98-32539. Final Results of Expedited Sunset Review: Polychloroprene Rubber From Japan  

  • [Federal Register Volume 63, Number 235 (Tuesday, December 8, 1998)]
    [Notices]
    [Pages 67656-67658]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-32539]
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-588-046]
    
    
    Final Results of Expedited Sunset Review: Polychloroprene Rubber 
    From Japan
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of final results of expedited sunset review: 
    Polychloroprene rubber from Japan.
    
    -----------------------------------------------------------------------
    
    SUMMARY: On August 3, 1998, the Department of Commerce (``the 
    Department'') initiated a sunset review of the antidumping finding on 
    polychloroprene rubber from Japan (63 FR 41227) pursuant to section 
    751(c) of the Tariff Act of 1930, as amended (``the Act''). On the 
    basis of a notice of intent to participate and substantive comments 
    filed on behalf of the domestic industry, and inadequate response (in 
    this case no response) from respondent interested parties, the 
    Department determined to conduct an expedited review. As a result of 
    this review, the Department finds that revocation of the antidumping 
    finding would be likely to lead to continuation or recurrence of 
    dumping at the levels indicated in the Magnitude of the Margin section 
    of this notice.
    
    FOR FURTHER INFORMATION CONTACT: Scott E. Smith or Melissa G. Skinner, 
    Office of Policy for Import Administration, International Trade 
    Administration, U.S. Department of Commerce, Washington, D.C. 20230; 
    telephone: (202) 482-6397 or (202) 482-1560, respectively.
    
    EFFECTIVE DATE: December 8, 1998.
    
    [[Page 67657]]
    
    Statute and Regulations
    
        This review was conducted pursuant to sections 751(c) and 752 of 
    the Act. The Department's procedures for the conduct of sunset reviews 
    are set forth in Procedures for Conducting Five-year (``Sunset'') 
    Reviews of Antidumping and Countervailing Duty Orders, 63 FR 13516 
    (March 20, 1998) (``Sunset Regulations''). Guidance on methodological 
    or analytical issues relevant to the Department's conduct of sunset 
    reviews is set forth in the Department's Policy Bulletin 98:3--Policies 
    Regarding the Conduct of Five-year (``Sunset'') Reviews of Antidumping 
    and Countervailing Duty Orders; Policy Bulletin, 63 FR 18871 (April 16, 
    1998) (``Sunset Policy Bulletin'').
    
    Scope
    
        The merchandise subject to this antidumping finding are shipments 
    of polychloroprene rubber, an oil resistant synthetic rubber also known 
    as polymerized chlorobutadiene or neoprene, currently classifiable 
    under the Harmonized Tariff Schedule of the United States (HTSUS) as 
    items 4002.42.00, 4002.49.00, 4003.00.00, 4462.15.21 and 4462.00.00. 
    HTSUS item numbers are provided for convenience and for Customs 
    purposes. The written descriptions remain dispositive.
        This review covers all manufacturers and exporters of 
    polychloroprene rubber from Japan.
    
    Background
    
        On August 3, 1998, the Department initiated a sunset review of the 
    antidumping finding on polychloroprene rubber from Japan (63 FR 41227), 
    pursuant to section 751(c) of the Act. The Department received a Notice 
    of Intent to Participate from Dupont Dow Elastomers L.L.C. (``DuPont'') 
    on August 18, 1998, within the deadline specified in section 
    351.218(d)(1)(i) of the Sunset Regulations. DuPont claimed interested 
    party status under section 771(9)(C) of the Act, as a manufacturer of 
    the domestic like product. We received a complete substantive response 
    from Dupont on September 2, 1998, within the 30-day deadline specified 
    in the Sunset Regulations under section 351.218(d)(3)(i). We did not 
    receive a response from any respondent interested party to this 
    proceeding. As a result, pursuant to section 751(c)(3)(B) of the Act 
    and our regulations (19 CFR 351.218(e)(1)(ii)(C)(2)), the Department 
    determined to conduct an expedited review.
    
    Determination
    
        In accordance with section 751(c)(1) of the Act, the Department 
    conducted this review to determine whether revocation of the 
    antidumping finding would be likely to lead to a continuation or 
    recurrence of dumping. Section 752(c) of the Act provides that, in 
    making this determination, the Department shall consider the weighted-
    average dumping margins determined in the investigation and subsequent 
    reviews and the volume of imports of the subject merchandise for the 
    period before and the period after the issuance of the antidumping 
    finding, and shall provide to the International Trade Commission (``the 
    Commission'') the magnitude of the margin of dumping likely to prevail 
    if the finding is revoked.
        The Department's determinations concerning continuation or 
    recurrence of dumping and magnitude of margin are discussed below. In 
    addition, parties' comments with respect to continuation or recurrence 
    of dumping and the magnitude of margin are addressed within the 
    respective sections below.
    
    Continuation or Recurrence of Dumping
    
        Drawing on the guidance provided in the legislative history 
    accompanying the Uruguay Round Agreements Act (``URAA''), specifically 
    the Statement of Administrative Action (``the SAA''), H.R. Doc. No. 
    103-316, vol. 1 (1994), the House Report, H.R. Rep. No. 103-826, pt.1 
    (1994), and the Senate Report, S. Rep. No. 103-412 (1994), the 
    Department issued its Sunset Policy Bulletin providing guidance on 
    methodological and analytical issues, including the base for likelihood 
    determinations. In its Sunset Policy Bulletin, the Department indicated 
    that determinations of likelihood will be made on an order-wide basis 
    (see section II.A.3 of the Sunset Policy Bulletin). In addition, the 
    Department indicated that it normally will determine that revocation of 
    an antidumping order is likely to lead to continuation or recurrence of 
    dumping where (a) dumping continued at any level above de minimis after 
    the issuance of the order, (b) imports of the subject merchandise 
    ceased after the issuance of the order, or (c) dumping was eliminated 
    after the issuance of the order and import volumes for the subject 
    merchandise declined significantly (see section II.A.3 of the Sunset 
    Policy Bulletin).
        The antidumping finding on polychloroprene rubber from Japan was 
    published in the Federal Register as Treasury Decision 73-333 (38 FR 
    33593, December 6, 1973). Since that time, the Department has conducted 
    a number of administrative reviews.1 The finding remains in 
    effect for all imports of polychloroprene rubber from Japan.
    ---------------------------------------------------------------------------
    
        \1\ See Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 47 FR 14746 (April 6, 
    1982); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 48 FR 9678 (March 8, 
    1983); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 49 FR 10694 (March 22, 
    1984); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 49 FR 46454 (November 
    26, 1984); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 61 FR 29344 (June 10, 
    1996); and Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 61 FR 67318 (December 
    20, 1996).
    ---------------------------------------------------------------------------
    
        In its substantive response, DuPont argues that the history of the 
    case and actions taken by Japanese producers and exporters of 
    polychloroprene rubber prior to and during the pendency of this 
    proceeding demonstrate that revocation likely would result in 
    recurrence of dumping of polychloroprene rubber in the United States 
    (see September 2, 1998 Substantive Response of DuPont). With respect to 
    whether imports of the subject merchandise ceased after the issuance of 
    the finding, DuPont states that in the four years prior to the finding 
    of dumping by Treasury in 1973, Japanese imports of polychloroprene 
    rubber trebled. However, according to DuPont, after the issuance of the 
    finding, imports of polychloroprene rubber from Japan declined and then 
    ceased. DuPont states that the results of final determination by 
    Treasury and by the Department indicate shipments of polychloroprene 
    rubber from Japan ceased after the issuance of the finding and have not 
    resumed. In conclusion, DuPont argues that the Department should 
    determine that there is a likelihood that dumping would continue were 
    the finding revoked because imports of polychloroprene rubber ceased 
    soon after the issuance of the order.
        In each of the administrative reviews conducted by the Department, 
    with the exception of the first administrative review covering various 
    periods from July 1, 1973 through November 30, 1980, the Department 
    found that there were no known shipments by the known exporters of 
    polychloroprene rubber from Japan.2 We find, therefore,
    
    [[Page 67658]]
    
    that the cessation of imports after the issuance of the finding is 
    highly probative of the likelihood of continuation or dumping. 
    Furthermore, deposit rates above de minimis levels continue in effect 
    for two of the eight known Japanese polychloroprene rubber producers 
    and/or exporters. As discussed in Section II.A.3. of the Sunset Policy 
    Bulletin, the SAA at 890, and the House Report at 63-64, if imports 
    cease after the order is issued, we may reasonably assume that 
    exporters could not sell in the United States without dumping and that, 
    to reenter the U.S. market, they would have to resume dumping. 
    Therefore, absent argument and evidence to the contrary, and given that 
    shipments of the subject merchandise ceased soon after the issuance of 
    the finding and that dumping margins continued after the issuance of 
    the finding, the Department, consistent with Section II.A.3 of the 
    Sunset Policy Bulletin, determines that dumping is likely to continue 
    or recur if the finding were revoked.
    ---------------------------------------------------------------------------
    
        \2\ See Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 47 FR 14746 (April 6, 
    1982); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 48 FR 9678 (March 8, 
    1983); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 49 FR 10694 (March 22, 
    1984); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 49 FR 46454 (November 
    26, 1984); Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 61 FR 29344 (June 10, 
    1996); and Polychloroprene Rubber From Japan; Final Results of 
    Administrative Review of Antidumping Finding; 61 FR 67318 (December 
    20, 1996).
    ---------------------------------------------------------------------------
    
    Magnitude of the Margin
    
        In the Sunset Policy Bulletin, the Department stated that, in a 
    sunset review of an antidumping finding for which no company-specific 
    margin or all others rate is included in the Treasury finding published 
    in the Federal Register, the Department normally will provide to the 
    Commission the company-specific margin from the first final results of 
    administrative review published in the Federal Register by the 
    Department. Additionally, if the first final results do not contain a 
    margin for a particular company, the Department normally will provide 
    the Commission, as the margin for that company, the first ``new 
    shipper'' rate established by the Department for that finding. (See 
    section II.B.1. of the Sunset Policy Bulletin.) Exceptions to this 
    policy include the use of a more recently calculated margin, where 
    appropriate, and consideration of duty absorption determinations. (See 
    sections II.B.2 and 3. of the Sunset Policy Bulletin).
        Because Treasury did not publish weighted-average dumping margins 
    in its finding, the margins determined in the original investigation 
    are not available to the Department for use in this sunset review. 
    Under these circumstances, the Department normally will select the 
    margin from the first administrative review conducted by the Department 
    as the magnitude of the margin of dumping likely to prevail if the 
    finding is revoked. We note that, to date, the Department has not 
    issued any duty absorption findings in this case.
        In its substantive response, DuPont argues that because Treasury 
    did not publish company-specific margins or a ``new shipper's'' rate in 
    this finding, the Department, consistent with its Sunset Policy 
    Bulletin, should report the company-specific margins and ``new 
    shipper's'' rate calculated by the Department in the final results of 
    the first administrative review.
        The Department finds no reason to deviate from our Sunset Policy 
    Bulletin in this review. We determine that the original margins 
    calculated by the Department are probative of the behavior of the 
    Japanese manufacturers and exporters of polychloroprene rubber. (See 
    Polychloroprene Rubber From Japan; Final Results of Administrative 
    Review of Antidumping Finding; 47 FR 14746 (April 6, 1982). We will 
    report to the Commission the company-specific and ``all other's'' rate 
    contained in the Final Results section of this notice.
    
    Final Results of Review
    
        As a result of this review, the Department finds that revocation of 
    the antidumping finding would be likely to lead to continuation or 
    recurrence of dumping at the margins listed below:
    
    ------------------------------------------------------------------------
                                                                     Margin
                        Manufacturer/exporter                      (percent)
    ------------------------------------------------------------------------
    Denki Kagaku Kogyo, K.K......................................          0
    Denki Kagku Kogyo, K.K./Hoei Sangyo Co., Ltd.................         55
    Suzugo Corporation...........................................         55
    All Other's Rate.............................................         55
    ------------------------------------------------------------------------
    
        This notice serves as the only reminder to parties subject to 
    administrative protective order (APO) of their responsibility 
    concerning the disposition of proprietary information disclosed under 
    APO in accordance with 19 CFR 351.305 of the Department's regulations. 
    Timely notification of return/destruction of APO materials or 
    conversion to judicial protective order is hereby requested. Failure to 
    comply with the regulations and the terms of an APO is a sanctionable 
    violation.
        This five-year (``sunset'') review and notice are in accordance 
    with sections 751(c), 752, and 777(i)(1) of the Act.
    
        Dated: December 1, 1998.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 98-32539 Filed 12-7-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
12/08/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of final results of expedited sunset review: Polychloroprene rubber from Japan.
Document Number:
98-32539
Dates:
December 8, 1998. Statute and Regulations
Pages:
67656-67658 (3 pages)
Docket Numbers:
A-588-046
PDF File:
98-32539.pdf