[Federal Register Volume 74, Number 184 (Thursday, September 24, 2009)]
[Notices]
[Pages 48723-48724]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23116]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

A-570-904


Certain Activated Carbon from the People's Republic of China: 
Notice of Rescission of Changed Circumstances Review

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

EFFECTIVE DATE: September 24, 2009.
SUMMARY: On April 30, 2009, the Department of Commerce (``Department'') 
published a notice of initiation of changed circumstance review 
(``CCR'') of the antidumping duty order on certain activated carbon 
from the People's Republic of China (``PRC''). See Certain Activated 
Carbon From the People's Republic of China: Notice of Initiation of 
Changed Circumstances Review, 74 FR 19934 (April 30, 2009) 
(``Initiation''). The Department is now rescinding this CCR because 
Hebei Foreign Trade and Advertising Corporation (``Hebei Foreign'') 
because the factual information upon which the Department relied in the 
initiation of this change circumstances review was later found to be 
false, and we find there was not a change in circumstances to warrant 
this review.

FOR FURTHER INFORMATION CONTACT: Katie Marksberry, AD/CVD Operations, 
Office 9, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue, NW, Washington, 
DC 20230; telephone: 202-482-7906.

SUPPLEMENTARY INFORMATION:

Background

    On February 24, 2009, the Department received a request from Hebei 
Foreign\1\ for an expedited CCR to find that Hebei Foreign has been 
succeeded by Hebei Shenglun, and therefore Hebei Shenglun should 
receive the separate rate assigned to Hebei Foreign in the case of 
certain activated carbon from the PRC.\2\ On March 4, 2009, the 
Department received comments from Petitioners in opposition to the CCR, 
stating that Hebei Foreign's February 24, 2009, request for a CCR is 
nearly identical to the November 7, 2008, request, which the Department 
denied.\3\
---------------------------------------------------------------------------

    \1\ The Department received a similar CCR request from Hebei 
Foreign on November 7, 2008, and denied the request because the 
Department found that changed circumstances sufficient to warrant a 
review did not exist. See Letter from Hebei Foreign, to the 
Department, regarding Certain Activated Carbon from the People's 
Republic of China; Request for Changed Circumstances Review 
(November 7, 2008); see also Letter from the Department to Hebei 
Foreign, regarding Changed Circumstance Review: Certain Activated 
Carbon from the People's Republic of China (``PRC'') (December 8, 
2008).
    \2\ See Letter from Hebei Foreign, to the Department, regarding 
Certain Activated Carbon from the People's Republic of China; 
Request for Changed Circumstances Review (February 24, 2009) 
(``Hebei Foreign's CCR Request'').
    \3\ See Letter from Petitioners to the Department, regarding 
Certain Activated Carbon from the People's Republic of China (March 
4, 2009).
---------------------------------------------------------------------------

    On April 30, 2009, the Department published a notice of initiation 
of CCR of the antidumping duty order on certain activated carbon from 
the People's Republic of China. See Initiation. However, the Department 
found that Hebei Foreign did not provide complete supporting 
documentation or conclusive evidence that would allow the Department to 
expedite the CCR by combining the preliminary results of review with 
the notice of initiation as provided for in 19 CFR 351.221(c)(3)(ii). 
See Initiation.
    On June 12, 2009, the Department issued a supplemental 
questionnaire to Hebei Foreign, and on July 6, 2009, Hebei Foreign 
submitted its response.\4\ On July 9, 2009, the Department received 
comments from Petitioner\5\ concerning Hebei Foreign's supplemental 
questionnaire response. Petitioners argue that Hebei Foreign's 
supplemental response demonstrates that there is no basis for 
continuing with a changed circumstances proceeding, and additionally 
that the Department should revoke Hebei Foreign's separate rate based 
on Hebei Foreign's alleged intentional misrepresentation of its 
operations and management.\6\ Petitioners specifically reference 
statements submitted by Hebei Foreign that reveal that the managers 
listed in Hebei Foreign's response are not

[[Page 48724]]

employees of Hebei Foreign, and that Wang Kezheng, who certified the 
responses, is not employed by Hebei Foreign. Additionally, Petitioners 
express concerns that Hebei Foreign is being used by Weng Kezheng and 
his business partner, Jiang Hua, as a ``front company'' to export 
subject merchandise to the United States under Hebei Foreign's separate 
rate.\7\
---------------------------------------------------------------------------

    \4\ See Letter from the Department to Hebei Foreign, regarding 
Changed Circumstance Review: Certain Activated Carbon from the 
People's Republic of China (``PRC'') (June 12, 2009); also see 
Letter from Hebei Foreign to the Department, regarding Certain 
Activated Carbon from the People's Republic of China; Supplemental 
Response of Hebei Foreign Trade and Advertising Corp. (July 6, 2009) 
(``Hebei Foreign's Supplemental Questionnaire Response'').
    \5\ Petitioners in this case are Calgon Carbon Corporation and 
Norit Americas Inc. (collectively, ``Petitioners'').
    \6\ See Letter from Petitioners to the Department, regarding 
Certain Activated Carbon from the People's Republic of China (July 
9, 2009).
    \7\ See id.
---------------------------------------------------------------------------

Scope of Changed Circumstances Review

    The merchandise subject to this order is certain activated carbon. 
Certain activated carbon is a powdered, granular, or pelletized carbon 
product obtained by ``activating'' with heat and steam various 
materials containing carbon, including but not limited to coal 
(including bituminous, lignite, and anthracite), wood, coconut shells, 
olive stones, and peat. The thermal and steam treatments remove organic 
materials and create an internal pore structure in the carbon material. 
The producer can also use carbon dioxide gas (CO[bdi2]) in place of 
steam in this process. The vast majority of the internal porosity 
developed during the high temperature steam (or CO[bdi2] gas) activated 
process is a direct result of oxidation of a portion of the solid 
carbon atoms in the raw material, converting them into a gaseous form 
of carbon.
    The scope of this order covers all forms of activated carbon that 
are activated by steam or CO[bdi2], regardless of the raw material, 
grade, mixture, additives, further washing or post-activation chemical 
treatment (chemical or water washing, chemical impregnation or other 
treatment), or product form. Unless specifically excluded, the scope of 
this order covers all physical forms of certain activated carbon, 
including powdered activated carbon (``PAC''), granular activated 
carbon (``GAC''), and pelletized activated carbon.
    Excluded from the scope of the order are chemically activated 
carbons. The carbon-based raw material used in the chemical activation 
process is treated with a strong chemical agent, including but not 
limited to phosphoric acid, zinc chloride sulfuric acid or potassium 
hydroxide, that dehydrates molecules in the raw material, and results 
in the formation of water that is removed from the raw material by 
moderate heat treatment. The activated carbon created by chemical 
activation has internal porosity developed primarily due to the action 
of the chemical dehydration agent. Chemically activated carbons are 
typically used to activate raw materials with a lignocellulosic 
component such as cellulose, including wood, sawdust, paper mill waste 
and peat.
    To the extent that an imported activated carbon product is a blend 
of steam and chemically activated carbons, products containing 50 
percent or more steam (or CO[bdi2] gas) activated carbons are within 
this scope, and those containing more than 50 percent chemically 
activated carbons are outside this scope. This exclusion language 
regarding blended material applies only to mixtures of steam and 
chemically activated carbons.
    Also excluded from the scope are reactivated carbons. Reactivated 
carbons are previously used activated carbons that have had adsorbed 
materials removed from their pore structure after use through the 
application of heat, steam and/or chemicals.
    Also excluded from the scope is activated carbon cloth. Activated 
carbon cloth is a woven textile fabric made of or containing activated 
carbon fibers. It is used in masks and filters and clothing of various 
types where a woven format is required.
    Any activated carbon meeting the physical description of subject 
merchandise provided above that is not expressly excluded from the 
scope is included within this scope. The products subject to the order 
are currently classifiable under the Harmonized Tariff Schedule of the 
United States (``HTSUS'') subheading 3802.10.00. Although the HTSUS 
subheading is provided for convenience and customs purposes, the 
written description of the scope of this order is dispositive.

Rescission of Changed Circumstances Review

    Based on information provided by Hebei Foreign in its original 
submission, the Department initiated a changed circumstance review. In 
its CCR request, Hebei Foreign stated that the complete transfer from 
Hebei Foreign to Hebei Shenglun was accomplished in November 2008. The 
Department determined that this constituted sufficient evidence to 
initiate this CCR to determine whether Hebei Shenglun is Hebei 
Foreign's successor-in-interest.\8\ However, in its supplemental 
questionnaire response, Hebei Foreign clearly stated that it is still 
in operation, had recently shipped subject merchandise to the United 
States, and would continue to do so as Hebei Foreign.\9\ Additionally, 
the Department notes that that Hebei Foreign's submissions and 
questionnaire response were certified by Wang Kezheng as the manager of 
the No. 1 Business Department of Hebei Foreign.\10\ However, Hebei 
Foreign's supplemental response clearly states that Wang Kezheng is not 
employed by Hebei Foreign. The Department is mindful of the concerns 
raised by Petitioners with regard to Hebei Foreign's certifications. 
Accordingly, the Department reminds parties of their obligation 
pursuant to 19 CFR 351.303(g) to certify factual information submitted 
to the Department.
---------------------------------------------------------------------------

    \8\ See Letter from Hebei Foreign, to the Department, regarding 
Certain Activated Carbon from the People's Republic of China; 
Request for Changed Circumstances Review (February 24, 2009) 
(<gr-thn-eq>Hebei Foreign's CCR Request<gr-thn-eq>); see also 
Initiation.
    \9\ See Letter from Hebei Foreign to the Department, regarding 
Certain Activated Carbon from the People's Republic of China; 
Supplemental Response of Hebei Foreign Trade and Advertising Corp. 
at page 1 (July 6, 2009) (``Hebei Foreign's Supplemental 
Questionnaire Response'').
    \10\ See id. at page 1.
---------------------------------------------------------------------------

    Accordingly, because there has been no change in Hebei Foreign's 
operations from the period of investigation, and because this CCR was 
initiated based on information that was later determined to be false, 
and the certifications submitted by Hebei Foreign are questionable, we 
find that a rescission of this review is appropriate. Therefore, we are 
now rescinding this change circumstances review.
    This notice is issued and published in accordance with sections 
751(b)(1) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 
C.F.R. 351.216.

    Dated: September 18, 2009.
John M. Andersen,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. E9-23116 Filed 9-23-09; 8:45 am]
BILLING CODE 3510-DS-S