[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12325-12337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5119]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-929]


Small Diameter Graphite Electrodes From the People's Republic of 
China: Preliminary Results of the First Administrative Review of the 
Antidumping Duty Order; Partial Rescission of Administrative Review; 
and Intent To Rescind Administrative Review, in Part

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: In response to requests from interested parties, the 
Department of Commerce. (``Department'') is conducting the first 
administrative review of the antidumping duty order on small diameter 
graphite electrodes (``SDGE'') from the People's Republic of China 
(``PRC''), covering the period August 21, 2008, through January 31, 
2010. The Department has preliminarily determined that during the 
period of review (``POR'') respondents in this proceeding have made 
sales of subject merchandise at less than normal value (``NV''). If 
these preliminary results are adopted in our final results of review, 
we will instruct U.S. Customs and Border Protection (``CBP'') to assess 
antidumping duties on all appropriate entries of subject merchandise 
during the POR. The Department is also rescinding this review for those 
exporters for which requests for review were timely withdrawn.\1\ For 
the companies for which this review is rescinded, antidumping duties 
shall be assessed at rates equal to the cash deposit of estimated 
antidumping duties required at the time of entry, or withdrawal from 
warehouse, for consumption. Furthermore, we determine that four 
companies for which a review was requested have not been responsive, 
and thus have not demonstrated entitlement to a separate rate.\2\ As a 
result, we have preliminarily determined that they are part of the PRC-
wide entity, and continue to be subject to the PRC-wide entity rate.\3\ 
Further, the Department intends to rescind this administrative review 
with respect to UK Carbon & Graphite (``UKCG'') if the Department 
concludes that there were no entries, exports, or sales of the subject 
merchandise to the United States during the POR.\4\ Interested parties 
are invited to comment on these preliminary results. We will issue 
final results no later than 120 days from the date of publication of 
this notice, pursuant to section 751(a)(3)(A) of the Tariff Act of 
1930, as amended (``the Act'').
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    \1\ See ``Partial Rescission of the Administrative Review'' 
section below.
    \2\ See ``Separate Rates'' section below.
    \3\ See ``The PRC-Wide Entity, PRC-Wide Rate, and Use of Adverse 
Facts Available'' section below.
    \4\ See ``Intent to Rescind, in Part, the Administrative 
Review'' section below.

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DATES: Effective Date: March 7, 2011.

FOR FURTHER INFORMATION CONTACT: Lindsey Novom or Frances Veith, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington DC 20230; telephone: (202) 482-
5256 or (202) 482-4295, respectively.

Background

    On February 26, 2009, the Department published in the Federal 
Register the antidumping duty order on SDGE from the PRC.\5\ On 
February 1, 2010, the Department published a notice of opportunity to 
request an administrative review of the antidumping duty order on SDGE 
from the PRC.\6\ On February 23, February 25, and February 26, 2010, 
the Department received timely requests for an administrative review of 
this antidumping duty order in accordance with 19 CFR 351.213(b) from 
Fushun Jinly Petrochemical Carbon Co., Ltd (``Fushun Jinly''), Xinghe 
County Muzi Carbon Co., Ltd. (``Muzi Carbon''), and Beijing Fangda 
Carbon Tech Co., Ltd. (``Beijing Fangda''), Chengdu Rongguang

[[Page 12326]]

Carbon Co., Ltd. (``Rongguang''), Fangda Carbon New Material Co., Ltd. 
(``Fangda Carbon''), Fushun Carbon Co., Ltd. (``Fushun Carbon''), and 
Hefei Carbon Co., Ltd. (``Hefei'') (collectively ``the Fangda 
Group'').\7\ On February 26, 2010, the Department also received a 
timely request for an administrative review of 112 companies from SGL 
Carbon LLC and Superior Graphite Co. (``Petitioners'').\8\
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    \5\ See Antidumping Duty Order: Small Diameter Graphite 
Electrodes from the People's Republic of China, 74 FR 8775 (February 
26, 2009).
    \6\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Reviews, 75 FR 5037 (February 1, 2010).
    \7\ In the Initiation Notice, the firm names for these named 
companies were listed as follows: (1) ``Fushun Jinli Petrochemical 
Carbon Co., Ltd. (aka Fushun Jinly Petrochemical Carbon Co., 
Ltd.),'' (2) ``Xinghe County Muzi Carbon Co., Ltd. (aka Xinghe 
County Muzi Carbon Plant),'' (3) Beijing Fangda was listed as shown 
above, (4) ``Chengdu Rongguang Carbon Co., Ltd. (subsidiary of 
Liaoning Fangda Group Industrial Co., Ltd.),'' (5) ``Fangda Carbon 
New Material Co., Ltd. (subsidiary of Liaoning Fangda Group 
Industrial Co., Ltd. and formerly Lanzhou Hailong New Material 
Co),'' (6) ``Fushun Carbon Co., Ltd. (subsidiary of Liaoning Fangda 
Group Industrial Co., Ltd. and formerly Fushun Carbon Plant),'' and 
(7) ``Hefei Carbon Co., Ltd. (subsidiary of Liaoning Fangda Group 
Industrial Co., Ltd.).'' See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Request for 
Revocation in Part, 75 FR 15679, 15681-15683 (March 30, 2010) 
(``Initiation Notice'')
    \8\ See id.
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    On March 26, 2010, Petitioners submitted pre-initiation comments 
regarding respondent selection. On March 30, 2010, the Department 
released to interested parties CBP data covering POR imports of SDGE 
from the PRC, and invited these parties to comment on the Department's 
respondent selection process.\9\
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    \9\ See the Department's March 30, 2010, Memorandum to ``All 
Interested Parties,'' in which we requested comments regarding 
respondent selection based on the released CBP data.
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    On March 30, 2010, the Department initiated an administrative 
review of the antidumping duty order on SDGE from the PRC for 112 
individually named firms.\10\ On April 29, 2010, the Department 
received four separate-rate certifications, two separate-rate 
applications, of which one company also filed a no-shipment 
certification and a request for rescission of this administrative 
review.\11\ On May 6, 2010, the Department issued the respondent 
selection memorandum in which it selected the Fangda Group and Fushun 
Jinly as respondents for individual review.\12\
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    \10\ See Initiation Notice.
    \11\ See ``Separate Rates,'' ``Partial Rescission of the 
Administrative Review,'' and ``Intent to Rescind, in Part, the 
Administrative Review'' sections below.
    \12\ See the Department's memorandum regarding, ``Respondent 
Selection in the Antidumping Duty Administrative Review of Small 
Diameter Graphite Electrodes from the People's Republic of China,'' 
dated May 6, 2010.
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    On May 26, 2010, the Department sent the antidumping duty 
questionnaires to the Fangda Group and Fushun Jinly. On June 28, 2010, 
we received from Petitioners a timely request for rescission of review 
for 100 of the 112 companies for which the Department initiated a 
review.\13\ Between June 4, 2010, and December 30, 2010, the Fangda 
Group and Fushun Jinly responded to the Department's original and 
supplemental questionnaires.
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    \13\ See ``Partial Rescission of the Administrative Review'' 
section below.
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    On October 19, 2010, the Department published a notice in the 
Federal Register extending the time limit for the preliminary results 
of review by the full 120 days allowed under section 751(a)(3)(A) of 
the Act to February 28, 2011.\14\
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    \14\ See Small Diameter Graphite Electrodes From the People's 
Republic of China: Extension of Time Limit for the Preliminary 
Results of the First Administrative Review of the Antidumping Duty 
Order, 75 FR 64250 (October 19, 2010).
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    Between January 10 and January 21, 2011, the Department conducted 
verifications of two of the Fangda Group entities (Beijing Fangda and 
Fushun Carbon), as well as, Fushun Jinly and one of its tollers, Fushun 
Hexie Carbon Product Co., Ltd (``Hexie'').\15\
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    \15\ See the ``Verification'' section below for additional 
information.
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Period of Review

    The POR is August 21, 2008, through January 31, 2010.

Scope of the Order

    The merchandise covered by this order includes all small diameter 
graphite electrodes of any length, whether or not finished, of a kind 
used in furnaces, with a nominal or actual diameter of 400 millimeters 
(16 inches) or less, and whether or not attached to a graphite pin 
joining system or any other type of joining system or hardware. The 
merchandise covered by this order also includes graphite pin joining 
systems for small diameter graphite electrodes, of any length, whether 
or not finished, of a kind used in furnaces, and whether or not the 
graphite pin joining system is attached to, sold with, or sold 
separately from, the small diameter graphite electrode. Small diameter 
graphite electrodes and graphite pin joining systems for small diameter 
graphite electrodes are most commonly used in primary melting, ladle 
metallurgy, and specialty furnace applications in industries including 
foundries, smelters, and steel refining operations. Small diameter 
graphite electrodes and graphite pin joining systems for small diameter 
graphite electrodes that are subject to this order are currently 
classified under the Harmonized Tariff Schedule of the United States 
(``HTSUS'') subheading 8545.11.0000. The HTSUS number is provided for 
convenience and customs purposes, but the written description of the 
scope is dispositive.

Connecting Pins--Model Match Methodology

    On August 13, 2010, the Department determined that all connecting 
pins for SDGE, whether or not they are attached to, sold with, or sold 
separately from the SDGE are covered by the scope of this proceeding. 
We invited parties to submit comments regarding the appropriate 
methodology for reporting normal value for sales where connecting pins 
are sold with SDGEs at one price per metric ton. On August 19, 2010, 
both Petitioners and the Fangda Group submitted comments on reporting 
and model match methodology where connecting pins are sold with SDGEs 
as one finished product.
    We have previously determined that graphite connecting pins 
produced by respondents are covered by the description in the ``Scope 
of the Order'' section, above, and are subject merchandise for purposes 
of determining appropriate fair value comparisons to U.S. sales.\16\ We 
compared respondent's U.S. sales of SDGEs, including connecting pins, 
to its corresponding NV. In making the fair value comparisons, we 
compared NV to respondents' individual export price (``EP'') based on 
the physical characteristics of the SDGE control number, or CONNUM, 
reported by respondents. For more information, see Fangda Carbon and 
Fushun Jinly's respective analysis memoranda.\17\
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    \16\ See Final Determination of Sales at Less Than Fair Value 
and Affirmative Determination of Critical Circumstances: Small 
Diameter Graphite Electrodes from the People's Republic of China, 74 
FR 2049, 2051 (January 14, 2009) (``SDGE Final LTFV 
Determination''), and accompanying Issues and Decision Memorandum at 
Comment 2.
    \17\ See the Department's memorandums entitled, ``1st 
Administrative Review of the Antidumping Duty Order on Small 
Diameter Graphite Electrodes from the People's Republic of China: 
Analysis of the Preliminary Determination Margin Calculation for the 
Fangda Group Companies,'' (``Fangda Group's Preliminary Analysis 
Memo'') and ``1st Administrative Review of the Antidumping Duty 
Order on Small Diameter Graphite Electrodes from the People's 
Republic of China: Analysis of the Preliminary Determination Margin 
Calculation for Fushun Jinly Petrochemical Carbon Co., Ltd'' 
(``Fushun Jinly's Preliminary Analysis Memo''), dated concurrently 
with this notice.
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Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the Fangda Group for Beijing Fangda and Fushun 
Carbon, and information submitted by Fushun Jinly for itself and its 
toller Hexie for use in our preliminary results. See the

[[Page 12327]]

Department's verification reports on the record of this investigation, 
available in the Central Records Unit, Room 7046 of the main Department 
building, with respect to these entities.\18\ For all verified 
companies, we used standard verification procedures, including the 
examination of relevant accounting and production records, as well as 
original source documents provided by respondents.
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    \18\ See the Department's memorandums entitled, ``Verification 
of the Sales and Factors Response of the Fangda Group Companies in 
the Antidumping Review of Small Diameter Graphite Electrodes from 
the People's Republic of China,'' (``Fangda Group's Verification 
Report'') and ``Verification of the Sales and Factors Response of 
Fushun Jinly Petrochemical Carbon Co., Ltd in the Antidumping Review 
of Small Diameter Graphite Electrodes from the People's Republic of 
China'' (``Fushun Jinly's Verification Report''), dated concurrently 
with this notice.
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Partial Rescission of the Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), the Secretary will rescind an 
administrative review, in whole or in part, if a party that requested 
the review withdraws the request within 90 days of the date of 
publication of the initiation notice of the requested review. Further, 
pursuant to 19 CFR 351.213(d)(1), the Department is permitted to extend 
this time if it is reasonable to do so.
    For all but seven of the 112 companies for which the Department 
initiated an administrative review, Petitioners were the only party 
that requested the review. On June 28, 2010, Petitioners timely 
withdrew their review requests for 100 of the 105 companies in which 
the Petitioners were the only party that had requested an 
administrative review. Therefore, in accordance with 19 CFR 
351.213(d)(1), we are rescinding this administrative review with 
respect to the companies named as follows in the Initiation Notice:

             Partial Rescission of the Administrative Review
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                                              Firm Name
------------------------------------------------------------------------
1.........................  5-Continent Imp. & Exp. Co., Ltd. (aka
                             Sichuan 5-Continent Imp. & Exp. Co., Ltd.).
2.........................  Acclcarbon Co., Ltd.
3.........................  Allied Carbon (China) Co., Limited.
4.........................  Anssen Metallurgy Group Co., Ltd. (aka
                             AMGL).
5.........................  Beijing Xincheng Sci-Tech. Development Inc.
                             (formerly Beijing Xinchengze Inc.)
                             (subsidiary of XC Carbon Group).
6.........................  Brilliant Charter Limited.
7.........................  Chengdelh Carbonaceouse Elements Factory.
8.........................  Chengdu Jia Tang Corp.
9.........................  China Shaanxi Richbond Imp. & Exp.
                             Industrial Corp. Ltd.
10........................  China Xingyong Carbon Co., Ltd. (aka Xinghe
                             Xingyong Carbon Co., Ltd.).
11........................  CIMM Group Co., Ltd. (formerly China
                             Industrial Mineral & Metals Group).
12........................  Dalian Carbon & Graphite Corporation.
13........................  Dalian Hongrui Carbon Co., Ltd.
14........................  Dalian Horton International Trading Co.,
                             Ltd.
15........................  Dalian LST Metallurgy Co., Ltd.
16........................  Dalian Shuangji Co., Ltd.
17........................  Dalian Thrive Metallurgy Imp. & Exp. Co.,
                             Ltd.
18........................  Datong Xincheng Carbon Co., Ltd.
19........................  Dechang Shida Carbon Co., Ltd. (aka Sichuan
                             Dechang Shida Co., Ltd.; and subsidiary of
                             Shida Carbon Group).
20........................  Dignity Success Investment Trading Co., Ltd.
21........................  Double Dragon Metals and Mineral Tools Co.,
                             Ltd.
22........................  Foset Co., Ltd. (aka Shanxi Foset Carbon Co.
                             Ltd.).
23........................  GES (China) Co., Ltd. (aka Shanghai GC Co.,
                             Ltd.).
24........................  Guangdong Highsun Yongye (Group) Co., Ltd.
                             (formerly Moaming Yongye (Group) Co.,
                             Ltd.).
25........................  Guanghan Shida Carbon Co., Ltd. (aka Sichuan
                             Guanghan Shida Carbon Co., Ltd.; a
                             subsidiary of Shida Carbon Group).
26........................  Haimen Shuguang Carbon Industry Co., Ltd.
27........................  Handan Hanbo Material Co., Ltd.
28........................  Hebei Long Great Wall Electrode Co., Ltd.
                             (aka Chang Cheng Chang Electrode Co., Ltd.
                             and Laishui Long Great Wall Electrode Co.
                             Ltd.).
29........................  Heilongjiang Xinyuan Metacarbon Company,
                             Ltd. (Heilongjiang Xinyuan Carbon Products
                             Co., Ltd.).
30........................  Henan Sanli Carbon Products Co., Ltd.
31........................  Hopes (Beijing) International Co., Ltd.
32........................  Hunan Mec Machinery and Electronics Imp. &
                             Exp. Corp.
33........................  Hunan Yinguang Carbon Factory Co., Ltd.
34........................  Inner Mongolia Xinghe County Hongyuan
                             Electrical Carbon Factory.
35........................  Jiang Long Carbon.
36........................  Jiangsu Yafei Carbon Co., Ltd.
37........................  Jiaozuo Zhongzhou Carbon Products Co., Ltd.
38........................  Jichun International Trade Co., Ltd. of
                             Jilin Province.
39........................  Jiexiu Juyuan Carbon Co., Ltd./Jiexiu Ju-
                             Yuan & Coaly Co., Ltd.
40........................  Jilin Songjiang Carbon Co Ltd.
41........................  Jinyu Thermo-Electric Material Co., Ltd.
42........................  Kaifeng Carbon Company Ltd.
43........................  Kingstone Industrial Group Ltd.
44........................  L & T Group Co., Ltd.
45........................  Lanzhou Carbon Co., Ltd./Lanzhou Carbon
                             Import & Export Corp. (aka Fangda Lanzhou
                             Carbon Joint Stock Company Co. Ltd.;
                             Lanzhou Hailong Technology; Lanzhou Hailong
                             New Material Co.).
46........................  Lanzhou Ruixin Industrial Material Co., Ltd.
47........................  LH Carbon Factory of Chengde.
48........................  Lianyungang Jinli Carbon Co., Ltd. (aka
                             Lianyungang Jianglida Co., Ltd.).
49........................  Liaoyang Carbon Co. Ltd.

[[Page 12328]]

 
50........................  Linghai Hongfeng Carbon Products Co., Ltd.
51........................  Linyi County Lubei Carbon Co., Ltd.
52........................  Nantong Falter New Energy Co., Ltd.
53........................  Nantong River-East Carbon Joint Stock Co.,
                             Ltd. (aka Nantong River-East Carbon Co.,
                             Ltd.).
54........................  Nantong Yangtze Carbon Corp. Ltd.
55........................  Orient (Dalian) Carbon Resouces Developing
                             Co., Ltd.
56........................  Peixian Longxiang Foreign Trade Co. Ltd.
57........................  Qingdao Grand Graphite Products Co., Ltd.
58........................  Qingdao Haosheng Metals Imp. & Exp. Co.,
                             Ltd. (aka Quingdao Haosheng Metals &
                             Minerals Imp. & Exp. Co.,Ltd.).
59........................  Qingdao Liyikun Carbon Development Co., Ltd.
                             (aka Qingdao Likun Graphite Co., Ltd.).
60........................  Qingdao Ruizhen Carbon Co., Ltd.
61........................  Rt Carbon Co., Ltd.
62........................  Ruitong Carbon Co., Ltd.
63........................  Shandong Basan Carbon Plant.
64........................  Shanghai Carbon International Trade Co.,
                             Ltd. (affiliate of Xuzhou Jianglong Carbon
                             Manufacture Co., Ltd.).
65........................  Shanghai GC Co., Ltd. (affiliated with GES
                             (China) Co., Ltd.).
66........................  Shanghai Jinneng International Trade Co.,
                             Ltd. (affiliated with Jinneng Group).
67........................  Shanghai P.W. International Ltd.
68........................  Shanghai Topstate International Trading Co.,
                             Ltd.
69........................  Shanxi Datong Energy Development Co., Ltd.
                             (aka Datong Carbon; subsidiary of Shanxi
                             Jinneng Group Co., Ltd.).
70........................  Shanxi Jiexiu Import and Export Co., Ltd.
71........................  Shanxi Jinneng Group Co., Ltd.
72........................  Shanxi Yunheng Graphite Electrode Co., Ltd.
                             (affiliated with Datong Carbon Plant).
73........................  Shenyang Jinli Metals & Minerals Imp. & Exp.
                             Co., Ltd.
74........................  Shida Carbon Group.
75........................  Shijaizhuang Carbon Co., Ltd.
76........................  Sichuan Shida Trading Co., Ltd. (subsidiary
                             of Shida Carbon Group).
77........................  Sichuan GMT International Inc.
78........................  Sinosteel Anhui Co., Ltd. (subsidiary of
                             Sinosteel Corp.).
79........................  Sinosteel Sichuan Co., Ltd. (subsidiary of
                             Sinosteel Corp.).
80........................  SMMC Group Co., Ltd.
81........................  Tangshan Kimwan Special Carbon & Graphite
                             Co., Ltd.
82........................  Tengchong Carbon Co., Ltd.
83........................  Tianjin (Teda) Iron & Steel Trade Co., Ltd.
84........................  Tianjin Yue Yang Industrial & Trading Co.,
                             Ltd.
85........................  Tianzhen Jintian Graphite Electrodes Co.,
                             Ltd.
86........................  Tielong (Chengdu) Carbon Co., Ltd.
87........................  United Carbon Ltd.
88........................  World Trade Metals & Minerals Co., Ltd.
89........................  Xinghe Xinyuan Carbon Products Co., Ltd.
90........................  Xinyuan Carbon Co., Ltd.
91........................  Xuanhua Hongli Refractory and Mineral
                             Company.
92........................  Xuchang Minmetals & Industry Co., Ltd.
93........................  Xuzhou Jianglong Carbon Manufacture Co.,
                             Ltd. (aka Xuzhou Carbon Co., Ltd.; formerly
                             Xuzhou Electrode Factory).
94........................  Yangzhou Qionghua Carbon Trading Ltd.
95........................  Yixing Huaxin Imp & Exp Co. Ltd.
96........................  Youth Industry Co., Ltd.
97........................  Zhengzhou Jinyu Thermo-Electric Material
                             Co., Ltd.
98........................  Zibo Continent Carbon Factory (aka Shandong
                             Zibo Continent Carbon Factory, aka Zibo
                             Wuzhou Tanshun Carbon Co., Ltd.).
99........................  Zibo DuoCheng Trading Co., Ltd.
100.......................  Zibo Lianxing Carbon Co., Ltd. (affiliated
                             with Lianxing Carbon (Shandong) Co., Ltd.,
                             Weifang Lianxing Carbon Co., Ltd., Lianxing
                             Carbon Qinghai Co., Ltd., and Lianxing
                             Carbon Science Institute).
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Intent To Rescind, in Part, the Administrative Review

    Petitioners' timely request for administrative reviews included a 
request to conduct an administrative review of UKCG. After initiating 
an administrative review of UKCG,\19\ the Department on April 29, 2010, 
received a certification of no shipments from UKCG and a request to 
rescind the administrative review of UKCG. On May 18, 2010, the 
Department sent a supplemental questionnaire to UKCG requesting 
information pertaining to its input suppliers and its manufacturing 
operations in the United Kingdom. On June 1, 2010, UKCG responded to 
the Department's supplemental questionnaire. On May 5, and May 21, 
2010, Petitioners submitted to the Department requests to keep UKCG in 
this administrative review and to seek further information and 
clarification from the company to ascertain the merit of its claim for 
rescission. On July 19, 2010, UKCG submitted factual information, and 
on July 29, 2010, Petitioners submitted rebuttal comments on UKCG's 
factual information. On August 9, 2010, UKCG submitted additional 
information and rebuttal comments on Petitioners July 29, 2010, 
submission.
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    \19\ See Initiation Notice, 75 FR at 15683.
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    We made inquiries with CBP as to whether there were any entries of 
subject merchandise from the PRC exported by UKCG during the POR. See 
message number 1039304, dated February 8, 2011. We received no 
responses to those inquiries indicating that any shipments of subject 
merchandise from UKCG from the PRC entered during the POR. Further, in 
our

[[Page 12329]]

respondent selection process, we released CBP data covering POR imports 
of SDGE from the PRC to interested parties. Upon examination of this 
data, we found no entries of subject merchandise from the PRC exported 
by UKCG during the POR.\20\ Based on the above, we preliminarily find 
that UKCG had no shipments of SDGE from the PRC during the POR, and we 
intend to rescind the review with respect to UKCG pursuant to 19 CFR 
351.213(d)(3).
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    \20\ See the Department's March 30, 2010 Memorandum to ``All 
Interested Parties.''
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    Interested parties may submit comments on the Department's intent 
to rescind this review with respect to UKCG no later than 30 days after 
the date of publication of these preliminary results of review. The 
Department will issue the final rescission (if appropriate), which will 
include the results of its analysis of issues raised in any comments 
received, in the final results of review.

Non-Market-Economy Country Status

    In every case conducted by the Department involving the PRC, the 
PRC has been treated as a non-market economy (``NME'') country.\21\ In 
accordance with section 771(18)(C)(i) of the Act, any determination 
that a 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. Accordingly, the Department calculated NV 
in accordance with section 773(c) of the Act, which applies to NME 
countries.
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    \21\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination: Coated Free 
Sheet Paper from the People's Republic of China, 72 FR 30758, 30760 
(June 4, 2007), unchanged in Final Determination of Sales at Less 
Than Fair Value: Coated Free Sheet Paper from the People's Republic 
of China, 72 FR 60632 (October 25, 2007).
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Surrogate Country

    When the Department conducts an antidumping duty administrative 
review of imports from an NME country, section 773(c)(1) of the Act 
directs the Department to base NV, in most cases, on the NME producer's 
factors of production (``FOP''), valued in a surrogate market-economy 
(``ME'') country or countries considered appropriate by the Department. 
In accordance with section 773(c)(4) of the Act, the Department will 
value FOPs using ``to the extent possible, the prices or costs of the 
FOPs in one or more market-economy countries that are: (A) At a level 
of economic development comparable to that of the NME country, and (B) 
significant producers of comparable merchandise.''
    With respect to the Department's selection of surrogate country, 
Petitioners argue that the Ukraine is the most appropriate surrogate 
country from which to derive surrogate factor values for the PRC 
because Ukraine's per capita gross national income (``GNI'') is 
economically comparable to the PRC and is also a significant producer 
of SDGE.\22\ Petitioners also state that in the alternative, the 
Department should rely on India to derive surrogate factor values for 
the PRC, as it did in the investigation. Although Petitioners suggested 
we use Ukrainian financial statements as a source for valuing financial 
ratios and placed one such financial statement on the record, 
Petitioners additionally placed on the record financial ratio 
calculations of an Indian producer.
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    \22\ See Petitioners' submission regarding the appropriate 
surrogate country to be used for purposes of valuing FOPs in this 
administrative review, dated October 14, 2010.
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    On November 8, 2010, respondents Fangda Group and Fushun Jinly 
submitted rebuttal comments to Petitioners' surrogate country 
submission, in which respondents argue that India is both economically 
comparable to the PRC and a significant producer of identical 
merchandise (i.e., SDGE) and the administrative record establishes that 
India is a superior data source as compared to Ukraine. Respondents 
maintain that the record contains complete and audited Indian financial 
statements from two companies that produce identical merchandise to 
SDGE while the financial statement from the Ukraine is incomplete and 
not fully translated. Respondents also contend that Petitioners' 
reliance on Ukraine's GNI as the basis for replacing India because 
Ukraine's GNI is closer to the PRC's than that of India's GNI, is 
unavailing. Respondents argue that it is the Department's practice to 
select surrogate values from a country that is at a level of economic 
development ``comparable'' to the NME country, not on the basis of the 
country that is most comparable in terms of GNI. Further, the 
Department's August 30, 2010, memorandum which set forth a non-
exhaustive list of six countries determined to be at a level of 
economic development comparable to the PRC (inclusive of both the India 
and Ukraine), specifically noted that all of the listed countries ``are 
economically comparable to the PRC'' and ``{t{time} he surrogate 
countries on the list are not ranked and should be considered 
equivalent in terms of economic comparability.'' \23\ Additionally, 
respondents maintain that the availability of two companies in India 
from which to calculate surrogate financial ratios further establishes 
that India is a superior data source compared to the Ukraine. Thus, 
respondents argue that the Department should continue to use India as 
the primary surrogate country in this proceeding.
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    \23\ See the Department's letter to all interested parties 
regarding the ``Administrative Review of the Antidumping Duty Order 
on Small Diameter Graphite Electrodes (``SDGE'') from the People's 
Republic of China (``PRC''),'' dated September 29, 2010 (``Surrogate 
Countries Memorandum''), at 2.
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    In the instant review, the Department has identified India, 
Indonesia, the Philippines, Ukraine, Thailand, and Peru as a non-
exhaustive list of countries that are at a level of economic 
development comparable to the PRC and for which good quality data are 
most likely available.\24\ The Department uses per capita GNI as the 
primary basis for determining economic comparability.\25\ Once the 
countries that are economically comparable to the PRC have been 
identified, the Department selects an appropriate surrogate country by 
determining whether an economically comparable country is a significant 
producer of comparable merchandise and whether data for valuing FOPs 
are both available and reliable. Like the PRC, India has a broad and 
diverse production base, and the Department has reliable data from 
India that it can use to value the FOPs, while for Ukraine there are 
not reliable Ukrainian surrogate financial statements on the record 
with which to calculate the financial ratios.\26\ Therefore, the 
Department has determined that it is appropriate to use India as a 
surrogate country for the purposes of this administrative review, 
pursuant to section 773(c)(4) of the Act, based on the following: (1) 
It is at a similar level of economic development to the PRC; (2) it is 
a significant producer of comparable merchandise, and (3) the 
Department has reliable data from India that it can use to value the 
FOPs. Accordingly, we have calculated NV using Indian prices when 
available and

[[Page 12330]]

appropriate to value each respondent's FOPs.\27\
---------------------------------------------------------------------------

    \24\ See Attachment to the Surrogate Countries Memorandum.
    \25\ See the Department's Policy Bulletin No. 04.1, regarding, 
``Non-Market Economy Surrogate Country Selection Process,'' (March 
1, 2004) (``Policy Bulletin 04.1''), available on the Department's 
Web site at http://ia.ita.doc.gov/policy/bull04-1.html.
    \26\ See the Department's memorandum to the file regarding the 
preliminary factor values used in this administrative review, dated 
concurrently with this notice (``Factor Valuation Memorandum'').
    \27\ See Surrogate Value Memorandum; see also ``Factor 
Valuations'' section, below.
---------------------------------------------------------------------------

    In accordance with 19 CFR 351.301(c)(3)(ii), for the final results 
of an administrative review, interested parties may submit publicly 
available information to value the FOPs within 20 days after the date 
of publication of these preliminary results.\28\
---------------------------------------------------------------------------

    \28\ In accordance with 19 CFR 351.301(c)(1), for the final 
results of this administrative review, interested parties may submit 
factual information to rebut, clarify, or correct factual 
information submitted by an interested party less than ten days 
before, on, or after, the applicable deadline for submission of such 
factual information. However, the Department notes that 19 CFR 
351.301(c)(1) permits new information only insofar as it rebuts, 
clarifies, or corrects information recently placed on the record. 
The Department generally will not accept the submission of 
additional, previously absent-from-the-record, alternative surrogate 
value information pursuant to 19 CFR 351.301(c)(1). See Glycine from 
the People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and Final Rescission, in Part, 72 FR 58809 
(October 17, 2007), and accompanying Issues and Decision Memorandum 
at Comment 2.
---------------------------------------------------------------------------

Separate Rates

    In proceedings involving NME countries, the Department has a 
rebuttable presumption that all companies within the country are 
subject to government control and thus should be assigned a single 
antidumping duty rate.\29\ It is the Department's policy to assign all 
exporters of merchandise subject to review in an NME country this 
single rate unless an exporter can demonstrate that it is sufficiently 
independent so as to be entitled to a separate rate. Exporters can 
demonstrate this independence through the absence of both de jure and 
de facto government control over export activities. The Department 
analyzes each entity exporting the subject merchandise under a test 
arising from 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 further developed 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''). 
However, if the Department determines that a company is wholly foreign-
owned or located in a market economy, then a separate-rate analysis is 
not necessary to determine whether it is independent from government 
control.
---------------------------------------------------------------------------

    \29\ See, e.g., Certain Coated Paper Suitable for High-Quality 
Print Graphics Using Sheet-Fed Presses From the People's Republic of 
China: Notice of Preliminary Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination, 75 FR 24892, 
24899 (May 6, 2010), unchanged in Certain Coated Paper Suitable for 
High-Quality Print Graphics Using Sheet-Fed Presses From the 
People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 75 FR 59217 (September 27, 2010).
---------------------------------------------------------------------------

    In order to demonstrate separate-rate status eligibility, the 
Department normally requires entities, for whom a review was requested, 
and who were assigned a separate rate in a previous segment of this 
proceeding, to submit a separate-rate certification stating that they 
continue to meet the criteria for obtaining a separate rate.\30\ For 
entities that were not assigned a separate rate in the previous segment 
of a proceeding, to demonstrate eligibility for such, the Department 
requires a separate-rate application.\31\ On April 29, 2010, Shanghai 
Jinneng International Trade Co., Ltd. (``Jinneng''), Sichuan Guanghan 
Shida Carbon Co., Ltd. (``Shida''), and Muzi Cabon each submitted 
separate rate certifications. On June 1, 2010, Qingdao Hao Sheng Metals 
& Minerals Import & Exports Co., Ltd. (``Hao Sheng Metals'') and UKCG 
submitted a separate rate application. On June 28, 2010, Petitioners 
withdrew their review requests for Jinneng, Shida, and Hao Sheng 
Metals. For further information, see the ``Partial Rescission of the 
Administrative Review'' section above. The Department also intends to 
rescind the administrative review with respect to UKCG. For further 
information, see the ``Intent to Rescind, in Part, the Administrative 
Review'' section above.
---------------------------------------------------------------------------

    \30\ See Initiation Notice, 75 FR at 15680.
    \31\ Id.
---------------------------------------------------------------------------

    In this administrative review, of the five entities not selected 
for individual review (i.e., (1) Muzi Carbon, (2) Shijiazhuang Huanan 
Carbon Factory (``Huanan Carbon''), (3) Sinosteel Jilin Carbon Co., 
Ltd./Sinosteel Jilin Carbon Import & Export Co., Ltd. (``Sinosteel 
Jilin''), (4) Jilin Carbon Graphite Material Co., Ltd. (``Jilin 
Carbon''), and (5) Jilin Carbon Import and Export Company (``Jilin 
Carbon I&E'')) for which the review has not been rescinded or for which 
the Department does not intend to rescind the review, only one company, 
Muzi Carbon, submitted separate-rate information. The remaining four 
companies (Huanan Carbon, Sinosteel Jilin, Jilin Carbon, and Jilin 
Carbon I&E) did not provide either a separate rate application or 
separate rate certification, as applicable, and will be considered part 
of the PRC-wide entity. See ``The PRC-Wide Rate, PRC-Wide Entity, and 
Use of Adverse Facts Available'' section below.
    The two mandatory respondents (i.e., the Fangda Group and Fushun 
Jinly) and Muzi Carbon have provided company-specific information and 
each stated that it meets the criteria for the assignment of a separate 
rate.
a. Absence of De Jure Control
    The Department considers the following de jure criteria in 
determining whether an individual company may be granted a separate 
rate: (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) other formal 
measures by the government decentralizing control of companies.\32\
---------------------------------------------------------------------------

    \32\ See Sparklers, 56 FR at 20589.
---------------------------------------------------------------------------

    The evidence provided by the Fangda Group, Fushun Jinly, and Muzi 
Carbon supports a preliminary finding of de jure absence of government 
control based on the following: (1) An absence of restrictive 
stipulations associated with the individual exporter's business and 
export licenses; (2) there are applicable legislative enactments 
decentralizing control of the companies; and (3) there are formal 
measures by the government decentralizing control of the companies.\33\
---------------------------------------------------------------------------

    \33\ See Beijing Fangda's, Fushun Carbon's, Fangda Carbon's, 
Rongguang's, and Heifei's Section A Questionnaire Responses, dated 
June 4, 2010; Fushun Jinly's Section A Questionnaire Response, dated 
June 7, 2010; and Muzi Carbon's Separate Rate Certification, dated 
April 29, 2010.
---------------------------------------------------------------------------

b. Absence of De Facto Control
    Typically the Department considers four factors in evaluating 
whether each respondent is subject to de facto government control of 
its export functions: (1) Whether the export prices are set by or are 
subject to the approval of a government agency; (2) whether the 
respondent has authority to negotiate and sign contracts and other 
agreements; (3) whether the respondent has autonomy from the government 
in making decisions regarding the selection of management; and (4) 
whether the respondent retains the proceeds of its export sales and 
makes independent decisions regarding disposition of profits or 
financing of losses.\34\
---------------------------------------------------------------------------

    \34\ See Silicon Carbide, 59 FR at 22586-87; see also Notice of 
Final Determination of Sales at Less Than Fair Value: Furfuryl 
Alcohol From the People's Republic of China, 60 FR 22544, 22545 (May 
8, 1995).
---------------------------------------------------------------------------

    The Department has determined that an analysis of de facto control 
is critical in determining whether respondents are, in fact, subject to 
a degree of government control over export activities which would 
preclude the Department from assigning separate rates. For the Fangda 
Group, Fushun Jinly, and Muzi Carbon, we determine that the evidence on 
the record supports

[[Page 12331]]

a preliminary finding of de facto absence of government control based 
on record statements and supporting documentation showing the 
following: (1) Each respondent sets its own export prices independent 
of the government and without the approval of a government authority; 
(2) each respondent retains the proceeds from its sales and makes 
independent decisions regarding disposition of profits or financing of 
losses; (3) each respondent has the authority to negotiate and sign 
contracts and other agreements; and (4) each respondent has autonomy 
from the government regarding the selection of management.\35\ 
Additionally, each of these companies' questionnaire responses indicate 
that its pricing during the POR does not involve coordination among 
exporters.
---------------------------------------------------------------------------

    \35\ See Beijing Fangda's, Fushun Carbon's, Fangda Carbon's, 
Rongguang's, and Heifei's Section A Questionnaire Responses, dated 
June 4, 2010; Fushun Jinly's Section A Questionnaire Response, dated 
June 7, 2010; and Muzi Carbon's Separate Rate Certification 
Response, dated April 29, 2010.
---------------------------------------------------------------------------

    The evidence placed on the record of this review by the Fangda 
Group, Fushun Jinly, and Muzi Carbon demonstrates an absence of de jure 
and de facto government control with respect each company's respective 
exports of the merchandise under review, in accordance with the 
criteria identified in Sparklers and Silicon Carbide. Therefore, we are 
preliminarily granting the Fangda Group, Fushun Jinly, and Muzi Carbon 
each a separate rate.

Margin for Separate Rate Company

    The statute and the Department's regulations do not address the 
establishment of a rate to be applied to individual companies not 
selected for examination where the Department limited its examination 
in an administrative review pursuant to section 777A(c)(2) of the Act. 
Generally, we have looked to section 735(c)(5) of the Act, which 
provides instructions for calculating the all-others rate in an 
investigation, for guidance when calculating the rate for respondents 
we did not examine in an administrative review. For the exporters 
subject to a review that were determined to be eligible for separate 
rate status, but were not selected as mandatory respondents, the 
Department generally weight-averages the rates calculated for the 
mandatory respondents, excluding any rates that are zero, de minimis, 
or based entirely on adverse facts available (``AFA'').\36\
---------------------------------------------------------------------------

    \36\ See, e.g., Wooden Bedroom Furniture From the People's 
Republic of China: Preliminary Results of Antidumping Duty 
Administrative Review, Preliminary Results of New Shipper Review and 
Partial Rescission of Administrative Review, 73 FR 8273, 8279 
(February 13, 2008), unchanged in Wooden Bedroom Furniture from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review and New Shipper Review, 73 FR 49162 (August 
20, 2008).
---------------------------------------------------------------------------

    As discussed above, the Department received a timely and complete 
separate rate certification from Muzi Carbon, who is an exporter of 
SDGE from the PRC during the POR and who was not selected as a 
mandatory respondent in this review. In this segment, this company has 
demonstrated its eligibility for a separate rate, as discussed above. 
Consistent with the Department's practice, as the separate rate, we 
have established a margin for Muzi Carbon based on the weighted-average 
of the rates we calculated for the mandatory respondents, the Fangda 
Group and Fushun Jinly, excluding, where appropriate, any rates that 
were zero, de minimis, or based entirely on AFA.\37\
---------------------------------------------------------------------------

    \37\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value and Partial Affirmative Determination of Critical 
Circumstances: Certain Polyester Staple Fiber from the People's 
Republic of China, 71 FR 77373, 77377 (December 26, 2006), unchanged 
in Final Determination of Sales at Less Than Fair Value and Partial 
Affirmative Determination of Critical Circumstances: Certain 
Polyester Staple Fiber from the People's Republic of China, 72 FR 
19690 (April 19, 2007).
---------------------------------------------------------------------------

The PRC-Wide Entity, PRC-Wide Rate, and Use of Adverse Facts Available

    Sections 776(a)(1) and (2) of the Act provide that the Department 
shall apply ``facts otherwise available'' if, inter alia, necessary 
information is not on the record or an interested party or any other 
person: (A) Withholds information that has been requested; (B) fails to 
provide information within the deadlines established, or in the form 
and manner requested by the Department, subject to subsections (c)(1) 
and (e) of section 782 of the Act; (C) significantly impedes a 
proceeding; or (D) provides information that cannot be verified as 
provided by section 782(i) of the Act.
    Where the Department determines that a response to a request for 
information does not comply with the request, section 782(d) of the Act 
provides that the Department will so inform the party submitting the 
response and will, to the extent practicable, provide that party the 
opportunity to remedy or explain the deficiency. If the party fails to 
remedy the deficiency within the applicable time limits, subject to 
section 782(e) of the Act, the Department may disregard all or part of 
the original and subsequent responses, as appropriate. Section 782(e) 
of the Act provides that the Department ``shall not decline to consider 
information that is submitted by an interested party and is necessary 
to the determination but does not meet all applicable requirements 
established by the administering authority'' if the information is 
timely, can be verified, is not so incomplete that it cannot serve as a 
reliable basis, and if the interested party acted to the best of its 
ability in providing the information. Where all of these conditions are 
met, the statute requires the Department to use the information if it 
can do so without undue difficulties.
    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying the facts otherwise available when 
a party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information. Section 776(b) of the 
Act also authorizes the Department to use as adverse facts available 
(``AFA'') information derived from the petition, the final 
determination, a previous administrative review, or other information 
placed on the record.
    Section 776(c) of the Act provides that, when the Department relies 
on secondary information rather than on information obtained in the 
course of an investigation or review, it shall, to the extent 
practicable, corroborate that information from independent sources that 
are reasonably at its disposal. Secondary information is defined as 
``information derived from the petition that gave rise to the 
investigation or review, the final determination concerning the subject 
merchandise, or any previous review under section 751 concerning the 
subject merchandise.'' \38\ ``Corroborate'' means that the Department 
will satisfy itself that the secondary information to be used has 
probative value.\39\ To corroborate secondary information, the 
Department will, to the extent practicable, examine the reliability and 
relevance of the information to be used. The SAA explains, however, 
that the Department need not prove that the selected facts available 
are the best alternative information.\40\
---------------------------------------------------------------------------

    \38\ See Statement of Administrative Action (``SAA'') 
accompanying the Uruguay Round Agreements Act, H. Doc. No. 316, 103d 
Cong., 2d Session at 870 (1994).
    \39\ See SAA at 870.
    \40\ See SAA at 869.
---------------------------------------------------------------------------

    For the reasons discussed below, we determine that, in accordance 
with sections 776(a)(2) and 776(b) of the Act, the use of AFA is 
warranted for the preliminary results for the PRC-wide entity, 
including Huanan Carbon,

[[Page 12332]]

Sinosteel Jilin, Jilin Carbon, and Jilin Carbon I&E.
    In the Initiation Notice, the Department stated that the named 
companies that wish to qualify for separate-rate status in this 
proceeding must complete, as appropriate, either a separate rate 
application or certification.\41\ In proceedings involving the PRC, the 
Department begins with a rebuttable presumption that all companies 
within the country are subject to government control and, thus, should 
be assigned a single antidumping duty deposit rate.\42\ It is the 
Department's policy to assign all exporters of merchandise subject to 
an administrative review in an NME country this single rate unless an 
exporter can demonstrate that it is sufficiently independent so as to 
be entitled to a separate rate.\43\ Huanan Carbon, Sinosteel Jilin, 
Jilin Carbon, and Jilin Carbon I&E did not file with the Department 
either a separate rate application or a certification, a requirement 
for qualifying for separate-rate status in this proceeding as 
stipulated in the Initiation Notice.\44\
---------------------------------------------------------------------------

    \41\ See Initiation Notice, 75 FR at 15680.
    \42\ See id.
    \43\ See id.
    \44\ See id.
---------------------------------------------------------------------------

    Because Huanan Carbon, Sinosteel Jilin, Jilin Carbon, and Jilin 
Carbon I&E did not submit any information to establish their 
eligibility for separate-rate status, we find they are deemed to be 
part of the PRC-wide entity.\45\
---------------------------------------------------------------------------

    \45\ See ``Separate Rates'' section above; see also Initiation 
Notice, 75 FR at 15680.
---------------------------------------------------------------------------

    Because we have determined that Huanan Carbon, Sinosteel Jilin, 
Jilin Carbon, and Jilin Carbon I&E are not entitled to separate rates 
and are now part of the PRC-wide entity, the PRC-wide entity (including 
Huanan Carbon, Sinosteel Jilin, Jilin Carbon, and Jilin Carbon I&E) is 
now under review. The PRC-wide entity did not respond to our requests 
for information. Because the PRC-wide entity did not respond to our 
requests for information, we find it necessary under section 776(a)(2) 
of the Act to use facts available as the basis for these preliminary 
results. Because the PRC-wide entity provided no information, we 
determine that sections 782(d) and (e) of the Act are not relevant to 
our analysis. We further find that the PRC-wide entity (including 
Huanan Carbon, Sinosteel Jilin, Jilin Carbon, and Jilin Carbon I&E) 
failed to respond to the Department's requests for information and, 
therefore, did not cooperate to the best of its ability. Therefore, 
because the PRC-wide entity did not cooperate to the best of its 
ability in the proceeding, the Department finds it necessary to use an 
adverse inference in making its determination, pursuant to section 
776(b) of the Act.

Selection of the Adverse Facts Available Rate

    In deciding which facts to use as AFA, section 776(b) of the Act 
and 19 CFR 351.308(c)(1) authorize the Department to rely on 
information derived from (1) the petition, (2) a final determination in 
the investigation, (3) any previous review or determination, or (4) any 
other information placed on the record. It is the Department's practice 
to select, as AFA, the highest calculated rate in any segment of the 
proceeding.\46\
---------------------------------------------------------------------------

    \46\ See, e.g., Certain Cased Pencils from the People's Republic 
of China; Notice of Preliminary Results of Antidumping Duty 
Administrative Review and Intent to Rescind in Part, 70 FR 76755, 
76761 (December 28, 2005), unchanged in Certain Cased Pencils from 
the People's Republic of China; Final Results and Partial Rescission 
of Antidumping Duty Administrative Review, 71 FR 38366 (July 6, 
2006).
---------------------------------------------------------------------------

    The Court of International Trade (``CIT'') and the Court of Appeals 
for the Federal Circuit (``Federal Circuit'') have consistently upheld 
the Department's practice.\47\ The Department's practice when selecting 
an adverse rate from among the possible sources of information is to 
ensure that the margin is sufficiently adverse ``as to effectuate the 
purpose of the facts available role to induce respondents to provide 
the Department with complete and accurate information in a timely 
manner.'' \48\ The Department's practice also ensures ``that the party 
does not obtain a more favorable result by failing to cooperate than if 
it had cooperated fully.'' \49\ In choosing the appropriate balance 
between providing respondents with an incentive to respond accurately 
and imposing a rate that is reasonably related to the respondents' 
prior commercial activity, selecting the highest prior margin in this 
instance ``reflects a common sense inference that the highest prior 
margin is the most probative evidence of current margins because, if it 
were not so, the importer, knowing of the rule, would have produced 
current information showing the margin to be less.'' \50\
---------------------------------------------------------------------------

    \47\ See Rhone Poulenc, Inc. v. United States, 899 F. 2d 1185, 
1190 (Fed. Cir. 1990) (upholding the Department's presumption that 
the highest margin was the best information of current margins) 
(``Rhone Poulenc''); NSK Ltd. v. United States, 346 F. Supp. 2d 
1312, 1335 (CIT 2004) (upholding a 73.55 percent total AFA rate, the 
highest available dumping margin from a different respondent in a 
less than fair value (``LTFV'') investigation); Kompass Food Trading 
International v. United States, 24 CIT 678, 683 (2000) (upholding a 
51.16 percent total AFA rate, the highest available dumping margin 
from a different, fully cooperative respondent); and Shanghai Taoen 
International Trading Co., Ltd. v. United States, 360 F. Supp. 2d 
1339, 1348 (CIT 2005) (upholding a 223.01 percent total AFA rate, 
the highest available dumping margin from a different respondent in 
a previous administrative review).
    \48\ See Notice of Final Determination of Sales at Less than 
Fair Value: Static Random Access Memory Semiconductors From Taiwan, 
63 FR 8909, 8932 (February 23, 1998).
    \49\ See SAA at 870; see also Brake Rotors From the People's 
Republic of China: Final Results and Partial Rescission of the 
Seventh Administrative Review; Final Results of the Eleventh New 
Shipper Review, 70 FR 69937, 69939 (November 18, 2005).
    \50\ See Rhone Poulenc, 899 F. 2d at 1190.
---------------------------------------------------------------------------

    Because of Huanan Carbon's, Sinosteel Jilin's, Jilin Carbon's, and 
Jilin Carbon I&E's failure to cooperate in this administrative review, 
we have preliminarily assigned the PRC-wide entity, of which they are 
deemed to be a part, an AFA rate of 159.64 percent, which is the PRC-
wide rate determined in the investigation and the rate currently 
applicable to the PRC-wide entity.\51\
---------------------------------------------------------------------------

    \51\ See SDGE Final LTFV Determination, 74 FR at 2054-55.
---------------------------------------------------------------------------

    The Department preliminarily determines that this information is 
the most appropriate from the available sources to effectuate the 
purposes of AFA. The Department's reliance on the PRC-wide rate from 
the original investigation to determine an AFA rate is subject to the 
requirement to corroborate secondary information.\52\
---------------------------------------------------------------------------

    \52\ See Section 776(c) of the Act and the ``Corroboration of 
Facts Available'' section below.
---------------------------------------------------------------------------

Corroboration of Facts Available

    Section 776(c) of the Act provides that, when the Department relies 
on secondary information rather than on information obtained in the 
course of an investigation or review, it shall to the extent 
practicable, corroborate that information from independent sources that 
are reasonably at the Department's disposal. Secondary information is 
described in the SAA as ``information derived from the petition that 
gave rise to the investigation or review, the final determination 
concerning the subject merchandise, or any previous review under 
section 751 concerning the subject merchandise.'' \53\ The SAA explains 
that ``corroborate'' means to determine that the information used has 
probative value. The Department has determined that to have probative 
value, information must be reliable and relevant.\54\ The SAA also 
explains that

[[Page 12333]]

independent sources used to corroborate such evidence may include, for 
example, published price lists, official import statistics and customs 
data, and information obtained from interested parties during the 
particular investigation.\55\
---------------------------------------------------------------------------

    \53\ See SAA at 870.
    \54\ See Tapered Roller Bearings and Parts Thereof, Finished and 
Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or 
Less in Outside Diameter, and Components Thereof, From Japan; 
Preliminary Results of Antidumping Duty Administrative Reviews and 
Partial Termination of Administrative Reviews, 61 FR 57391, 57392 
(November 6, 1996), unchanged in Tapered Roller Bearings and Parts 
Thereof, Finished and Unfinished, From Japan, and Tapered Roller 
Bearings, Four Inches or Less in Outside Diameter, and Components 
Thereof, From Japan; Final Results of Antidumping Duty 
Administrative Reviews and Termination in Part, 62 FR 11825 (March 
13, 1997).
    \55\ See SAA at 870; see also Notice of Final Determination of 
Sales at Less Than Fair Value: Live Swine From Canada, 70 FR 12181, 
12183 (March 11, 2005).
---------------------------------------------------------------------------

    As stated above, we are applying as AFA the highest rate from any 
segment of this administrative proceeding, which is the PRC-wide rate 
of 159.64 percent. The 159.64 percent is the highest rate on the record 
of any segment of this antidumping duty order. In the investigation, 
the Department relied upon our pre-initiation analysis of the adequacy 
and accuracy of the information in the Petition.\56\ During our pre-
initiation analysis, we examined the information used as the basis of 
EP and NV in the Petition, and the calculations used to derive the 
alleged margins. Also, during our pre-initiation analysis, we examined 
information from various independent sources provided either in the 
Petition or, based on our requests, in supplements to the Petition, 
which corroborated key elements of the export price and NV 
calculations.\57\ Since the investigation, the Department has found no 
other corroborating information available in this case, and received no 
comments from interested parties as to the relevance or reliability of 
this secondary information. Based upon the above, for these preliminary 
results, the Department finds that the rates derived from the Petition 
are corroborated to the extent practicable for purposes of the AFA rate 
assigned to the PRC-wide entity, including Huanan Carbon, Sinosteel 
Jilin, Jilin Carbon, and Jilin Carbon I&E.
---------------------------------------------------------------------------

    \56\ See Small Diameter Graphite Electrodes from the People's 
Republic of China: Initiation of Antidumping Duty Investigation, 73 
FR 8287 (February 13, 2008) (``SDGE Investigation Initiation''); see 
also Notice of Final Determination of Sales at Less Than Fair Value 
and Affirmative Final Determination of Critical Circumstances: 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China, 73 FR 31970, 31972 (June 5, 2008) (where the Department 
relied upon pre-initiation analysis to corroborate the highest 
margin alleged in the petition).
    \57\ See SDGE Investigation Initiation, 73 FR at 8288-8290.
---------------------------------------------------------------------------

    Because these are the preliminary results of review, the Department 
will consider all margins on the record at the time of the final 
results of review for the purpose of determining the most appropriate 
final margin for the PRC-wide entity.\58\
---------------------------------------------------------------------------

    \58\ See Notice of Preliminary Determination of Sales at Less 
Than Fair Value: Solid Fertilizer Grade Ammonium Nitrate From the 
Russian Federation, 65 FR 1139, 1141 (January 7, 2000), unchanged in 
Notice of Final Determination of Sales at Less Than Fair Value: 
Solid Fertilizer Grade Ammonium Nitrate From the Russian Federation, 
65 FR 42669 (July 11, 2000).
---------------------------------------------------------------------------

Fair-Value Comparisons

    To determine whether the Fangda Group's and Fushun Jinly's sales of 
subject merchandise were made at less than NV, we compared the NV to 
individual EP transactions in accordance with section 777A(d)(2) of the 
Act. See ``Export Price'' and ``Normal Value'' sections of this notice, 
below.

Export Price

    In accordance with section 772(a) of the Act, EP is ``the price at 
which subject merchandise is first sold (or agreed to be sold) before 
the date of importation by the producer or exporter of the subject 
merchandise outside of the United States to an unaffiliated purchaser 
in the United States or to an unaffiliated purchaser for exportation to 
the United States,'' as adjusted under section 772(c) of the Act. For 
each respondent, we used EP methodology, in accordance with section 
772(a) of the Act, for sales in which the subject merchandise was first 
sold prior to importation by the exporter outside the United States 
directly to an unaffiliated purchaser in the United States and for 
sales in which constructed export price was not otherwise indicated.
    We based EP on the price to unaffiliated purchasers in the United 
States. In accordance with section 772(c)(2)(A) of the Act, where 
appropriate, we made deductions from the starting price (gross unit 
price) for foreign inland freight and foreign brokerage and handling. 
We valued brokerage and handling using a price list of export 
procedures necessary to export a standardized cargo of goods in India. 
The price list is compiled based on a survey case study of the 
procedural requirements for trading a standard shipment of goods by 
ocean transport in India as reported in ``Doing Business 2010: India'' 
published by the World Bank.\59\
---------------------------------------------------------------------------

    \59\ See Factor Valuation Memorandum.
---------------------------------------------------------------------------

Normal Value

    We compared NV to individual EP transactions in accordance with 
section 777A(d)(2) of the Act, as appropriate. Section 773(c)(1) of the 
Act provides that the Department shall determine NV using an FOP 
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. When determining NV in an NME context, the 
Department will base NV on FOPs because the presence of government 
controls on various aspects of these economies renders price 
comparisons and the calculation of production costs invalid under our 
normal methodologies. Under section 773(c)(3) of the Act, FOPs 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 costs. The Department used 
FOPs reported by the respondents for materials, energy, labor, packing 
and by-products.

Factor Valuations

    In accordance with section 773(c) of the Act, we calculated NV 
based on FOPs reported by respondents for the POR. In accordance with 
19 CFR 351.408(c)(1), the Department will normally use publicly 
available information to find an appropriate surrogate value (``SV'') 
to value FOPs, but when a producer sources an input from a market 
economy and pays for it in market economy currency, the Department 
normally will value the factor using the actual price paid for the 
input if the quantities were meaningful and where the prices have not 
been distorted by dumping or subsidies.\60\ To calculate NV, we 
multiplied the reported per-unit factor-consumption rates by publicly 
available SVs (except as discussed below). In selecting SVs, we 
considered the quality, specificity, and contemporaneity of the 
data.\61\ As appropriate, we adjusted input prices by including freight 
costs to make them delivered prices. Specifically, we added to import 
SVs surrogate freight cost using the shorter of the reported distance 
from the domestic supplier to the factory or the distance from the 
nearest seaport to the factory, where appropriate. This adjustment is 
in

[[Page 12334]]

accordance with the Court of Appeals for the Federal Circuit's decision 
in Sigma Corp. v. United States, 117 F.3d 1401, 1407-08 (Fed. Cir. 
1997).
---------------------------------------------------------------------------

    \60\ See 19 CFR 351.408(c)(1); see also Shakeproof Assembly 
Components Div of Ill Tool Works v. United States, 268 F. 3d 1376, 
1382-1383 (Fed. Cir. 2001) (affirming the Department's use of 
market-based prices to value certain FOPs).
    \61\ See, e.g., Fresh Garlic From the People's Republic of 
China: Final Results of Antidumping Duty New Shipper Review, 67 FR 
72139 (December 4, 2002), and accompanying Issues and Decision 
Memorandum at Comment 6; and Final Results of First New Shipper 
Review and First Antidumping Duty Administrative Review: Certain 
Preserved Mushrooms From the People's Republic of China, 66 FR 31204 
(June 11, 2001), and accompanying Issues and Decision Memorandum at 
Comment 5.
---------------------------------------------------------------------------

    On September 29, 2010, the Department invited all interested 
parties to submit publicly available information to value FOPs for 
consideration in the Department's preliminary results of review.\62\ On 
October 28, 2010, Petitioners, the Fangda Group, and Fushun Jinly each 
submitted publicly available information to value FOPs for the 
preliminary results and each submitted rebuttal comments on November 8, 
2010. A detailed description of all SVs used for the Fangda Group and 
Fushun Jinly can be found in the Factor Valuation Memorandum.
---------------------------------------------------------------------------

    \62\ See Surrogate Countries Memorandum.
---------------------------------------------------------------------------

    For the preliminary results, in accordance with the Department's 
practice, except where noted below, we used data from the Indian import 
Statistics in the Global Trade Atlas (``GTA'') and other publicly 
available Indian sources in order to calculate SVs for the Fangda 
Group's and Fushun Jinly's FOPs (i.e., direct materials, energy, and 
packing materials) and certain movement expenses. In selecting the best 
available information for valuing FOPs in accordance with section 
773(c)(1) of the Act, the Department's practice is to select, to the 
extent practicable, SVs which are non-export average values, most 
contemporaneous with the POR, product-specific, and tax-exclusive.\63\ 
The record shows that data in the Indian Import Statistics, as well as 
those from the other Indian sources, are contemporaneous with the POI, 
product-specific, and tax-exclusive.\64\ In those instances where we 
could not obtain publicly available information contemporaneous to the 
POR with which to value factors, we adjusted the SVs using, where 
appropriate, the Indian Wholesale Price Index (``WPI'') as published in 
the IMF's International Financial Statistics.\65\
---------------------------------------------------------------------------

    \63\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Negative Preliminary Determination of Critical 
Circumstances and Postponement of Final Determination: Certain 
Frozen and Canned Warmwater Shrimp From the Socialist Republic of 
Vietnam, 69 FR 42672, 42682 (July 16, 2004), unchanged in Final 
Determination of Sales at Less Than Fair Value: Certain Frozen and 
Canned Warmwater Shrimp from the Socialist Republic of Vietnam, 69 
FR 71005 (December 8, 2004).
    \64\ See Factor Valuation Memorandum.
    \65\ See, e.g., Certain Kitchen Appliance Shelving and Racks 
From the People's Republic of China: Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final 
Determination, 74 FR 9591, 9600 (March 5, 2009) (``Kitchen Racks 
Prelim''), unchanged in Certain Kitchen Appliance Shelving and Racks 
From the People's Republic of China: Final Determination of Sales at 
Less than Fair Value, 74 FR 36656 (July 24, 2009) (``Kitchen Racks 
Final'').
---------------------------------------------------------------------------

    As explained in the legislative history of the Omnibus Trade and 
Competitiveness Act of 1988, the Department continues to apply its 
long-standing practice of disregarding SVs if it has a reason to 
believe or suspect the source data may be subsidized.\66\ In this 
regard, the Department has previously found that it is appropriate to 
disregard such prices from India, Indonesia, South Korea and Thailand 
because we have determined that these countries maintain broadly 
available, non-industry specific export subsidies.\67\ Based on the 
existence of these subsidy programs that were generally available to 
all exporters and producers in these countries at the time of the POR, 
the Department finds that it is reasonable to infer that all exporters 
from India, Indonesia, South Korea and Thailand may have benefitted 
from these subsidies. Additionally, we disregarded prices from NME 
countries.\68\ Finally, imports that were labeled as originating from 
an ``unspecified'' country were excluded from the average value, 
because the Department could not be certain that they were not from 
either an NME country or a country with generally available export 
subsidies.\69\
---------------------------------------------------------------------------

    \66\ Omnibus Trade and Competitiveness Act of 1988, Conf. Report 
to Accompany H.R. 3, H.R. Rep. No. 576, 100th Cong., 2nd Sess. 
(1988) (``OTCA 1988'') at 590, reprinted in 1988 U.S.C.C.A.N. 1547, 
1623-24.
    \67\ See, e.g., Expedited Sunset Review of the Countervailing 
Duty Order on Carbazole Violet Pigment 23 from India, 75 FR 13257 
(March 19, 2010), and accompanying Issues and Decision Memorandum at 
4-5; Expedited Sunset Review of the Countervailing Duty Order on 
Certain Cut-to-Length Carbon Quality Steel Plate from Indonesia, 70 
FR 45692 (August 8, 2005), and accompanying Issues and Decision 
Memorandum at 4; Corrosion-Resistant Carbon Steel Flat Products from 
the Republic of Korea: Final Results of Countervailing Duty 
Administrative Review, 74 FR 2512 (January 15, 2009), and 
accompanying Issues and Decision Memorandum at 17, 19-20; Final 
Results of Countervailing Duty Determination: Certain Hot-Rolled 
Carbon Steel Flat Products from Thailand, 66 FR 50410 (October 3, 
2001), and accompanying Issues and Decision Memorandum at 23.
    \68\ See, e.g., Kitchen Racks Prelim, 74 FR at 9600, unchanged 
in Kitchen Racks Final.
    \69\ See id.
---------------------------------------------------------------------------

    The Fangda Group and Fushun Jinly claim that certain of their 
reported raw material inputs were sourced from an ME country and paid 
for in ME currencies. When a respondent sources inputs from an ME 
supplier in meaningful quantities, we use the actual price paid by 
respondent for those inputs, except when prices may have been distorted 
by dumping or subsidies.\70\ Where we found ME purchases to be of 
significant quantities (i.e., 33 percent or more), in accordance with 
our statement of policy as outlined in Antidumping Methodologies: 
Market Economy Inputs,\71\ we used the actual purchases of these inputs 
to value the inputs.
---------------------------------------------------------------------------

    \70\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27366 (May 19, 1997).
    \71\ See Antidumping Methodologies: Market Economy Inputs, 
Expected Non-Market Economy Wages, Duty Drawback; and Request for 
Comments, 71 FR 61716, 61717 (October 19, 2006) (``Antidumping 
Methodologies: Market Economy Inputs'').
---------------------------------------------------------------------------

    Accordingly, we valued certain of respondents' inputs using the ME 
prices paid for in ME currencies for the inputs where the total volume 
of the input purchased from all ME sources during the POR exceeds or is 
equal to 33 percent of the total volume of the input purchased from all 
sources during the period. Where the quantity of the reported input 
purchased from ME suppliers was below 33 percent of the total volume of 
the input purchased from all sources during the POR, and were otherwise 
valid, we weight-averaged the ME input's purchase price with the 
appropriate surrogate value for the input according to their respective 
shares of the reported total volume of purchases.\72\ Where 
appropriate, we added freight to the ME prices of inputs. For a 
detailed description of the actual values used for the ME inputs 
reported, see the Fangda Group's and Fushun Jinly's analysis memoranda, 
dated concurrently with this notice.
---------------------------------------------------------------------------

    \72\ See Antidumping Methodologies: Market Economy Inputs, 71 FR 
at 61718.
---------------------------------------------------------------------------

    We valued truck freight expenses using a per-unit average rate 
calculated from data on the infobanc Web site: http://www.infobanc.com/logistics/logtruck.htm. The logistics section of this Web site contains 
inland freight truck rates between many large Indian cities.\73\ We 
valued rail freight using freight rate information from the publicly 
accessible Indian Ministry of Railways Web site http://www.Indianrailways.gov.in/ to derive, where appropriate, input-specific 
train rates on a rupees-per-kilogram per-kilometer basis (``Rs/kg/
km''). These rates are contemporaneous with the POR. We valued inland 
water freight using price data for barge freight reported in a March 
19, 2007, article published in The Hindu Business Line.\74\ Since the 
inland water transportation rates are not contemporaneous with the POR, 
we

[[Page 12335]]

inflated the rates using the Indian WPI inflator.
---------------------------------------------------------------------------

    \73\ See Factor Valuation Memorandum.
    \74\ See id.
---------------------------------------------------------------------------

    We valued electricity using the updated electricity price data for 
small, medium, and large industries, as published by the Central 
Electricity Authority, an administrative body of the Government of 
India, in its publication titled ``Electricity Tariff & Duty and 
Average Rates of Electricity Supply in India,'' dated March 2008. These 
electricity rates represent actual country-wide, publicly-available 
information on tax-exclusive electricity rates charged to small, 
medium, and large industries in India.\75\ Because the rates listed in 
this source became effective on a variety of different dates, we are 
not adjusting the average value for inflation. In other words, the 
Department did not inflate this value to the POR because the utility 
rates represent current rates, as indicated by the effective date 
listed for each of the rates provided.\76\
---------------------------------------------------------------------------

    \75\ See id.
    \76\ See, e.g., Wire Decking from the People's Republic of 
China: Final Determination of Sales at Less Than Fair Value, 75 FR 
32905 (June 10, 2010), and accompanying Issues and Decision 
Memorandum at Comment 3.
---------------------------------------------------------------------------

    We valued steam coal using data obtained for grade C long flame and 
non-long flame non-coking coal reported on the 2007 Coal India Data 
website (``Coal India'').\77\
---------------------------------------------------------------------------

    \77\ See Factor Valuation Memorandum.
---------------------------------------------------------------------------

    We valued water using the revised Maharashtra Industrial 
Development Corporation water rates available at http://www.midcindia.com/water-supply.\78\
---------------------------------------------------------------------------

    \78\ See id.
---------------------------------------------------------------------------

    On May 14, 2010, the Federal Circuit in Dorbest Ltd. v. United 
States, 604 F.3d 1363, 1372 (Fed. Cir. 2010), found that the 
``{regression-based{time}  method for calculating wage rates {as 
stipulated by 19 CFR 351.408(c)(3){time}  uses data not permitted by 
{the statutory requirements laid out in section 773 of the Act (i.e., 
19 U.S.C. 1677b(c)){time} .'' The Department is continuing to evaluate 
options for determining labor values in light of the recent CAFC 
decision. However, for these preliminary results, we have calculated an 
hourly wage rate to use in valuing respondents' reported labor input by 
averaging industry-specific earnings and/or wages in countries that are 
economically comparable to the PRC and that are significant producers 
of comparable merchandise.
    For the preliminary results of this administrative review, the 
Department is valuing labor using a simple average industry-specific 
wage rate using earnings and/or wage data reported under Chapter 5B by 
the International Labor Organization (``ILO''). To achieve an industry-
specific labor value, we relied on industry-specific labor data from 
the countries we determined to be both economically comparable to the 
PRC and significant producers of comparable merchandise. A full 
description of the industry-specific wage rate calculation methodology 
is provided in the Factor Valuation Memorandum. The Department 
calculated a simple average industry-specific wage rate of $1.47 for 
these preliminary results. Specifically, for this review, the 
Department has calculated the wage rate using a simple average of the 
data provided to the ILO under Sub-Classification 31 of the ISIC-
Revision 3 standard by countries determined to be both economically 
comparable to the PRC and significant producers of comparable 
merchandise. The Department finds the two-digit description under ISIC-
Revision 3 (``Manufacture of Electrical Machinery and Apparatus NEC'') 
to be the best available wage rate surrogate value on the record 
because it is specific and derived from industries that produce 
merchandise comparable to the subject merchandise. Consequently, we 
averaged the ILO industry-specific wage rate data or earnings data 
available from the following countries found to be economically 
comparable to the PRC and are significant producers of comparable 
merchandise: Ecuador, Egypt, Indonesia, Jordan, Peru, the Philippines, 
Thailand, and the Ukraine.\79\ For further information on the 
calculation of the wage rate, see Factor Valuation Memorandum.
---------------------------------------------------------------------------

    \79\ Because India (the primary surrogate country) did not 
report wage data in ISIC-Revision 3, which was relied upon for 
industry-specific wage rates in these preliminary results, it is not 
among the countries that the Department considered for inclusion in 
the average.
---------------------------------------------------------------------------

    To value factory overhead, selling, general and administrative 
expenses and profit, the Department used the average of the ratios 
derived from the financial statements of two Indian producers: Graphite 
India Limited and HEG Limited (for the year ending on March 31, 
2010).\80\
---------------------------------------------------------------------------

    \80\ See id.
---------------------------------------------------------------------------

    The Fangda Group and Fushun Jinly reported that they have recovered 
by-products in their production of subject merchandise and successfully 
demonstrated that all of them have commercial value, therefore, we have 
granted a by-product offset for the quantities of each respondent's 
reported by-products, valued using Indian GTA data.\81\
---------------------------------------------------------------------------

    \81\ See id.
---------------------------------------------------------------------------

Use of Facts Available and Adverse Facts Available

    Section 776(b) of the Act further provides that the Department may 
use an adverse inference in applying the facts otherwise available when 
a party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information. Section 776(b) of the 
Act also authorizes the Department to use as AFA information derived 
from the petition, the final determination, a previous administrative 
review, or other information placed on the record.

Fangda Group

    At verification, we were unable to verify the supplier distances 
for a significant percentage of Fushun Carbon's suppliers. As a result, 
pursuant to section 776(a)(2)(A), (B), and (D) of the Act, we find that 
the use of facts available (``FA'') is appropriate to determine Fushun 
Carbon's supplier distances, as discussed below.
    Fushun Carbon at verification initially provided four maps from the 
Chinese internet search engine ``Baidu maps'' as support for its 
reported suppliers distance (i.e., the distance from each supplier's 
location to Fushun Carbon's factory during the POR). In our review of 
these maps, we found that the Baidu map distances differed from the 
reported distance for these suppliers. For the preliminary results, as 
partial facts available, pursuant to section 776(a) of the Act, for 
those supplier distances where we verified that the distance Fushun 
Carbon reported in its FOP database differed from the Baidu maps 
presented to us at verification, we have applied FA and set Fushun 
Carbon's distance for these suppliers equal to the distances found at 
verification.\82\
---------------------------------------------------------------------------

    \82\ See Fangda Group's Verification Report; see also the Fangda 
Group's Preliminary Analysis Memo.
---------------------------------------------------------------------------

    In addition, we requested that Fushun Carbon provide maps from the 
same source for the remaining suppliers. However, Fushun Carbon was 
unable to provide the requested maps during the remaining time at 
verification. We were, therefore, unable to verify the supplier 
distance for a significant percent of Fushun Carbon's suppliers, and 
for the preliminary results, we determine that Fushun Carbon did not 
cooperate to the best of its ability by not providing the supporting 
documentation needed to verify its reported supplier distances.\83\ 
Accordingly, an adverse inference in using facts available under 
section 776(b) of the Act is warranted for

[[Page 12336]]

Fushun Carbon with regard to this specific information. As partial 
adverse facts available, pursuant to section 776(a) and 776(b) of the 
Act, for those suppliers where we were not presented with Baidu maps at 
verification, we have set Fushun Carbon's distance for these suppliers 
equal to the reported supplier distance plus a percent adjustment equal 
to the highest percent difference found at verification. Because of the 
business proprietary nature of this information, please see the Fangda 
Group's Verification Report and the Fangda Group's Preliminary Analysis 
Memo.
---------------------------------------------------------------------------

    \83\ See Fangda Group's Verification Report.
---------------------------------------------------------------------------

Fushun Jinly

    We provided Fushun Jinly with two opportunities during the 
administrative review to accurately report its tollers' consumption 
data.\84\ However, Fushun Jinly did not report these data for one of 
its tollers and did not adequately explain why there were missing 
consumption data with respect to that toller.\85\ As a result, we find 
pursuant to section 776(a)(A) and (B) of the Act that use of partial FA 
is appropriate to determine the consumption data with respect to this 
particular toller. We further find that Fushan Jinly did not cooperate 
to the best of its ability in responding to the Department's requests 
for information. Therefore, pursuant to section 776(a) and 776(b) of 
the Act, because Fushun Jinly did not cooperate to the best of its 
ability in responding to the Department's requests for information, we 
are applying partial adverse facts available to the missing consumption 
data for this particular toller. As partial adverse facts available, we 
are applying the highest monthly material input consumption of this 
toller to the relevant missing consumption data. See Fushun Jinly's 
analysis memo for further discussion.
---------------------------------------------------------------------------

    \84\ See the Department's Initial Questionnaire, dated May 26, 
2010, at section D.I.D ``Reporting Requirements;'' the Department's 
Collective A, C, and D Supplemental Questionnaire, dated November 
18, 2010, at 8.
    \85\ See Fushun Jinly's fourth supplemental questionnaire 
response, dated December 10, 2010, at 15.
---------------------------------------------------------------------------

    Additionally, Fushun Jinly confirmed that one of its tollers' 
consumption of electricity was understated because of the toller's 
affiliation with an electric company.\86\ As a result, as partial facts 
available, pursuant to section 776(a) of the Act, the Department for 
the preliminary results has used the electricity usage of the toller we 
verified (which provides the same tolling services) in lieu of the 
other toller's understated electricity consumption data. Due to the 
proprietary nature of this discussion, see Fushun Jinly's Preliminary 
Analysis Memo for further discussion.
---------------------------------------------------------------------------

    \86\ See id.
---------------------------------------------------------------------------

Currency Conversion

    Where appropriate, we made currency conversions into U.S. dollars, 
in accordance with section 773A(a) of the Act, based on the exchange 
rates in effect on the dates of the U.S. sales as certified by the 
Federal Reserve Bank.

Preliminary Results of Review

    The Department has determined that the following preliminary 
dumping margins exist for the period August 21, 2008, through January 
31, 2010:

------------------------------------------------------------------------
                                                       Weighted-average
           Individually reviewed exporters              percent margin
------------------------------------------------------------------------
                            SDGE from the PRC
------------------------------------------------------------------------
Beijing Fangda Carbon Tech Co., Ltd., Fangda Carbon                60.16
 New Material Co., Ltd., Fushun Carbon Co., Ltd.,
 Hefei Carbon Co., Ltd., (collectively, The Fangda
 Group).
Fushun Jinly Petrochemical Carbon Co., Ltd..........               64.38
------------------------------------------------------------------------
                            SDGE from the PRC
------------------------------------------------------------------------
Non-reviewed exporters                                  Weighted-average
                                                          percent margin
------------------------------------------------------------------------
Xinghe Country Muzi Carbon Co., Ltd.................               61.78
------------------------------------------------------------------------
PRC-wide rate                                             Percent margin
------------------------------------------------------------------------
PRC-wide Entity*....................................              159.64
------------------------------------------------------------------------
* This includes Huanan Carbon, Sinosteel Jilin, Jilin Carbon, and Jilin
  Carbon I&E.

Disclosure and Public Comment

    The Department will disclose calculations performed for these 
preliminary results to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
Interested parties may submit written comments no later than 30 days 
after the date of publication of these preliminary results of 
review.\87\ Rebuttals to written comments may be filed no later than 
five days after the written comments are filed.\88\ Further, parties 
submitting written comments and rebuttal comments are requested to 
provide the Department with an additional copy of those comments on a 
CD.
---------------------------------------------------------------------------

    \87\ See 19 CFR 351.309(c).
    \88\ See 19 CFR 351.309(d).
---------------------------------------------------------------------------

    Any interested party may request a hearing within 30 days of 
publication of this notice.\89\ Hearing requests should contain the 
following information: (1) The party's name, address, and telephone 
number; (2) the number of participants; and (3) a list of the issues to 
be discussed. Oral presentations will be limited to issues raised in 
the briefs. If a request for a hearing is made, parties will be 
notified of the time and date for the hearing to be held at the U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230.\90\
---------------------------------------------------------------------------

    \89\ See 19 CFR 351.310(c).
    \90\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------

    The Department will issue the 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, pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    The Department will determine, and CBP shall assess, antidumping 
duties on all appropriate entries of subject merchandise in accordance 
with the final results of this review. The

[[Page 12337]]

Department intends to issue assessment instructions to CBP 15 days 
after the publication date of the final results of these reviews. For 
assessment purposes, we calculated exporter/importer- (or customer) 
specific assessment rates for merchandise subject to this review.\91\ 
Where appropriate, we calculated an ad valorem rate for each importer 
(or customer) by dividing the total dumping margins for reviewed sales 
to that party by the total entered values associated with those 
transactions. For duty-assessment rates calculated on this basis, we 
will direct CBP to assess the resulting ad valorem rate against the 
entered customs values for the subject merchandise. Where appropriate, 
we calculated a per-unit rate for each importer (or customer) by 
dividing the total dumping margins for reviewed sales to that party by 
the total sales quantity associated with those transactions. For duty-
assessment rates calculated on this basis, we will direct CBP to assess 
the resulting per-unit rate against the entered quantity of the subject 
merchandise. Where an importer- (or customer) specific assessment rate 
is de minimis (i.e., less than 0.50 percent), the Department will 
instruct CBP to assess that importer (or customer's) entries of subject 
merchandise without regard to antidumping duties. We intend to instruct 
CBP to liquidate entries containing subject merchandise exported by the 
PRC-wide entity at the PRC-wide rate we determine in the final results 
of this review.
---------------------------------------------------------------------------

    \91\ See 19 CFR. 351.212(b)(1).
---------------------------------------------------------------------------

    For Muzi Carbon, a company receiving a separate rate that was not 
selected for individual review, we will calculate an assessment rate 
based on the weighted average of the cash deposit rates calculated for 
the companies selected for individual review consistent with section 
735(c)(5)(B) of the Act. Where the weighted average ad valorem rate is 
zero or de minimis, we will instruct CBP to liquidate appropriate 
entries without regard to antidumping duties. See 19 CFR 351.106(c)(2).

Cash-Deposit Requirements

    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 from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided by section 751(a)(2)(C) of the Act: (1) For the Fangda Group, 
Fushun Jinly, and Muzi Carbon the cash deposit rate will be their 
respective rates established in the final results of this review, 
except if the rate is zero or de minimis no cash deposit will be 
required; (2) for previously investigated or reviewed PRC and non-PRC 
exporters not listed above that have separate rates, the cash deposit 
rate will continue to be the exporter-specific rate published for the 
most recent period; (3) for all PRC exporters of subject merchandise 
which have not been found to be entitled to a separate rate, the cash 
deposit rate will be the PRC-wide rate of 159.64 percent; and (4) for 
all non-PRC exporters of subject merchandise which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the PRC exporters that supplied that non-PRC exporter. These deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Notification of Interested Parties

    This notice also serves as a preliminary reminder to importers of 
their responsibility under section 351.402(f) of the Department's 
regulations 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 administrative review and this notice are in accordance with 
sections 751(a)(1) and 777(i) of the Act, and sections 351.213 and 
351.221(b)(4) of the Department's regulations.

    Dated: February 28, 2011.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-5119 Filed 3-4-11; 8:45 am]
BILLING CODE 3510-DS-P