April 4, 2006
News Release 06-029
Inv. Nos. 701-TA-318 and
731-TA-538 and 561 (Second Review)
Contact: Peg O'Laughlin, 202-205-1819

ITC MAKES DETERMINATIONS IN FIVE-YEAR (SUNSET) REVIEWS CONCERNING SULFANILIC ACID FROM CHINA AND INDIA

The U.S. International Trade Commission (ITC) today determined that revoking the existing countervailing duty order on imports of sulfanilic acid from India and the existing antidumping duty orders on imports of this product from China and India would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of the Commission's affirmative determinations and Commerce's recent affirmative findings, the existing orders on imports of these products from China and India will remain in place.

All six Commissioners voted in the affirmative, finding that revoking the existing orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

Today's action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on these five-year (sunset) reviews.

The Commission's public report Sulfanilic Acid from China and India (Inv. Nos. 701-TA-318 and 731-TA-538 and 561 (Second Review), USITC Publication 3849, April 2006) will contain the views of the Commission and information developed during the reviews.

Copies may be requested after April 26, 2006, by calling 202-205-1809 or by contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by fax at 202-205-2104.


BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.

The Commission's institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission's prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) reviews concerning Sulfanilic Acid from China and India were instituted on May 2, 2005.

On August 5, 2005, the Commission voted to conduct full reviews. With respect to India, Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioners Jennifer A. Hillman, Charlotte R. Lane, and Daniel R. Pearson concluded that both the domestic group response and the respondent group response were adequate and voted for full reviews. With respect to China, Chairman Koplan, Vice Chairman Okun, and Commissioners Hillman, Lane, and Pearson concluded that the domestic group response was adequate and the respondent group response was inadequate, but that circumstances warranted a full review. Then-Commissioner Marcia E. Miller did not participate in these reviews.

Information concerning the reasons for the Commission's vote to conduct full reviews was published in the Federal Register on August 18, 2005. That notice and a record of the Commission's vote is posted on the ITC's Internet site at http://info.usitc.gov/oinv/sunset.NSF (under "Sulfanilic Acid - China (2nd Review)," "Sulfanilic Acid - India (CVD) (2nd Review)," and "Sulfanilic Acid - India (AD) (2nd Review)").

In addition, a record of the Commission's vote to conduct full reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.

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