94-160. Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Sebacic Acid From the People's Republic of China  

  • [Federal Register Volume 59, Number 3 (Wednesday, January 5, 1994)]
    [Notices]
    [Pages 565-570]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-160]
    
    
    [[Page Unknown]]
    
    [Federal Register: January 5, 1994]
    
    
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    DEPARTMENT OF COMMERCE
    [A-570-825]
    
     
    
    Preliminary Determination of Sales at Less Than Fair Value and 
    Postponement of Final Determination: Sebacic Acid From the People's 
    Republic of China
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    EFFECTIVE DATE: January 5, 1994.
    
    FOR FURTHER INFORMATION CONTACT: Brian C. Smith, Office of Antidumping 
    Investigations, Import Administration, International Trade 
    Administration, U.S. Department of Commerce, 14th Street and 
    Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
    1766.
    
    Preliminary Determination
    
        We preliminarily determine that sebacic acid from the People's 
    Republic of China (PRC) is being, or is likely to be, sold in the 
    United States at less than fair value, as provided in section 733 of 
    the Tariff Act of 1930, as amended (the Act). The estimated margins are 
    shown in the ``Suspension of Liquidation'' section of this notice.
    
    Case History
    
        Since the initiation of this investigation (58 FR 43339, August 16, 
    1993), the following events have occurred.
        On August 16, 1993, the Department of Commerce (the Department) 
    sent the PRC's Ministry of Foreign Trade and Economic Cooperation 
    (MOFTEC) a mini-Section A questionnaire (i.e., the section regarding 
    sales volume and value).
        On September 2, 1993, the U.S. International Trade Commission (ITC) 
    notified the Department of its preliminary determination that there is 
    a reasonable indication that an industry in the United States is 
    materially injured by reason of imports of sebacic acid from the PRC 
    that are allegedly sold at less than fair value.
        On September 27, 1993, MOFTEC submitted its mini-Section A response 
    and on September 30, 1993, the Department sent MOFTEC the antidumping 
    questionnaire. (This antidumping questionnaire is divided into three 
    sections and two attachments: (1) Section A requests general 
    information on each company; (2) Section C requests information on, and 
    a listing of, U.S. sales made during the period of the investigation 
    (POI); (3) Section D requests information on the production process; 
    (4) Attachment I requests information for a market-oriented industry 
    (MOI) claim; and (5) Attachment II requests information for a separate 
    rates claim.) As a courtesy, we sent a copy of the questionnaire to 
    those companies identified as possible exporters of sebacic acid to the 
    United States.
        On September 30, 1993, we requested that the petitioner, four 
    exporters (``respondents'') who had entered a notice of appearance 
    before the Department (Sinochem International Chemicals Company 
    (Sinochem International), Sinochem Jiangsu Import & Export Corporation, 
    Tianjin Chemicals Import & Export Corporation (Tianjin), and Guangdong 
    Chemicals Import & Export Corporation (Guangdong)), and MOFTEC submit 
    any publicly available published information that they wished the 
    Department to consider when valuing the factors of production in this 
    investigation.
        On October 22, 1993, the same four exporters who had entered a 
    notice of appearance submitted responses to Section A of the 
    questionnaire. On October 29, 1993, we sent each company a Section A 
    deficiency questionnaire.
        On November 1, 1993, the four exporters submitted responses to 
    Sections C and D and Attachments I and II of the questionnaire. On 
    November 9, 1993, we sent MOFTEC an Attachment I supplemental 
    questionnaire. Also on November 9, 1993, we sent the four exporters 
    deficiency questionnaires on Sections C and D and Attachment I.
        On November 12, 1993, we received Section A deficiency responses 
    from the four exporters.
        On November 16, 1993, the petitioner and the four exporters 
    submitted publicly available published information.
        On November 16, 1993, we sent a letter to each of the 13 non-
    responding PRC exporters to whom we had sent a copy of the 
    questionnaire. We again requested that they respond to the Department's 
    questionnaire or provide a certification that they did not export or 
    sell subject merchandise during the POI.
        Also on November 16, 1993, we sent supplemental Attachment II 
    questionnaires to MOFTEC and the four responding exporters.
        On November 19, 1993, the Department sent to the petitioner and the 
    four exporters a publicly available published information deficiency 
    questionnaire. On November 23, 1993, the petitioner provided comments 
    on the information submitted by the four exporters.
        On November 26, 1993, we sent a letter to the Guangdong and Jiangsu 
    provincial governments and the Beijing municipal government requesting 
    information in order to more completely evaluate the issue of whether 
    the four exporters should receive separate antidumping duty rates.
        On November 29, 1993, we received Sections C and D deficiency 
    responses from the four exporters.
        From November 29, 1993, through December 3, 1993, we received 
    certifications from three Chinese exporters (Sinochem China National 
    Chemicals Import & Export Corporation, Yunnan Minmetals & Chemicals 
    Import & Export (Group) Corporation, and Shanghai Chemicals Import and 
    Export Corporation) which state that each entity did not ship sebacic 
    acid to the United States during the POI.
        On December 3, 1993, the four exporters provided a response to the 
    Department's publicly available published information deficiency 
    questionnaire.
        On December 13, 1993, we received a letter from MOFTEC objecting to 
    the November 26, 1993, questionnaires we sent to the provincial and 
    municipal governments. On December 17, 1993, we received a response to 
    our November 26, 1993, separate rates clarification questionnaire from 
    the Guangdong Commission of Foreign Economic Relations and Trade. On 
    December 20, 1993, we received a response from the Jiangsu provincial 
    government.
        Also, on December 20, respondents requested that, in the event of 
    an affirmative determination in this investigation, the Department 
    postpone the final determination an additional 60 days from the date of 
    publication of the affirmative preliminary determination. See the 
    ``Postponement of Final Determination'' section of this notice. On 
    December 23, 1993, we received a response from the Beijing municipal 
    government but we did not receive a response to our supplemental 
    Attachment II questionnaire from MOFTEC or from the four responding 
    exporters.
    
    Scope of Investigation
    
        The products covered by this investigation are all grades of 
    sebacic acid, a dicarboxylic acid with the formula 
    (CH2)8(COOH)2, which include but are not limited to CP 
    Grade (500ppm maximum ash, 25 maximum APHA color), Purified Grade 
    (1000ppm maximum ash, 50 maximum APHA color), and Nylon Grade (500ppm 
    maximum ash, 70 maximum APHA color). The principal difference between 
    the grades is the quantity of undesirable ash and color. Sebacic acid 
    contains a minimum of 85 percent dibasic acids of which the predominant 
    species is the C10 dibasic acid. Sebacic acid is sold generally as 
    a free-flowing powder/flake.
        Sebacic acid has numerous industrial uses, including the production 
    of nylon 6/10 (a polymer used for paintbrush and toothbrush bristles 
    and paper machine felts), plasticizers, esters, automotive coolants, 
    polyamides, polyester castings and films, inks and adhesives, 
    lubricants, and polyurethane castings and coatings.
        Sebacic acid is currently classifiable under subheading 
    2917.13.00.00, of the Harmonized Tariff Schedule of the United States 
    (HTSUS). Although the HTSUS subheading is provided for convenience and 
    customs purposes, our written description of the scope of this 
    proceeding is dispositive.
    
    Period of Investigation
    
        The POI is January 1, 1993, through June 30, 1993.
    
    Market-Oriented Industry
    
        All of the respondents in this investigation have claimed that the 
    sebacic acid industry is an MOI. In their November 1, 1993, responses, 
    the respondents claim that all of the manufacturers' material and non-
    material inputs used to produce sebacic acid were purchased at market-
    driven prices during the POI and that none of the factories or the 
    factories' suppliers produced any of the inputs for sebacic acid for 
    in-plan production. Accordingly, these respondents state that it is 
    appropriate for the Department to use the PRC prices for material and 
    non-material inputs for valuing the inputs used to produce sebacic 
    acid.
        In the Preliminary Determination of Sales at Less Than Fair Value: 
    Sulfanilic Acid from the People's Republic of China (57 FR 9409, 9411; 
    March 18, 1992) (Sulfanilic Acid), the Department set forth the 
    following criteria to be used in determining whether an MOI exists in 
    an economy which would otherwise be considered non-market:
         For merchandise under investigation, there must be 
    virtually no government involvement in setting prices or amounts to be 
    produced. For example, state-required production of the merchandise, 
    whether for export or domestic consumption in the non-market economy 
    country would be an almost insuperable barrier to finding a market-
    oriented industry.
         The industry producing the merchandise under investigation 
    should be characterized by private or collective ownership. There may 
    be state-owned enterprises in the industry but substantial state 
    ownership would weigh heavily against finding a market-oriented 
    industry.
         Market-determined prices must be paid for all significant 
    inputs, whether material or non-material, and for an all but 
    insignificant proportion of all the inputs accounting for the total 
    value of the merchandise under investigation. For example, an input 
    price will not be considered market-determined if the producers of the 
    merchandise under investigation pay a state-set price for the input or 
    if the input is supplied to the producers at government direction. 
    Moreover, if there is any state-required production in the industry 
    producing the input, the share of state-required production must be 
    insignificant.
        If these conditions are not met, then, pursuant to 19 CFR 353.52, 
    the producers of the merchandise under investigation will be treated as 
    non-market economy (NME) producers, and the foreign market value will 
    be calculated by using prices and costs from a surrogate country, in 
    accordance with sections 773(c)(3) and (4) of the Act.
        On November 9, we issued an MOI deficiency questionnaire to the 
    respondents and sent a supplemental MOI questionnaire to MOFTEC. This 
    questionnaire contained questions concerning the identity of the entire 
    sebacic acid industry, the ownership of all entities which produce 
    sebacic acid or supply inputs used to produce sebacic acid, and whether 
    any inputs were subject to in-plan production. Since we did not receive 
    the responses to our questionnaire on December 23, 1993, we did not 
    have sufficient information on the record for our preliminary 
    determination to determine whether the sebacic acid industry during the 
    POI was an MOI. Therefore, we will address the respondents' MOI claim 
    in our final determination.
    
    Separate Rates
    
        To determine whether an NME exporter is eligible for a separate 
    antidumping duty rate, the Department first analyzes ownership. If an 
    exporter is owned by the central government, the Department will not 
    issue a separate rate for that exporter. Instead, the Department 
    assigns to all exporters owned by the central government a single, 
    weighted-average margin.
        In the Final Determination of Sales at Less Than Fair Value: 
    Certain Compact Ductile Iron Waterworks Fittings and Accessories 
    Thereof from the People's Republic of China (58 FR 37908; July 14, 
    1993), the Department determined that NME exporters owned by the 
    central government are not eligible for antidumping duty rates separate 
    from each other because ownership by the central government enables the 
    government to manipulate prices, whether or not it takes advantage of 
    its opportunity to do so during the POI. Accordingly, entities owned by 
    the central government cannot be eligible for rates different or 
    separate from each other. To calculate a rate for exporters owned by 
    the central government, the Department requires that all potential 
    respondents that are owned by the central government reply to the 
    antidumping questionnaire. Only complete responses from all the 
    entities owned by the central government could enable the Department to 
    calculate a weighted-average antidumping margin for the central 
    government-controlled entities.
        In the Final Determination of Sales at Less Than Fair Value: 
    Certain Helical Spring Lock Washers from the People's Republic of China 
    (58 FR 48833; September 20, 1993) (Lock Washers), the Department 
    determined that if an exporter is not owned by the central government 
    the Department will consider issuing a separate rate. This is because 
    the opportunity for the central government to manipulate the exporter's 
    prices is less than its opportunity to control the prices of 
    enterprises owned by the central government. However, as in the case of 
    exporters owned by the central government, it would still be possible 
    for enterprises under common ownership (e.g., provincial governments, 
    local governments, collectives, etc.) to have their prices manipulated 
    by the common owner. All firms under common ownership which produce or 
    sell subject merchandise during the POI must cooperate in the 
    investigation to enable the Department to calculate a weighted-average 
    dumping margin for them.
        In this investigation, MOFTEC has informed the Department that the 
    central government does not own any of the responding exporters of 
    sebacic acid. Furthermore, the responding exporters stated for the 
    record that they do not share ownership with each other or with any 
    other exporter of sebacic acid. Because non-responding exporters of 
    sebacic acid are located in the same municipality as Sinochem 
    International and in the same province as Guangdong, we requested 
    separate rates information from the Beijing municipal government and 
    Guangdong provincial government. We also requested similar information 
    from the Jiangsu provincial government. Though we have received a 
    response from the Guangdong and Jiangsu provincial governments, we 
    received a response from the Beijing municipal government too late to 
    consider for the preliminary determination. After examining the 
    responses submitted by the Guangdong and Jiangsu provincial 
    governments, we are concerned that the PRC government agencies have not 
    provided information requested by the Department in an NME 
    investigation. Because the responding companies have stated on the 
    record that they are not owned by the central government or any other 
    jurisdiction or entity that owns other exporters of sebacic acid, the 
    lack of information in the two local government responses to our 
    questionnaire should not control our separate rates decision for the 
    preliminary determination. However, we encourage provincial and 
    municipal government entities to respond, with the assistance of MOFTEC 
    if appropriate, because this issue will be reconsidered before making 
    the final separate rates determination in this investigation.
        Given that each of the four responding exporters states that it is 
    neither owned by the central government nor owned by another 
    jurisdiction or entity that also owns other exporters of the subject 
    merchandise, we have determined that these respondents are eligible to 
    be considered for separate rates. The criteria the Department relies 
    upon to establish whether or not separate rates are appropriate are 
    those put forward in the Final Determination of Sales at Less Than Fair 
    Value: Sparklers from the People's Republic of China (56 FR 20588; May 
    6, 1991) (Sparklers). Under the Sparklers criteria, the Department 
    issues separate rates where respondents can demonstrate both a de jure 
    and de facto absence of central government control over export 
    activities.
        In this investigation, each of the four cooperative exporters has 
    documented that its business license provides that its ownership is 
    distinguished from central-government ownership. In addition, MOFTEC 
    has stated that it does not own or control the exporters or producers 
    of sebacic acid. This information indicates that there is a de jure 
    absence of central government control.
        Each of the four cooperating respondents has asserted and provided 
    evidence such as sales contracts that it establishes its own export 
    prices and keeps the proceeds of its export sales and that its 
    management operates with complete autonomy. This information indicates 
    the de facto absence of central government control with respect to 
    exports. Consequently, we have determined that these four cooperating 
    exporters have met the criteria set forth in Sparklers and we have used 
    their information to calculate a separate rate for each of them.
    
    Surrogate Country
    
        Section 773(c) of the Act requires the Department to value the 
    factors of production, to the extent possible, in one or more market 
    economy countries that are at a level of economic development 
    comparable to that of the non-market economy country, and that are 
    significant producers of comparable merchandise. The Department has 
    determined that India and Pakistan are the most comparable to the PRC 
    in terms of overall economic development, based on per capita gross 
    national product (GNP), the national distribution of labor, and growth 
    rate in per capita GNP. (See memorandum from the Office of Policy to 
    David L. Binder, dated September 29, 1993.) The Department has also 
    determined that India is a producer of the subject merchandise. Because 
    India fulfills both requirements outlined in the statute, India is the 
    preferred surrogate country for purposes of valuing the factors of 
    production used in producing the subject merchandise. In cases where we 
    were unable to obtain surrogate values from India, we have used values 
    obtained in Pakistan. Specifically, we have resorted to Pakistan for 
    two surrogate values, where publicly available published values in 
    India were either significantly outdated or not obtainable. We have 
    obtained and relied upon publicly available published information 
    wherever possible.
    
    Fair Value Comparisons
    
        To determine whether sales of sebacic from the PRC to the United 
    States were made at less than fair value, we compared the United States 
    price (USP) to the foreign market value (FMV), as specified in the 
    ``United States Price'' and ``Foreign Market Value'' sections of this 
    notice.
    
    United States Price
    
        We based USP on purchase price, in accordance with section 772(b) 
    of the Act, because the subject merchandise was sold to unrelated 
    purchasers in the United States prior to importation and because 
    exporter's sales price methodology was not otherwise indicated.
        For those exporters that responded to the Department's 
    questionnaire, we calculated purchase price based on packed, CIF prices 
    to unrelated purchasers in the United States. We made deductions, where 
    appropriate, for foreign inland freight, ocean freight, marine 
    insurance, and foreign brokerage.
        We based the deduction for foreign inland freight on freight rates 
    in India, as the respondents reported the use of PRC transportation 
    services in incurring this charge. The respondents also reported the 
    use of PRC-based providers for ocean freight and marine insurance. We 
    based ocean freight on the current tariff rate in the Asia North 
    America Eastbound Rate Agreement.
        For foreign brokerage and handling and marine insurance, we used 
    publicly summarized versions of these two expenses reported in the 
    antidumping duty investigation of sulfur dyes, including sulfur vat 
    dyes, from India (see memorandum to the file dated December 27, 1993).
    
    Foreign Market Value
    
        We calculated FMV based on factors of production reported by the 
    factories which produced the subject merchandise for these respondents. 
    The factors used to produce sebacic acid include materials, labor, and 
    energy. To calculate FMV, the reported factors of production were 
    multiplied by the appropriate surrogate values for the different 
    inputs. (For a complete analysis of the surrogate values used, see our 
    preliminary concurrence memorandum, dated December 27, 1993.)
        In determining which surrogate value to use for valuing each factor 
    of production, we selected, where possible, the publicly available 
    published value which was: (1) An average non-export value; (2) within 
    the POI; (3) product-specific; and (4) tax-exclusive.
        We used surrogate transportation rates to value inland freight from 
    the factories to ports. In the case of material inputs, we also used 
    surrogate transportation rates to value the transportation of inputs to 
    the factories. In those cases where a respondent failed to provide 
    transportation distances, we applied the longest truck rate from our 
    surrogate data as best information available (BIA).
        To value castor oil, we used publicly available published 
    information from The Times of India. This source provided a non-export 
    price during the POI.
        To value caustic soda, sodium chloride, zinc oxide, phenal, and 
    glycerine, we used publicly available published information from 
    Chemical Business. This source provided a non-export price during the 
    POI which did not appear to include Indian excise or provincial sales 
    taxes.
        To value sulfuric acid, cresol, and caproyl alcohol, we used 
    publicly available published information from Chemical Weekly. This 
    source provided a non-export price during the POI which was inclusive 
    of taxes. However, because we did not have the necessary information to 
    deduct taxes, we did not remove the taxes from these prices.
        To value activated carbon and fatty acid, we used publicly 
    available published information from the Monthly Statistics of the 
    Foreign Trade of India. In addition, to value macropore resin we used a 
    comparable product's price from Monthly Statistics of the Foreign Trade 
    of India. This source was the only one we found which provided publicly 
    available published price information for these material inputs. 
    Because these prices were prior to the POI, we adjusted the factor 
    values to account for inflation between the time period in question and 
    the POI using wholesale price indices (WPIs) published in International 
    Financial Statistics (IFS) by the International Monetary Fund (IMF).
        To value steam coal, we used publicly available published 
    information from the 1993 OECD IEA Statistics. This was the most 
    current publicly available published information we found that provided 
    a price for steam coal. Because the price quoted was prior to the POI, 
    we adjusted the factor values to account for inflation between the time 
    period in question and the POI using WPIs published in IFS by the IMF.
        To value electricity, we used publicly available published 
    information from the Monthly Statistical Bulletin published by the 
    Pakistani Federal Bureau of Statistics. This source provided an 
    electricity rate for industrial use in the POI. We found that the 
    published information for Indian electricity rates was either outdated 
    or appeared to be non-specific.
        To value water, we used a cable from the U.S. consulate in 
    Pakistan. We used this cable because we could not locate a value for 
    water in any Indian or Pakistani publication. Because the price 
    contained in the cable was for a period prior to the POI, we adjusted 
    the factor values to account for inflation between the time period in 
    question and the POI using WPIs published in IFS by the IMF.
        To value labor costs, we used the International Labor Office's 1992 
    Yearbook of Labor Statistics. To determine the number of hours in an 
    Indian workday, we used the Country Reports: Human Rights Practices for 
    1990. Because the published labor rate was prior to the POI, we 
    adjusted the factor values to account for inflation between the time 
    period in question and the POI using the consumer price index published 
    in IFS by the IMF.
        To value factory overhead, selling, general and administrative 
    expenses, and profit, we calculated percentages based on elements of 
    industry group income statements from The Reserve Bank of India 
    Bulletin. We did not include an amount for energy in our factory 
    overhead calculation.
        To calculate FMV for one ton of sebacic acid, we added each of the 
    costs derived above. We also added to FMV, where appropriate, an amount 
    for packing labor based on the appropriate Indian wage rate, and an 
    amount for packing materials based on Indian prices from the Monthly 
    Statistics of the Foreign Trade of India. We made no adjustments for 
    selling expenses. Finally, we added surrogate freight costs for the 
    delivery of inputs and packing materials to the factories producing 
    sebacic acid.
        In this investigation, respondents stated that the factories 
    produce three valuable by-products (glycerine, fatty acid, and caproyl 
    alcohol) in the course of producing sebacic acid. Respondents maintain 
    that the Department should deduct the value of these three by-products 
    from the cost of manufacture. We disagree with the respondents that the 
    products are all by-products, and that the value of each should be 
    deducted from the cost of manufacture of sebacic acid. Rather, as 
    discussed below, we agree that fatty acid is a by-product but determine 
    that glycerine and caproyl alcohol should not be considered by-products 
    in this case.
        The three products in question are all yielded during the 
    production of sebacic acid and the products are an unavoidable 
    consequence of the production of sebacic acid. These products are 
    produced from the same raw materials, by the same equipment, during the 
    same manufacturing operations, as those used for sebacic acid.
        In accordance with generally accepted accounting principles, by-
    products are treated differently from other types of products (i.e. 
    joint or co-products) for purposes of determining a product's costs. 
    The distinction between by-products and these other products is based 
    on relative sales value. By-products are identified by their relatively 
    insignificant sales value, whereas these other products, regardless how 
    they are referred to, generally have significant sales value relative 
    to the product under investigation. In this case, we determined whether 
    the value of a product was significant or insignificant based on the 
    quantity yielded and the value assigned to each product.
        To determine the relative values of all subsidiary products and the 
    subject merchandise, we took into account the fact that: (1) The 
    factories generally sell the subsidiary products in the domestic 
    market; (2) the factories sell sebacic acid in the domestic market; (3) 
    the PRC renminbi is a non-convertible currency; and (4) the factories' 
    costs and profits have not been considered because we have not yet 
    addressed respondents' MOI claim. In accordance with the hierarchy for 
    preferred input values as set forth in the Final Determination of Sales 
    at Less Than Fair Value: Certain Carbon Steel Butt-Weld Pipe Fittings 
    From the People's Republic of China, 57 FR 21058 (May 18, 1992) 
    (Comment 4) and the publicly available published information selection 
    methodology noted above, we used surrogate values from India for 
    sebacic acid, glycerine, caproyl alcohol, and fatty acid to determine 
    the relative value of each product based on the production of one 
    metric ton of sebacic acid, as well as to determine the total value of 
    one metric ton of sebacic acid.
        In this case, we determine that fatty acid is a by-product because 
    the overall value of fatty acid is insignificant compared to the 
    relative value among all of the ``subsidiary'' products and the subject 
    merchandise. As a by-product, we subtracted the sales revenue of fatty 
    acid from the production costs of the other products.
        For purposes of the preliminary determination, we determine that 
    glycerine and caproyl alcohol are not by-products. The value of 
    glycerine for two of the four factories and the value of caproyl 
    alcohol for all four factories is significant compared to the relative 
    value of all of the products manufactured as a result of or during, the 
    process of manufacturing sebacic acid. The reason why we find that 
    glycerine should not be considered as a by-product is because we 
    conclude that the quantity of production of this product appears 
    subject to manipulation by management based on the variation in the 
    quantity yield among the four factories.
        Therefore, we allocated the factor inputs, e.g., materials, used to 
    produce glycerine and caproyl alcohol, by the relative quantity of 
    output of these two products and sebacic acid. We did not allocate the 
    amount of labor, energy usage or factory overhead among the products 
    because we did not have the information to allow us to make accurate 
    adjustments (See concurrence memorandum, dated December 27, 1993, for 
    further discussion).
    
    Best Information Available
    
        The Department's policy, as set forth in Lock Washers, is that all 
    potential exporters owned by a given entity must cooperate in our 
    investigation in order for the response to be considered complete.
        MOFTEC did not submit a consolidated questionnaire response on 
    behalf of all PRC exporters of sebacic acid. As noted above, the list 
    of PRC exporters of sebacic acid submitted by MOFTEC contained the 
    names of firms which have not responded to the Department's antidumping 
    questionnaire. Since the Department must receive an adequate 
    questionnaire response from each entity to which a separate dumping 
    rate can be applied, all non-responding entities must receive a PRC 
    country-wide rate. In the absence of adequate questionnaire responses 
    from the other exporters of sebacic acid, we have based PRC country-
    wide rate on BIA. Section 776(c) of the Act provides that whenever a 
    party refuses or is unable to produce information requested in a timely 
    manner and in the form required, or otherwise significantly impedes an 
    investigation, the Department shall use BIA. We have done so in this 
    investigation.
        In determining what to use as BIA, the Department follows a two-
    tiered methodology based on the degree of respondents' cooperation. 
    According to the Department's two-tiered BIA methodology, when a 
    company refuses to provide the information requested in the form 
    required, or otherwise significantly impedes the Department's 
    investigation, it is appropriate for the Department to assign to that 
    company the higher of (a) the highest margin alleged in the petition, 
    or (b) the highest calculated rate of any respondent in the 
    investigation. This methodology for assigning BIA has been upheld by 
    the U.S. Court of Appeals for the Federal Circuit. (See Allied-Signal 
    Aerospace Co. v. United States, 996 F.2d 1185 (Fed. Cir. 1993); see 
    also Krupp Stahl AG et al. v. United States, 822 F. Supp. 789 (CIT 
    1993).) Because some PRC exporters refused to answer the Department's 
    questionnaire, we find that they have been uncooperative in this 
    investigation. As BIA for these exporters, we are assigning the highest 
    margin provided in the petition (243.40) as the PRC country-wide rate, 
    in accordance with the two-tiered BIA methodology under which the 
    Department imposes the most adverse rate upon those respondents who 
    refuse to cooperate or otherwise significantly impede the proceeding. 
    No adjustments were made to petitioner's calculations.
        No ``All Others'' rate will be established for the PRC. Instead, a 
    country-wide rate is applied to all imports of sebacic acid from the 
    PRC for those PRC exporters which were unable to demonstrate that they 
    were entitled to a separate rate. Because we are assigning a country-
    wide rate in this situation, there is no need to assign an ``All 
    Others'' case deposit rate for PRC entities.
    
    Verification
    
        As provided in section 776(b) of the Act, we will verify the 
    information used in making our final determination.
    
    Suspension of Liquidation
    
        In accordance with section 733(d)(1) of the Act, we are directing 
    the Customs Service to suspend liquidation of all entries of sebacic 
    acid from the PRC that are entered, or withdrawn from warehouse, for 
    consumption on or after the date of publication of this notice in the 
    Federal Register. The Customs Service shall require a cash deposit or 
    posting of a bond equal to the estimated amount by which the FMV 
    exceeds the USP as shown below. These suspension of liquidation 
    instructions will remain in effect until further notice.
        The weighted-average dumping margins are as follows. The PRC 
    country-wide rate applies only to PRC companies not specifically listed 
    below. 
    
    ------------------------------------------------------------------------
                                                                  Weighted- 
                                                                   average  
                  Manufacturer/Producer/Exporter                    margin  
                                                                 percentage 
    ------------------------------------------------------------------------
    Sinochem International Chemicals Company...................        28.04
    Sinochem Jiangsu Import & Export Corporation...............        39.24
    Tianjin Chemicals Import & Export Corporation..............        20.01
    Guangdong Chemicals Import & Export Corporation............        40.25
    PRC country-wide rate......................................      243.40 
    ------------------------------------------------------------------------
    
    ITC Notification
    
        In accordance with section 733(f) of the Act, we have notified the 
    ITC of our determination. If our final determination is affirmative, 
    the ITC will determine before the later of 120 days after the date of 
    this preliminary determination or 45 days after our final determination 
    whether these imports are materially injuring, or threaten material 
    injury to, the U.S. industry.
    
    Postponement of Final Determination
    
        As stated above, in accordance with 19 CFR 353.20(b), respondents, 
    which account for a significant portion of the merchandise covered in 
    this proceeding, have requested in writing that, in the event of an 
    affirmative determination, the Department postpone the final 
    determination an additional 60 days from the publication of the 
    preliminary determination. Accordingly, because we find no compelling 
    reason to deny the request, we are postponing the date of the final 
    determination until not later than 135 days after the date of 
    publication of this notice.
    
    Public Comment
    
        In accordance with 19 CFR 353.38, case briefs or other written 
    comments in at least ten copies must be submitted to the Assistant 
    Secretary for Import Administration no later than April 8, 1994, and 
    rebuttal briefs, no later than April 13, 1994. In accordance with 19 
    CFR 353.38(b), we will hold a public hearing, if requested, to afford 
    interested parties an opportunity to comment on arguments raised in 
    case or rebuttal briefs. Tentatively, the hearing will be held on April 
    15, 1994, at 10 a.m. at the U.S. Department of Commerce, room 3708, 
    14th Street and Constitution Avenue, NW., Washington, DC 20230. Parties 
    should confirm by telephone the time, date, and place of the hearing 48 
    hours before the scheduled time.
        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, U.S. Department of Commerce, room 
    B-099, within ten days of the publication of this notice. Requests 
    should contain: (1) The party's name, address, and telephone number; 
    (2) the number of participants; and (3) a list of the issues to be 
    discussed. In addition, an executive summary of no more than two pages 
    on the major issues to be addressed should be submitted with case 
    briefs. Briefs should contain a table of authorities. Citations to the 
    Department's determinations and court decisions should include the page 
    number where the cited information appears. In preparing the briefs, 
    please begin each issue on a separate page. In accordance with 19 CFR 
    353.38(b), oral presentations will be limited to issues raised in the 
    briefs. If this investigation proceeds normally, we will make our final 
    determination on or about May 23, 1994.
        This determination is published pursuant to section 733(f) of the 
    Act and 19 CFR 353.15(a)(4).
    
    
        Dated: December 27, 1993.
    Barbara R. Stafford,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 94-160 Filed 1-4-94; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
01/05/1994
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
94-160
Dates:
January 5, 1994.
Pages:
565-570 (6 pages)
Docket Numbers:
Federal Register: January 5, 1994, A-570-825