter, unless the Department alters
the date pursuant to 19 CFR 351.310(d).
Interested parties may submit case briefs
no later than 30 days after the date of
publication of these preliminary results
of review. See 19 CFR 351.309(c)(1)(ii).
Rebuttal briefs, limited to issues raised
in the case briefs, may be filed no later
than 35 days after the date of
publication of this notice. See 19 CFR
351.309(d)(1). Parties who submit
arguments in these proceedings are
requested to submit with the argument:
(1) A statement of the issue; (2) a brief
summary of the argument; and (3) a
table of authorities. Further, parties
submitting written comments must
provide the Department with an
additional copy of the public version of
any such comments on diskette. The
Department will issue final results of
this administrative review, including
the results of our analysis of the issues
in any such written comments or at a
hearing, within 120 days of publication
of these preliminary results.
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. Upon
completion of this administrative
review, pursuant to 19 CFR 351.212(b),
the Department will calculate an
assessment rate on all appropriate
entries. Amtex has reported entered
values for all of its sales of subject
merchandise to the United States during
the POR. Therefore, in accordance with
19 CFR 351.212(b)(1), we will calculate
importer-specific duty assessment rates
on the basis of the ratio of the total
amount of antidumping duties
calculated for the examined sales to the
total entered value of the examined
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sales of that importer. These rates will
be assessed uniformly on all entries the
respective importers made during the
POR if these preliminary results are
adopted in the final results of review.
Where the assessment rate is above de
minimis, we will instruct CBP to assess
duties on all entries of subject
merchandise by that importer. In
accordance with 19 CFR 356.8(a), the
Department intends to issue appropriate
assessment instructions directly to CBP
on or after 41 days following the
publication of the final results of
review.
The Department clarified its
‘‘automatic assessment’’ regulation on
May 6, 2003. See Antidumping and
Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68
FR 23954 (May 6, 2003). This
clarification will apply to entries of
subject merchandise during the POR
produced by the company included in
these preliminary results that the
company did not know were destined
for the United States. In such instances
we will instruct CBP to liquidate
unreviewed entries at the ‘‘all others’’
rate if there is no rate for the
intermediate company or companies
involved in the transaction.
Cash Deposit Requirements
Furthermore, the following cash
deposit requirements will be effective
for all shipments of CMC from Mexico
entered, or withdrawn from warehouse,
for consumption on or after the
publication date of the final results of
this administrative review, as provided
by section 751(a)(1) of the Act: (1) The
cash deposit rate for Amtex will be the
rate established in the final results of
review, unless that rate is less than 0.50
percent (de minimis within the meaning
of 19 CFR 351.106(c)(1)), in which case
the cash deposit rate will be zero; (2) if
the exporter is not a firm covered in this
review or the less-than-fair-value
(LTFV) investigation, but the
manufacturer is, the cash deposit rate
will be the rate established for the most
recent period for the manufacturer of
the merchandise; and (3) if neither the
exporter nor the manufacturer is a firm
covered in this or any previous review
conducted by the Department, the cash
deposit rate will be the all-others rate of
12.61 percent from the LTFV
investigation. See Notice of
Antidumping Duty Orders: Purified
Carboxymethylcellulose from Finland,
Mexico, the Netherlands and Sweden,
70 FR 39734 (July 11, 2005).
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
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12APN1
Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act and 19
CFR 351.221(b)(4).
Dated: April 4, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–8741 Filed 4–11–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–900]
Diamond Sawblades and Parts Thereof
From the People’s Republic of China:
Final Rescission of Antidumping Duty
New Shipper Review
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: On March 9, 2011, the
Department of Commerce
(‘‘Department’’) issued its preliminary
intent to rescind the new shipper review
(‘‘NSR’’) of Pujiang Talent Diamond
Tools Co., Ltd. (‘‘PTDT’’).1 We gave
interested parties an opportunity to
comment on the Preliminary Intent to
Rescind and, based upon our analysis of
the comments and rebuttal comments
received, we continue to determine that
PTDT has failed to meet the minimum
requirements for entitlement to an NSR.
DATES: Effective Date: April 12, 2011.
FOR FURTHER INFORMATION CONTACT:
Alan Ray, AD/CVD Operations, Office 9,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230; telephone: (202) 482–5403.
SUPPLEMENTARY INFORMATION:
AGENCY:
srobinson on DSKHWCL6B1PROD with NOTICES
Case History
The Department received a timely
request from PTDT, in what at the time
appeared to be in accordance with 19
1 See Memorandum to the File, from James C.
Doyle, Office Director, through Gary Taverman,
Acting Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations, Preliminary
Intent to Rescind the New Shipper Review of
Pujiang Talent Diamond Tools Co., Ltd., dated
March 9, 2011 (‘‘Preliminary Intent to Rescind’’).
VerDate Mar<15>2010
18:00 Apr 11, 2011
Jkt 223001
CFR 351.214(c), for an NSR of the
antidumping duty order on diamond
sawblades and parts thereof from the
People’s Republic of China (‘‘PRC’’). On
June 28, 2010, the Department
published the initiation of the NSR with
a January 23, 2009, through April 30,
2010 period of review (‘‘POR’’).2
On March 9, 2011, the Department
issued its preliminary intent to rescind
this NSR based on the sale of subject
merchandise to the United States during
the POR that had been produced by a
company that had exported subject
merchandise to the United States during
the period of investigation (‘‘POI’’). See
Preliminary Intent to Rescind.
On March 16, 2011, the Department
received affirmative comments from
PTDT, requesting that the Department
not terminate the NSR. The Department
received rebuttal comments from
Petitioners, the Diamond Sawblades
Manufacturers Coalition, on March 23,
2011, requesting that the Department
terminate the NSR.
Scope of the Order
The products covered by the order are
all finished circular sawblades, whether
slotted or not, with a working part that
is comprised of a diamond segment or
segments, and parts thereof, regardless
of specification or size, except as
specifically excluded below. Within the
scope of the order are semifinished
diamond sawblades, including diamond
sawblade cores and diamond sawblade
segments. Diamond sawblade cores are
circular steel plates, whether or not
attached to non-steel plates, with slots.
Diamond sawblade cores are
manufactured principally, but not
exclusively, from alloy steel. A diamond
sawblade segment consists of a mixture
of diamonds (whether natural or
synthetic, and regardless of the quantity
of diamonds) and metal powders
(including, but not limited to, iron,
cobalt, nickel, tungsten carbide) that are
formed together into a solid shape (from
generally, but not limited to, a heating
and pressing process).
Sawblades with diamonds directly
attached to the core with a resin or
electroplated bond, which thereby do
not contain a diamond segment, are not
included within the scope of the order.
Diamond sawblades and/or sawblade
cores with a thickness of less than 0.025
inches, or with a thickness greater than
1.1 inches, are excluded from the scope
of the order. Circular steel plates that
have a cutting edge of non-diamond
2 See Diamond Sawblades and Parts Thereof from
the People’s Republic of China: Initiation of
Antidumping Duty New Shipper Review, 75 FR
36632 (June 28, 2010).
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
20317
material, such as external teeth that
protrude from the outer diameter of the
plate, whether or not finished, are
excluded from the scope of the order.
Diamond sawblade cores with a
Rockwell C hardness of less than 25 are
excluded from the scope of the order.
Diamond sawblades and/or diamond
segment(s) with diamonds that
predominantly have a mesh size number
greater than 240 (such as 250 or 260) are
excluded from the scope of the order.
Merchandise subject to the order is
typically imported under heading
8202.39.00.00 of the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’’). When packaged together as
a set for retail sale with an item that is
separately classified under headings
8202 to 8205 of the HTSUS, diamond
sawblades or parts thereof may be
imported under heading 8206.00.00.00
of the HTSUS. The tariff classification is
provided for convenience and customs
purposes; however, the written
description of the scope of the order is
dispositive.
Summary of Comments Received 3
On March 16, 2011, PTDT submitted
comments regarding the Department’s
Preliminary Intent to Rescind. PTDT
raised four main arguments. First, the
purpose of the NSR is to determine if
PTDT was dumping subject
merchandise and then to calculate its
antidumping duty margin. To rescind
the NSR based on an isolated incident,
representing such a low volume, places
too much weight on the insignificant
incident at issue. To rescind the review
would now be a significant waste of
already spent time and resources.
Second, PTDT exported subject
merchandise produced by another
company to fill a customer’s order, not
in an effort to assist that company in
circumventing payment of antidumping
duties. Third, the Department should
exercise its discretion and overlook this
technical violation by applying the same
kind of logic it employs when it extends
the POR of an NSR so as to capture nonentered sales, or the same logic
employed in the application of the de
minimis provision for antidumping duty
margins of less than 0.5 percent. Finally,
PTDT argues that if the Department
determines that rescission is
appropriate, it should instead consider
3 Certain business proprietary information (‘‘BPI’’)
regarding the rescission of this NSR has been
addressed in a public manner in this notice. For an
explanation of the BPI relied upon, see
Memorandum to the File, from Alan Ray, Case
Analyst, Diamond Sawblades and Parts Thereof
from the People’s Republic of China: BPI
Referenced in Final Rescission, dated concurrently
with this notice.
E:\FR\FM\12APN1.SGM
12APN1
Agencies
[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20313-20317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8741]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-834]
Purified Carboxymethylcellulose From Mexico: Notice of
Preliminary Results of Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from petitioner Aqualon Company, a
unit of Hercules Incorporated (Aqualon), the Department of Commerce
(the Department) is conducting an administrative review of the
antidumping duty order on purified carboxymethylcellulose (CMC) from
Mexico. The review covers exports of the subject merchandise to the
United States produced and exported by Quimica Amtex S.A. de C.V.
(Amtex); the period of review (POR) is July 1, 2009, through June 30,
2010.
We preliminarily find that Amtex has made sales at less than normal
value (NV) during the POR. If these preliminary results are adopted in
our final results of this review, we will instruct U.S. Customs and
Border Protection (CBP) to assess antidumping duties based on
differences between the export price (EP) or constructed export price
(CEP) and NV.
Interested parties are invited to comment on these preliminary
results. Parties who submit arguments in this proceeding are requested
to submit with the arguments: (1) A statement of the issues, (2) a
brief summary of the arguments, and (3) a table of authorities.
DATES: Effective Date: April 12, 2011.
FOR FURTHER INFORMATION CONTACT: Mark Flessner or Robert James, AD/CVD
Operations, Office 7, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
6312 or (202) 482-0649, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the antidumping duty order on CMC from
Mexico on July 11, 2005. See Notice of Antidumping Duty Orders:
Purified Carboxymethylcellulose from Finland, Mexico, the Netherlands,
and Sweden, 70 FR 39734 (July 11, 2005). On July 1, 2010, the
Department published the notice of opportunity to request an
administrative review of CMC from Mexico for the period of July 1,
2009, through June 30, 2010. See Antidumping or Countervailing Duty
Order, Finding, or Suspended Investigation: Opportunity To Request
Administrative Review, 75 FR 38074 (July 1, 2010). On July 26, 2010,
petitioner Aqualon requested an administrative review of Amtex. On
August 31, 2010, the Department published in the Federal Register a
notice of initiation of this antidumping duty administrative review.
See Initiation of Antidumping and Countervailing Duty Administrative
Reviews and Deferral of Initiation of Administrative Review, 75 FR
53274 (August 31, 2010).
On September 21, 2010, the Department issued its standard
antidumping duty questionnaire to Amtex. Amtex submitted its response
to section A of the Department's questionnaire on October 15, 2010
(Amtex Section A Response). Amtex submitted corrections to its section
A response on October 18, 2010. Amtex submitted its response to
sections B and C of the Department's questionnaire on November 29, 2010
(Amtex Sections B and C Response). On March 7, 2011, the Department
issued a supplemental section A, B, and C questionnaire to Amtex. Amtex
timely submitted its response to the Department's supplemental section
A, B, and C questionnaire on March 14, 2011 (Amtex Supplemental
Response).
Period of Review
The POR is July 1, 2009, through June 30, 2010.
Scope of the Order
The merchandise covered by this order is all purified
carboxymethylcellulose (CMC), sometimes also referred to as purified
sodium CMC, polyanionic cellulose, or cellulose gum, which is a white
to off-white, non-toxic, odorless, biodegradable powder, comprising
sodium CMC that has been refined and purified to a minimum assay of 90
percent. Purified CMC does not include unpurified or crude CMC, CMC
Fluidized Polymer Suspensions, and CMC that is cross-linked through
heat treatment. Purified CMC is CMC that has undergone one or more
purification operations which, at a minimum, reduce the remaining salt
and other by-product portion of the product to less than ten percent.
The merchandise subject to this order is classified in the Harmonized
Tariff Schedule of the United States at subheading 3912.31.00. This
tariff classification is provided for convenience and customs purposes;
however, the written description of the scope of the order is
dispositive.
Date of Sale
The Department's regulations state that it will normally use the
date of invoice, as recorded in the exporter's or producer's records
kept in the ordinary course of business, as the date of sale. See 19
CFR 351.401(i). However, if the Department is satisfied that ``a
different date * * * better reflects the date on which the exporter or
producer establishes the material terms of sale,''
[[Page 20314]]
the Department may choose a different date. Id. Amtex has reported the
commercial invoice (as differentiated from pro forma invoice) as the
invoice date. See Amtex Section A Response at A22. With regard to the
invoice date, Amtex bills some of its sales via ``delayed invoices'' in
both the home and U.S. markets. Id. In these instances, delivery is
made to the customer and a pro forma invoice is issued. However, the
subject merchandise remains in storage and continues to be the property
of Amtex until withdrawn for consumption by the customer (usually at
the end of a regular, monthly billing cycle), at which time a
definitive invoice is issued. Id. In Amtex's normal books and records,
it is this definitive invoice date (not the pro forma invoice date)
that is recorded as the date of sale. Id. Therefore, the Department
preliminarily determines that the definitive invoice date is the date
of sale provided that the definite invoice is issued on or before the
shipment date. We have used the shipment date as the date of sale where
the invoice is issued after the shipment date. See Purified
Carboxymethylcellulose from Mexico: Preliminary Results Analysis
Memorandum for Quimica Amtex, S.A. de C.V., dated April 2, 2011
(Analysis Memorandum), for further discussion of date of sale. A public
version of this memorandum is on file in the Department's Central
Records Unit (CRU) located in Room 7046 of the main Department of
Commerce Building, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230.
Fair Value Comparisons
To determine whether sales of CMC in the United States were made at
less than NV, we compared U.S. price to NV, as described in the
``Export Price,'' ``Constructed Export Price,'' and ``Normal Value''
sections of this notice. In accordance with section 777A(d)(2) of the
Tariff Act of 1930, as amended (the Act), we calculated monthly
weighted-average NVs and compared these to individual U.S.
transactions. Because we determined Amtex made both EP and CEP sales
during the POR, we used both EP and CEP as the basis for U.S. price in
our comparisons.
Product Comparisons
In accordance with section 771(16) of the Act, we considered all
products produced by Amtex covered by the description in the ``Scope of
the Order'' section, above, and sold in the home market during the POR,
to be foreign like products for purposes of determining appropriate
product comparisons to U.S. sales. We relied on five characteristics to
match U.S. sales of subject merchandise to comparison sales of the
foreign like product (listed in order of priority): (1) Grade; (2)
viscosity; (3) degree of substitution; (4) particle size; and (5)
solution gel characteristics. Where there were no sales of identical
merchandise in the home market to compare to U.S. sales, we compared
U.S. sales to the next most similar foreign like product on the basis
of these product characteristics and the reporting instructions listed
in the Department's September 21, 2010, questionnaire. Because there
were contemporaneous sales of identical or similar merchandise in the
home market suitable for comparison to all U.S. sales, we did not
compare any U.S. sales to constructed value (CV). However, in
accordance with our normal practice, the CV calculation was performed
in case NV is based on CV for the final results. See the CV section
below.
Export Price (EP)
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 subject merchandise
outside of the United States to an unaffiliated purchaser in the United
States or to an unaffiliated purchaser for exportation to the United
States,'' as adjusted under section 772(c) of the Act. In accordance
with section 772(a) of the Act, we used EP for a number of Amtex's U.S.
sales because these sales were made before the date of importation and
were sales directly to unaffiliated customers in the United States, and
because CEP methodology was not otherwise indicated.
We based EP on the packed, delivered duty paid, cost and freight
(C&F) or free on board (FOB) prices to unaffiliated customers in the
United States. We made deductions for movement expenses in accordance
with section 772(c)(2)(A) of the Act, which included, where
appropriate, foreign inland freight from the mill to the U.S. border,
inland freight from the border to the customer or warehouse, and U.S.
brokerage and handling. We made an adjustment for direct selling
expenses (credit expenses) in accordance with section 772(c)(2)(A) of
the Act.
Constructed Export Price (CEP)
In accordance with section 772(b) of the Act, CEP is ``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,'' as adjusted under sections 772(c) and
(d) of the Act. In accordance with section 772(b) of the Act, we used
CEP for a number of Amtex's U.S. sales because Amtex sold merchandise
to its affiliate in the United States, Amtex Chemicals LLC (Amtex
Chemicals or ACUS), which, in turn, sold subject merchandise to
unaffiliated U.S. customers. See, e.g., Amtex's Section A Response at
A2-A3, A10-A11, and Exhibit A-6. We preliminarily find these U.S. sales
are properly classified as CEP sales because they occurred in the
United States and were made through Amtex's U.S. affiliate, Amtex
Chemicals, to unaffiliated U.S. customers.
We based CEP on the packed, delivered duty paid or FOB warehouse
prices to unaffiliated purchasers in the United States. We made
deductions for movement expenses in accordance with section
772(c)(2)(A) of the Act, which included, where appropriate, foreign
inland freight to the border, foreign brokerage and handling, customs
duties, U.S. brokerage, U.S. inland freight, and U.S. warehousing
expenses. In accordance with section 772(d)(1) of the Act, we deducted
those selling expenses associated with economic activities occurring in
the United States, including direct selling expenses (credit costs),
inventory carrying costs, and indirect selling expenses. We made an
adjustment for CEP profit as set forth in the Analysis Memorandum. See
Analysis Memorandum at 11.
Normal Value
A. Selection of Comparison Market
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating NV,
we compared the respondent'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) of the Act. Because Amtex's aggregate
volume of home market sales of the foreign like product was greater
than five percent of its aggregate volume of U.S. sales of the subject
merchandise, we determined the home market was viable. See section
773(a)(1)(B) of the Act. Therefore, we based NV on home market sales in
the usual commercial quantities and in the ordinary course of trade.
B. Price-to-Price Comparisons
We calculated NV based on prices to unaffiliated customers. Amtex
reported no billing adjustments, discounts or
[[Page 20315]]
rebates in the home market. We made deductions for movement expenses
including, where appropriate, foreign inland freight and insurance,
pursuant to section 773(a)(6)(B) of the Act. In addition, when
comparing sales of similar merchandise, we made adjustments for
differences in cost attributable to differences in physical
characteristics of the merchandise (i.e., DIFMER) pursuant to section
773(a)(6)(C)(ii) of the Act and 19 CFR 351.411. We also made
adjustments for differences in circumstances of sale (COS) in
accordance with section 773(a)(6)(C)(iii) of the Act and 19 CFR
351.410. We made COS adjustments for imputed credit expenses. Finally,
we deducted home market packing costs and added U.S. packing costs in
accordance with sections 773(a)(6)(A) and (B) of the Act.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, we base NV on sales made in the comparison market
at the same level of trade (LOT) as the export transaction. The NV LOT
is based on the starting price of sales in the home market or, when NV
is based on CV, on the LOT of the sales from which SG&A expenses and
profit are derived. With respect to CEP transactions in the U.S.
market, the CEP LOT is defined as the level of the constructed sale
from the exporter to the importer. See section 19 CFR
351.412(c)(1)(ii).
To determine whether NV sales are at a different LOT than CEP
sales, we examine stages in the marketing process and selling functions
along the chain of distribution between the producer and the 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 a LOT adjustment under section
773(a)(7)(A) of the Act. 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 the 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, e.g., Certain Hot-Rolled Flat-
Rolled Carbon Quality Steel Products from Brazil; Preliminary Results
of Antidumping Duty Administrative Review, 70 FR 17406, 17410 (April 6,
2005), unchanged in Notice of Final Results of Antidumping Duty
Administrative Review: Certain Hot-Rolled Flat-Rolled Carbon Quality
Steel Products from Brazil, 70 FR 58683 (October 7, 2005); see also
Final Determination of Sales at Less Than Fair Value: Greenhouse
Tomatoes From Canada, 67 FR 8781 (February 26, 2002), and accompanying
Issues and Decisions Memorandum at Comment 8. For CEP sales, we
consider only the selling activities reflected in the price after the
deduction of expenses and CEP profit under section 772(d)(3) of the
Act. See Micron Technology, Inc. v. United States, 243 F.3d 1301, 1314-
15 (Fed. Cir. 2001). We expect that if the claimed LOTs are the same,
the functions and activities of the seller should be similar.
Conversely, if a party claims that the LOTs are different for different
groups of sales, the functions and activities of the seller should be
dissimilar. See Porcelain-on-Steel Cookware from Mexico: Final Results
of Antidumping Duty Administrative Review, 65 FR 30068 (May 10, 2000),
and accompanying Issues and Decisions Memorandum at Comment 6.
Amtex reported it sold CMC to end-users and distributors in the
home market and to end-users and distributors in the United States. For
the home market, Amtex identified two channels of distribution: End
users (channel 1) and distributors (channel 2). See Amtex's Section A
Response at A14. Amtex claimed a single level of trade in the home
market, stating that it performs virtually the same selling functions
to either category of customer. Id.
We obtained information from Amtex regarding the marketing stages
involved in making its reported home market and U.S. sales. Amtex
provided a table listing all selling activities it performs, and
comparing the levels of trade among each channel of distribution in
each market. See Amtex's Section A Response at Exhibit A-7. We reviewed
Amtex's claims concerning the intensity to which all selling functions
were performed for each home market channel of distribution and
customer category. For virtually all selling functions, the selling
activities of Amtex were identical in both channels, including sales
forecasting, personnel training, sales promotion, direct sales
personnel, technical assistance, warranty service, after-sales service
and arranging delivery. Id. Amtex described the level of activity as
independent of channel of distribution. See Amtex's Section A Response
at A15-A16.
While we find some differences in the selling functions performed
between the home market end-user and distributor channels of
distribution, such differences are minor in that they are not the
principal selling functions but rather specific to a few customers and
rarely performed. See Amtex's Section A Response at Exhibit A-7. Based
on our analysis of all of Amtex's home market selling functions, we
agree with Amtex's characterization of all its home market sales as
being made at the same level of trade, the NV LOT.
In the U.S. market, Amtex reported a single level of trade for EP
sales and a single level of trade for CEP sales through two channels of
distribution (i.e., end-users and distributors) in each. See Amtex
Section C Response at C26. We examined the record with respect to
Amtex's EP sales and find that for all EP sales, Amtex performed such
selling functions as sales forecasting, sales promotion, U.S. sales
personnel, technical assistance, warranties, after-sales services and
arranging delivery. See Amtex's Section A Response at Exhibit A-7. In
terms of the number and intensity of selling functions performed on EP
sales, these were indistinguishable between sales from Amtex to end
users and to distributors. Id. Accordingly, we agree with Amtex and
preliminarily determine that all EP sales were made at the same LOT.
We compared Amtex's EP level of trade to the single NV level of
trade found in the home market. However, while we find differences in
the levels of intensity performed for some of these functions between
the home market NV level of trade and the EP level of trade, such
differences are minor (specific to a few customers and rarely
performed) and do not establish distinct levels of trade between the
home market and the U.S. market. Based on our analysis of all of
Amtex's home market and EP selling functions, we find these sales were
made at the same level of trade.
For CEP sales, Amtex claims that the number and intensity of
selling functions performed by Amtex in making its sales to Amtex
Chemicals are lower than the number and intensity of selling functions
Amtex performed for its EP sales, and further claims that CEP sales are
at a less advanced stage than home market sales. See Amtex's Section A
Response at A18. Amtex specifically states that Amtex ``made no sales
in the home market or other markets at the same level of trade as its
CEP sales for the U.S.'' Id. However, we find that the CEP LOT is more
advanced than the NV LOT. Amtex's Section C Response indicates that
Amtex's CEP sales are at a more advanced marketing stage than are its
home market sales. See Amtex Sections B and C Response at C48. Amtex
reports that many of the principal functions in both markets are
carried out by a single employee in the
[[Page 20316]]
Mexico office. While U.S. employees of Amtex Chemicals do perform
important selling functions, such as contacting customers and
negotiating prices, the preponderance of overall selling functions are,
in fact, performed by the Amtex employee in Mexico City. The record
indicates this employee devotes a disproportionate amount of his
efforts on CEP sales, despite the fact that both the Mexican home
market and Amtex's EP market are considerably larger than Amtex's CEP
market. From our analysis of Amtex's overall selling functions, it is
evident that the intensity of activity for the principal functions is
greater for CEP sales than other sales. Id.; see also Exhibit A-1.
Accordingly, we preliminarily determine that the CEP LOT (that is,
sales from Amtex to its U.S. affiliate) involves a much more advanced
stage of distribution than the NV LOT. See Analysis Memorandum at 4-7.
Because we found the home market and U.S. CEP sales were made at
different LOTs, we examined whether a LOT adjustment or a CEP offset
may be appropriate in this review. As we found only one LOT in the home
market, it was not possible to make a LOT adjustment to home market
sales prices, because such an adjustment is dependent on our ability to
identify a pattern of consistent price differences between the home
market sales on which NV is based and home market sales at the CEP LOT.
See 19 CFR 351.412(d)(1)(ii). Furthermore, because the CEP LOT involves
a much more advanced stage of distribution than the NV LOT, it is not
possible to make a CEP offset to NV in accordance with section
773(a)(7)(B) of the Act.
Currency Conversions
Amtex reported certain home market and U.S. sales prices and
adjustments in both U.S. dollars and Mexican pesos. Therefore, we made
peso-U.S. dollar currency conversions, where appropriate, based on the
exchange rates in effect on the date of the sale, as certified by the
Federal Reserve Board, in accordance with section 773A(a) of the Act.
Preliminary Results of Review
As a result of our review, we preliminarily find the following
weighted-average dumping margin exists for the period July 1, 2009,
through June 30, 2010:
------------------------------------------------------------------------
Weighted-average
Producer/Exporter margin (percentage)
------------------------------------------------------------------------
Quimica Amtex, S.A. de C.V........................ 0.80
------------------------------------------------------------------------
The Department will disclose calculations performed within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b). An interested party may request a hearing within thirty
days of publication. See 19 CFR 351.310(c). Requests should contain the
party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. At the hearing,
each party may make an affirmative presentation only on issues raised
in that party's case brief, and may make rebuttal presentations only on
arguments included in that party's rebuttal brief. Any hearing, if
requested, will be held 37 days after the date of publication, or the
first business day thereafter, unless the Department alters the date
pursuant to 19 CFR 351.310(d). Interested parties may submit case
briefs no later than 30 days after the date of publication of these
preliminary results of review. See 19 CFR 351.309(c)(1)(ii). Rebuttal
briefs, limited to issues raised in the case briefs, may be filed no
later than 35 days after the date of publication of this notice. See 19
CFR 351.309(d)(1). Parties who submit arguments in these proceedings
are requested to submit with the argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities. Further, parties submitting written comments must provide
the Department with an additional copy of the public version of any
such comments on diskette. The Department will issue final results of
this administrative review, including the results of our analysis of
the issues in any such written comments or at a hearing, within 120
days of publication of these preliminary results.
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. Upon completion of this
administrative review, pursuant to 19 CFR 351.212(b), the Department
will calculate an assessment rate on all appropriate entries. Amtex has
reported entered values for all of its sales of subject merchandise to
the United States during the POR. Therefore, in accordance with 19 CFR
351.212(b)(1), we will calculate importer-specific duty assessment
rates on the basis of the ratio of the total amount of antidumping
duties calculated for the examined sales to the total entered value of
the examined sales of that importer. These rates will be assessed
uniformly on all entries the respective importers made during the POR
if these preliminary results are adopted in the final results of
review. Where the assessment rate is above de minimis, we will instruct
CBP to assess duties on all entries of subject merchandise by that
importer. In accordance with 19 CFR 356.8(a), the Department intends to
issue appropriate assessment instructions directly to CBP on or after
41 days following the publication of the final results of review.
The Department clarified its ``automatic assessment'' regulation on
May 6, 2003. See Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). This
clarification will apply to entries of subject merchandise during the
POR produced by the company included in these preliminary results that
the company did not know were destined for the United States. In such
instances we will instruct CBP to liquidate unreviewed entries at the
``all others'' rate if there is no rate for the intermediate company or
companies involved in the transaction.
Cash Deposit Requirements
Furthermore, the following cash deposit requirements will be
effective for all shipments of CMC from Mexico entered, or withdrawn
from warehouse, for consumption on or after the publication date of the
final results of this administrative review, as provided by section
751(a)(1) of the Act: (1) The cash deposit rate for Amtex will be the
rate established in the final results of review, unless that rate is
less than 0.50 percent (de minimis within the meaning of 19 CFR
351.106(c)(1)), in which case the cash deposit rate will be zero; (2)
if the exporter is not a firm covered in this review or the less-than-
fair-value (LTFV) investigation, but the manufacturer is, the cash
deposit rate will be the rate established for the most recent period
for the manufacturer of the merchandise; and (3) if neither the
exporter nor the manufacturer is a firm covered in this or any previous
review conducted by the Department, the cash deposit rate will be the
all-others rate of 12.61 percent from the LTFV investigation. See
Notice of Antidumping Duty Orders: Purified Carboxymethylcellulose from
Finland, Mexico, the Netherlands and Sweden, 70 FR 39734 (July 11,
2005).
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f) to file a certificate
regarding
[[Page 20317]]
the reimbursement of antidumping duties prior to liquidation of the
relevant entries during this review period. Failure to comply with this
requirement could result in the Secretary's presumption that
reimbursement of antidumping duties occurred and the subsequent
assessment of double antidumping duties.
We are issuing and publishing this notice in accordance with
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4).
Dated: April 4, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-8741 Filed 4-11-11; 8:45 am]
BILLING CODE 3510-DS-P