[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22800-22802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09365]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-870]
Chlorinated Isocyanurates From Japan: Preliminary Determination
of Sales at Less Than Fair Value and Postponement of Final
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') preliminarily
determines that chlorinated isocyanurates (``isos'') from Japan is
being, or is likely to be, sold in the United States at less than fair
value (``LTFV''), as provided in section 733(b) of the Tariff Act of
1930, as amended (``the Act''). The period of investigation is July 1,
2012, through June 30, 2013. The estimated weighted-average dumping
margins of sales at LTFV are listed in the ``Preliminary
Determination'' section of this notice. Interested Parties are invited
to comment on this preliminary determination. Pursuant to a request
from Shikoku Chemicals Corporation, we are postponing for 60 days the
final determination and extending provisional measures from a four-
month period to not more than six months. Accordingly, we intend to
make our final determination not later than 135 days after publication
of this preliminary determination in the Federal Register.
DATES: Effective Date: April 24, 2014.
FOR FURTHER INFORMATION CONTACT: Julia Hancock or Jerry Huang, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1394 or (202) 482-4047, respectively.
SUPPLEMENTARY INFORMATION:
On September 25, 2013, the Department initiated the antidumping
duty investigation on isos from Japan.\1\ Based on a timely request
from Petitioners,\2\ on February 10, 2014, the Department postponed the
deadline for the preliminary determination by 50 days to April 14,
2014, pursuant to section 733(c)(1)(A) of the Act and 19 CFR
351.205(e).\3\ \4\
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\1\ See Chlorinated Isocyanurates From Japan: Initiation of
Antidumping Duty Investigation, 78 FR 58997 (September 25, 2013).
\2\ Petitioners are Clearon Corp. and Occidental Corporation.
\3\ See Chlorinated Isocyanurates From Japan: Postponement of
Preliminary Determinations of Antidumping Duty Investigation, 79 FR
7643 (February 10, 2014).
\4\ As explained in the memorandum from the Assistant Secretary
for Enforcement and Compliance, the Department exercised its
discretion to toll deadlines for the duration of the closure of the
Federal Government from October 1, through October 16, 2013. See
Memorandum for the Record from Paul Piquado, Assistant Secretary for
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of
the Federal Government'' (October 18, 2013). The tolled deadline for
the preliminary determination of this investigation was February 21,
2014.
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Scope of the Investigation
The products covered by this investigation are chlorinated
isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric
acid, described as chlorinated s-triazine triones. There are three
primary chemical compositions of chlorinated isocyanurates: (1)
Trichloroisocyanuric acid (``TCCA'') (Cl3(NCO)3),
(2) sodium dichloroisocyanurate (dihydrate)
(NaCl2(NCO)3 x 2H2O), and (3) sodium
dichloroisocyanurate (anhydrous) (NaCl2(NCO)3).
Chlorinated
[[Page 22801]]
isocyanurates are available in powder, granular and solid (e.g., tablet
or stick) forms.
Chlorinated isocyanurates are currently classifiable under
subheadings 2933.69.6015, 2933.69.6021, 2933.69.6050, 3808.50.4000,
3808.94.5000, and 3808.99.9500 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.
The tariff classifications 3808.50.4000, 3808.94.5000 and 3808.99.9500
cover disinfectants that include chlorinated isocyanurates. The HTSUS
subheadings are provided for convenience and customs purposes. The
written description of the scope of the investigation is dispositive.
Methodology
The Department conducted this investigation in accordance with
section 731 of the Act. Export prices have been calculated in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) of the Act.
Normal value has been calculated in accordance with section 773 of the
Act.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum, which is hereby
adopted by this notice.\5\ The Preliminary Decision Memorandum is a
public document and is made available to the public via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (``IA ACCESS''). IA ACCESS is available to registered
users at https://iaaccess.trade.gov, and is available to all parties in
the Department's Central Records Unit, located at room 7046 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be found at http://enforcement.trade.gov/frn/. The signed and the electronic versions of
the Preliminary Decision Memorandum are identical in content.
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\5\ See Memorandum to Paul Piquado, Assistant Secretary for
Enforcement and Compliance from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations
``Decision Memorandum for the Preliminary Determination of the
Antidumping Duty Investigation of Chlorinated Isocyanurates From
Japan,'' dated concurrently this notice (``Preliminary Decision
Memorandum'').
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Preliminary Determination
The Department preliminarily determines that the following
weighted-average dumping margins exist:
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Weighted-
average
Exporter/Producer margin
(percent)
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Shikoku Chemicals Corporation.............................. 54.79
Nankai Chemical Co., Ltd................................... 109.56
All Others................................................. 63.71
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Pursuant to section 735(c)(5)(A) of the Act, the ``All Others''
rate shall be an amount equal to the weighted average of the estimated
weighted-average dumping margins established for exporters and
producers individually investigated, excluding any zero or de minimis
margins, and any margins determined entirely under section 776 of the
Act. Specifically, this rate of 63.71 percent is based on a weighted
average using each company's publicly-ranged values for U.S. exports of
subject merchandise. Because we cannot apply our normal methodology of
calculating a weighted-average margin due to requests to protect
business-proprietary information, we find this rate to be the best
proxy of the actual weighted-average margin determined for these
respondents.6 7
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\6\ See, e.g., Certain Frozen Warmwater Shrimp From India: Final
Results of Antidumping Duty Administrative Review, Partial
Rescission, and Final No Shipment Determination, 76 FR 41205, 41205
(July 13, 2011).
\7\ See Memorandum to the File from Julia Hancock and Jerry
Huang, Senior Case Analysts, Office V, Enforcement and Compliance,
Subject: Chlorinated Isocyanurates From Japan: Calculation of All-
Others' Rate in Preliminary Determination (April 14, 2014).
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Disclosure and Public Comment
The Department will disclose the calculations used in our analysis
to parties in this investigation within five days of the date of
publication of this notice. Case briefs or other written comments may
be submitted to the Assistant Secretary for Enforcement and Compliance
no later than seven days after the date on which the final verification
report is issued in this proceeding and rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than five days
after the deadline date for case briefs.\8\ Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal
briefs in this proceeding are encouraged to submit with each argument:
(1) A statement of the issue; (2) a brief summary of the argument; and
(3) a table of authorities.
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\8\ See 19 CFR 351.309(c) and (d).
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Pursuant to 19 CFR 351.310(c), 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 Enforcement and
Compliance, U.S. Department of Commerce, filed electronically using IA
ACCESS. An electronically filed document must be received successfully
in its entirety in IA ACCESS, by 5 p.m. Eastern Time within 30 days
after the date of publication of this notice.\9\ Requests should
contain the party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. If a request
for a hearing is made, the Department will inform parties of the
scheduled date for the hearing which will be held at the U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, at a time and location to be determined. Parties
should confirm by telephone the date, time, and location of the
hearing. Interested parties are invited to comment on the preliminary
determination of this investigation.
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\9\ See 19 CFR 351.310(c).
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, we will direct
U.S. Customs and Border Protection (``CBP'') to suspend liquidation of
all entries of isos from Japan, as described in the ``Scope of the
Investigation'' section, entered, or withdrawn from warehouse, for
consumption on or after the date of publication of this notice in the
Federal Register.
Pursuant to 19 CFR 351.205(d), the Department will instruct CBP to
require a cash deposit \10\ equal to the preliminary weighted-average
amount by which normal value exceeds U.S. price, as indicated in the
chart above. These suspension of liquidation instructions will remain
in effect until further notice.
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\10\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
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Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such
[[Page 22802]]
postponement is made by exporters who account for a significant
proportion of exports of the subject merchandise. 19 CFR 351.210(e)(2)
requires that requests by respondents for postponement of a final
determination be accompanied by a request for extension of provisional
measures from a four-month period to not more than six months.
On March 21, 2014, Shikoku Chemicals Corporation requested that, in
the event of an affirmative preliminary determination in this
investigation, the Department postpone its final determination by 60
days (135 days after publication of the preliminary determination), and
agreed to extend the application of the provisional measures prescribed
under section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-
month period to a six-month period.\11\ In accordance with section
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) our
preliminary determination is affirmative; (2) the requesting producer/
exporter accounts for a significant proportion of exports of the
subject merchandise; and (3) no compelling reasons for denial exist, we
are postponing the final determination until no later than 135 days
after the publication of this notice in the Federal Register.
Suspension of liquidation will be extended accordingly. We are also
extending the application of the provisional measures prescribed under
section 733(d) of the Act and 19 CFR 351.210(e)(2) from a four-month
period to a six-month period.
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\11\ See Letter to the Secretary of Commerce from Shikoku
Chemicals Corporation, re ``Chlorinated Isocyanurates from Japan:
Shikoku's Request to Postpone the Final Determination'', dated March
21, 2014.
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U.S. International Trade Commission (``ITC'') Notification
In accordance with section 733(f) of the Act, we will notify the
ITC of our preliminary affirmative determination of sales at LTFV.
Because the preliminary determination in this proceeding is
affirmative, section 735(b)(2) of the Act requires that the ITC make
its final determination as to whether the domestic industry in the
United States is materially injured, or threatened with material
injury, by reason of imports of isos from Japan before the later of 120
days after the date of this preliminary determination or 45 days after
our final determination. Because we are postponing the deadline for our
final determination to 135 days from the date of the publication of
this preliminary determination, as discussed above, the ITC will make
its final determination no later than 45 days after our final
determination.
This determination is issued and published pursuant to sections
733(f) and 777(i)(1) of the Act.
Dated: April 14, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Preliminary Decision
Memorandum
1. Background
2. Scope of the Investigation
3. Scope Comments
4. Respondent Selection
6. Affiliation Determinations
7. Determination of the Comparison Method
A. Differential Pricing Analysis
B. Results of the Differential Pricing Analysis
8. Discussion of Methodology
A. Fair Value Comparisons
B. Product Comparisons
C. Date of Sale
D. Export Price (``EP'')
E. Constructed Export Price (``CEP'')
Normal Value
A. Home Market Viability
B. Affiliated Party Transactions and Arm's-Length Test
C. Level of Trade
H. Cost of Production
1. Calculation of COP
2. Test of Comparison Prices
3. Results of COP Test
4. Constructed Value
5. Calculation of Normal Value Based on Comparison Market Prices
9. Currency Conversion
10. Verification
11. International Trade Commission Notification
[FR Doc. 2014-09365 Filed 4-23-14; 8:45 am]
BILLING CODE 3510-DS-P