[Federal Register Volume 59, Number 241 (Friday, December 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30984]
[[Page Unknown]]
[Federal Register: December 16, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[A-549-812]
Preliminary Determination of Sales at Not Less Than Fair Value:
Furfuryl Alcohol From Thailand
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: December 16, 1994.
FOR FURTHER INFORMATION CONTACT: Edward Easton or Greg Thompson, Office
of Antidumping Investigations, Import Administration, U.S. Department
of Commerce, 14th Street and Constitution Avenue, N.W., Washington,
D.C. 20230; telephone (202) 482-1777 or 482-2336, respectively.
Preliminary Determination
We preliminarily determine that imports of furfuryl alcohol from
Thailand are not being, nor are 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). We have calculated a preliminary less
than fair value margin of zero percent for Thai furfuryl alcohol sold
in the United States during the period of investigation.
Case History
Since the initiation of this investigation on June 20, 1994, (59 FR
32953, June 27, 1994), the following events have occurred.
On July 15, 1994, the U.S. International Trade Commission (ITC)
issued an affirmative preliminary injury determination in this case (59
FR 38201, July 27, 1994).
On July 19, 1994, officials of the Department of Commerce (the
Department) visited the petitioner's facilities to observe the furfuryl
alcohol production process for purposes of developing the
questionnaire.
On August 3, 1994, we issued the antidumping questionnaire to Indo-
Rama Chemicals (Thailand) Ltd. (IRCT), which accounted for at least 60
percent of the exports of the subject merchandise to the United States
during the period of investigation (POI). In August 1994, the
Department conducted a questionnaire presentation in Thailand.
IRCT submitted responses to the relevant sections of the
Department's questionnaire on September 6, 1994, and September 21,
1994. On September 16, and October 3, 1994, the petitioner submitted
comments regarding deficiencies in IRCT's questionnaire responses. A
supplemental questionnaire was issued on October 6, 1994. On October
14, 1994, the respondent submitted its response to this supplemental
questionnaire.
At the request of the petitioner, on October 18, 1994, the
Department postponed its preliminary determination until no later than
December 9, 1994 (59 FR 53634, October 25, 1994).
On October 14, 1994, the petitioner alleged that the respondent was
selling furfuryl alcohol in the home market at prices below the cost of
production (COP). On November 21, 1994, based on the petitioner's
allegation, the Department initiated an investigation of sales below
the COP (see decision memorandum from Richard Moreland to Barbara
Stafford dated November 21, 1994). The Department issued IRCT Section D
of our questionnaire on November 28, 1994.
The respondent had originally submitted purchase price (PP) data in
response to Section C of our questionnaire. However, as more
information was put on the record, it became unclear whether prices to
the United States should have been reported on a PP or an exporter's
sales price (ESP) basis. Accordingly, on December 2, 1994, the
Department requested that the respondent submit ESP data. (On several
occasions prior to December 2, we had suggested that respondent submit
this ESP data if respondent thought it was necessary (see memo to file
from Greg Thompson dated December 2, 1994).) On December 7, 1994, the
respondent submitted the ESP data. Based upon the information that is
now on the record, we are treating IRCT's U.S. sales as ESP
transactions.
Scope of Investigation
The product covered by this investigation is furfuryl alcohol
(C4H3OCH2OH). furfuryl alcohol is a primary alcohol, and
is colorless or pale yellow in appearance. It is used in the
manufacture of resins and as a wetting agent and solvent for coating
resins, nitrocellulose, cellulose acetate, and other soluble dyes.
The product subject to this investigation is classifiable under
subheading 2932.13.00 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 period of investigation (POI) is December 1, 1993, through May
31, 1994.
Such or Similar Comparisons
We have determined that the products covered by this investigation
constitute a single category of such or similar merchandise. IRCT
reported that it sold merchandise in the home market identical to that
sold in the United States. Accordingly, no difference in merchandise
information was reported in IRCT's sales listings. In accordance with
19 CFR 353.58, we made comparisons at the same level of trade.
Fair Value Comparisons
To determine whether sales by IRCT of furfuryl alcohol 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
For the purpose of this preliminary determination, we have found
that all of IRCT's U.S. sales to the first unrelated purchaser took
place after importation into the United States. Therefore, we based USP
on ESP prices, in accordance with section 772(c) of the Act.
We calculated IRCT's ESP sales based on FOB U.S. storage or
delivered prices to unrelated customers in the United States. In
accordance with section 772(e) of the Act, we made deductions, where
appropriate, for the following movement charges: foreign brokerage,
foreign inland freight, ocean freight, marine insurance, U.S. brokerage
and handling, and U.S. inland freight. We also made deductions, where
appropriate, for credit and warehousing expenses, and indirect selling
expenses incurred in the United States and in Thailand. Finally, we
added duty drawback to the USP calculations in accordance with section
772(d) of the Act.
We adjusted USP for taxes in accordance with our practice, pursuant
to the U.S. Court of International Trade (CIT) decision in Federal-
Mogul Corp. v. United States, 834 F. Supp. 1991 (CIT 1993). (See Notice
of Final Determination of Sales at Less Than Fair Value: Calcium
Aluminate Cement, Cement Clinker and Flux from France, 59 FR 14136
(March 25, 1994).)
In those cases where the respondent failed to provide information
on a given expense, we relied upon the highest charge listed in the
U.S. database for that expense as the best information available (BIA),
in accordance with section 776(c) of the Act. In those cases where the
respondent failed to provide any information on duty drawback, we made
no addition to USP as BIA.
Foreign Market Value
In order to determine whether there was a sufficient volume of
sales in the home market to serve as a viable basis for calculating
FMV, we compared the volume of home market sales of the subject
merchandise to the volume of third country sales of subject
merchandise, in accordance with section 773(a)(1)(B) of the Act. Since
the total volume of subject merchandise sold by IRCT in Thailand during
the POI was greater than five percent of the aggregate volume of third
country sales for such or similar merchandise, we determined that the
home market was viable within the meaning of 19 CFR 353.48(a).
Therefore, we based FMV on home market sales.
In accordance with 19 CFR 353.58, we compared U.S. sales to home
market sales made at the same level of trade.
In accordance with 19 CFR 353.46, we calculated FMV based on FOB
storage or delivered prices to unrelated customers. We made deductions,
where appropriate, for inland freight and insurance, and unloading
charges. We also deducted direct selling expenses including technical
services, credit, and commissions in accordance with 19 CFR 353.56(a).
Finally, we deducted the weighted-average home market indirect selling
expenses. The deduction for home market indirect selling expenses was
capped by U.S. indirect selling expenses, in accordance with 19 CFR
353.56(b) (1) and (2).
We deducted home market packing and added U.S. packing costs, in
accordance with section 773(a)(1) of the Act.
We adjusted for value-added taxes in accordance with our practice.
(See the ``United States Price'' section of this notice, above.)
Cost of Production
Based on our analysis of the petitioner's allegation, we found
``reasonable grounds to believe or suspect'' that IRCT made home market
sales below its COP within the meaning of section 773(b) of the Act.
The Department initiated an investigation to determine whether IRCT
made home market sales at prices below its COP over an extended period
of time. Because IRCT's COP questionnaire response is not due until
December 27, 1994, it is not possible to consider this information for
the preliminary determination. This information will be considered in
our final determination.
Currency Conversion
We made currency conversions based on the official exchange rates
in effect on the dates of the U.S. sales as certified by the Federal
Reserve Bank in accordance with 19 CRR 353.60.
Preliminary Margin Calculation
Based on the calculation methodology outlined above, we
preliminarily calculate a margin of zero percent for U.S. sales of
furfuryl alcohol from Thailand.
Verification
As provided in section 776(b) of the Act, we will verify all
information that we determine is acceptable for use in making our final
determination.
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 whether these imports are materially injuring,
or threaten material injury to, the U.S. industry before the later of
120 days after the date of this preliminary determination or 45 days
after our final determination.
Public Comment
Interested parties who wish to request a hearing 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 accordance with 19 CFR 353.38(b), case briefs or other written
comments in at least 10 copies must be submitted to the Assistant
Secretary no later than February 3, 1995, and rebuttal briefs no later
than February 7, 1995. A public hearing, if requested, will be held on
February 9, 1995, at 1:00 p.m. at the U.S. Department of Commerce, Room
1851, 14th Street and Constitution Avenue, N.W., Washington, D.C.
20230. Parties should confirm by telephone the time, date, and place of
the hearing 48 hours before the scheduled time. 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 within 75 days of the signing of this preliminary
determination.
This determination is published pursuant to section 733(f) of the
Act and 19 CFR 353.15(a)(4).
Dated: December 9, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-30984 Filed 12-15-94; 8:45 am]
BILLING CODE 3510-DS-P
