[Federal Register Volume 79, Number 181 (Thursday, September 18, 2014)]
[Notices]
[Pages 56059-56061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22311]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-588-870]
Chlorinated Iscoyanurates From Japan: Final Determination of
Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') determines
that chlorinated isocyanurates (``chlorinated 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 final weighted-average dumping
margins are listed below in the section entitled ``Final Determination
Margins.''
DATES: Effective Date: September 18, 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:
Background
On April 24, 2014, the Department published in the Federal Register
the preliminary determination of sales at LTFV in the antidumping duty
investigation of chlorinated isos from Japan.\1\ The following events
occurred since we issued the Preliminary Determination.
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\1\ See Chlorinated Isocyanurates from Japan: Preliminary
Determination of Sales at Less Than Fair Value and Postponement of
Final Determination 79 FR 22800 (April 24, 2014) (``Preliminary
Determination'').
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We issued supplemental sales and cost questionnaires to Nankai
Chemical Co., Ltd. (``Nankai'') between April 16 and April 30, 2014. On
April 24, 2014, and May 6, 2014, Nankai submitted its supplemental
questionnaire responses. On May 9, 2014, Nankai submitted a letter
notifying the Department that it was withdrawing from further
participation in this investigation.\2\
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\2\ See Letter to the Secretary of Commerce from Nankai Chemical
Co., Ltd., Re: Chlorinated Isocyanurates From Japan: Withdrawal From
Participation in the Investigation (May 9, 2014) (``Nankai's
Withdrawal Letter'').
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We issued supplemental sales and cost questionnaires to Shikoku
Chemicals Corporation (``Shikoku'') and its U.S. affiliate, Shikoku
International
[[Page 56060]]
Corporation (``SIC''), between April 16 through May 14, 2014. On April
17, 2014, May 8, 2014, and May 14, 2014, Shikoku submitted its
supplemental questionnaire responses. On May 23, 2014, Shikoku
requested that the Department hold a public hearing. On July 30, 2014,
Shikoku withdrew its request.
On May 15, 2014, Clearon Corp. and Occidental Chemical Corporation
(collectively ``Petitioners'') submitted pre-verification comments on
Shikoku. The Department conducted the cost verification of Shikoku from
May 19-23, 2014. Additionally, the Department conducted the home market
sales verification of Shikoku from May 26-29, 2014, and the U.S. sales
verification of SIC from June 9-10, 2014.
On June 20, 2014, the Department issued the cost verification
report of Shikoku.\3\ On June 30, 2014, the Department requested
Shikoku to submit revised home market and U.S. sales databases based on
the minor corrections submitted at verification. On July 9, 2014,
Shikoku submitted revised home market and U.S. sales databases. On July
11, 2014, the Department issued the home market sales verification
report for Shikoku and the U.S. sales verification report for SIC.\4\
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\3\ See Memorandum to the File, through Neal Halper, Director,
Office of Accounting, from Ernest Z. Gziryan and Peter Scholl,
Accountants, Subject: Verification of the Cost of Production and
Constructed Value Data Submitted by Shikoku Chemicals Corporation in
the Antidumping Duty Investigation of Chlorinated Isocyanurates
(Chlorinated Isos) from Japan, (June 20, 2014) (``Shikoku Cost
Verification Report'').
\4\ See Memorandum to the File, through Scot T. Fullerton,
Program Manager, Office V, from Julia Hancock, Jerry Huang, and
Justin Becker, Analysts, Subject: Verification of Home Market Sales
of Shikoku Chemicals Corporation (``Shikoku''), (July 11, 2014)
(``Shikoku Home Market Verification Report''); See Memorandum to the
File, through Scot T. Fullerton, Program Manager, Office V, from
Julia Hancock and Jerry Huang, Analysts, Subject: Verification of
Shikoku International Corporation in the Antidumping Duty
Investigation of Chlorinated Isocyanurates from Japan, (July 11,
2014) (``SIC Verification Report'').
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On July 11, 2014, the Department notified interested parties of the
case brief and rebuttal brief schedule. On July 18, 2014, Petitioners
and Shikoku submitted case briefs. On July 23, 2014, Petitioners and
Shikoku submitted rebuttal briefs.
Period of Investigation
The period of investigation is July 1, 2012, through June 30, 2013.
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
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.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum
\5\ which is hereby adopted by this notice. A list of the issues raised
is attached to this notice as an Appendix. The Issues and Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (IA ACCESS). IA ACCESS is
available to registered users at http://iaaccess.trade.gov and it is
available to all parties in the Central Records Unit, room 7046 of the
main Department of Commerce building. In addition, a complete version
of the Issues and Decision Memorandum can be accessed directly at
http://enforcement.trade.gov/frn/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\5\ See ``Memorandum from Gary Taverman to Paul Piquado, Issues
and Decision Memorandum for the Antidumping Duty Investigation of
Chlorinated Isocyanurates from Japan,'' dated concurrently with this
notice (``Issues and Decision Memorandum'').
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations. For a
discussion of these changes, see the ``Margin Calculations'' section of
the Issues and Decision Memorandum.
Verification
As provided in section 782(i) of the Act, in May and June 2014, we
verified the cost and sales information submitted by Shikoku for use in
our final determination. We used standard verification procedures
including an examination of relevant accounting and production records,
and original source documents provided by Shikoku and its U.S.
affiliate, SIC.\6\
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\6\ See Shikoku Cost Verification, Shikoku Home Market
Verification Report; and SIC Verification Report.
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Facts Available
As noted above, on May 9, 2014, Nankai informed the Department that
it would no longer participate in the investigation. Pursuant to
sections 776(a)-(b) of the Act, because Nankai failed to cooperate to
the best of its ability in participating in the investigation, the
application of facts otherwise available with adverse inferences is
warranted in calculating the antidumping duty margin for Nankai.
Because Nankai's withdrawal from participation prevented the Department
from fully investigating and verifying Nankai's cost and sales
information, Nankai failed to cooperate to the best of its ability.
It is the Department's practice to select, as adverse facts
available (``AFA''), the higher of the (a) highest margin alleged in
the petition, or (b) the highest calculated rate for any respondent in
the investigation.\7\ Accordingly, to ensure that the non-cooperative
party, Nankai, does not benefit from its lack of participation, and to
select a sufficiently adverse rate to induce cooperation in the future,
for the final determination, we selected the higher of either (a) the
highest margin alleged in the petition that we could corroborate or (b)
the highest weighted-average calculated rate for any respondent in the
investigation, subject to the corroboration requirement for
[[Page 56061]]
secondary information.\8\ The calculated weighted-average margin for
the other mandatory respondent, Shikoku, in this final determination is
less than the 151.80 percent margin from the petition, i.e., the
highest corroborated margin alleged in the petition.\9\ Therefore, as
AFA, we have assigned to Nankai a margin of 151.80 percent. For a full
description of the methodology and rationale underlying our
conclusions, see the Issues and Decision Memorandum. A list of the
topics included in the Issues and Decision Memorandum appears in the
Appendix of this notice.
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\7\ See Notice of Final Determination of Sales at Less Than Fair
Value: Certain Orange Juice from Brazil, 71 FR 2183, 2185 (January
13, 2006).
\8\ See Welded Stainless Pressure Pipe from Thailand: Final
Determination of Sales at Less Than Fair Value, 79 FR 31093 (May 30,
2014) and accompanying Issues and Decision Memorandum at Comment 2.
\9\ See Memorandum to the File, from Jerry Huang, Senior Case
Analyst, through Scot T. Fullerton, Program Manager, Office V,
Subject: Corroboration of the Total AFA Rate for Nankai in the Final
Determination of the Antidumping Duty Investigation of Chlorinated
Isocyanurates from Japan, (September 8, 2014) (``Corroboration
Memo'').
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``All Others'' Rate
Section 735(c)(5)(A) of the Act provides that the estimated 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 and margins based entirely under section 776 of the Act.
Pursuant to section 735(c)(5)(B) of the Act, if the estimated weighted-
average dumping margins established for all exporters and producers
individually examined are zero, de minimis or determined based entirely
under section 776 of the Act, the Department may use any reasonable
method to establish the estimated weighted-average dumping margin for
all other producers or exporters. Accordingly, because Shikoku is the
only respondent in this investigation for which the Department
calculated a company-specific rate which is not zero, de minimis or
based entirely on facts available, pursuant to section 735(c)(5)(A) of
the Act, we are using the weighted-average dumping margin calculated
for Shikoku as the estimated weighted-average dumping margin assigned
to all other producers and exporters of the merchandise under
consideration.
Final Determination
The weighted-average dumping margin is as follows:
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Weighted-
average
Producer or exporter margin
(percent)
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Nankai Chemical Co., Ltd.................................... 151.80
Shikoku Chemicals Corporation............................... 60.65
All Others Rate............................................. 60.65
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Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, the Department
will instruct U.S. Customs and Border Protection (``CBP'') to continue
to suspend liquidation of all appropriate entries of chlorinated isos
from Japan, as described in the ``Scope of the Investigation'' section,
which were entered, or withdrawn from warehouse, for consumption on or
after April 24, 2014, the date of publication of the Preliminary
Determination in the Federal Register. CBP shall require a cash deposit
equal to the estimated amount by which the normal value exceeds the
U.S. price as follows: (1) The rates for Nankai and Shikoku will be the
rates we have determined in this final determination; (2) if the
exporter is not a firm identified in this investigation but the
producer is, the rate will be the rate established for the producer of
the subject merchandise; (3) the rate for all other producers or
exporters will be 60.65 percent, as discussed in the ``All Others
Rate'' section, above. These instructions suspending liquidation will
remain in effect until further notice.
U.S. International Trade Commission (``ITC'') Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in
accordance with section 735(b)(2) of the Act, the ITC will 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 or sales for importation of chlorinated isos from
Japan no later than 45 days after our final determination. 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
CBP to assess, upon further instruction by the Department, antidumping
duties on all imports of the subject merchandise entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Return or Destruction of Proprietary Information
This notice will serve as the only reminder to parties subject to
administrative protective order (``APO'') of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
We are issuing and publishing this determination and notice in
accordance with sections 735(d) and 777(i) of the Act.
Dated: September 8, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix--Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Facts Available
V. Margin Calculations
VI. Discussion of the Issues
1. Treatment of Shikoku's Claimed Direct Selling Expenses
2. Treatment of Shikoku's Technical Service Expenses
3. Treatment for Input X \10\ Between Shikoku and Shikoku Kosan
Corporation (``SKC'')
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\10\ Because Input X is business proprietary information, for
further information, please see Shikoku Cost Verification Report at
20-21; and Shikoku's Case Brief at 21-24.
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4. Application of ``Transactions Disregarded'' Rule for
Shikoku's Purchases of Product X \11\
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\11\ Because Product X is business proprietary information, for
further information, please see Shikoku's Case Brief at 26-28.
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5. Whether Packaging Should Be Included as a Physical
Characteristic
6. Inclusion of Packaging Costs in Shikoku's Variable Cost of
Manufacturing
[FR Doc. 2014-22311 Filed 9-17-14; 8:45 am]
BILLING CODE 3510-DS-P