[Federal Register Volume 65, Number 86 (Wednesday, May 3, 2000)]
[Notices]
[Pages 25706-25708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11034]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-856]


Synthetic Indigo From the People's Republic of China; Notice of 
Final Determination of Sales at Less Than Fair Value

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

ACTION: Notice of final determination of sales at less than fair value.

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SUMMARY: On December 14, 1999, the Department of Commerce published its 
preliminary determination of sales at less than fair value of synthetic 
indigo from the People's Republic of China. The period of investigation 
is October 1, 1998, through March 31, 1999.
    Based on our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, the final determination 
differs from the preliminary determination. The final weighted-average 
dumping margins for the investigated companies are listed below in the 
section entitled ``Final Determination of Investigation.''

EFFECTIVE DATE: May 3, 2000.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Dinah 
McDougall, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Washington, D.C. 20230; telephone: (202) 
482-4136 or (202) 482-3773, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') by 
the Uruguay Round Agreements Act (``URAA''). In addition, unless 
otherwise indicated, all citations to the Department of Commerce's 
(``the Department's'') regulations refer to 19 CFR Part 351 (April 
1999).

Background

    On December 14, 1999, the Department published the Notice of 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Synthetic Indigo from the People's 
Republic of China (``PRC'') (64 FR 69723) (``Preliminary 
Determination''). The period of investigation is October 1, 1998 
through March 31, 1999. We invited parties to comment on our 
preliminary determination of the investigation. The Department has 
conducted this investigation in accordance with section 731 of the Act.
    Verification of the responses to the Department's sales and factors 
of production questionnaires took place in January 2000 (see the 
``Verification'' section below).
    The petitioners, Buffalo Color Corporation and the United 
Steelworkers of America, AFL-CIO/CLC, and the respondents, the China 
Chamber of Commerce of Metals, Minerals and Chemicals, and its 
respondent member firms, filed case and rebuttal briefs on March 23 and 
28, 2000, respectively.

Scope of Investigation

    The products subject to this investigation are the deep blue 
synthetic vat dye known as synthetic indigo and those of its 
derivatives designated commercially as ``Vat Blue 1.'' Included are Vat 
Blue 1 (synthetic indigo), Color Index No. 73000, and its derivatives, 
pre-reduced indigo or indigo white (Color Index No. 73001) and 
solubilized indigo (Color Index No. 73002). The subject merchandise may 
be sold in any form (e.g., powder, granular, paste, liquid, or 
solution) and in any strength. Synthetic indigo and its derivatives 
subject to this investigation are currently classifiable under 
subheadings 3204.15.10.00, 3204.15.40.00 or 3204.15.80.00 of the 
Harmonized Tariff Schedule of the United States (``HTSUS''). Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the merchandise under 
investigation is dispositive.

Verification

    As provided in section 782(i)(1) of the Act, we verified the 
information submitted by the respondents for use in our final 
determination. We used standard verification procedures, including 
examination of relevant accounting and production records, as well as 
original source documents provided by the respondents.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' (``Decision Memorandum'') from Richard W. Moreland, Deputy 
Assistant Secretary, Import Administration, to Troy H. Cribb, Acting 
Assistant Secretary for Import Administration, dated April 27, 2000, 
which is hereby adopted by this notice. A list of the issues which 
parties have raised and to which we have responded, all of which are in 
the Decision Memorandum, is attached to this notice as an Appendix. 
Parties can find a complete discussion of all issues raised in this 
investigation and the corresponding recommendations in this public 
memorandum which is on file in the Central Records Unit, Room B-099 of 
the Department. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Web at: www.ita.doc.gov/import_admin/records/frn/. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Separate Rates

    All responding exporting entities have requested separate, company-
specific antidumping duty rates. In the Preliminary Determination we 
determined that, based on the information contained in the 
questionnaire responses, the mandatory respondents, Wonderful Chemical 
Industrial Ltd. (``Wonderful'') and its affiliate Jiangsu Taifeng 
Chemical Industry Co. (``Jiangsu Taifeng''), and Tianjin Hongfa Group 
Co. (``Tianjin Hongfa''), had met the de jure and de facto criteria for 
the application of separate antidumping rates. See Preliminary 
Determination, 64 FR at 69725-6. However, during the course of 
verification, the Department was unable to completely verify the 
reported separate rates information for Tianjin Hongfa, and therefore, 
has determined that Tianjin Hongfa is not eligible to receive a 
separate rate. Accordingly, we have assigned Tianjin Hongfa the PRC-
wide rate, as discussed in the ``PRC-Wide Rate'' section below. For a 
discussion of our determination with respect to separate rates and the 
application of the PRC-wide rate, see the ``Separate Rates'' section of 
the Decision Memorandum, which is available in B-099 and on the Web at 
www.ita.doc.gov/import_admin/records/frn/.

[[Page 25707]]

Margins for Exporters Whose Responses Were Not Analyzed

    With respect to the responding companies that provided all of the 
questionnaire responses requested of them and otherwise fully 
cooperated with the Department's investigation, but nonetheless, were 
not fully analyzed by the Department due to limited resources (see 
Preliminary Determination, 64 FR at 69726), we assigned to them the 
rate calculated for the only mandatory respondent which was fully 
analyzed and which established its eligibility for a separate rate in 
this investigation (i.e., Wonderful/Jiangsu Taifeng), as a non-adverse 
facts available rate. Companies receiving this rate are identified by 
name in the ``Continuation of Suspension of Liquidation'' section of 
this notice. For a discussion of our determination with respect to the 
cooperating, non-mandatory respondents, see the ``Separate Rates'' 
section of the Decision Memorandum.

PRC-Wide Rate

    As explained in the Preliminary Determination, the PRC-wide 
antidumping rate is based on adverse facts available, in accordance 
with section 776(b) of the Act. See Preliminary Determination, 64 FR at 
69726. Information on the record of this investigation indicates that 
there are numerous producers/exporters of the subject merchandise in 
the PRC in addition to the companies participating in this 
investigation. U.S. import statistics show that the responding 
companies did not account for all imports of synthetic indigo into the 
United States from the PRC. Given this discrepancy, it appears that not 
all PRC exporters of synthetic indigo responded to our antidumping duty 
questionnaire. Consistent with our preliminary determination, we have 
applied a single antidumping duty deposit rate (``PRC-wide rate'') to 
all synthetic indigo exporters in the PRC, except those specifically 
identified in the ``Continuation of Suspension of Liquidation'' section 
of this notice, based on our presumption that the export activities of 
the companies that failed to respond to the Department's questionnaire 
are controlled by the PRC government. We have also applied this rate to 
Tianjin Hongfa based on its failure to establish its eligibility for a 
separate rate, as discussed in the ``Separate Rates'' section above. 
The PRC-wide rate, which in this case is the highest margin from the 
petition, has been corroborated pursuant to section 776(c) of the Act 
using the method outlined in the Preliminary Determination. See 64 FR 
at 69726.

Changes Since the Preliminary Determination

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. We have also corrected certain 
programming and clerical errors in our Preliminary Determination, where 
applicable. Any programming or clerical errors alleged by the parties 
with which we do not agree are discussed in the relevant sections of 
the Decision Memorandum.

Critical Circumstances

    In our Preliminary Determination, we found, pursuant to section 
733(e)(1) of the Act, that there was a reasonable basis to believe or 
suspect that critical circumstances exist with respect to the subject 
merchandise from the mandatory and non-mandatory respondents and all 
other producers/exporters. As discussed in detail in the Preliminary 
Determination, we first found that importers either knew or should have 
known that imports of synthetic indigo from the PRC were being sold at 
less than fair value and there was likely to be material injury. We 
then analyzed the import volume and value data placed on the record, in 
accordance with 19 CFR 351.206, and preliminarily determined that 
imports of the subject merchandise have been massive over the short 
period of time subsequent to the filing of the petition. In accordance 
with section 735(a)(3) of the Act, and based upon our verification of 
the shipment data placed on the record, we determine that critical 
circumstances exist with respect to synthetic indigo from the mandatory 
respondents in this investigation as well as the non-mandatory 
respondents and all other producers/exporters. Therefore, we are 
directing the Customs Service (``Customs'') to continue to suspend 
liquidation of any unliquidated entries of subject merchandise on or 
after the date 90 days prior to the date of publication of the 
preliminary determination in the Federal Register, as discussed below 
in the ``Continuation of Suspension of Liquidation'' section.

Continuation of Suspension of Liquidation

    In accordance with section 735(c) of the Act, we are directing 
Customs to continue to suspend liquidation of all imports of the 
subject merchandise from the PRC that are entered, or withdrawn from 
warehouse, for consumption on or after September 15, 1999, the date 90 
days prior to the date of publication of the preliminary determination 
in the Federal Register, in accordance with our critical circumstances 
finding.
    Effective on or after the date of publication of the Department's 
final determination, Customs shall continue to require a cash deposit 
or the posting of a bond equal to the weighted-average amount by which 
the normal value exceeds the export price or constructed export price, 
as appropriate, as indicated in the chart below. These suspension of 
liquidation instructions will remain in effect until further notice.
    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                        Weighted-
       Exporter/manufacturer         average margin        Critical
                                       percentage       circumstances
------------------------------------------------------------------------
Wonderful Chemical Industrial Ltd./           77.89  Yes.
 Jiangsu Taifeng Chemical Industry
 Co., Ltd.
China National Chemical                       77.89  Yes.
 Construction Jiangsu Company.
China Jiangsu International                   77.89  Yes.
 Economic Technical Cooperation
 Corp.
Shanghai Yongchen International               77.89  Yes.
 Trading Company Ltd.
Hebei Jinzhou Import & Export                 77.89  Yes.
 Corporation.
Sinochem Hebei Import & Export Corp           77.89  Yes.
Chongqing Dyestuff Import & Export            77.89  Yes.
 United Corp.
Wuhan Tianjin Chemicals Imports &             77.89  Yes.
 Exports Corp., Ltd.
PRC-wide Rate......................          129.60  Yes.
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[[Page 25708]]

    Except for entries of synthetic indigo from exporters that are 
identified individually above, the PRC-wide rate applies to all other 
entries of the subject merchandise.

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. As our 
final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order directing 
Customs officials to assess antidumping duties on all imports of the 
subject merchandise entered for consumption on or after the effective 
date of the suspension of liquidation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: April 27, 2000.
Troy H. Cribb,
Acting Assistant Secretary for Import Administration.

Appendix--Issues in the Decision Memorandum

I. Respondent Selection

Comment 1: Tianjin Hongfa vs. Kwong Fat as Exporter
Comment 2: Wonderful vs. Intermediate Trading Company as Exporter

II. Separate Rates

Comment 3: Separate Rate for Tianjin Hongfa
Comment 4: Separate Rate for Wonderful/Jiangsu Taifeng
Comment 5: Cooperating Non-Mandatory Respondents

III. Factor Valuation

Comment 6: Valuation of Factory Overhead, SG&A, and Profit
Comment 7: Valuation of International Freight
Comment 8: Valuation of Certain Minor Inputs
Comment 9: Valuation of Water
Comment 10: Classification of ``Managerial Remuneration'' in 
Surrogate Value Financial Data
Comment 11: Date of Sale
Comment 12: Labor Hours Factor Reporting
Comment 13: Deduction of Trading Company Fees

[FR Doc. 00-11034 Filed 5-2-00; 8:45 am]
BILLING CODE 3510-DS-P