[Federal Register Volume 61, Number 152 (Tuesday, August 6, 1996)]
[Notices]
[Pages 40817-40818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19997]
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DEPARTMENT OF COMMERCE
[A-570-847]
Initiation of Antidumping Duty Investigation: Persulfates From
the People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: August 6, 1996.
FOR FURTHER INFORMATION CONTACT: James Terpstra, Irene Darzenta, or
Howard Smith at (202) 482-3965, 482-6320, and 482-5193 respectively,
Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue, NW,
Washington, DC 20230.
Initiation of Investigation
The Applicable Statute
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 Round Agreements Act (``URAA'').
The Petition
On July 11, 1996, the Department of Commerce (``the Department'')
received a petition filed in proper form by FMC Corporation (``FMC'' or
``petitioner''). On July 22 and 25, 1996, the petitioner submitted a
supplement to the petition in response to the Department's request for
additional information. The supplement contained updated normal values
and revised margin calculations.
In accordance with section 732(b) of the Act, the petitioner
alleges that imports of persulfates from the People's Republic of China
(``PRC'') are being, or are likely to be, sold in the United States at
less than fair value within the meaning of section 731 of the Act, and
that such imports are materially injuring, or threatening material
injury to, the U.S. industry.
Because the petitioner is an interested party, as defined under
section 771(9)(C) of the Act, it has standing to file the petition.
[[Page 40818]]
Determination of Industry Support for the Petition
Section 732(c)(4)(A) of the Act requires the Department to
determine, prior to the initiation of an investigation, that a minimum
percentage of the domestic industry supports an antidumping petition. A
petition meets these minimum requirements if the domestic producers or
workers who support the petition account for (1) at least 25 percent of
the total production of the domestic like product; and (2) more than 50
percent of the production of the domestic like product produced by that
portion of the industry expressing support for, or opposition to, the
petition.
The petitioner is the only known U.S. producer of persulfates.
Accordingly, the Department determines that the petition is supported
by the domestic industry.
Scope of Investigation
The products covered by this petition are persulfates, including
ammonium, potassium, and sodium persulfates. The chemical formulae for
these persulfates are, respectively, (NH4)2S2O8,
K2S2O8, and Na2S2O8. Ammonium and
potassium persulfates are currently classified under subheading
2833.40.60 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Sodium persulfate is classified under HTSUS subheading
2833.40.20. Although the HTSUS subheadings are provided for convenience
and customs purposes, our written description of the scope of this
investigation is dispositive.
Export Price
The petitioner based export prices for ammonium, potassium, and
sodium persulfates on price quotes obtained from U.S. importers.
Petitioner reduced these prices to account for estimated importer mark-
ups, and for U.S. duties and customs fees, ocean freight, insurance,
foreign inland freight and foreign handling fees.
Normal Value
In previous investigations, the Department has determined that the
PRC is a nonmarket economy (``NME'') country within the meaning of
section 771(18) of the Act. See, e.g., Final Determination of Sales at
Less Than Fair Value: Manganese Metal from the People's Republic of
China (60 FR 56045, 56047 (November 6, 1995)). In accordance with
section 771(18)(C), the presumption of NME status for the PRC shall
continue for purposes of the initiation of this investigation. In the
course of this investigation, all parties will have the opportunity to
provide relevant information related to the NME status of the PRC and
the assignment of separate rates to individual exporters. (See, e.g.,
Final Determination of Sales at Less Than Fair Value: Silicon Carbide
from the PRC (59 FR 22585 (May 2, 1994))).
In antidumping investigations in which the comparison market is not
a market economy, section 773(c) of the Act requires that the normal
value of the foreign like product be based on the producer's factors of
production valued in a surrogate market economy country or countries
that is/are a significant producer of comparable merchandise and at a
level of economic development comparable to the NME country. Publicly
available published information from India was used by the petitioner
to value the factors of production because India is the only persulfate
producer among surrogate countries that the Department typically uses
for the PRC. The petitioner based the fixed factory overhead, selling,
general and administrative, and profit elements of its normal value
calculation on data from an annual report of an Indian producer of
hydrogen peroxide. According to the petitioner, it relied on data from
a producer of hydrogen peroxide because public financial data for
Indian persulfate producers was not available, and the production
processes for hydrogen peroxide and persulfates are comparable.
The petitioner based the quantities of factors (i.e., raw
materials, labor, and energy) used in production of ammonium,
potassium, and sodium persulfates on the experience of certain PRC
producers. The petitioner relied on its own production experience where
PRC usage factors were not available. See, Initiation of Antidumping
Duty Investigation: Certain Brake Drums and Certain Brake Rotors from
the People's Republic of China (61 FR 14740 (April 3, 1996)). The
petitioner maintains that it is reasonable to use its own production
experience because the production process is the same whether the
persulfates are produced in the United States or in the PRC.
Based on comparisons of the export prices with normal values
constructed from factors of production, the calculated dumping margins
range from 15.87 percent to 182.37 percent. If it becomes necessary at
a later date to consider the petition as a source for facts available,
we may re-examine the information in the petition and, if necessary,
revise the margin calculations therein.
Normal Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of persulfates from the PRC are being, or are
likely to be, sold at less than fair value.
Initiation of Investigation
We have examined the petition on persulfates from the PRC and have
found that it meets the requirements of section 732 of the Act,
including the requirements concerning allegations of material injury or
threat of material injury to the domestic producers of domestic like
products by reason of the complained-of imports, allegedly sold at less
than fair value. Therefore, we are initiating an antidumping duty
investigation to determine whether imports of persulfates from the PRC
are being, or are likely to be, sold in the United States at less than
fair value. Unless the investigation is extended, we will make our
preliminary determination by December 18, 1996.
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, a copy of the
public version of the petition has been provided to the representatives
of the Government of the PRC.
International Trade Commission (``ITC'') Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will determine by August 26, 1996, whether there is a
reasonable indication that imports of persulfates from the PRC are
causing material injury, or threatening to cause material injury, to a
U.S. industry. A negative ITC determination in this investigation will
result in the investigation being terminated; otherwise, the
investigation will proceed according to statutory and regulatory time
limits.
Dated: July 31, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-19997 Filed 8-5-96; 8:45 am]
BILLING CODE 3510-DS-P
