98-9436. Sebacic Acid From the People's Republic of China; Preliminary Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 63, Number 68 (Thursday, April 9, 1998)]
    [Notices]
    [Pages 17367-17372]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-9436]
    
    
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    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    [A-570-825]
    
    
    Sebacic Acid From the People's Republic of China; Preliminary 
    Results of Antidumping Duty Administrative Review
    
    AGENCY: Import Administration, International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of preliminary results of antidumping duty 
    administrative review of sebacic acid from the People's Republic of 
    China.
    
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    SUMMARY: The Department of Commerce (the Department) is conducting an 
    administrative review of the antidumping duty order on sebacic acid 
    from the People's Republic of China (PRC) in response to requests from 
    the petitioner, Union Camp Corporation, and four respondents: Tianjin 
    Chemicals Import and Export Corporation (Tianjin), Guangdong Chemicals 
    Import and Export Corporation (Guangdong), Sinochem International 
    Chemicals Company, Ltd. (SICC) and Sinochem Jiangsu Import and Export 
    Corporation (Jiangsu). This review covers four exporters of the subject 
    merchandise. The period of review (POR) is July 1, 1996, through June 
    30, 1997.
        We have preliminarily determined that sales have been made below 
    normal value (NV) during this period. If these preliminary results are 
    adopted in the final results of this administrative review, we will 
    instruct the U.S. Customs Service to assess antidumping duties based on 
    the difference between the United States price (USP) and NV. These 
    assessment rates, if adopted for the final results of the review, will 
    be calculated on an importer-specific ad valorem duty basis. Interested 
    parties are invited to comment on these preliminary results.
    
    EFFECTIVE DATE: April 9, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Brandon Farlander or Stephen Jacques, 
    Import Administration, International Trade Administration, U.S. 
    Department of Commerce, 14th and Constitution Avenue, N.W., Washington, 
    D.C. 20230; telephone: (202) 482-0182 or (202) 482-1391.
        APPLICABLE STATUTE AND REGULATIONS: Unless otherwise indicated, all 
    citations to the statute are references to the provisions effective 
    January 1, 1995, the effective date of the amendments made to the 
    Tariff Act of 1930 (the Act) by the Uruguay Rounds Agreements Act 
    (URAA). In addition, unless otherwise indicated, all citations to the 
    Department's regulations are in reference to the regulations, codified 
    at 19 CFR part 351, published on May 19, 1997.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        The Department published in the Federal Register an antidumping 
    duty order on sebacic acid from the PRC on July 14, 1995 (59 FR 35909). 
    On July 21, 1997, the Department published in the Federal Register (62 
    FR 38973) a notice of opportunity to request an administrative review 
    of the antidumping duty order on sebacic acid from the PRC covering the 
    period July 1, 1996, through June 30, 1997.
        On July 30, 1997, in accordance with 19 CFR 351.213(b), Union Camp 
    requested that we conduct an administrative review of Tianjin, 
    Guangdong, SICC, and Jiangsu. On July 29, 1997, Tianjin, Guangdong and 
    SICC requested that we conduct an administrative review. Also on July 
    29, 1997, Tianjin has requested partial revocation of the antidumping 
    duty order on sebacic acid from the PRC. However, because we have 
    preliminarily determined a margin of 3.53 percent for Tianjin, which is 
    above the Department's de minimis standard of 0.5 percent, we 
    preliminarily determine that Tianjin has not met the requirements for 
    revocation. We published a notice of initiation of this antidumping 
    duty administrative review on August 28, 1997 (62 FR 45621). On August 
    30, 1997, we issued questionnaires to the four respondents. Jiangsu did 
    not respond to the Department's questionnaire. The Department is 
    conducting this
    
    [[Page 17368]]
    
    administrative review in accordance with section 751 of the Act.
    
    Scope of Review
    
        The products covered by this order 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 ICV color). The 
    principal difference between the grades is the quantity of 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 remains dispositive.
        This review covers the period July 1, 1996, through June 30, 1997, 
    and four exporters of Chinese sebacic acid.
    
    Verification
    
        We conducted verification of the sales and factor information 
    provided by respondent Tianjin located in Tianjin, PRC and one of its 
    producers, Hengshui Dongfeng Chemical Plant (Hengshui), located in 
    Hengshui, PRC. We conducted the verifications using standard 
    verification procedures, including onsite inspection of the 
    manufacturer's facilities, the examination of relevant sales and 
    financial records, and selection of original documentation containing 
    relevant information. Our verification results are outlined in the 
    public versions of the verification reports.
    
    Separate Rates
    
    1. Background and Summary of Findings
    
        It is the Department's standard policy to assign all exporters of 
    the merchandise subject to review in non-market-economy 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. Evidence relevant to a de facto absence of government 
    control with respect to 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 determination of sales at less than fair value for the 
    POR covering July 1, 1995 through June 30, 1996, the Department 
    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 Final Results 
    of Antidumping Administrative Review: Sebacic Acid From the People's 
    Republic of China (62 FR 65674, December 15, 1997) (``Sebacic Acid''). 
    For this period of review, SICC , Tianjin and Guangdong 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 previous administrative review and continues 
    to demonstrate an absence of government control, both in law and in 
    fact, with respect to their exports, in accordance with the criteria 
    identified in Sparklers and Silicon Carbide. During verification of 
    Tianjin, we examined its business and financial statements. We found no 
    evidence of government control of Tianjin's export activities.
    
    2. Separate Rate Determination for Non-Responsive Company
    
        For Jiangsu, which did not respond to the questionnaire, we 
    preliminarily determine that this company does not merit a separate 
    rate. Because the Department assigns a single rate to companies in a 
    non-market economy unless an exporter can demonstrate absence of 
    government control, we preliminarily determine that Jiangsu is subject 
    to the country-wide rate for this case.
    
    United States Price
    
        For SICC, Tianjin and Guangdong, the Department based USP on export 
    price (EP), in accordance with section 772(a) of the Act. We made 
    deductions from EP, where appropriate, for foreign inland freight, 
    ocean freight, brokerage and handling, and marine insurance. See 
    ``Factor Valuation'' section of this notice. We selected India as the 
    surrogate country for the reasons explained in the ``Normal Value'' 
    section of this notice.
    
    Normal Value
    
        Section 773(c)(1) of the Act provides that the Department shall 
    determine the 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. Furthermore, available information does not 
    permit the calculation of NV using home market prices, third country 
    prices, or CV under section 773(a) of the Act. In accordance with 
    section 771(18)(C)(i) of the Act, any determination that a foreign 
    country is an 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 review. Therefore, we treated the PRC 
    as an 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. 
    Factors of production include, but are not limited to: (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.
    
    [[Page 17369]]
    
        Section 773(c)(4) of the Act and section 351.408 of the 
    Department's regulations direct us to select a surrogate country that 
    is economically comparable to the PRC. On the basis of per capita gross 
    domestic product (GDP), the growth rate in per capita GDP, and the 
    national distribution of labor, we find that India is a comparable 
    economy to the PRC (See Memorandum from Director, Office of Policy, to 
    Office Director, AD/CVD Group III, Office 9, dated February 5, 1998).
        The statute (section 773(c)(4) of the Act and section 351.408 of 
    the Department's regulations) also requires that, to the extent 
    possible, the Department use a surrogate country that is a significant 
    producer of merchandise comparable to sebacic acid. The countries that 
    we confirmed to be producers of sebacic acid, such as Japan and the 
    United States, do not have economies comparable to the PRC. We found 
    that information contained in respondent's December 4, 1997 submission 
    indicates that India was a producer of sebacic acid during the POR. 
    Although we do not have information about the quantity of sebacic acid 
    produced in India, we reviewed a fax from an Indian sebacic acid 
    producer with a price quote to a U.S. importer. Moreover, in the last 
    administrative review of this order, we determined that India is a 
    significant producer of comparable merchandise (e.g., oxalic acid) 
    during the POR. (See the Analysis Memorandum for the Preliminary 
    Results of the 1996/1997 Review for sebacic acid, page 2) Therefore, we 
    find that India fulfills both requirements of the statute.
        For purposes of calculating NV, we valued PRC factors of 
    production, in accordance with section 773(c)(1) of the Act. In 
    examining 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. For those values not contemporaneous with the POR, we 
    adjusted for inflation using the wholesale price indices published in 
    the IMF's International Financial Statistics. When necessary, we 
    adjusted the values reported in the Chemical Weekly to exclude sales 
    and excise taxes. In accordance with our practice, we added to CIF 
    import values from India a surrogate freight cost using the shorter of 
    the reported distances from either the closest PRC port to the factory, 
    or from the domestic supplier to the factory. See Final Determination 
    of Sales at Less Than Fair Value: Certain Cut-to-Length Carbon Steel 
    Plate From the People's Republic of China (62 FR 61977, November 20, 
    1997) In accordance with this methodology, we valued the factors of 
    production as follows:
        For castor oil, the Department did not use the surrogate values for 
    castor oil submitted by petitioners in their December 4, 1997 
    submission because there was no source documentation. We did not use 
    respondent's data because we could not determine whether they were 
    contemporaneous with the POR. Therefore, we have valued this material 
    using price data reported in The Economic Times (Bombay), adjusted for 
    inflation, for Hyderabad, Kanpur, Calcutta, and Delhi during the months 
    of June 1995 through December 1995. The Department adjusted these 
    values to account for freight costs between the supplier and the 
    respondents' sebacic acid manufacturing facilities.
        For castor seed, the Department did not use the surrogate values 
    for castor oil submitted by petitioners in their December 4, 1997 
    submission because there was no source documentation. We did not use 
    respondent's data as we could not determine whether they were the 
    contemporaneous with the POR. Therefore, we have valued this material 
    using price data reported in The Economic Times (Bombay), adjusted for 
    inflation, for Hyderabad and Kanpur during the months of June 1995 
    through December 1995. The Department adjusted these values to account 
    for freight costs between the supplier and the respondents' sebacic 
    acid manufacturing facilities.
        For caustic soda, the Department used a value reported in the 
    publication Chemical Weekly (published in India), using a value 
    published in July 1997 (with a June 1997 price value) submitted by 
    respondents. Because price quotes for caustic soda reported by Chemical 
    Weekly are for chemicals with a 100% concentration level of caustic 
    soda, we made chemical purity adjustments according to the particular 
    concentration level of caustic soda used by respondents. We adjusted 
    this value to exclude taxes and to include freight expenses incurred 
    from the suppliers to the respondents' sebacic acid manufacturing 
    facilities.
        For macropore resin, we are using the value for activated carbon 
    because the valuations are interchangeable, according to an April 1997 
    Memorandum from Richard Moreland, Acting Deputy Assistant Secretary, 
    Import Administration to all reviewers. For activated carbon, we are 
    using a value from Chemical Weekly from December 1996 submitted by 
    respondent. The Department adjusted this value to account for freight 
    costs between the supplier and the respondents' sebacic acid 
    manufacturing facilities.
        For cresol, we are using respondents December 4, 1997 submission of 
    data for price quotes for meta cresol, ortho cresol, and para cresol 
    from Chemical Weekly from January 1997. We followed the same 
    methodology to calculate a value for cresol that we used in the 
    previous administrative review. Before calculating the cresol value, we 
    adjusted the para cresol value to exclude sales and excise taxes but we 
    did not have to adjust the meta cresol or ortho cresol values to 
    exclude sales and excise taxes. We adjusted the value to include 
    freight expenses incurred from the suppliers to the respondents' 
    sebacic acid manufacturing facilities.
        In Hengshui's questionnaire response to the Department, it 
    submitted a usage factor for activated carbon. However, in pre-
    verification corrections, Hengshui stated it no longer uses activated 
    carbon to produce sebacic acid, so we did not use activated carbon as 
    an input.
        For sodium chloride (also referred to as sodium chlorite or vacuum 
    salt), we are using a published market price reported in Chemical 
    Weekly from January 1997 submitted by respondents. We adjusted this 
    value to exclude taxes and to include freight expenses incurred from 
    the suppliers to the respondents' sebacic acid manufacturing 
    facilities.
        For phenol, we are using a published market price reported in 
    Chemical Weekly from January 1997 submitted by respondents. We adjusted 
    this value to exclude taxes and to include freight expenses incurred 
    from the suppliers to the respondents' sebacic acid manufacturing 
    facilities.
        For zinc oxide, we are using a published market price reported in 
    Chemical Weekly from January 1997 submitted by respondents. We adjusted 
    this value to exclude taxes and to include freight expenses incurred 
    from the suppliers to the respondents' sebacic acid manufacturing 
    facilities.
        For sulphuric acid, we are using a published market price reported 
    in Chemical Weekly from January 1997 submitted by respondents. Because 
    price quotes for sulphuric acid reported by Chemical Weekly are for 
    chemicals with a 100% concentration level of sulphuric acid, we made 
    chemical purity adjustments according to the particular concentration 
    level of sulphuric acid used by respondents. We adjusted this value to 
    exclude taxes and to include freight expenses incurred from the 
    suppliers to the respondents' sebacic acid manufacturing facilities.
    
    [[Page 17370]]
    
        For labor, we used the PRC regression-based wage rate at Import 
    Administration's homepage, Import Library, Expected Wages of Selected 
    NME Countries, revised on June 2, 1997. Because of the variability of 
    wage rates in countries with similar per capita GDPs, section 
    351.408(c)(3) of the Department's new AD regulations (62 FR 27296, May 
    19, 1997) requires the use of a regression-based wage rate. The source 
    of this wage rate data on the Import Administration's homepage is found 
    in the 1996 Year Book of Labour Statistics, International Labour Office 
    (``ILO''), (Geneva: 1996), Chapter 5B: Wages in Manufacturing. The 
    years of the reported wage rates range from 1990 to 1995.
        At verification, we discovered that Hengshui underreported 
    unskilled labor employees because Hengshui was not able to substantiate 
    its verbal claim, with source documentation, that additional unskilled 
    labor employees were not involved in producing sebacic acid. At 
    verification, we reviewed the employee salary ledger and the labor 
    worksheet for the sebacic acid production unit and determined that the 
    additional unskilled labor employees on the employee salary list for 
    the sebacic acid production unit were involved in producing sebacic 
    acid. Therefore, we increased the number of unskilled direct labor 
    hours used to make sebacic acid to the reported labor usage factors. As 
    this subject involves proprietary information, please see the Analysis 
    Memorandum for the Preliminary Results of the 1996/1997 Review for 
    sebacic acid for a more complete discussion of this issue.
        For factory overhead, we used information obtained from the April 
    1995 Reserve Bank of India Bulletin. From ``Statement 1--Combined 
    Income, Value of Production, Expenditure and Appropriation Accounts, 
    Industry Group-wise'' of that report for the Indian metals and 
    chemicals industries, we summed those components which pertain to 
    overhead expenses and divided them by the sum of those components 
    pertaining to the cost of manufacturing to calculate a factory overhead 
    rate of 15.41 percent. We multiplied this factory overhead rate of 
    15.41 percent by the cost of manufacture divided by one minus the 
    factory overhead rate of 15.41 percent.
        For steam coal, we used prices published in Monthly Statistics of 
    the Foreign Trade of India, Volume II--Imports for the period of April 
    1995 through January 1996, adjusted for inflation. We did not use the 
    respondents' submitted OECD/IEA data for steam coal from 1990 because 
    we had more recent data. Hengshui reported one aggregate category of 
    coal in its questionnaire response. However, at verification, Hengshui 
    presented corrections at the beginning of verification which split the 
    single coal category into two sub-categories: soft and hard coal. We 
    verified that Hengshui's use of two types of coal were correctly 
    presented to the Department at verification. Consequently, for 
    Hengshui, we have used the value for soft coal from the Gazette of 
    India, June 1994, adjusted for inflation. However, we were unable to 
    obtain publicly available information for hard coal. Therefore, for 
    Hengshui's hard coal, we are using the steam coal value from the 
    Monthly Statistics of Foreign Trade of India, Volume II--Imports for 
    the period of April 1995 through January 1996, adjusted for inflation. 
    For all three types of coal used (hard, soft, and steam), we adjusted 
    the values to include freight expenses incurred from the suppliers to 
    the respondents' sebacic acid manufacturing facilities.
        For electricity, the respondents submitted electricity data from 
    1990, which was not used because we had more recent data. We used 
    information obtained from the Current Energy Scene in India for July 
    1995 and adjusted this value for inflation. At verification, we 
    discovered that Hengshui did not report the electricity used to process 
    crude glycerine, a by-product, into refined glycerine. We added the 
    amount of electricity used to process crude glycerine into refined 
    glycerine to the electricity usage factor reported to the Department in 
    Hengshui's questionnaire response. At verification, we also could not 
    substantiate, with source documentation, the amount deducted for an 
    electric sub-meter. Therefore, we did not allow the deduction of the 
    amount of electricity recorded at the sub-meter from the total amount 
    of electricity used to produce sebacic acid. As this subject involves 
    proprietary information, please see the Analysis Memorandum for the 
    Preliminary Results of the 1996/1997 Review for sebacic acid for a more 
    complete discussion of this issue.
        For the value of export packing (plastic bags and woven bags), the 
    Department used the value of imports into India during April 1995 
    through February 1996, as reported in the Monthly Statistics of Foreign 
    Trade of India, Volume II, and adjusted these values for inflation. We 
    did not use values from respondents because there was no supporting 
    documentation. Also, we adjusted this value to account for freight 
    expenses.
        For foreign inland freight, the Department relied upon the trucking 
    freight rates reported in The Times of India, April 20, 1994, which 
    source was also applied to Polyvinyl Alcohol (60 FR 52647, October 10, 
    1995), and the value was adjusted for inflation. The rail freight rates 
    used, which were adjusted for inflation, were reported to the 
    Department in a December 1989 embassy cable for the final results of 
    the antidumping administrative review for Shop Towels of Cotton from 
    the PRC (56 FR 60969).
        For ocean freight, we used the surrogate value used in the last 
    administrative review. This value, provided by the Federal Maritime 
    Commission on January 24, 1997, includes delivery destination charges 
    and fuel adjustment charges and was not adjusted because the value was 
    within the POR. For Tianjin, we used actual market economy shipping 
    costs as reported by respondents where applicable.
        To calculate the expense for marine insurance, we used information 
    from a publicly summarized version of the questionnaire response for 
    the investigation of sales of less than fair value of Sulphur Vat Dyes 
    from India (62 FR 42758). The marine insurance rate reported in the 
    public version of the October 8, 1992 response was adjusted for 
    inflation to reflect marine insurance charges during the POR.
        For foreign brokerage and handling charges, we used information 
    from publicly available data for foreign brokerage and handling 
    reported for the investigation for Sulphur Vat Dyes, (62 FR 42758) 
    adjusted for inflation.
        Consistent with the methodology employed in the previous 
    administrative review for sebacic acid, we have determined that fatty 
    acid, glycerine, and castor seed cake (when castor oil is self-
    produced) are by-products. Therefore, as by-products, we subtracted the 
    sales revenue of fatty acid, glycerine, and, where applicable, castor 
    seed cake, from the estimated production costs of sebacic acid. This 
    treatment of by-products is also consistent with generally accepted 
    accounting principles. (See Cost Accounting: A Managerial Emphasis 
    (1991) at pages 539-544).
        To value fatty acid, we used publicly available published 
    information from the Monthly Statistics of the Foreign Trade of India 
    (Monthly Statistics) for the period April 1995 through February 1996 
    and adjusted this data for inflation.
        To value glycerine, we used the average price for glycerine (IW and 
    CP) in the publication Chemical Weekly from January 1997 from the
    
    [[Page 17371]]
    
    respondents. We adjusted these values to include freight expenses 
    incurred from the suppliers to the respondents' sebacic acid 
    manufacturing facilities.
        We also allocated a by-product credit for glycerine to the 
    production cost for the co-product capryl alcohol. We deducted a by-
    product credit for glycerine from both sebacic acid and capryl alcohol 
    based on the ratio of the value of sebacic acid to the total value of 
    both sebacic acid and capryl alcohol.
        Consistent with the methodology employed in the previous 
    administrative review, we have determined that capryl alcohol is a co-
    product. Therefore, we have allocated the factor inputs, based on the 
    relative quantity of output of this product and sebacic acid. 
    Additionally, we have used the production times necessary to complete 
    each production stage of sebacic acid as a basis for allocating the 
    amount of labor, energy usage, and factory overhead among the co-
    product(s). This treatment of co-products is consistent with generally 
    accepted accounting principles. (See Cost Accounting: A Managerial 
    Emphasis (1991) at pages 528-533).
        To value capryl alcohol, we used publicly available published 
    information for octanol from Chemical Weekly from June 1997 and 
    adjusted the price for sales and excise taxes. We used the Chemical 
    Weekly octanol value from June 1997. Also, respondents submitted value 
    data from the Chemical Marketing Reporter (U.S.). Octanol is used as 
    the surrogate value for capryl alcohol because, in a letter submitted 
    by respondents in attachment four of their December 4, 1997 submission 
    concerning surrogate values, the editor of Chemical Weekly states that 
    the reference to octanol in the journal refers to the more common 2-
    octanol (2-ethylhexanol). We adjusted these values to exclude taxes and 
    to include freight expenses incurred from the suppliers to the 
    respondents' sebacic acid manufacturing facilities.
        To value castor seed cake, we used the value for castor seed from 
    The Economic Times (Bombay) submitted by respondents, and adjusted this 
    value for inflation.
        For selling, general, and administrative (SG&A) expenses, we used 
    information from the same source we used for factory overhead. We 
    summed the values which comprised the components of SG&A and divided 
    that figure by the same cost of manufacturing figure used to determine 
    factory overhead, to arrive at an SG&A rate of 21.67 percent. We 
    multiplied this SG&A rate of 21.67 percent by the total cost of 
    manufacture, which includes factory overhead.
        For the calculation of profit, we used information from the April 
    1995 Reserve Bank of India Bulletin. We divided the reported before-tax 
    profit for the ``processing and manufacture: metals, chemicals, and 
    products thereof'' category by the sum of those components pertaining 
    to the cost of manufacturing plus SG&A to calculate a profit rate of 
    5.24 percent. We multiplied this profit rate of 5.24 percent by the sum 
    of the total cost of manufacture and SG&A.
    
    Preliminary Results of Review
    
        For Jiangsu, which failed to respond to the Department's 
    questionnaire, we have not granted a separate rate and the country-wide 
    rate will apply to all sales.
        We preliminarily determine that the following dumping margins 
    exist:
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Margin  
                                 Manufacturer/exporter                                   Time period      (percent) 
    ----------------------------------------------------------------------------------------------------------------
    Sinochem Jiangsu I/E Corp......................................................     7/01/96-6/30/97      243.40%
    Tianjin Chemicals I/E Corp.....................................................     7/01/96-6/30/97         3.53
    Sinochem International Chemicals Corp..........................................     7/01/96-6/30/97         0.35
    Guangdong Chemicals I/E Corp...................................................     7/01/96-6/30/97        16.35
    Country-Wide Rate..............................................................     7/01/96-6/30/97       243.40
    ----------------------------------------------------------------------------------------------------------------
    
        Parties to the proceeding may request disclosure within 5 days of 
    the date of publication of this notice. Any interested party may 
    request a hearing within 10 days of publication. Any hearing, if 
    requested, will be held 44 days after the publication of this notice, 
    or the first workday thereafter. 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 37 
    days after the date of publication. The Department will publish a 
    notice of final results of this administrative review, which will 
    include the results of its analysis of issues raised in any such 
    comments, within 120 days of publication of these preliminary results.
        Upon issuance of the final results of review, the Department shall 
    determine, and the U.S. Customs Service shall assess, antidumping 
    duties on all entries. We will calculate an importer-specific ad 
    valorem duty assessment rate for each class or kind of merchandise 
    based on the ratio of the total amount of antidumping duties calculated 
    for the examined sales made during the POR to the total customs value 
    of the sales used to calculate those duties. This rate will be assessed 
    uniformly on all entries of that particular importer made during the 
    POR. (This is equivalent to dividing the total amount of antidumping 
    duties, which are calculated by taking the difference between statutory 
    NV and statutory EP, by the total statutory EP value of the sales 
    compared, and adjusting the result by the average difference between EP 
    and customs value for all merchandise examined during the POR.)
        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 the 
    reviewed companies named above which have separate rates (SICC, 
    Tianjin, and Guangdong), the cash deposit rates will be the rates for 
    those firms established in the final results of this administrative 
    review; (2) for companies previously found to be entitled to a separate 
    rate and for which no review was requested, the cash deposit rates will 
    be the rate established in the most recent review of that company; (3) 
    for all other PRC exporters of subject merchandise, the cash deposit 
    rates will be the PRC country-wide rate indicated above; and (4) the 
    cash deposit rate for non-PRC exporters of subject merchandise from the 
    PRC will be the rate applicable to the PRC supplier of that exporter. 
    These deposit rates, when imposed, shall remain in effect until 
    publication of the final results of the next administrative review.
    
    [[Page 17372]]
    
    Notification of Interested Parties
    
        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.
        This notice also serves as 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.
        This determination is issued and published in accordance with 
    sections 751(a)(1) and 777(i)(1) of the Act.
    
        Dated: April 2, 1998.
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration.
    [FR Doc. 98-9436 Filed 4-8-98; 8:45 am]
    BILLING CODE 3510-DS-P
    
    
    

Document Information

Published:
04/09/1998
Department:
International Trade Administration
Entry Type:
Notice
Action:
Notice of preliminary results of antidumping duty administrative review of sebacic acid from the People's Republic of China.
Document Number:
98-9436
Dates:
April 9, 1998.
Pages:
17367-17372 (6 pages)
Docket Numbers:
A-570-825
PDF File:
98-9436.pdf