99-5628. Manganese Metal From the People's Republic of China; Preliminary Results and Partial Recission of Antidumping Administrative Review  

  • [Federal Register Volume 64, Number 44 (Monday, March 8, 1999)]
    [Notices]
    [Pages 10986-10990]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-5628]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-570-840]
    
    
    Manganese Metal From the People's Republic of China; Preliminary 
    Results and Partial Recission of Antidumping Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results and partial rescission of 
    antidumping duty administrative review of manganese metal from the 
    People's Republic of China.
    
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    SUMMARY: We have preliminarily determined that sales by China 
    Metallurgical Import & Export Hunan Corporation/Hunan Nonferrous Metals 
    Import & Export Associated Corporation have been made below normal 
    value during the period of review of February 1, 1997, through January 
    31, 1998. Because we were unable to verify that China Hunan 
    International Economic Development Corporation reported all of its U.S. 
    sales during the period of review, we have preliminarily determined to 
    apply adverse facts available in calculating the dumping margins for 
    this exporter of the subject merchandise. If these preliminary results 
    are adopted in our final results of review, we will instruct the U.S. 
    Customs Service to assess antidumping duties based on the difference 
    between the export price and normal value on all appropriate entries.
        We have also determined that the review of China National 
    Electronics Import and Export Hunan Company and Minmetals Precious & 
    Rare Minerals Import & Export Corporation should be rescinded.
        We invite interested parties to comment on these preliminary 
    results.
    
    EFFECTIVE DATE: March 8, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Greg Campbell or Craig Matney, Office 
    I, Antidumping/Countervailing Duty Enforcement, Import Administration, 
    International Trade Administration, U.S. Department of Commerce, 14th 
    Street and Constitution Avenue NW., Washington, DC 20230; telephone 
    (202) 482-2239 or (202) 482-1778, respectively.
    
    SUPPLEMENTARY INFORMATION:
    
    Applicable Statute
    
        Unless otherwise indicated, all citations to the Tariff Act of 
    1930, as amended (the Act), are references to the provisions effective 
    January 1, 1995, the effective date of the amendments made to the Act 
    by the Uruguay Round Agreements Act (URAA). In addition, all references 
    to the Department's regulations are to 19 CFR part 351 (April 1998).
    
    Background
    
        On February 6, 1996, the Department of Commerce (the Department) 
    published in the Federal Register the antidumping duty order on 
    manganese metal from the People's Republic of China (PRC). See Notice 
    of Amended Final Determination and Antidumping Duty Order: Manganese 
    Metal from the People's Republic of China, 61 FR 4415 (February 6, 
    1996) (LTFV Investigation). In accordance with 19 CFR 351.213(b)(2), on 
    February 9, 1998, Elkem Metals Company and Kerr-McGee Chemical 
    Corporation (the petitioners) requested that we conduct an 
    administrative review of this order. On March 23, 1998, in accordance 
    with 19 CFR 351.213(c)(3), we published a notice of initiation of this 
    antidumping duty administrative review. See 63 FR 13837. On November 9, 
    1998, we published a notice of extension of time limit for the 
    preliminary results. See 63 FR 60303.
        The Department is conducting this administrative review in 
    accordance with section 751 of the Act. The period of review (POR) is 
    February 1, 1997 through January 31, 1998.
    
    Scope of Review
    
        The merchandise covered by this review is manganese metal, which is 
    composed principally of manganese, by weight, but also contains some 
    impurities such as carbon, sulfur, phosphorous, iron and silicon. 
    Manganese metal contains by weight not less than 95 percent manganese. 
    All compositions, forms and sizes of manganese metal are included 
    within the scope of this administrative review, including metal flake, 
    powder, compressed powder, and fines. The subject merchandise is 
    currently classifiable under subheadings 8111.00.45.00 and 
    8111.00.60.00 of the Harmonized Tariff Schedule of the United States 
    (HTSUS). Although the HTSUS subheadings are provided for convenience 
    and customs purposes, our written description of the scope of this 
    proceeding is dispositive.
    
    Partial Rescission
    
        China National Electronics Import and Export Hunan Company (CEIEC) 
    notified the Department that it had not made any U.S. sales of subject 
    merchandise during the POR. Entry data provided by the U.S. Customs 
    Service confirms that there were no POR entries from CEIEC of manganese 
    metal.
        Minmetals Precious & Rare Minerals Import & Export Corporation 
    (Minmetals) reported one sale which, based on the date of commercial 
    invoice, was made during the previous POR but which Minmetals believes 
    would have entered the United States during the POR. However, the U.S. 
    Customs data, for both the 1995/97 review period and this review 
    period, indicates that this sale was never entered into the United 
    States. Moreover, neither Minmetals nor the Department has been able to 
    identify
    
    [[Page 10987]]
    
    any other customs entries which apparently correspond to this sale. 
    Thus, even if the Department were to calculate a margin for Minmetals, 
    there would be no entry on which to assess the resulting duty.
        Therefore, consistent with the Department's practice, we are 
    rescinding this review with respect to Minmetals and CEIEC. See Silicon 
    Metal from Brazil; Final Results of Antidumping Duty Administrative 
    Review, 61 FR 46763 (September 5, 1996).
    
    Verification
    
        As provided in section 782(i) of the Act, we verified factor 
    information provided by Xiang Tan Huan Yu Metallurgical Products Plant 
    (Huan Yu). We also conducted sales verifications at China Hunan 
    International Economic Development Corporation (HIED), China 
    Metallurgical Import & Export Hunan Corporation/Hunan Nonferrous Metals 
    Import & Export Associated Corporation (CMIECHN/CNIECHN), and 
    Minmetals. Our verification at each of these companies consisted of 
    standard verification procedures, including the examination of relevant 
    sales and financial records and the selection of original documentation 
    containing relevant information. Our verification results are detailed 
    in the verification reports on file in the Central Records Unit (CRU) 
    in room B-099 of the Department's main building.
    
    Separate Rates
    
        It is the Department's standard policy to assign all exporters of 
    the merchandise subject to review in non-market-economy (NME) countries 
    a single rate unless an exporter can demonstrate an absence of 
    government control, both in law and in fact, with respect to exports. 
    To establish whether an exporter is sufficiently independent of 
    government control to be entitled to a separate rate, the Department 
    analyzes the exporter in light of the criteria established 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), as 
    amplified in the Final Determination of Sales at Less Than Fair Value: 
    Silicon Carbide from the People's Republic of China, 59 FR 22585 (May 
    2, 1994) (Silicon Carbide). Evidence supporting, though not requiring, 
    a finding of de jure absence of government control over export 
    activities includes: (1) an absence of restrictive stipulations 
    associated with an individual exporter's business and export licenses; 
    (2) any legislative enactments decentralizing control of companies; and 
    (3) any other formal measures by the government decentralizing control 
    of companies. See Sparklers at 20589. A de facto analysis of absence of 
    government control over exports is based on four factors--whether the 
    respondent: (1) sets its own export prices independent from the 
    government and other exporters; (2) can retain the proceeds from its 
    export sales; (3) has the authority to negotiate and sign contracts; 
    and (4) has autonomy from the government regarding the selection of 
    management. See Silicon Carbide at 22587; see also Sparklers at 20589.
        In our final LTFV determination, we determined that there was de 
    jure and de facto absence of government control of each company's 
    export activities and determined that each company warranted a company-
    specific dumping margin. See LTFV Investigation. For this period of 
    review, HIED, CMIECHN/CNIECHN and Minmetals have responded to the 
    Department's request for information regarding separate rates. We have 
    found that the evidence on the record is consistent with the final 
    determination in the LTFV Investigation and continues to demonstrate an 
    absence of government control, both in law and in fact, with respect to 
    these companies' exports, in accordance with the criteria identified in 
    Sparklers and Silicon Carbide.
    
    Export Price
    
        For those U.S. sales made by CMIECHN/CNIECHN and which we verified, 
    we calculated an export price, in accordance with section 772(a) of the 
    Act, because the subject merchandise was sold to unrelated purchasers 
    in the United States prior to importation into the United States and 
    constructed export price treatment was not otherwise indicated.
        For these sales, we calculated export price based on the price to 
    unaffiliated purchasers. We deducted an amount, where appropriate, for 
    foreign inland freight, ocean freight, and marine insurance.\1\ The 
    costs for these items were valued in the surrogate country.
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        \1\ For a detailed discussion of how we derived net export price 
    and constructed value, see Memorandum to the Case File; Calculations 
    for the Preliminary Results of Review for CMIECHN/CNIECHN (March 2, 
    1999), a public version of which is available in room B-099 of the 
    Department's main building.
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        In addition to these verified sales, U.S. Customs entry data for 
    the POR indicate that many more shipments of manganese metal listing 
    CMIECHN/CNIECHN as the manufacturer/exporter were entered into the 
    United States than the number of CMIECHN/CNIECHN's verified U.S. 
    sales.\2\ The verified sales represent less than five percent of the 
    total value of POR entries listing CMIECHN/CNIECHN as the manufacturer/
    exporter. Based upon our verification of CMIECHN/CNIECHN's total U.S. 
    sales, we have preliminarily determined that these additional entries 
    are not U.S. sales by CMIECHN/CNIECHN for the purposes of this review. 
    We will, however, continue to examine the circumstances surrounding 
    these entries identifying CMIECHN/CNIECHN as the exporter. We note that 
    CMIECHN/CNIECHN has asked the U.S. Customs Service to investigate 
    potential customs fraud involving entries of manganese metal during the 
    POR. We will reconsider, in the final results of review, our 
    preliminary determination that CMIECHN/CNIECHN was not the exporter of 
    these additional entries in the event that any substantive new 
    information on the matter, including any potential determination by the 
    Customs Service regarding alleged customs fraud, becomes available.
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        \2\ The Department initially requested this Customs data to 
    verify the claims of non-shipment by CEIEC (see Partial Rescission 
    section above). This request for entry data was also responsive to 
    concerns expressed by the petitioners that many more shipments of 
    manganese metal had entered the United States during the POR than 
    were reported as sales by the respondents.
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        Given our preliminary determination that these additional entries 
    are not CMIECHN/CNIECHN sales for the purposes of this review, we have 
    not calculated an export price for these entries. Also, for the reasons 
    enumerated in the Use of Facts Otherwise Available section below, we 
    likewise have not calculated an export price for HIED's sales.
    
    Normal Value
    
    1. Non-Market-Economy Status
    
        For companies located in NME countries, section 773(c)(1) of the 
    Act provides that the Department shall determine normal value (NV) 
    using a factors-of-production methodology if (1) the merchandise is 
    exported from an NME country, and (2) the information does not permit 
    the calculation of NV using home-market prices, third-country prices, 
    or constructed value under section 773(a) of the Act.
        The Department has treated the PRC as an NME country in all 
    previous antidumping cases. In accordance with section 771(18)(C)(i) of 
    the Act, any determination that a foreign country is a NME country 
    shall remain in effect until revoked by the administering authority.
        None of the parties to this proceeding has contested such treatment 
    in this
    
    [[Page 10988]]
    
    review. Furthermore, available information does not permit the 
    calculation of NV using home-market prices, third-country prices or 
    constructed value under section 773(a) of the Act. Therefore, we 
    treated the PRC as a NME country for purposes of this review and 
    calculated NV by valuing the factors of production in a comparable 
    market-economy country which is a significant producer of comparable 
    merchandise.
    
    2. Surrogate-Country Selection
    
        In accordance with section 773(c)(4) of the Act and section 
    351.408(b) of our regulations, we preliminarily determine that India is 
    comparable to the PRC. In addition, India is a significant producer of 
    comparable merchandise. Therefore, for this review, we have selected 
    India as the surrogate country and have used publicly available 
    information relating to India, unless otherwise noted, to value the 
    various factors of production. (See Memorandum to Susan Kuhbach from 
    Jeff May; Non-Market-Economy Status and Surrogate Country Selection 
    (June 23, 1998), a public copy of which is available in the Central 
    Records Unit.)
    
    3. Factors-of-Production Valuation
    
        For purposes of calculating NV, we valued PRC factors of 
    production, in accordance with section 773(c)(1) of the Act. Factors of 
    production include but are not limited to the following elements: (1) 
    hours of labor required; (2) quantities of raw materials employed; (3) 
    amounts of energy and other utilities consumed; and (4) representative 
    capital cost, including depreciation. In examining potential surrogate 
    values, we selected, where possible, the publicly available value which 
    was: (1) an average non-export value; (2) representative of a range of 
    prices within the POR or most contemporaneous with the POR; (3) 
    product-specific; and (4) tax-exclusive. Where we could not obtain a 
    POR-representative price for an appropriate surrogate value, we 
    selected a value in accordance with the remaining criteria mentioned 
    above and which was the closest in time to the POR. For a more detailed 
    explanation of the methodology used in calculating various surrogate 
    values, see Memorandum to the File from Case Team; Calculations for the 
    Preliminary Results (March 2, 1999). In accordance with this 
    methodology, we have valued the factors as described below.
        We valued manganese ore using a June 1998 export price quote (in 
    U.S. dollars) from a Brazilian manganese mine for manganese carbonate 
    ore. Consistent with our methodology used in the first administrative 
    review of the order on manganese metal from the PRC, this price was 
    adjusted to reflect the decline in manganese ore world prices since the 
    POR. See Manganese Metal from the PRC; Final Results and Partial 
    Rescission of Antidumping Duty Administrative Review, 63 FR 12440, 
    12442 (March 13, 1998). We adjusted this price further to account for 
    the reported manganese content of the ore used in the PRC manufacture 
    of the subject merchandise and to account for the differences in 
    transportation distances.
        To value various process chemicals used in the production of 
    manganese metal, we used prices obtained from the following Indian 
    sources: Indian Chemical Weekly (February 1997 through November 1997); 
    the Monthly Statistics of Foreign Trade of India, Volume II--Imports 
    (February through May 1997) (Import Statistics); price quotes from 
    Indian chemicals producers, and the 1995 Indian Minerals Yearbook 
    (IMY). Where necessary, we adjusted these values to reflect inflation 
    up to the POR using an Indian WPI published by the International 
    Monetary Fund (IMF). Additionally, we adjusted these values, where 
    appropriate, to account for differences in chemical content and to 
    account for freight costs incurred between the suppliers and manganese 
    metal producers.
        To value the labor input, consistent with 19 CFR 351.408(c)(3), we 
    used the regression-based estimated wage rate for the PRC as calculated 
    by the Department.
        For selling, general, and administrative expenses (SG&A), factory 
    overhead, and profit values, we used information from the Reserve Bank 
    of India Bulletin (January 1997) for the Indian industrial grouping 
    ``Processing and Manufacturing: Metals, Chemicals, and Products 
    Thereof.'' To value factory overhead, we calculated the ratio of 
    factory overhead expenses to the cost of materials and energy. Using 
    the same source, we also calculated the SG&A expense as a percentage of 
    the cost of materials, energy and factory overhead and profit as a 
    percentage of the cost of production (i.e., materials, energy, labor, 
    factory overhead and SG&A).
        For most packing materials values, we used per-unit values based on 
    the data in the Import Statistics. For iron drums, however, we used a 
    price quote from an Indian manufacturer rather than a value from the 
    Import Statistics because the quoted price was for the appropriate type 
    of container used, whereas the Import Statistics were aggregated over 
    various types of containers. We made further adjustments to account for 
    freight costs incurred between the PRC supplier and manganese metal 
    producers.
        To value electricity, we used the average rate applicable to large 
    industrial users throughout India as reported in the 1995 Confederation 
    of Indian Industries Handbook of Statistics. We adjusted the March 1, 
    1995, value to reflect inflation up to the POR using the WPI published 
    by the IMF.
        To value rail freight, we relied upon rates quoted by a manganese 
    mine in India. To value truck freight, we used a price quotation from 
    an Indian freight provider. Because this quote was for a period 
    subsequent to the POR, we deflated the value back to the POR using WPI 
    published by the IMF.
    
    Use of Facts Otherwise Available
    
        Section 776(a)(2) of the Act provides that if an interested party 
    (1) withholds information that has been requested by the Department, 
    (2) fails to provide such information in a timely manner or in the form 
    requested, (3) significantly impedes a proceeding under the antidumping 
    statute, or (4) provides information that cannot be verified, the 
    Department shall use, subject to section 782(d), facts available in 
    reaching the applicable determination. While section 782(d) of the Act 
    provides certain conditions that must be satisfied before the 
    Department may disregard all or part of the information submitted by a 
    respondent, these conditions only apply when the information submitted 
    can be verified and the interested parties have acted to the best of 
    their abilities. See section 782(e) of the Act.
    
    1. Application of Facts Available
    
        We preliminarily determine that, in accordance with sections 
    776(a)(2) and 776(b) of the Act, the use of facts otherwise available, 
    adverse to the company, is appropriate for HIED because its sales data 
    could not be verified and because it did not cooperate to the best of 
    its ability in the course of this review. These reasons are detailed 
    below.
        On August 13, 1998, the Department provided HIED with Customs 
    Service data showing the POR entries into the United States of 
    manganese metal from the PRC indicating HIED as the shipper. In an 
    accompanying letter we noted that these entries differed in material 
    ways from HIED's reported U.S. sales and requested that HIED comment on 
    this inconsistency. HIED replied that its reported sales were correct 
    and could be reconciled with its books. HIED further noted that any 
    inconsistencies were
    
    [[Page 10989]]
    
    likely due to ``fraudulent schemes'' on the part of other exporters to 
    export subject merchandise into the United States under the most 
    favorable circumstances.
        The Department subsequently conducted a verification of HIED's 
    reported sales. During the course of verification, we encountered 
    numerous inconsistencies and delays, and certain documents were not 
    available. For instance, HIED officials' explanation of the company's 
    relationship to its U.S. customer was, in general, incongruous and 
    incomplete and, at times, entirely contrary to what other company 
    officials had stated previously. Moreover, although company officials 
    claimed initially that only one of HIED's departments and one of its 
    affiliates made sales of manganese metal during the POR, Department 
    officials conducting the verification (the Verification Team) 
    subsequently identified accounting records which indicated that at 
    least one additional business unit may also have been involved in 
    selling manganese metal. Furthermore, the Verification Team was unable 
    to verify the total quantity and value of subject merchandise sold by 
    HIED and its affiliates because certain intermediate accounting records 
    could not be reconciled to source data or to the financial statements.
        Verification of the completeness of HIED's sales reporting was also 
    seriously hindered by the Verification Team's inability to review 
    several of the sales and accounting records reportedly maintained by 
    HIED. In some cases, the source documentation requested by the 
    Department to verify total sales was reportedly discarded prior to 
    verification. Company officials offered no explanation as to why they 
    were unable to retrieve other sales and accounting records, maintained 
    at the company headquarters, for the majority of HIED's sales 
    departments. Sales and accounting records for HIED's affiliates, 
    including those selling manganese metal, were likewise not available 
    though, according to HIED officials, this was because officials were 
    unwilling to travel to other locations in the PRC where the documents 
    were kept.
        There were many significant delays in the verification process as a 
    result of sorting through conflicting statements by officials and of 
    the difficulty in locating documents which were explicitly requested by 
    the Department in the verification outline sent prior to the 
    verification. Despite the fact that the verification was extended--at 
    the Department's initiative-- for an additional half day, several 
    important documents were not presented to the Verification Team until 
    near or at the end of verification, preventing an adequate review of 
    important data.
        Subsequent to verification, the Department received from the 
    Customs Service supporting documentation (e.g., Customs Form 7501, 
    commercial invoices, packing lists) filed by the U.S. importer upon 
    entering the subject merchandise into the United States for several of 
    the entries which appeared in the U.S. Customs data. The supporting 
    documentation for several entries listed in the U.S. Customs data 
    identified HIED clearly as the actual exporter of the subject 
    merchandise. However, for some of these entries there were no 
    corresponding sales listed in HIED's U.S. sales listing.
        These numerous inconsistencies and delays, and the unavailability 
    of documentation, taken together, constitute a verification failure 
    under section 776(a)(2)(D) of the Act. Moreover, based on information 
    obtained from the Customs Service, we have determined that HIED failed 
    to report sales it made to the United States. The Department has, 
    therefore, determined that, because HIED's reported sales data could 
    not be verified and, generally, the credibility of the information 
    contained in HIED's questionnaire responses could not be established, 
    section 776(a) of the Act requires the Department to disregard HIED's 
    questionnaire responses and apply facts available.
    
    2. Use of Adverse Facts Available
    
        In selecting from among the facts available, section 776(b) of the 
    Act authorizes the Department to use an adverse inference if the 
    Department finds that a party has failed to cooperate by not acting to 
    the best of its ability to comply with requests for information. See 
    Statement of Administrative Action (SAA), H.R. Doc. 316, Vol. 1, 103rd 
    Cong., 2d sess. 870 at 870 (1994). To examine whether the respondent 
    ``cooperated'' by ``acting to the best of its ability'' under section 
    776(b) of the Act, the Department considers, inter alia, the accuracy 
    and completeness of submitted information and whether the respondent 
    has hindered the calculation of accurate dumping margins. See, e.g., 
    Certain Welded Carbon Steel Pipes and Tubes From Thailand: Final 
    Results of Antidumping Duty Administrative Review, 62 FR 53808, 53819-
    53820 (October 16, 1997).
        As discussed above, HIED failed to provide much of the 
    documentation, requested by the Verification Team, necessary to verify 
    HIED's sales. Moreover, various company officials' statements were 
    contradictory on several points central to a successful verification. 
    Furthermore, the Department identified unreported sales of subject 
    merchandise by HIED which the company knew, or should have known, 
    should have been properly included in the reported U.S. sales list. 
    Thus, we have determined that HIED withheld information we requested 
    and significantly impeded the antidumping proceeding.
        We have, therefore, determined that HIED has not acted to the best 
    of its ability to comply with our requests for information. 
    Accordingly, consistent with section 776(b) of the Act, we have applied 
    adverse facts available to this company.
    3. Corroboration of Secondary Information
        In this review, we are using as adverse facts available the PRC-
    wide rate (143.32 percent) determined for non-responding exporters 
    involved in the LTFV Investigation. This margin represents the highest 
    margin in the petition, as modified by the Department for the purposes 
    of initiation. See Initiation of Antidumping Duty Investigation: 
    Manganese Metal from the PRC, 59 FR 61869 (December 2, 1994) (LTFV 
    Initiation).
        Information derived from the petition constitutes secondary 
    information within the meaning of the SAA. See SAA at 870. Section 
    776(c) of the Act provides that the Department shall, to the extent 
    practicable, corroborate secondary information from independent sources 
    reasonably at its disposal. The SAA provides that ``corroborate'' means 
    that the Department will satisfy itself that the secondary information 
    to be used has probative value. The SAA at 870, however, states further 
    that ``the fact that corroboration may not be practicable in a given 
    circumstance will not prevent the agencies from applying an adverse 
    inference.'' In addition, the SAA, at 869, emphasizes that the 
    Department need not prove that the facts available are the best 
    alternative information.
        To corroborate secondary information, to the extent practicable the 
    Department will examine the reliability and relevance of the 
    information to be used. To examine the reliability of margins in the 
    petition, we examine whether, based on available evidence, those 
    margins reasonably reflect a level of dumping that may have occurred 
    during the period of investigation by any firm, including those that 
    did not provide us with usable information. This generally consists of 
    examining, to the extent practicable, whether the significant
    
    [[Page 10990]]
    
    elements used to derive the petition margins, or the resulting margins, 
    are supported by independent sources. With respect to the relevance 
    aspect of corroboration, the Department will consider information 
    reasonably at its disposal as to whether there are circumstances that 
    would render a margin not relevant. Where circumstances indicate that 
    the selected margin may not be relevant, the Department will attempt to 
    find a more appropriate basis for facts available. See, e.g., Fresh Cut 
    Flowers from Mexico; Final Results of Antidumping Duty Administrative 
    Review, 61 FR 6812, 6814 (February 22, 1996) (where the Department 
    disregarded the highest margin as best information available because 
    the margin was based on another company's uncharacteristic business 
    expense resulting in an unusually high margin).
        For the initiation of the investigation, based on an analysis of 
    the petition and a subsequent supplement to the petition, the 
    Department modified the dumping margin contained in the petition. See 
    LTFV Initiation at 61870. In the petition, the U.S. price was based on 
    price quotations obtained for manganese from the PRC during December 
    1993 through May 1994. The factors of production were valued, where 
    possible, using publicly available published information for India. 
    Where Indian values were not available, the petitioners used data based 
    on their own costs. For the initiation, however, the Department 
    disallowed all factors valued by using the petitioners' own costs. 
    Instead, we recalculated factory overhead and depreciation expenses 
    using the statistics in the Reserve Bank of India Bulletin (December 
    1992), a publicly available and independent source used in other 
    investigations of imports from the PRC. We also recalculated the 
    valuation of several process chemicals using data from the independent 
    source Chemical Marketing Reporter. Furthermore, we revalued 
    electricity costs using World Bank data on electricity rates for 
    industrial users in Indonesia, an appropriate surrogate country at a 
    comparable level of economic development to the PRC.
        We find, therefore, for the purpose of these preliminary results 
    that the PRC-wide margin established in the LTFV Investigation is 
    reliable. As there is no information on the record of this review that 
    demonstrates that the rate selected is not an appropriate adverse facts 
    available rate for HIED, we determine that this rate has probative 
    value and, therefore, is an appropriate basis for facts otherwise 
    available.
    Preliminary Results of the Review
        We hereby determine that the following weighted-average margins 
    exist for the period February 1, 1997, through January 31, 1998:
    
     
    ------------------------------------------------------------------------
                                                                    Margin
                       Manufacturer/Exporter                      (percent)
    ------------------------------------------------------------------------
    CMIECHN/CNIECHN............................................         6.08
    HIED.......................................................       143.32
    ------------------------------------------------------------------------
    
        Because we are rescinding the review with respect to CEIEC and 
    Minmetals, the respective company-specific rates for these companies 
    remain unchanged.
        Any interested party may request a hearing within 30 days of 
    publication of this notice. Any hearing, if requested, will be held 
    approximately 37 days after the publication of this notice. Interested 
    parties may submit written comments (case briefs) within 30 days of the 
    date of publication of this notice. Rebuttal comments (rebuttal 
    briefs), which must be limited to issues raised in the case briefs, may 
    be filed not later than 35 days after the date of publication. The 
    Department will issue a notice of final results of this administrative 
    review, including the results of its analysis of issues raised in any 
    such written comments, within 120 days of publication of these 
    preliminary results.
    
    Assessment and Cash Deposit Rates
    
        The Department shall determine, and the Customs Service shall 
    assess, antidumping duties on all appropriate entries. The Department 
    will issue appraisement instructions directly to the Customs Service.
        In order to assess duties on appropriate entries as a result of 
    this review, we have calculated entry-specific duty assessment rates 
    based on the ratio of the amount of duty calculated for each of 
    CMIECHN/CNIECHN's verified sales during the POR to the total entered 
    value of the corresponding entry. The Department will instruct the 
    Customs Service to assess these rates only on those entries which 
    correspond to sales verified by the Department as having been made 
    directly by CMIECHN/CNIECHN.
        As discussed in the Export Price section above, however, the 
    Customs entry data for the POR indicates that many more shipments of 
    manganese metal listing CMIECHN/CNIECHN as the manufacturer/exporter 
    were entered into the United States than the number of POR sales 
    reported by CMIECHN/CNIECHN. On those entries listing CMIECHN/CNIECHN 
    as the manufacturer/exporter but for which there are no corresponding 
    verified sales, the Department will instruct the Customs Service to 
    assess the PRC-wide rate of 143.32 percent. The Department will 
    likewise instruct the Customs Service to assess the facts available 
    rate, also 143.32 percent, on all POR entries from HIED.
        Furthermore, the following cash deposit requirements will be 
    effective upon publication of the final results of this administrative 
    review for all shipments of the subject merchandise entered, or 
    withdrawn from warehouse, for consumption on or after the publication 
    date, as provided for by section 751(a)(1) of the Act: (1) for HIED and 
    CMIECHN/CNIECHN, the cash deposit rate will be the rates for these 
    firms established in the final results of this review; (2) for 
    Minmetals and CEIEC, which we determined to be entitled to a separate 
    rate in the LTFV Investigation but which did not have shipments or 
    entries to the United States during the POR, the rates will continue to 
    be 5.88 percent and 11.77 percent, respectively (these are the rates 
    which currently apply to these companies); and (3) for all other PRC 
    exporters, the cash deposit rate will be 143.32 percent. These deposit 
    requirements, when imposed, shall remain in effect until publication of 
    the final results of the next administrative review.
        This notice also serves as a preliminary reminder to importers of 
    their responsibility under 19 CFR 351.402(f) 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.
        We are issuing and publishing this determination in accordance with 
    sections 751(a)(1) and 777(i)(1) of the Act.
    
        Dated: March 1, 1999.
    Robert S. LaRussa,
    Assistant Secretary for Import Administration.
    [FR Doc. 99-5628 Filed 3-5-99; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Effective Date:
3/8/1999
Published:
03/08/1999
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results and partial rescission of antidumping duty administrative review of manganese metal from the People's Republic of China.
Document Number:
99-5628
Dates:
March 8, 1999.
Pages:
10986-10990 (5 pages)
Docket Numbers:
A-570-840
PDF File:
99-5628.pdf