[Federal Register Volume 76, Number 220 (Tuesday, November 15, 2011)]
[Notices]
[Pages 70705-70706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29496]
[[Page 70705]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-898]
Chlorinated Isocyanurates From the People's Republic of China:
Preliminary Rescission of Antidumping Duty New Shipper Review
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: November 15, 2011.
SUMMARY: The Department of Commerce (the Department) is currently
conducting a new shipper review (NSR) of the antidumping duty order on
chlorinated isocyanurates from the People's Republic of China (PRC) for
the period of June 1, 2010, through December 31, 2010. As discussed
below, we preliminarily determine that the producer and exporter Heze
Huayi Chemical Co. Ltd. (Heze Huayi) did not satisfy the regulatory
requirements to request a new shipper review; therefore, we are
preliminarily rescinding this new shipper review. We invite interested
parties to comment on these preliminary results. See ``Comments''
section below. If these preliminary results are adopted in our final
results of this review, we will instruct U.S. Customs and Border
Protection (CBP) to assess antidumping duties on all appropriate Heze
Huayi's entries of subject merchandise during the period of review
(POR).
FOR FURTHER INFORMATION CONTACT: Jun Jack Zhao, AD/CVD Operations,
Office 6, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202) 482-1396.
SUPPLEMENTARY INFORMATION:
Background
On June 24, 2005, the Department published the order on chlorinated
isocyanurates from the PRC. See Notice of Antidumping Duty Order:
Chlorinated Isocyanurates from the People's Republic of China, 70 FR
36561 (June 24, 2005). On December 20, 2010, pursuant to section
751(a)(2)(B)(i) of the Tariff Act of 1930, as amended (the Act), and 19
CFR 351.214(c), the Department received a NSR request from Heze Huayi.
On February 4, 2011, the Department initiated the NSR. See Chlorinated
Isocyanurates From the People's Republic of China: Initiation of New
Shipper Review, 76 FR 6399 (February 4, 2011) (Initiation Notice).
On January 21, 2011, the Department placed on the record of this
review CBP data for entries of chlorinated isocyanurates imported from
the PRC during the POR. See Memorandum to the File, from Krisha Hill,
Analyst, Re: Chlorinated Isocyanurates from the People's Republic of
China: Customs Query Results for Heze Huayi Chemical Co., Ltd., January
21, 2011. On February 14, 2011, the Department placed on the record of
this review copies of CBP entry documents pertaining to Heze Huayi's
shipments of chlorinated isocyanurates during the POR. See Memorandum
to the File, from Gene H. Calvert, Analyst, ``Chlorinated Isocyanurates
from the People's Republic of China, New Shipper Review (A-570-898):
Placement of U.S. Customs and Border Protection (CBP) Entry Summary
Documentation on the Record of the Instant New Shipper Review,''
February 14, 2011 (Customs Entry Documents).
On February 22, 2011, the Department issued a new shipper
antidumping questionnaire to Heze Huayi. Heze Huayi submitted its
section A response on March 15, 2011, and its section C and D responses
on April 14, 2011. On May 13, July 14, and August 31, 2011, the
Department issued supplemental questionnaires to Heze Huayi. Heze Huayi
responded to these supplemental questionnaires on May 27, July 28, and
September 14, 2011, respectively. On May 31, 2011, Heze Huayi submitted
publicly available surrogate value information for consideration in the
preliminary results.
On September 26 and 27, 2011, Petitioners, Clearon Corporation and
Occidental Chemical Corporation, filed rebuttal factual information and
comments regarding Heze Huayi's third supplemental questionnaire
response. On October 3, 2011, Heze Huayi filed comments in response to
Petitioners' rebuttal factual information.
On July 15, 2011, the Department extended the time limit for
issuing the preliminary results of review. See Chlorinated
Isocyanurates From the People's Republic of China: Extension of Time
Limit for Preliminary Results of Antidumping Duty New Shipper Review,
76 FR 41760 (July 15, 2011).
Period of Review
Pursuant to 19 CFR 351.214(g), the POR for this NSR is the semi-
annual period of June 1, 2010, through November 30, 2010. In its
request for a NSR, Heze Huayi requested that we extend the POR for its
NSR to capture the entry of its shipment in December, after the six-
month semi-annual NSR POR. When the sale of the subject merchandise
occurs within the POR specified by the Department's regulations, but
the entry occurs after the POR, the POR may be extended unless it would
be likely to prevent the completion of the review within the time
limits set by the Department's regulations. See 19 CFR
351.214(f)(2)(ii). Additionally, the preamble to the Department's
regulations states that both the entry and the sale should occur during
the POR, but that under ``appropriate'' circumstances the Department
has the flexibility to extend the POR. See Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27319-20 (May 19,
1997). Based on the information contained in Heze Huayi's request for a
NSR, it appeared that the sale of subject merchandise was made during
the POR specified by the Department's regulations and that the shipment
entered in the subsequent month. Based on information provided by Heze
Huayi, the Department found that extending the POR to capture this
entry would not prevent the completion of the review within the time
limits set by the Department's regulations. Therefore, the Department
extended the POR for Heze Huayi's NSR by one month, i.e., through
December 31, 2010. See Initiation Notice, 76 FR at 6399.
Scope of the Order
The products covered by the order are chlorinated isocyanurates,
which are derivatives of cyanuric acid, described as chlorinated s-
triazine triones. There are three primary chemical compositions of
chlorinated isos: (1) Trichloroisocyanuric acid
(Cl3(NCO)3), (2) sodium dichloroisocyanurate
(dihydrate) (NaCl2(NCO)3(2H2O)), and
(3) sodium dichloroisocyanurate (anhydrous)
(NaCl2(NCO)3). Chlorinated isos are available in
powder, granular, and tableted forms. The order covers all chlorinated
isocyanurates.
Chlorinated isos are currently classifiable under subheadings
2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.40.50, 3808.50.40 and
3808.94.5000 of the Harmonized Tariff Schedule of the United States
(HTSUS). The tariff classification 2933.69.6015 covers sodium
dichloroisocyanurates (anhydrous and dihydrate forms) and
trichloroisocyanuric acid. The tariff classifications 2933.69.6021 and
2933.69.6050 represent basket categories that include chlorinated
isocyanurates and other compounds including an unfused triazine ring.
Although the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the scope of the order is
dispositive.
[[Page 70706]]
Preliminary Rescission of the Antidumping Duty New Shipper Review of
Heze Huayi
The NSR provisions of the Department's regulations require that the
entity making a request for a NSR must document and certify, among
other things: (1) The date on which subject merchandise of the exporter
or producer making the request was first entered, or withdrawn from
warehouse, for consumption, or, if it cannot establish the date of
first entry, the date on which the exporter or producer first shipped
the merchandise for export to the United States; (2) the volume of that
and subsequent shipments; and (3) the date of the first sale to an
unaffiliated customer in the United States. See 19 CFR
351.214(b)(2)(iv). If these provisions are met, the Department will
conduct a NSR to establish an individual weighted-average dumping
margin for the new shipper. See generally 19 CFR 351.214(b)(2).
In its request for a NSR, Heze Huayi provided certified statements
that it had only one U.S. sale, which it stated took place on October
8, 2010, and that the sale entered the United States on December 1,
2010. See Letter from Heze Huayi to the Secretary of Commerce,
``Chlorinated Isocyanurates from the People's Republic of China:
Request for New-Shipper Review,'' December 20, 2010. Based on this
information, the Department initiated the NSR for Heze Huayi.
However, based on an analysis of the CBP data, the Customs Entry
Documents, and Heze Huayi's supplemental questionnaire responses, the
Department has now determined that Heze Huayi had additional sales and
entries that were not reported to the Department in its request for a
NSR under 19 CFR 351.214(b)(2)(iv). As noted, in order to qualify for a
NSR under 19 CFR 351.214, a company must certify and document, among
other things, the dates of the first sale and all subsequent sales to
the United States. Id. Because Heze Huayi had additional unreported
sales and entries to the United States during the POR, the Department
has preliminarily found that Heze Huayi's request for a NSR did not
satisfy the regulatory requirements for requesting a NSR, and the
Department thus preliminarily determines that it is appropriate to
rescind the NSR for Heze Huayi. As much of the factual information used
in our analysis of Heze Huayi's additional sales and entries involves
business proprietary information, a full discussion of the basis for
our preliminary determination is set forth in the Memorandum to Barbara
E. Tillman, Director, AD/CVD Operations, Office 6, ``Analysis of Heze
Huayi Chemical Co., Ltd.'s Additional Sales in the Antidumping Duty New
Shipper Review of Chlorinated Isocyanurates from the People's Republic
of China,'' November 7, 2011.
Assessment Rates
If we proceed to a final rescission of Heze Huayi's NSR, Heze
Huayi's shipments will be subject to the PRC-wide rate. The Department
is currently conducting an administrative review for the POR June 1,
2010, through May 31, 2011, in which the PRC-wide rate is under review.
If we proceed to a final rescission, upon completion of the 2010-2011
administrative review, we will instruct CBP to assess antidumping
duties on entries exported by Heze Huayi at the appropriate PRC-wide
rate determined in the 2010-2011 administrative review and we will
instruct CBP to assess antidumping duties on the entries covered by
this NSR at the rate established in the final results of the
administrative review.
Cash Deposit Requirements
Effective upon publication of the final rescission of the NSR or
the final results of the NSR, we will instruct CBP to discontinue the
option of posting a bond or security in lieu of a cash deposit for
entries of subject merchandise exported by Heze Huayi. If we proceed to
a final rescission of the NSR, the cash deposit rate will continue to
be the per-unit PRC-wide rate for entries exported by Heze Huayi. If we
issue final results for the NSR, we will instruct CBP to collect cash
deposits, effective upon the publication of the final results, at the
rates established therein.
Disclosure
We will disclose our analysis to parties to this proceeding not
later than five days after the date of public announcement, or, if
there is no public announcement, within five days of the date of
publication of this notice. See 19 CFR 351.224(b).
Comments
Interested parties are invited to comment on these preliminary
results and may submit case briefs within 30 days of the date of
publication of this notice, unless otherwise notified by the
Department. See 19 CFR 351.309(c)(ii). Rebuttal briefs, limited to
issues raised in the case briefs, will be due five days later, pursuant
to 19 CFR 351.309(d). Parties are requested to provide a summary of
their arguments not to exceed five pages, and a table of statutes,
regulations, and cases cited.
Interested parties who wish to request a hearing, or to participate
if one is requested, must submit a written request to the Assistant
Secretary for Import Administration within 30 days of the date of
publication of this notice. Requests should contain: (1) The party's
name, address, and telephone number; (2) the number of participants;
and (3) a list of issues to be discussed. See 19 CFR 351.310(c). Issues
raised in the hearing will be limited to those raised in case and
rebuttal briefs. The Department will issue the final rescission or
final results of this NSR, including the results of our analysis of
issues raised in any briefs, not later than 90 days after this
preliminary rescission is issued, unless the deadline for the final
rescission or final results is extended. See 19 CFR 351.214(i).
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under 19 CFR 351.402(f)(2) 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.
The NSR and notice are in accordance with sections 751(a)(2)(B) and
777(i) of the Act and 19 CFR 351.214(f).
Dated: November 7, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2011-29496 Filed 11-14-11; 8:45 am]
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