94-12445. Potassium Permanganate From the People's Republic of China; Final Results of Antidumping Duty Administrative Review  

  • [Federal Register Volume 59, Number 98 (Monday, May 23, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-12445]
    
    
    [[Page Unknown]]
    
    [Federal Register: May 23, 1994]
    
    
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    DEPARTMENT OF COMMERCE
    [A-570-001]
    
     
    
    Potassium Permanganate From the People's Republic of China; Final 
    Results of Antidumping Duty Administrative Review
    
    AGENCY: Import Administration/International Trade Administration, 
    Department of Commerce.
    
    ACTION: Notice of final results of antidumping duty administrative 
    review.
    
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    SUMMARY: On December 30, 1993, the Department of Commerce published the 
    preliminary results of its administrative review of the antidumping 
    duty order on potassium permanganate from the People's Republic of 
    China. The review covers 15 Chinese producers/exporters and 32 third-
    country resellers for the period January 1, 1990, through December 31, 
    1990. Based on our analysis of the comments received, we determine the 
    country-wide dumping margin for the People's Republic of China to be 
    128.94 percent. Since none of the third-country resellers have 
    demonstrated entitlement to a separate rate for sales made during this 
    period or review, they will receive the same rate as their suppliers in 
    the People's Republic of China.
    
    EFFECTIVE DATE: May 23, 1994.
    
    FOR FURTHER INFORMATION CONTACT:
    Paul Stolz or Thomas Futtner, Office of Antidumping Compliance, Import 
    Administration, International Trade Administration, U.S. Department of 
    Commerce, 14th Street and Constitution Avenue, NW., Washington, 20230; 
    telephone (202) 482-4474 or 482-3814 respectively.
    
    Background
    
        On December 30, 1993, the Department of Commerce (the Department) 
    published the preliminary results (58 FR 69330) of its administrative 
    review of the antidumping duty order on potassium permanganate from the 
    People's Republic of China (PRC) (49 FR 3898, January 31, 1984). The 
    Department has now completed this administrative review in accordance 
    with section 751 of the Tariff Act of 1930, as amended (the Tariff 
    Act).
    
    Scope of the Review
    
        Imports covered by this review are shipments of potassium 
    permanganate, an inorganic chemical produced in free-flowing, 
    technical, and pharmaceutical grades. During the review period, 
    potassium permanganate was classifiable under item 2841.60.0010 of the 
    harmonized Tariff Schedule (HTS) The HTS item number is provided for 
    convenience and Customs purposes. The written description remains 
    dispositive. The review covers 15 producers/ exporters and 32 third-
    country resellers for the period January 1, 1990, through December 31, 
    1990.
    
    Analysis of Comments Received
    
        We invited interested parties to comment on the preliminary 
    results. At the request of the following respondents, Zunyi Chemical 
    Factory (Zunyi), Yue Pak Co. Ltd. (Yue Pak), He-Ro Chemicals, Ltd. (He-
    Ro), ICD (HK) Ltd, (ICD (HK)) and an interested party, Novachem, Inc. 
    (Novahem), we held a public hearing on February 10, 1994. We received 
    timely comments from the above-named respondents, the above-named 
    interested party, and the petitioner, Carus Chemical Company.
    
    Comment 1
    
        Methodology: Zunyi and Novachem assert that, in this review, the 
    Department should have provided them with an opportunity to respond to 
    a separate rates questionnaire specifically based on the test announced 
    in Final Determination of Sales at Less Than Fair Value: Sparklers from 
    the People's Republic of China (Sparklers) on May 6, 1991 rather than 
    that based on the separate rates criteria set forth in Iron 
    Construction Casting from the People's Republic of China; Final Results 
    of Antidumping Duty Administrative Review (Castings) on January 24, 
    1991. Zunyi and Novachem assert that in Castings, the Department stated 
    ``Our determination that the PRC is a state-controlled economy in which 
    all entities are presumed to export under the control of the state 
    leads us to question the application of multiple rates, absent a clear 
    showing of legal, financial and economic independence. Thus, we 
    conclude that a single country-wide rate is application for this 
    case.'' Zunyi and Novachem contrast that with Sparklers, where the 
    Department adopted the following position: ``We have determined that 
    exporters in non-market economy countries are entitled to separate, 
    company-specific margins when they can demonstrate an absence of 
    control by the central government, both in law and in fact, with 
    respect to exports. Evidence supporting, though not requiring, a 
    finding of de jure absence of central control includes: (1) An absence 
    of restrictive stipulation associated with an individual exporter's 
    business and export licenses; (2) any legislative enactments 
    decentralizing control of companies; or (3) any other formal measures 
    by the government decentralizing control of companies. De facto absence 
    of central government control with respect to exports is based on two 
    prerequisites: (1) Whether each exporter sets its own export prices 
    independently of the government and other exporters; and (2) whether 
    each exporter can keep the proceeds from its sales.''
        Zunyi and Novachem assert that the application in this case of the 
    test utilized in Castings is inappropriate for the following reasons. 
    First, since questionnaires were not issued until three months after 
    the Sparklers decision was rendered, Zunyi and Novachem maintain that 
    reliance on an approach in place at time of initiation is 
    inappropriate. Second, Zunyi and Novachem state that the Court of 
    International Trade (CIT) has directed the Department to apply the 
    Sparklers methodology in a remand of Castings, the very case on which 
    the Department based its approach in this review. Third, Zunyi and 
    Novachem claim that in reviews being conducted during the same time 
    period as this one, the Department has utilized the methodology set 
    forth in Sparklers. As an example, Zunyi and Novachem point to the 
    1988-1989 review of Shop Towels from the People's Republic of China, 
    Final Results of Antidumping Duty Administrative Review, 56 FR 60,969 
    (Nov. 29, 1991), where the Department requested information after the 
    preliminary determination to determine whether the respondent qualified 
    for a separate rate under the Sparklers criteria. Zunyi and Novachem 
    argue that not to issue a new separate rates questionnaire in this 
    review would be arbitrary and capricious. Finally, Zunyi and Novachem 
    assert that it is within the capacity of the Department to change 
    methodologies within reviews and that, in light of the above claims, 
    the Department should now issue a questionnaire based on the Sparklers 
    test to determine whether PRC respondents qualify for a separate rate.
        Petitioner points out that the separate rates test set forth in 
    Sparklers does not, in fact, constitute a new methodology, but is 
    merely a continuation and elaboration of that set forth in Castings. 
    Furthermore, petitioner asserts that respondents were on notice 
    regarding what they were required to show to obtain a separate rate 
    under Castings, since that decision was cited in the petitioner's 
    request for review and because the Department requested from them the 
    information needed to make a separate rate decision. Petitioner also 
    notes that the remand of the Department's determination in Castings was 
    based on the fact that because the Castings test was not enunciated 
    until the final results of that review, respondents had not been given 
    an opportunity to attempt to demonstrate their entitlement to a 
    separate rate, even under the Castings criteria (``a clear showing of 
    legal, financial and economic independence''). Finally, petitioner 
    states that the Department has broad discretion in choosing 
    methodologies, and that the choice of methodology may vary on a case-
    by-case basis.
        DOC Position: The Department agrees with the petitioner. The 
    Castings test and the methodology utilized in Sparklers and most 
    recently in Final Determination of Sales at Less Than Fair Value: 
    Silicon Carbide from the People's Republic of China (Silicon Carbide) 
    59 FR 22585 (May 2, 1994) require that producers and exporters in the 
    PRC receive a single rate unless it is clearly demonstrated that a 
    particular entity is not subject to governmental control and therefore 
    merits its own rate. The test employed in Sparklers and Silicon Carbide 
    built upon that used in Castings by outlining specific criteria that we 
    would consider in determining whether an entity had shown such 
    autonomy. In this case, Zunyi did not demonstrate adequately that it 
    was free of governmental control under any of these tests.
        Indeed, information on the record indicates that Zunyi was 
    controlled by municipal authorities. For example, during this period of 
    review, Zunyi was subject to guidance from municipal authorities 
    regarding output in terms of value and production, and was not allowed 
    to enter into contracts with foreign entities or to export directly. 
    (See DOC Position to Comment 2.)
        Furthermore, the Department's use of a questionnaire based on the 
    Castings test has not prejudiced respondents' position. The respondents 
    were on notice with respect to their burden of showing their 
    independence from governmental control if they desired to be given a 
    separate rate. The supplemental questionnaire sent to Zunyi and other 
    PRC entities states: ``[I]f you feel that your client is entitled to a 
    separate rate, submit for the record all documentation that supports 
    your client's claim of legal, financial, and economic independence.'' 
    Furthermore, respondents were specifically requested to provide 
    information regarding their corporate organization, relationships with 
    other businesses, state-ownership, decision making processes, and 
    corporate accounting information. In addition, Part Two of Appendix V 
    of the questionnaire, the section directed specifically to 
    manufacturers, requested information on production for export, 
    relationships with exporters and how pricing decisions were made with 
    them, pricing and production methods in general, government policy 
    directives affecting pricing and production quantity decisions, and 
    relevant regulatory systems. Thus, respondents have already been 
    afforded an opportunity to provide whatever information they feel may 
    support their request for separate rates.
        The fact that the Department's decision in Castings was remanded 
    does not invalidate the fundamental approach outlined therein. In that 
    case, the CIT found that the Department had not made clear until its 
    final determination that the respondents had to demonstrate that they 
    were not subject to governmental control to receive a separate rate. 
    The CIT's decision merely requires that respondents be put on notice 
    that they have the burden of demonstrating their independence if they 
    wish to receive a separate rate. Respondents in this review were made 
    aware of that burden, but were unable to establish that they were in 
    fact entitled to any separate rate.
        Finally, the Department's decision to issue a Sparklers 
    questionnaire to a respondent in the Shop Towels case does not require 
    that it do so in this case. In Shop Towels, the Department had found 
    the sole responding PRC firm, an import/export firm, to be independent 
    of governmental control in a previous review and sought only to 
    ascertain whether that determination remained valid. The record in this 
    review establishes that Zunyi did not meet the Sparklers standard for 
    independence. Moreover, as already noted, respondents in the present 
    case were provided several opportunities to submit evidence 
    demonstrating lack of governmental control. Under these circumstances, 
    we have determined that issuing a Sparklers questionnaire in this 
    review was not necessary.
    
    Comment 2
    
        Separate Rates for PRC Producers: Zuny and Novachem state that the 
    preliminary results do not fairly represent the information already 
    submitted by Zunyi on the lack of state control and that Zunyi merits a 
    separate rate. They assert that state ownership and state control are 
    two different things. Additionally, Zunyi notes that its response 
    included the following information which supported its claim that it 
    functions autonomously. First, Zunyi is totally separate from the 
    import-export corporations with which it deals; second, the import-
    export corporations sign a purchase contract with Zunyi according to a 
    price agreed upon in a calculation made in U.S. dollars; third, Zunyi's 
    selling prices are decided by the factory according to cost and market; 
    fourth Zunyi implemented a contract system in 1987; and fifth, Zunyi is 
    autonomous in terms of management and accounting, and assumes sole 
    responsibility in paying taxes and for profits and losses. Based on 
    these assertions, Zunyi and Novachem claim that they have submitted 
    enough information to merit a separate rate for Zunyi, alleging that 
    the Department did not ask for further information.
        Petitioner argues that the evidence on the record indicates that 
    Zunyi is not qualified to receive a separate rate, and that the 
    Department should make an adverse assumption on this issue due to 
    Zunyi's failure to provide certain required evidence to support its 
    claim of independence.
        DOC Position: We agree with petitioner. Based on the totality of 
    information on the record, we have determined that Zunyi is subject to 
    government control. First Zunyi is under the control of the Economic 
    Commission of Zunyi City (the Commission), and the Commission gave 
    ``guiding instructions'' as to the ``planning of production in terms of 
    value and quantity.'' Second, as a ``Zhongguo Faren'', Zunyi was not 
    allowed by Chinese law to engage in contractual relations with foreign 
    entities, nor was it allowed to export directly. Instead, it was 
    required to export through PRC import/export companies. This point was 
    specifically mentioned in the Sparklers test as a factor weighing 
    against a finding of independence. Furthermore, Zunyi did not provide 
    copies of its financial statements despite our two requests for these, 
    nor did it provide the detailed information we requested regarding its 
    ownership. Without this critical evidence, the Department is unable to 
    affirm that Zunyi is entitled to separate rate status, despite the 
    assertions Zunyi makes in its case brief.
        With respect to Zunyi and Novachem's claim that the Department 
    should have asked for any information that was lacking, the Department 
    requested on more than one occasion critical information (e.g., Zunyi's 
    financial statements and specific information regarding ownership), and 
    that information was not provided by Zunyi. In addition, as noted 
    above, the information on the record is sufficient for the Department 
    to determine that Zunyi did not possess the requisite independence to 
    merit a separate rate.
    
    Comment 3
    
        Market Oriented Industry: Zunyi and Novachem assert that Zunyi 
    operated under market conditions during the period of review and that 
    the Department should utilize local factor prices to determine foreign 
    market value as outlined in the methodology announced in Final 
    Determination of Sales at Less Than Fair Value: Chrome-Plated Lug Nuts 
    from the People's Republic of China, 56 FR 175 (September 10, 1991). At 
    the minimum, they argue, the Department should base fair market value 
    on a surrogate economy other than Thailand.
        DOC Position: Since the margin for this period is based on best 
    information available, any questions as to which methodology would have 
    been used have we been able to calculate a margin are moot. 
    Furthermore, the failure of the PRC Embassy in the United States to 
    respond to our inquiry regarding industry and market conditions in the 
    PRC would, in any case, preclude us from determining that market 
    conditions existed in the PRC for this industry.
    
    Comment 4
    
        Separate Rates Under the Reseller Provision: Zunyi and Novachem 
    urge the Department to reconsider the decision in its preliminary 
    results of review that the Hong Kong resellers do not qualify for 
    separate rates under the intermediate country reseller provisions. 
    Section 353.47 of the Department's regulations (19 CFR 353.47) calls 
    for a separate rate to be calculated for an intermediate country 
    reseller if all of the following criteria are met:
        (1) A reseller in an intermediate country purchases the merchandise 
    from the producer,
        (2) The producer does not know (at the time of the sale) the 
    country to which the reseller intends to export the merchandise,
        (3) The merchandise enters the commerce of the intermediate country 
    but is not substantially transformed in that country, and
        (4) The merchandise is subsequently exported to the United States.
        Yue Pak, He-Ro, and ICD(HK) argue that Hong Kong should be treated 
    as the country from which the subject merchandise was exported and they 
    should be given separate rates under this provision, which allows for 
    qualifying intermediate country resellers to be assigned a margin based 
    on a comparison between their above cost-of-production sales to the 
    United States and a fair market value based on the reseller's sales in 
    its home country or a third country, rather than the margin(s) of its 
    supplier(s). With respect to the ``enters commerce'' prong, Yue Pak, 
    He-Ro and ICD (HK) claim that since they filed import/export 
    declarations and paid fees applicable only to imports and exports, the 
    merchandise entered the commerce of Hong Kong, rather than merely being 
    transshipped through Hong Kong. Furthermore, these parties note that it 
    is uncontested that the merchandise was not transformed between its 
    manufacture in the PRC and its shipment to the United States.
        In refuting arguments raised by petitioner, these resellers argue 
    that (1) the length of time that merchandise remains in a third country 
    should not be a basis for determining intermediate country reseller 
    status, (2) the amount paid in import/export fees should not be a 
    criterion, (3) the term ``transshipment'' as used by Yue Pak, He-Ro, 
    and ICD (HK) in the questionnaire responses does not refer to the 
    statutory meaning of the term, and (4) the export provisions of the 
    Tariff Act cited by petitioner are not relevant to the construction of 
    the reseller provision.
        Yue Pak, He-Ro and ICD (HK) also argue that the Department's 
    comparison of their sales and order-filling process to the practices 
    described in the final determination in Sulfur Dyes, Including Sulfur 
    Vat Dyes, From the People's Republic of China (Sulfur Dyes), 58 FR 7537 
    (February 8, 1993), is not appropriate because, ``unlike respondents 
    herein, respondents in Sulfur Dyes had separate procedures for handling 
    merchandise which was destined to the United States as opposed to 
    merchandise that was sold in Hong Kong.''
        With respect to the knowledge requirement, Yue Pak, He-Ro, and ICD 
    (HK) state that the producers from whom they purchased the subject 
    merchandise had no knowledge of the ultimate destination of this 
    merchandise. Producer Zunyi, on the other hand, states that it knew, at 
    the time of sale, the destination of the potassium permanganate it sold 
    during the period of review.
        Yue Pak, He-Ro, and ICD (HK) also claim that, since in the PRC only 
    import and export corporations had the legal capacity to enter into 
    ``foreign economic contracts'' during the period of review, purchasing 
    from these entities rather than from the producer/manufacturer should 
    fulfill this requirement. Zunyi and Novachem also make this point. 
    Finally, these parties note that export of the merchandise to the 
    United States is not at issue.
        Petitioner argues that no reseller in this case meets the 
    qualifications for a rate distinct from its producer(s) under 19 CFR 
    353.47. Petitioner also notes that since the intermediate country 
    reseller provision constitutes an exception to the general rule that a 
    reseller's rate is the rate of its supplier(s), the responding 
    resellers have the burden to showing that each prong of the testy is 
    fully met.
        With respect to the ``enters commerce'' prong, petitioners assert 
    that the merchandise was merely transshipped through Hong Kong and did 
    not enter commerce there, noting that the questionnaire responses of 
    Yue Pak, He-Ro, and ICD (HK) describe circumstances involved in the 
    sales of subject merchandise through the resellers which indicate that 
    the merchandise was never intended to enter the commerce of Hong Kong. 
    Petitioner also cites the appraisement provisions of the tariff laws to 
    support its proposition that to ``enter commerce'' is a term of art 
    that involves merchandise which (1) is intended to be diverted into the 
    commerce of a third country and was in fact diverted; (2) is not 
    passing through a third country enroute to a purchaser in a different 
    country; (3) is not merely passing through a third country; (4) is 
    intended for consumption in the third country; and (5) is sold or 
    offered for sale in the third country. In petitioner's view, 
    warehousing, and/or repackaging, and/or relabelling in a third country 
    is not considered evidence that the merchandise has entered the 
    commerce of a country, unless there are other supporting factors. In 
    addition, petitioner contends that a decision as to whether merchandise 
    ``enters the commerce'' of a country must include consideration of 
    whether or not the producer country receives any undue benefit by 
    shipping through a third country.
        With respect to the ``knowledge'' prong, petitioner asserts that 
    resellers have not demonstrated that the producers did not know the 
    merchandise was destined for the United States. As evidence to the 
    contrary, they note that U.S.-specific labels were affixed to the 
    merchandise in the PRC. Furthermore, petitioners note that Zunyi and 
    Sinochem, the only PRC parties that responded in this review, both 
    stated in their questionnaire responses that they were aware that some 
    of their sales of potassium permanganate were destined for the United 
    States.
        Petitioner also points to the fact that the Hong Kong resellers did 
    not purchase directly from the manufacturer or producer. As mentioned 
    above, export of the merchandise to the United States is not at issue.
        Finally, petitioner urges that even if a reseller in this case had 
    been able to demonstrate that it qualified for a separate rate under 
    the intermediate country reseller provision, Hong Kong or third country 
    sales should not be used as the basis of foreign market value for any 
    reseller, since there is reason to believe that sales through Hong Kong 
    are made at below the cost of production.
        DOC Position: We agree with petitioner that none of the resellers 
    have met the requirements for separate rates in this review.
        With respect to the ``enters commerce'' prong, we have considered 
    the totality of the circumstances in determining whether it has been 
    shown that this merchandise entered the commerce of Hong Kong before 
    being shipped to the United States. No isolated factor, such as whether 
    import/export fees or duties were paid or whether the merchandise was 
    warehoused in Hong Kong was treated as controlling. Instead, we have 
    evaluated all factors which may be relevant.
        In this case, there are compelling indications that the merchandise 
    was never intended to be offered for sale in Hong Kong, and that it 
    entered the territory of Hong Kong for the sole purpose of being 
    shipped from there to the United States. The questionnaire responses of 
    Yue Pak, He-Ro, and ICD (HK) clearly and explicitly indicate the 
    following order pattern. First, a U.S. customer would place an order 
    with a Hong Kong reseller for a certain quantity of potassium 
    permanganate. Then the Hong Kong reseller would place an order for the 
    exact same quantity with the PRC import/export company. The import/
    export company would then place an order with the manufacturer for the 
    same exact quantity which was ultimately shipped through Hong Kong to 
    the United States. Thus, the record shows that throughout the entire 
    procedure, the merchandise was always intended only for the U.S. 
    market.
        The treatment of the merchandise in Hong Kong, while not 
    controlling, is also consistent with the fact that these shipments did 
    not enter the commerce of Hong Kong. For example, Hong Kong law exempts 
    from import/export declarations (and associated fees) shipments 
    consigned under ``through bills of lading'' only. The fact that the 
    Hong Kong resellers paid import/export fees suggests only that the 
    merchandise was not shipped under a ``through bill of lading''. In 
    addition, the fact that the Hong Kong resellers performed ``various 
    tasks'' in Hong Kong in relation to the merchandise in and of itself is 
    not sufficient to demonstrate that the merchandise entered the commerce 
    Hong Kong.
        With respect to the ``knowledge'' prong of the test, we note that 
    labelling placed on the merchandise in the PRC included references to 
    U.S. Department of Transportation specifications, Occupational Safety 
    and Health Administration requirements, and even a U.S. ``800'' 
    telephone number for ``Chemtrec''. Many buyers throughout the world 
    rely on U.S. standards regardless of origin or destination for a wide 
    variety of products, and reference to a given country's specifications 
    in labelling does not necessarily imply that the product is destined 
    for sale in that country. Thus, the labelling in this case is not 
    considered conclusive evidence of knowledge of the product's ultimate 
    destination. However, the existence of an ``800'' number carries 
    somewhat greater weight and no explanation has been offered for the 
    inclusion of the number on the label. In fact, both Zunyi and Sinochem 
    have stated in their questionnaire responses that they were aware at 
    the time of sale that the merchandise was destined for the United 
    States. After considering the totality of the evidence on the record 
    with regard to the knowledge prong, including the ordering procedure 
    discussed above in connection with the ``enter commerce'' prong, we 
    determine that the evidence is consistent with knowledge by the 
    producers that the merchandise would be sold to the United States, and 
    that the resellers have failed to sustain their burden of proof with 
    respect to this prong.
        Because no reseller has shown that its suppliers were unaware that 
    their merchandise was destined for the United States or that the 
    shipments of potassium permanganate entered the commerce of Hong Kong, 
    we need not reach other aspects of the reseller test. Furthermore, 
    since no reseller has shown that it is entitled to a rate other than 
    that of its supplier(s), we need not reach the question of whether the 
    resellers were selling below the cost of production. Therefore, our 
    preliminary determination that the rate for all resellers for this 
    review should be that of their suppliers remains unchanged.
    
    Comment 5
    
        Yue Pak, He-Ro, and ICD (HK) state that because they were 
    cooperative respondents in this review, they should not be ``assigned'' 
    the high best information available (BIA) margin from the 1989 review.
        DOC Position: These resellers have not ``been assigned'' a margin 
    as individual firms. Resellers have no inherent right to a separately 
    calculated rate, regardless of how cooperative they may be. For the 
    reasons stated above, the circumstances in which the transactions 
    occurred during this period do not allow the Department to calculate 
    separate rates for these sales. Thus, we have not assigned individual 
    rates to the resellers, and all sales for this review period will be 
    assessed a duty based on the margin of the procedures.
    
    Comment 6
    
        Alternatively, Yue-Pak, He-Ro, and ICD (HK) argue that the 
    methodology used to determine the dumping margin in the 1989 review was 
    flawed, and that therefore the margin determined in that review should 
    not be applied as BIA for the PRC manufacturers in this review. They 
    also claim that in selecting a BIA margin, the Department must consider 
    the most recent information available, and that any data on which BIA 
    is based is rebuttable. In contesting the use of the 1989 figure, these 
    resellers claim that the use of Thailand as a surrogate and the use of 
    petitioner's own cost data were inappropriate in the 1989 review, and 
    that costs were improperly calculated in that review.
        DOC Position: In selecting a BIA margin for the PRC potassium 
    permanganate industry, we followed our usual practice of assigning an 
    uncooperative respondent the higher of the highest margin determined 
    for any firm in any previous review, or the original investigation, or 
    the highest rate for a responding company in the current review. See 56 
    FR 393. The Department's two-tier BIA methodology was upheld by the 
    Court of Appeals in Allied Signal Aerospace Co., et al. v. United 
    States, 996 F.2d 1185 (Fed. Cir. 1993). In this case, we used the 
    highest margin from the immediately preceding review, the 1989 review. 
    The CIT has specifically affirmed, in Novachem, Inc. v. United States, 
    Slip Op. 92-149 (CIT, August 28, 1992), that the Department acted 
    reasonably in utilizing Thai factor data and petitioner's data in 
    determining that rate. Even if the use of Thailand as a surrogate had 
    not already been upheld by the CIT, however, the use of a margin from 
    an earlier review does not permit a rearguing of the merits of a rate 
    in a previous review for which the Department has issued final results 
    of review. The appropriate time for challenging the merits of the 1989 
    review has passed. Thus, criticism of our use of the 1989 BIA margin is 
    unfounded.
    
    Comment 7
    
        Zunyi and the importer Novachem state that Zunyi was responsive in 
    this review, and that the Department should therefore not apply to it 
    the same BIA rate that it applied to non-responsive PRC firms.
        The petitioner states that the Department properly applied the 
    highest rate from the 1989 review as BIA for the PRC firms, noting that 
    this determination was proper due to the presumption of state control 
    in a non-market economy and the fact that there was no clear showing in 
    this review that any of the PRC manufacturers of subject merchandise 
    are independent from the state legally, financially, or economically.
        DOC Response: We agree with the petitioner. For the reasons 
    discussed in response to Comment 2, Zunyi failed to show that it was 
    sufficiently independent to merit a separate rate for this review. 
    Indeed, the record contains sufficient information to determine that 
    separate status would be inappropriate. Thus, Zunyi must be considered 
    part of the country-wide potassium permanganate industry for the 
    purposes of this review. Since the government of the PRC and the 
    industry as a whole did not adequately respond to our questionnaires 
    (most firms did not respond at all), we have followed our usual 
    practice in assigning, as BIA for uncooperative respondents, a country-
    wide margin (see our response to Comment 6). When a country-wide margin 
    is assigned, the degree of cooperativeness assessed must be that of the 
    industry as a whole. To assign a country-wide margin based on the 
    response of a single firm could mask dumping by other non-responsive 
    firms within the industry. Therefore, it is not appropriate to evaluate 
    the extent of Zunyi's cooperation.
    
    Final Results of Review
    
        Upon review of comments submitted, the Department has determined 
    that the margin for all PRC manufacturers/producers/exporters of 
    potassium permanganate for the period January 1, 1990 through December 
    31, 1990, is 128.94 percent. The margin for all third country exporters 
    of potassium permanganate from the PRC for the period January 1, 1990 
    through December 31, 1990 shall also be 128.94 percent, the rate of 
    their suppliers.
        The Customs Service shall assess antidumping duties on all 
    appropriate entries. The Department will issue appraisement 
    instructions concerning all respondents directly to the U.S. Customs 
    Service.
        Furthermore, the following deposit requirements will be effective 
    for all shipments of the subject merchandise, entered, or withdrawn 
    from warehouse, for consumption on or after the publication date of the 
    final results of administrative review, as provided for by section 
    751(a)(1) of the Tariff Act: (1) The cash deposit rate for the PRC 
    country-wide firms will be 128.94 percent, and (2) because no non-PRC 
    exporter has established on the record, for this administrative review, 
    that it qualifies as an intermediate country reseller under the terms 
    of the statute, the cash deposit rate for all non-PRC exporters will be 
    the rate established for the most recent period for the manufacturer of 
    the merchandise. Specifically, that rate will be the PRC country-wide 
    rate of 128.94 percent we have established in this administrative 
    review.
        Because any PRC firm must affirmatively show that it is entitled to 
    a separate rate before such a rate can be given and any intermediate 
    country reseller must affirmatively show that it is entitled to such 
    status under the intermediate country reseller provision of the 
    regulations (19 CFR 353.47), any new shippers will also be subject to 
    the PRC country-wide deposit rate until they request review and 
    demonstrate an entitlement to an exception. Therefore, there is no need 
    for an ``all others'' cash deposit rate for intermediate country 
    resellers. Furthermore, no ``all others'' rate will be established for 
    the PRC. Because a country-wide rate is applied to all imports of 
    potassium permanganate from the PRC, there is no need for an ``all 
    others'' cash deposit rate for PRC entities.
        These deposit requirements shall remain in effect until publication 
    of the final results of the next administrative review.
        This notice serves as a reminder to importers of their 
    responsibility under 19 CFR 353.26 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 a 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 353.34(d). Timely written notification or 
    conversion to judicial protective order is hereby requested. Failure to 
    comply with the regulations and the terms of the APO is a sanctionable 
    violation.
        This administrative review and notice are in accordance with 
    section 751(a)(1) of the Tarriff Act (19 U.S.C. 1675(a)(1)) and 19 CFR 
    353.22.
    
        Dated: May 11, 1994.
    Susan G. Esserman,
    Assistant Secretary for Import Administration.
    [FR Doc. 94-12445 Filed 5-20-94; 8:45 am]
    BILLING CODE 3510-DS-M
    
    
    

Document Information

Published:
05/23/1994
Department:
Commerce Department
Entry Type:
Uncategorized Document
Action:
Notice of final results of antidumping duty administrative review.
Document Number:
94-12445
Dates:
May 23, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: May 23, 1994, A-570-001