Chlorinated Isocyanurates From the People's Republic of China: Preliminary Rescission of Antidumping Duty New Shipper Review, 70705-70706 [2011-29496]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 76, Number 220 (Tuesday, November 15, 2011)]
[Notices]
[Pages 70705-70706]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29496]



[[Page 70705]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-898]


Chlorinated Isocyanurates From the People's Republic of China: 
Preliminary Rescission of Antidumping Duty New Shipper Review

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

DATES: Effective Date: November 15, 2011.
SUMMARY: The Department of Commerce (the Department) is currently 
conducting a new shipper review (NSR) of the antidumping duty order on 
chlorinated isocyanurates from the People's Republic of China (PRC) for 
the period of June 1, 2010, through December 31, 2010. As discussed 
below, we preliminarily determine that the producer and exporter Heze 
Huayi Chemical Co. Ltd. (Heze Huayi) did not satisfy the regulatory 
requirements to request a new shipper review; therefore, we are 
preliminarily rescinding this new shipper review. We invite interested 
parties to comment on these preliminary results. See ``Comments'' 
section below. 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 on all appropriate Heze 
Huayi's entries of subject merchandise during the period of review 
(POR).

FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao, AD/CVD Operations, 
Office 6, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-1396.

SUPPLEMENTARY INFORMATION:

Background

    On June 24, 2005, the Department published the order on chlorinated 
isocyanurates from the PRC. See Notice of Antidumping Duty Order: 
Chlorinated Isocyanurates from the People's Republic of China, 70 FR 
36561 (June 24, 2005). On December 20, 2010, pursuant to section 
751(a)(2)(B)(i) of the Tariff Act of 1930, as amended (the Act), and 19 
CFR 351.214(c), the Department received a NSR request from Heze Huayi. 
On February 4, 2011, the Department initiated the NSR. See Chlorinated 
Isocyanurates From the People's Republic of China: Initiation of New 
Shipper Review, 76 FR 6399 (February 4, 2011) (Initiation Notice).
    On January 21, 2011, the Department placed on the record of this 
review CBP data for entries of chlorinated isocyanurates imported from 
the PRC during the POR. See Memorandum to the File, from Krisha Hill, 
Analyst, Re: Chlorinated Isocyanurates from the People's Republic of 
China: Customs Query Results for Heze Huayi Chemical Co., Ltd., January 
21, 2011. On February 14, 2011, the Department placed on the record of 
this review copies of CBP entry documents pertaining to Heze Huayi's 
shipments of chlorinated isocyanurates during the POR. See Memorandum 
to the File, from Gene H. Calvert, Analyst, ``Chlorinated Isocyanurates 
from the People's Republic of China, New Shipper Review (A-570-898): 
Placement of U.S. Customs and Border Protection (CBP) Entry Summary 
Documentation on the Record of the Instant New Shipper Review,'' 
February 14, 2011 (Customs Entry Documents).
    On February 22, 2011, the Department issued a new shipper 
antidumping questionnaire to Heze Huayi. Heze Huayi submitted its 
section A response on March 15, 2011, and its section C and D responses 
on April 14, 2011. On May 13, July 14, and August 31, 2011, the 
Department issued supplemental questionnaires to Heze Huayi. Heze Huayi 
responded to these supplemental questionnaires on May 27, July 28, and 
September 14, 2011, respectively. On May 31, 2011, Heze Huayi submitted 
publicly available surrogate value information for consideration in the 
preliminary results.
    On September 26 and 27, 2011, Petitioners, Clearon Corporation and 
Occidental Chemical Corporation, filed rebuttal factual information and 
comments regarding Heze Huayi's third supplemental questionnaire 
response. On October 3, 2011, Heze Huayi filed comments in response to 
Petitioners' rebuttal factual information.
    On July 15, 2011, the Department extended the time limit for 
issuing the preliminary results of review. See Chlorinated 
Isocyanurates From the People's Republic of China: Extension of Time 
Limit for Preliminary Results of Antidumping Duty New Shipper Review, 
76 FR 41760 (July 15, 2011).

Period of Review

    Pursuant to 19 CFR 351.214(g), the POR for this NSR is the semi-
annual period of June 1, 2010, through November 30, 2010. In its 
request for a NSR, Heze Huayi requested that we extend the POR for its 
NSR to capture the entry of its shipment in December, after the six-
month semi-annual NSR POR. When the sale of the subject merchandise 
occurs within the POR specified by the Department's regulations, but 
the entry occurs after the POR, the POR may be extended unless it would 
be likely to prevent the completion of the review within the time 
limits set by the Department's regulations. See 19 CFR 
351.214(f)(2)(ii). Additionally, the preamble to the Department's 
regulations states that both the entry and the sale should occur during 
the POR, but that under ``appropriate'' circumstances the Department 
has the flexibility to extend the POR. See Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27319-20 (May 19, 
1997). Based on the information contained in Heze Huayi's request for a 
NSR, it appeared that the sale of subject merchandise was made during 
the POR specified by the Department's regulations and that the shipment 
entered in the subsequent month. Based on information provided by Heze 
Huayi, the Department found that extending the POR to capture this 
entry would not prevent the completion of the review within the time 
limits set by the Department's regulations. Therefore, the Department 
extended the POR for Heze Huayi's NSR by one month, i.e., through 
December 31, 2010. See Initiation Notice, 76 FR at 6399.

Scope of the Order

    The products covered by the order are chlorinated isocyanurates, 
which are derivatives of cyanuric acid, described as chlorinated s-
triazine triones. There are three primary chemical compositions of 
chlorinated isos: (1) Trichloroisocyanuric acid 
(Cl3(NCO)3), (2) sodium dichloroisocyanurate 
(dihydrate) (NaCl2(NCO)3(2H2O)), and 
(3) sodium dichloroisocyanurate (anhydrous) 
(NaCl2(NCO)3). Chlorinated isos are available in 
powder, granular, and tableted forms. The order covers all chlorinated 
isocyanurates.
    Chlorinated isos are currently classifiable under subheadings 
2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.40.50, 3808.50.40 and 
3808.94.5000 of the Harmonized Tariff Schedule of the United States 
(HTSUS). The tariff classification 2933.69.6015 covers sodium 
dichloroisocyanurates (anhydrous and dihydrate forms) and 
trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and 
2933.69.6050 represent basket categories that include chlorinated 
isocyanurates and other compounds including an unfused triazine ring. 
Although the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of the order is 
dispositive.

[[Page 70706]]

Preliminary Rescission of the Antidumping Duty New Shipper Review of 
Heze Huayi

    The NSR provisions of the Department's regulations require that the 
entity making a request for a NSR must document and certify, among 
other things: (1) The date on which subject merchandise of the exporter 
or producer making the request was first entered, or withdrawn from 
warehouse, for consumption, or, if it cannot establish the date of 
first entry, the date on which the exporter or producer first shipped 
the merchandise for export to the United States; (2) the volume of that 
and subsequent shipments; and (3) the date of the first sale to an 
unaffiliated customer in the United States. See 19 CFR 
351.214(b)(2)(iv). If these provisions are met, the Department will 
conduct a NSR to establish an individual weighted-average dumping 
margin for the new shipper. See generally 19 CFR 351.214(b)(2).
    In its request for a NSR, Heze Huayi provided certified statements 
that it had only one U.S. sale, which it stated took place on October 
8, 2010, and that the sale entered the United States on December 1, 
2010. See Letter from Heze Huayi to the Secretary of Commerce, 
``Chlorinated Isocyanurates from the People's Republic of China: 
Request for New-Shipper Review,'' December 20, 2010. Based on this 
information, the Department initiated the NSR for Heze Huayi.
    However, based on an analysis of the CBP data, the Customs Entry 
Documents, and Heze Huayi's supplemental questionnaire responses, the 
Department has now determined that Heze Huayi had additional sales and 
entries that were not reported to the Department in its request for a 
NSR under 19 CFR 351.214(b)(2)(iv). As noted, in order to qualify for a 
NSR under 19 CFR 351.214, a company must certify and document, among 
other things, the dates of the first sale and all subsequent sales to 
the United States. Id. Because Heze Huayi had additional unreported 
sales and entries to the United States during the POR, the Department 
has preliminarily found that Heze Huayi's request for a NSR did not 
satisfy the regulatory requirements for requesting a NSR, and the 
Department thus preliminarily determines that it is appropriate to 
rescind the NSR for Heze Huayi. As much of the factual information used 
in our analysis of Heze Huayi's additional sales and entries involves 
business proprietary information, a full discussion of the basis for 
our preliminary determination is set forth in the Memorandum to Barbara 
E. Tillman, Director, AD/CVD Operations, Office 6, ``Analysis of Heze 
Huayi Chemical Co., Ltd.'s Additional Sales in the Antidumping Duty New 
Shipper Review of Chlorinated Isocyanurates from the People's Republic 
of China,'' November 7, 2011.

Assessment Rates

    If we proceed to a final rescission of Heze Huayi's NSR, Heze 
Huayi's shipments will be subject to the PRC-wide rate. The Department 
is currently conducting an administrative review for the POR June 1, 
2010, through May 31, 2011, in which the PRC-wide rate is under review. 
If we proceed to a final rescission, upon completion of the 2010-2011 
administrative review, we will instruct CBP to assess antidumping 
duties on entries exported by Heze Huayi at the appropriate PRC-wide 
rate determined in the 2010-2011 administrative review and we will 
instruct CBP to assess antidumping duties on the entries covered by 
this NSR at the rate established in the final results of the 
administrative review.

Cash Deposit Requirements

    Effective upon publication of the final rescission of the NSR or 
the final results of the NSR, we will instruct CBP to discontinue the 
option of posting a bond or security in lieu of a cash deposit for 
entries of subject merchandise exported by Heze Huayi. If we proceed to 
a final rescission of the NSR, the cash deposit rate will continue to 
be the per-unit PRC-wide rate for entries exported by Heze Huayi. If we 
issue final results for the NSR, we will instruct CBP to collect cash 
deposits, effective upon the publication of the final results, at the 
rates established therein.

Disclosure

    We will disclose our analysis to parties to this proceeding not 
later than five days after the date of public announcement, or, if 
there is no public announcement, within five days of the date of 
publication of this notice. See 19 CFR 351.224(b).

Comments

    Interested parties are invited to comment on these preliminary 
results and may submit case briefs within 30 days of the date of 
publication of this notice, unless otherwise notified by the 
Department. See 19 CFR 351.309(c)(ii). Rebuttal briefs, limited to 
issues raised in the case briefs, will be due five days later, pursuant 
to 19 CFR 351.309(d). Parties are requested to provide a summary of 
their arguments not to exceed five pages, and a table of statutes, 
regulations, and cases cited.
    Interested parties who wish to request a hearing, or to participate 
if one is requested, must submit a written request to the Assistant 
Secretary for Import Administration within 30 days of the date of 
publication of this notice. Requests should contain: (1) The party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of issues to be discussed. See 19 CFR 351.310(c). Issues 
raised in the hearing will be limited to those raised in case and 
rebuttal briefs. The Department will issue the final rescission or 
final results of this NSR, including the results of our analysis of 
issues raised in any briefs, not later than 90 days after this 
preliminary rescission is issued, unless the deadline for the final 
rescission or final results is extended. See 19 CFR 351.214(i).

Notification to Importers

    This notice serves as a preliminary reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    The NSR and notice are in accordance with sections 751(a)(2)(B) and 
777(i) of the Act and 19 CFR 351.214(f).

     Dated: November 7, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2011-29496 Filed 11-14-11; 8:45 am]
BILLING CODE 3510-DS-P