[Federal Register: September 26, 2003 (Volume 68, Number 187)]
[Notices]
[Page 55589-55591]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se03-49]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-882]
Notice of Final Determination of Sales at Less Than Fair Value:
Refined Brown Aluminum Oxide (Otherwise known as Refined Brown
Artificial Corundum or Brown Fused Alumina) from the People's Republic
of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: September 26, 2003.
FOR FURTHER INFORMATION CONTACT: David J. Goldberger, Jim Mathews or
Tinna E. Beldin, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-
4136, (202) 482-2778 or (202) 482-1655, respectively.
FINAL DETERMINATION:
We determine that refined brown aluminum oxide (RBAO) from the
People's Republic of China (PRC) is being sold, or is likely to be
sold, in the United States at less than fair value (LTFV), as provided
in section 735 of the Tariff Act of 1930, as amended (the Act). In
addition, we determine that critical circumstances exist with respect
to all PRC producers/exporters of the subject merchandise. The
estimated margins of sales at LTFV are shown in the ``Continuation of
Suspension of Liquidation'' section of this notice.
SUPPLEMENTARY INFORMATION:
Background
The preliminary determination in this investigation was published
on May 6, 2003. See Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination: Refined
Brown Aluminum Oxide (Otherwise known as Refined Brown Artificial
Corundum or Brown Fused Alumina) from the People's Republic of China,
68 FR 23966 (Preliminary Determination). Since the preliminary
determination, the following events have occurred.
In July 2003, we conducted verification of the questionnaire
responses of the sole participating respondent in this case, Zibo Jinyu
Abrasive Co., Ltd. (Jinyu).
We gave interested parties an opportunity to comment on the
preliminary determination. In August 2003, we received case and
rebuttal briefs from the following parties: the petitioners, C-E
Minerals, Treibacher Schleifmittel Corporation, and Washington Mills
Company, Inc.; the respondent Jinyu; and interested third parties
Allied Mineral Products, Inc., Cometals, a Division of Commercial
Metals Co., Saint Gobain Corporation, Dauber Company, Inc., Golden
Dynamic Inc., China Abrasives Import and Export Corporation, and White
Dove Group Import and Export Inc. (hereinafter interested third
parties). The Department held a public hearing on August 20, 2003, at
the request of the petitioners and the interested third parties.
Due to the closure of the federal government on September 18-19,
the deadline for this final determination is September 22, 2003.
Scope of the Investigation
The merchandise covered by this investigation is ground, pulverized
or refined brown artificial corundum, also known as refined brown
aluminum oxide or brown fused alumina, in grit size of 3/8 inch or
less. Excluded from the scope of the investigation is crude artificial
corundum in which particles with a diameter greater than 3/8 inch
constitute at least 50 percent of the total weight of the entire batch.
The scope includes brown artificial corundum in which particles with a
diameter greater than 3/8 inch constitute less than 50 percent of the
total weight of the batch. The merchandise under investigation is
currently classifiable under subheading 2818.10.20.00 of the Harmonized
Tariff Schedule of the United States (HTSUS). Although the HTSUS
subheading is provided for convenience and customs purposes, the
written description of the merchandise under investigation is
dispositive.
Period of Investigation
Pursuant to 19 CFR 351.204(b)(1), the period of investigation is
April 1, 2002, through September 30, 2002, which corresponds to the two
most recent fiscal quarters prior to the month of the filing of the
petition (i.e., October 2002).
Nonmarket Economy Status for the PRC
The Department has treated the PRC as a nonmarket economy (NME)
country in all past antidumping investigations. See, e.g., Notice of
Final Determination of Sales at Less Than Fair Value: Pure Magnesium in
Granular Form from the People's Republic of China, 66 FR 49345, 49346
(September 27, 2001). A designation as an NME remains in effect until
it is revoked by the Department. See section 771(18)(C) of the Act. No
party in this investigation has requested a revocation of the PRC's NME
status. Therefore, we have continued to treat the PRC as an NME in this
investigation. For further details, see Preliminary Determination at
23968.
Separate Rate
In our preliminary determination, we found that Jinyu had met the
criteria for receiving a separate antidumping rate. We have not
received any information since the preliminary determination which
would warrant reconsideration of our separate-rate determination with
respect to this company. Therefore, we continue to find that Jinyu
should be assigned an individual dumping margin.
Surrogate Country
For purposes of the final determination, we continue to find that
India is the appropriate primary surrogate country for the PRC. For
further discussion and analysis regarding the surrogate country
selection for the PRC, see Preliminary Determination at 23970.
PRC-Wide Rate and Use of Facts Otherwise Available
As discussed in the Department's Preliminary Determination, Jinyu
was the only exporter to respond to the Department's questionnaire and
to cooperate in this investigation. Therefore, we have continued to
calculate a company-specific rate for Jinyu only. However, in the
preliminary determination, we stated that our review of U.S. import
statistics from the PRC revealed that Jinyu did not account for all
imports into the United States from the PRC. For this reason, we
determined that some PRC exporters of subject merchandise failed to
cooperate in this
[[Page 55590]]
investigation and assigned to them a rate based on adverse facts
available pursuant to section 776(b) of the Act. See Preliminary
Determination at 23969. These facts have not changed since the
preliminary determination. Therefore, in accordance with our standard
practice, as adverse facts available, we are continuing to assign as
the PRC-wide rate the higher of: (1) the highest margin listed in the
notice of initiation; or (2) the margin calculated for Jinyu. See,
e.g., Notice of Final Determination of Sales at Less Than Fair Value:
Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products From The
People's Republic of China, 65 FR 34660 (May 31, 2000), and
accompanying Issues and Decision Memorandum at Comment 1. For purposes
of the final determination of this investigation, we are using the
margin calculated for Jinyu as adverse facts available because it is
higher than the margin of 131.38 percent stated in the notice of
initiation.
Analysis of Comments Received
All issues raised in the case briefs by parties to this proceeding
and to which we have responded are listed in the Appendix to this
notice and addressed in the Decision Memorandum, which is adopted by
this notice. A complete discussion of all issues raised in this
investigation and the corresponding recommendations in this public
memorandum is on file in the Central Records Unit, room B-099, of the
main Department building. In addition, a complete version of the
Decision Memorandum can be accessed directly on the Web at http://ia.ita.doc.gov.
The paper copy and electronic version of the Decision
Memorandum are identical in content.
Changes Since the Preliminary Determination
Based on our analysis of comments received, we have made certain
changes to the margin calculations. These changes include:
[sbull] We used the value reported in the Defense Logistics Agency
FY2000 Annual Report as the surrogate value for crude brown aluminum
oxide.
[sbull] Based on our verification findings, we have included an
additional sale of the subject merchandise in our final determination
analysis, which Jinyu had inadvertently omitted in its original
reporting.
[sbull] We revised Jinyu's reported consumption of electricity by
allocating electricity consumption only to the brown and white aluminum
oxide production, based on our verification findings.
[sbull] We recalculated Jinyu's labor factor by allocating labor based
on actual production, rather than theoretical production, based on our
verification findings.
[sbull] We did not add a separate packing labor factor to our
calculation of normal value to avoid double-counting because we found
at verification that the reported packing labor is part of the
production line labor, which is already included in the direct labor
factor.
For a discussion of these changes, see the ``Margin Calculations''
section of the Decision Memorandum and the Decision Memorandum
comments.
Critical Circumstances
In our preliminary determination, we found, pursuant to section
733(e)(1) of the Act, that there was a reasonable basis to believe or
suspect that critical circumstances exist with respect to the subject
merchandise from the respondent and all other producers/exporters. As
discussed in detail in the preliminary determination, we first found
that there is a history of dumping and material injury by reason of
dumped imports. We then analyzed the import volume and value data
placed on the record, in accordance with 19 CFR 351.206, and
preliminarily determined that imports of the subject merchandise have
been massive over the short period of time subsequent to the filing of
the petition. See Preliminary Determination at 23971. In accordance
with section 735(a)(3) of the Act, and based upon our verification of
Jinyu's shipment data placed on the record, we determine that critical
circumstances exist with respect to RBAO from Jinyu. We applied adverse
facts available for all other producers / exporters as an adverse
inference that critical circumstances apply for companies that refused
to cooperate with the Department's requests for information. See
September 18, 2003, Memorandum to File entitled Jinyu Shipment Data
Analysis for the Final Determination and Decision Memorandum at
Comments 1 and 2. Therefore, we are directing the U.S. Bureau of
Customs and Border Protection (BCBP) to continue to suspend liquidation
of any unliquidated entries of subject merchandise on or after the date
90 days prior to the date of publication of the preliminary
determination in the Federal Register, as discussed below in the
``Continuation of Suspension of Liquidation'' section.
Verification
As provided in section 782(i) of the Act, we verified the
information submitted by the respondent for use in our final
determination. We used standard verification procedures including
examination of relevant accounting and production records, and original
source documents provided by Jinyu.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we are
directing the BCBP to continue to suspend liquidation of all entries of
RBAO from the PRC that are entered, or withdrawn from warehouse, for
consumption on or after February 5, 2003, the date 90 days prior to the
date of publication of the preliminary determination in the Federal
Register, in accordance with our critical circumstances finding.
Effective on or after the date of publication of the Department's
final determination, BCBP shall continue to require a cash deposit or
the posting of a bond equal to the weighted-average amount by which the
normal value exceeds the export price or constructed export price, as
appropriate, as indicated in the chart below. These suspension of
liquidation instructions will remain in effect until further notice.
The weighted-average dumping margins are as follows:
----------------------------------------------------------------------------------------------------------------
Weighted-Average Margin
Exporter/Manufacturer [chyph]Percentage Critical Circumstances
----------------------------------------------------------------------------------------------------------------
Zibo Jinyu Abrasive Co., Ltd........................ 135.18 Yes
PRC-wide Rate....................................... 135.18 Yes
----------------------------------------------------------------------------------------------------------------
The PRC-wide rate applies to all entries of the subject merchandise
except for entries from Jinyu.
Disclosure
We will disclose the calculations performed within five days of the
date of the announcement of the final determination to parties in this
proceeding in accordance with 19 CFR 351.224(b).
[[Page 55591]]
ITC Notification
In accordance with section 735(d) of the Act, we have notified the
International Trade Commission (ITC) of our determination. As our final
determination is affirmative, the ITC will, within 45 days, determine
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry. If the ITC determines that material
injury or threat of material injury does not exist, the proceeding will
be terminated and all securities posted will be refunded or canceled.
If the ITC determines that such injury does exist, the Department will
issue an antidumping duty order directing the BCBP to assess
antidumping duties on all imports of the subject merchandise entered,
or withdrawn from warehouse, for consumption on or after the effective
date of the suspension of liquidation.
Notification Regarding APO
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 351.305. Timely notification of return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and the
terms of an APO is a sanctionable violation.
This determination is issued and published pursuant to sections
735(d) and 777(i)(1) of the Act.
Dated: September 22, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.
Appendix Issues in the Decision Memorandum
Comments
1. Use of Adverse Facts Available for Critical Circumstances
2. Seasonal Trend for Jinyu's Shipments
3. Surrogate Value for Crude Brown Aluminum Oxide
4. Application of Verification Findings
[FR Doc. 03-24396 Filed 9-25-03; 8:45 am]