[Federal Register Volume 79, Number 236 (Tuesday, December 9, 2014)]
[Notices]
[Pages 73037-73043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28840]
[[Page 73037]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-020, A-274-806]
Melamine From the People's Republic of China and Trinidad and
Tobago: Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 9, 2014.
FOR FURTHER INFORMATION CONTACT: James Terpstra at (202) 482-3965 (the
People's Republic of China), or Laurel LaCivita at (202) 482-4243
(Trinidad and Tobago), Office III, AD/CVD Operations, Enforcement and
Compliance, U.S. Department of Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On November 12, 2014, the Department of Commerce (``Department'')
received antidumping duty (``AD'') petitions concerning imports of
melamine from the People's Republic of China (``PRC'') and Trinidad and
Tobago filed in proper form on behalf of Cornerstone Chemical Company
(``Petitioner''). The AD petitions were accompanied by two
countervailing duty (``CVD'') petitions.\1\ Petitioner is a domestic
producer of melamine.\2\
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\1\ See Petitioner's submission entitled ``Petitions for the
Imposition of Antidumping and Countervailing Duties: Melamine from
China and Trinidad and Tobago,'' dated November 12, 2014
(``Petitions'').
\2\ See Volume I of the Petitions, at 1-2.
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On November 14, 2014, the Department requested additional
information and clarification of certain portions of the Petitions.\3\
Petitioner filed responses to these requests on November 18, 2014.\4\
On November 18, 2014, the Department requested additional information
and clarification of certain portions of the Petitions.\5\ Petitioner
filed responses to these requests on November 20, 2014 and November 24,
2014.\6\
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\3\ See Letter from the Department to Petitioner entitled ``Re:
Petitions for the Imposition of Antidumping and Countervailing
Duties on Imports of Melamine from the People's Republic of China
and Trinidad and Tobago: Supplemental Questions,'' dated November
14, 2014 (``General Issues Supplemental Questionnaire''), Letter
from the Department to Petitioner entitled ``Re: Petitions for the
Imposition of Antidumping and Countervailing Duties on Imports of
Melamine from the People's Republic of China: Supplemental
Questions,'' dated November 14, 2014, and Letter from the Department
to Petitioner entitled ``Re: Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Melamine from
Trinidad and Tobago: Supplemental Questions,'' dated November 14,
2014.
\4\ See ``Melamine from China and Trinidad and Tobago/
Petitioner's Response to the Department's Questions Regarding the
Petition'' dated November 18, 2014 (``General Issues Supplement''),
``Melamine from The People's Republic of China/Petitioner's Response
to the Department's Questions Regarding the Petition'' dated
November 18, 2014 (``PRC AD Supplement''), and ``Melamine from
Trinidad and Tobago/Petitioner's Response to the Department's
Questions Regarding the Petition'' dated November 18, 2014
(``Trinidad and Tobago AD Supplement'').
\5\ See Letter from the Department to Petitioner entitled ``Re:
Petitions for the Imposition of Antidumping and Countervailing
Duties on Imports of Melamine from the People's Republic of China
and Trinidad and Tobago: Supplemental Questions,'' dated November
14, 2014 (``Second General Issues Supplemental Questionnaire'').
\6\ See ``Melamine from China and Trinidad and Tobago/
Petitioner's Response to the Department's Second General Questions
Regarding the Petition'' dated November 20, 2014 (``Second General
Issues Supplement''), see also Supplement to Petitions for the
Imposition of Antidumping and Countervailing Duties against Melamine
from China and Trinidad and Tobago,'' dated November 24, 2014
(``Third General Issues Supplement'').
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (``the Act''), Petitioner alleges that melamine from the PRC
and Trinidad and Tobago is being, or is likely to be, sold in the
United States at less than fair value within the meaning of section 731
of the Act and that such imports are materially injuring, or
threatening material injury to, an industry in the United States. Also,
consistent with section 732(b)(1) of the Act, the Petitions are
accompanied by information reasonably available to Petitioner
supporting its allegations.
The Department finds that Petitioner filed the Petitions on behalf
of the domestic industry because Petitioner is an interested party as
defined in section 771(9)(C) of the Act. The Department also finds that
Petitioner demonstrated sufficient industry support with respect to the
initiation of the AD investigations that Petitioner is requesting.\7\
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\7\ See the ``Determination of Industry Support for the
Petitions'' section below.
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Period of Investigations
Because the Petitions were filed on November 12, 2014, pursuant to
19 CFR 351.204(b)(1) the period of investigation (``POI'') for the PRC
is April 1, 2014 through September 30, 2014, and for Trinidad and
Tobago the POI is October 1, 2013, through September 30, 2014.
Scope of the Investigations
The product covered by these investigations is melamine from the
PRC and Trinidad and Tobago. For a full description of the scope of
these investigations, see ``Scope of the Investigations'' in Appendix I
of this notice.
Comments on Scope of the Investigations
During our review of the Petitions, the Department issued questions
to, and received responses from, Petitioner pertaining to the proposed
scope to ensure that the scope language in the Petitions would be an
accurate reflection of the products for which the domestic industry is
seeking relief.\8\
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\8\ See General Issues Supplemental Questionnaire and Second
General Issues Supplemental Questionnaire; see also General Issues
Supplement, Second General Issues Supplement, and Third General
Issues Supplement.
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As discussed in the preamble to the Department's regulations,\9\ we
are setting aside a period for interested parties to raise issues
regarding product coverage (scope). The period for scope comments is
intended to provide the Department with ample opportunity to consider
all comments and to consult with parties prior to the issuance of the
preliminary determinations. If scope comments include factual
information (see 19 CFR 351.102(b)(21)), all such factual information
should be limited to public information. All such comments must be
filed by 5:00 p.m. Eastern Standard Time (``EST'') on December 22,
2014, which is 20 calendar days from the signature date of this notice.
Any rebuttal comments, which may include factual information, must be
filed no later than 10 calendar days after the initial comments
deadline, which in this instance, is January 1, 2015. Because January
1, 2015, is a federal holiday, a non-business day, the revised deadline
for these comments is now 5:00 p.m. EST on January 2, 2015.\10\
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\9\ See Antidumping Duties; Countervailing Duties; Final rule,
62 FR 27296, 27323 (May 19, 1997).
\10\ See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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The Department requests that any factual information the parties
consider relevant to the scope of the investigations be submitted
during this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party may contact the Department
and request permission to submit the additional information. All such
comments must be filed on the records of the PRC and Trinidad and
Tobago AD and CVD investigations.
Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's
[[Page 73038]]
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS).\11\ An electronically-filed document must be received
successfully in its entirety by the time and date it is due. Documents
excepted from the electronic submission requirements must be filed
manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 1870, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230, and stamped with the
date and time of receipt by the applicable deadlines.
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\11\ See On November 24, 2014, Enforcement and Compliance
changed the name of Enforcement and Compliance's AD and CVD
Centralized Electronic Service System (``IA ACCESS'') to AD and CVD
Centralized Electronic Service System (``ACCESS''). The Web site
location has changed from http://iaaccess.trade.gov to http://access.trade.gov. The Final Rule changing the references to the
Regulations can be found at 79 FR 69046 (November 20, 2014).
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Comments on Product Characteristics for AD Questionnaires
The Department requests comments from interested parties regarding
the appropriate physical characteristics of melamine to be reported in
response to the Department's AD questionnaires. This information will
be used to identify the key physical characteristics of the subject
merchandise in order to report the relevant factors and costs of
production accurately, as well as to develop appropriate product-
comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics; and (2) product-comparison criteria. We note that it
is not always appropriate to use all product characteristics as
product-comparison criteria. We base product-comparison criteria on
meaningful commercial differences among products. In other words,
although there may be some physical product characteristics utilized by
manufacturers to describe melamine, it may be that only a select few
product characteristics take into account commercially meaningful
physical characteristics. In addition, interested parties may comment
on the order in which the physical characteristics should be used in
matching products. Generally, the Department attempts to list the most
important physical characteristics first and the least important
characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all comments must be
filed by 5:00 p.m. EST on December 22, 2014, which is 20 calendar days
from the signature date of this notice. Any rebuttal comments must be
filed by 5:00 p.m. EST on January 2, 2015. All comments and submissions
to the Department must be filed electronically using ACCESS, as
explained above, on the records of the PRC and Trinidad and Tobago
less-than-fair-value investigations.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product, or those producers
whose collective output of a domestic like product constitutes a major
proportion of the total domestic production of the product. Thus, to
determine whether a petition has the requisite industry support, the
statute directs the Department to look to producers and workers who
produce the domestic like product. The International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product,\12\ they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law.\13\
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\12\ See section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petitions).
With regard to the domestic like product, Petitioner does not offer
a definition of the domestic like product distinct from the scope of
the investigations. Based on our analysis of the information submitted
on the record, we determined that melamine constitutes a single
domestic like product and we analyzed industry support in terms of that
domestic like product.\14\
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\14\ For a discussion of the domestic like product analysis in
this case, see Antidumping Duty Investigation Initiation Checklist:
Melamine from the People's Republic of China (``PRC AD Initiation
Checklist'') at Attachment II, Analysis of Industry Support for the
Petitions Covering Melamine from the People's Republic of China and
Trinidad and Tobago (``Attachment II''); and Antidumping Duty
Investigation Initiation Checklist: Melamine from Trinidad and
Tobago (``Trinidad and Tobago AD Initiation Checklist''), at
Attachment II. These checklists are dated concurrently with this
notice and on file electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central Records Unit, Room
7046 of the main Department of Commerce building.
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In determining whether Petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in Appendix I of
this notice. To establish industry support, Petitioner provided its own
production of the domestic like product in 2013.\15\ Petitioner states
that it is the only producer of melamine in the United States;
therefore, the Petitions are supported by 100 percent of the U.S.
industry.\16\
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\15\ See Volume I of the Petitions, at 2 and Exhibit I-18.
\16\ Id. at 2.
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Based on the data provided in the Petitions, supplemental
submissions, and other information readily available to the Department,
we determine that
[[Page 73039]]
Petitioner has established industry support.\17\ First, the Petitions
established support from domestic producers (or workers) accounting for
more than 50 percent of the total production of the domestic like
product and, as such, the Department is not required to take further
action in order to evaluate industry support (e.g., polling).\18\
Second, the domestic producers (or workers) met the statutory criteria
for industry support under section 732(c)(4)(A)(i) of the Act because
the domestic producers (or workers) who support the Petitions account
for at least 25 percent of the total production of the domestic like
product.\19\ Finally, the domestic producers (or workers) met the
statutory criteria for industry support under section 732(c)(4)(A)(ii)
of the Act because the domestic producers (or workers) who support the
Petitions account for more than 50 percent of the production of the
domestic like product produced by that portion of the industry
expressing support for, or opposition to, the Petitions.\20\
Accordingly, the Department determines that the Petitions were filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act.
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\17\ See PRC AD Checklist and Trinidad and Tobago AD Checklist,
at Attachment II.
\18\ See section 732(c)(4)(D) of the Act; see also PRC AD
Checklist and Trinidad and Tobago AD Checklist, at Attachment II.
\19\ See PRC AD Checklist and Trinidad and Tobago AD Checklist,
at Attachment II.
\20\ Id.
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The Department finds that Petitioner filed the Petitions on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the AD investigations that it is
requesting the Department initiate.\21\
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\21\ Id.
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Allegations and Evidence of Material Injury and Causation
Petitioner alleges that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the individual and cumulated imports of
the subject merchandise sold at less than fair value. In addition,
Petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\22\
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\22\ See Volume I of the Petitions, at 11-12 and Exhibit I-11.
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Petitioner contends that the industry's injured condition is
illustrated by reduced market share, underselling and price depression
or suppression, lost sales and revenues, and adversely impacted
production, shipments, capacity utilization, financial performance, and
capital expenditures.\23\ We assessed the allegations and supporting
evidence regarding material injury, threat of material injury, and
causation, and we determined that these allegations are properly
supported by adequate evidence and meet the statutory requirements for
initiation.\24\ In accordance with section 771(7)(G)(ii)(III) of the
Act, which provides an exception to the mandatory cumulation provision
for imports from any country designated as a beneficiary country under
the Caribbean Basin Economic Recovery Act (``CBERA''), we considered
Petitioner's allegation of injury with respect to Trinidad and Tobago,
a designated beneficiary under CBERA, independently of the allegation
for the PRC and found that the information provided satisfies the
requirements for initiation.\25\
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\23\ Id., at 12-16 and Exhibits I-13 through I-20; see also
Third General Issues Supplement, at 2-5 and Exhibits 1-4.
\24\ See PRC AD Initiation Checklist and Trinidad and Tobago AD
Initiation Checklist, at Attachment III, Analysis of Allegations and
Evidence of Material Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Melamine from the People's
Republic of China and Trinidad and Tobago (``Attachment III'').
\25\ Id.
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate investigations of imports of melamine from the PRC and
Trinidad and Tobago. The sources of data for the deductions and
adjustments relating to U.S. price and normal value (``NV'') are
discussed in greater detail in the country-specific initiation
checklists.
People's Republic of China
Export Price
For the PRC, Petitioner based export price (``EP'') on the POI
average unit value (``AUV'') of melamine imports from the PRC under
Harmonized Tariff Schedule of the United States (``HTSUS'') subheading
2933.61.0000 (which is specific to subject merchandise), calculated
using U.S. import statistics obtained from the ITC's Dataweb.
Petitioner also calculated EP based on a producer-specific price for
Zhongyuan Dahua Group Company Ltd (``ZDG'') for one individual shipment
of melamine during the POI. Petitioner obtained ship manifest data from
the U.S. Customs and Border Protection's (``CBP'') Automated Manifest
System, via Datamyne, and directly linked monthly U.S. port-specific
import statistics (obtained via Datamyne) for imports of melamine
entered under HTSUS subheading 2933.61.0000 to a shipment by ZDG
identified in the ship manifest data. Because the AUV and producer-
specific price were based on FOB China port terms, Petitioner adjusted
EP to deduct foreign inland freight and brokerage and handling at the
port of exportation.\26\
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\26\ See Volume II of the Petition, at 5 and Exhibits II-2--II-
5; see also PRC AD Supplement, at 1 and Exhibit II-S1.
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Normal Value
Petitioner states that the Department has a long-standing policy of
treating the PRC as a non-market economy (``NME'') country for AD
purposes.\27\ The Department has not revoked the presumption of NME
status for the PRC as of the date of these Petitions and therefore, in
accordance with section 771(18)(C)(i) of the Act, remains in effect for
purposes of the initiation of these investigations. Hence, an NME
methodology is appropriate for valuing production performed in the PRC.
Accordingly, the NV of the product is appropriately based on the
factors of production (``FOP'') used in the manufacture of melamine and
valued in a surrogate market economy country selected as a surrogate,
in accordance with section 773(c) of the Act.
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\27\ See Volume II of the Petition, at 2.
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Petitioner contends that Indonesia is the appropriate surrogate
country for the PRC because: it is at a level of economic development
comparable to that of the PRC, and is a significant producer of
comparable merchandise.\28\ Furthermore, Petitioner states that
integrated producers of melamine and comparable merchandise, i.e.,
nitrogenous fertilizers such as urea, utilize the same equipment and
production processes. Moreover, Petitioner states that Indonesian data
for valuing the FOPs for melamine are available and reliable.\29\
Petitioner states that the data includes a publicly available financial
statement for PT Pupuk Kujang (``Kujang''), an integrated producer of
nitrogenous fertilizers in Indonesia.\30\ Based on the information
provided by Petitioner, we believe that it is appropriate to use
Indonesia as a surrogate country for initiation purposes.
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\28\ Id., at 3.
\29\ Id.
\30\ Id., at 4.
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[[Page 73040]]
After initiation of the investigation, interested parties will have
the opportunity to submit comments regarding surrogate country
selection and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an
opportunity to submit publicly available information to value factors
of production no later than 30 days before the date of the preliminary
determination. In addition, in the course of the investigation covering
merchandise from the PRC, all parties, including the public, will have
the opportunity to provide relevant information related to the issues
of the PRC's NME status and the granting of separate rates to
individual exporters.
Valuation of FOP Inputs
Because Petitioner does not have access to actual FOPs for any PRC
manufacturers, Petitioner based consumption rates of FOPs, including
direct materials, labor, energy, and packing, for the production of
merchandise under consideration on its own experience.\31\ Petitioner
states that its experience is likely to be representative of the
experience of integrated PRC producers. Petitioner valued the FOPs
using surrogate value information from Indonesia. Petitioner based
factory overhead, selling, general and administrative (``SG&A'')
expenses, and profit on the financial results of a surrogate producer
of nitrogen based fertilizers in Indonesia.\32\
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\31\ Id., at 6.
\32\ Id.
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Valuation of Raw Materials
Petitioner valued the direct material FOPs to produce the
merchandise under consideration using publicly available Indonesian
import data obtained from Global Trade Atlas (``GTA'') in U.S. dollars
for the period March 2014 through August 2014.\33\ Petitioner excluded
all import values from all countries previously determined by the
Department to maintain broadly available, non-industry-specific export
subsidies, from countries previously determined by the Department to be
NME countries, and unspecified countries.\34\
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\33\ Id., at 6-7; see also PRC AD Supplement, at 2 and Exhibit
II-S5.
\34\ See Volume II of the Petition at 6-7 and Exhibit II-5.
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Valuation of Direct and Indirect Labor
Petitioner calculated the labor expense rate using 2010 data for
Indonesia from the International Labor Organization under schedule 5B,
Section 242: Manufacture of Other Chemical Products.\35\ Petitioner
adjusted this rate for inflation using the consumer price index for
Indonesia published by the International Monetary Fund and converted
the rate to U.S. dollars using the POI average exchange rate.\36\
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\35\ Id., at 7 and Exhibit II-8.
\36\ Id. at 7 and Exhibit II-11; see also PRC AD Supplement at
5, item 9, and Exhibit II-S8.
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Valuation of Electricity, Natural Gas, Compressed Air, and Water
Petitioner valued electricity using 2011 data published by the
Indonesian Ministry of Energy and Mineral Resources in the 2012
Handbook of Energy & Economic Statistics of Indonesia.\37\ Petitioner
valued natural gas (and steam produced from natural gas) using GTA
weight-based import data for propane natural gas as a proxy for natural
gas converted to a BTU equivalent value.\38\ Petitioner valued
compressed air based on its own cost for compressed air adjusted for
differences in Indonesian costs.\39\ Petitioner valued water using a
2006 study by the United Nations Development Program ``Disconnected:
Poverty Water Supply and Development in Jakarta Indonesia.'' \40\
Petitioner adjusted these values for inflation using the wholesale
price index for Indonesia published by the Organization for Economic
Cooperation and Development (``OECD'') and converted these values to
U.S. dollars using the POI average exchange rate.\41\
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\37\ Id. at 7-8 and Exhibit II-9
\38\ Id. at 8 and Exhibit II-9; see also PRC AD Supplement at 4
and Exhibit II-S6.
\39\ Id. at 3-4.
\40\ Id. at 8-9 and Exhibit II-9; see also PRC AD Supplement at
5 and Exhibit II-S7.
\41\ Id. at 7-8 and Exhibits II-8 and II-11.
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Valuation of Factory Overhead, Selling, General and Administrative
Expenses, and Profit
Petitioner calculated surrogate financial ratios (i.e., factory
overhead expenses, selling, general, and administrative expenses, and
profit) based on the 2013 financial statements of Kujang, an Indonesian
producer of nitrogenous-based fertilizers.\42\ Petitioner contends that
Kujang, like ZDG and Petitioner, is a vertically integrated producer
that produces urea from ammonia and, therefore, is an appropriate
surrogate.\43\
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\42\ Id. at Exhibit II-10.
\43\ Id. at 9 and Exhibit II-10.
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Trinidad and Tobago
Export Price
For Trinidad and Tobago, Petitioner based U.S. price on pricing
data for Trinidadian melamine received from a U.S. customer.\44\
Petitioner made deductions for movement and other expenses consistent
with the sales and delivery terms of the price quotes (e.g., U.S. and
Trinidadian inland freight and brokerage and handling and ocean freight
and insurance).\45\
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\44\ See Volume III of the Petition, at Exhibit III-27.
\45\ Id., at Exhibit III-31. See Trinidad and Tobago AD
Checklist for further information on this U.S. price calculation.
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Normal Value
For Trinidad and Tobago, the Petitioner alleged that the home
market was not viable.\46\ In addition, Petitioner alleged that sales
of melamine in Trinidad's largest third-country export market were made
at prices substantially below the fully-loaded cost of production
(``COP''). Accordingly, Petitioner based NV on the constructed value
(``CV'') of the imported merchandise.\47\
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\46\ Id. at 3-4 and Exhibit III-1 at 51.
\47\ Id., at 4-6 and Exhibits III-9 through III-17.
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Sales-Below-Cost Allegation
For Trinidad and Tobago, Petitioner provided information
demonstrating reasonable grounds to believe or suspect that sales of
melamine in the Italian market were made at prices below the COP,
within the meaning of section 773(b) of the Act, and requested that the
Department conduct a country-wide sales-below-cost investigation.\48\
The Statement of Administrative Action (``SAA''), submitted to the
Congress in connection with the interpretation and application of the
Uruguay Round Agreements Act, states that an allegation of sales below
COP need not be specific to individual exporters or producers.\49\ The
SAA states that ``Commerce will consider allegations of below-cost
sales in the aggregate for a foreign country, just as Commerce
currently considers allegations of sales at less than fair value on a
country-wide basis for purposes of initiating an antidumping
investigation.'' \50\
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\48\ Id.
\49\ See SAA, H.R. Doc. No. 103-316 at 833 (1994).
\50\ Id.
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Further, the SAA provides that section 773(b)(2)(A) of the Act
retains the requirement that the Department have ``reasonable grounds
to believe or suspect'' that below-cost sales have occurred before
initiating such an investigation. Reasonable grounds exist when an
interested party provides specific factual information on costs and
prices, observed or constructed, indicating that sales in the foreign
[[Page 73041]]
market in question are at below-cost prices.\51\
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\51\ Id.
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Cost of Production
Pursuant to section 773(b)(3) of the Act, COP consists of the cost
of manufacturing (``COM''); SG&A expenses; financial expenses; and
packing expenses. Petitioner calculated COM based on the Petitioner's
experience adjusted for known differences between the U.S. and the
industries of the respective country during the proposed POI.\52\ Using
average export values into Trinidad and Tobago for the year 2013 (as
obtained from the GTA),\53\ International Labor Organization wage data,
and electricity, steam, and natural gas data (either obtained from or
adjusted by price data reported by the Trinidadian and Tobagonian
Government and Central Bank), Petitioner multiplied its own usage
quantities by these publicly-available input values to account for
price differences in the manufacture of melamine.\54\
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\52\ See Trinidad and Tobago AD Checklist.
\53\ Because contemporaneous import data was not available for
Trinidad and Tobago, Petitioner valued raw material inputs based on
the average export values into Trinidad and Tobago for the year
2013, obtained from the GTA. See Trinidad and Tobago AD Checklist at
10.
\54\ Id.; see also Volume III of the Petition, at 7 and Exhibit
III-21 through III-26.
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Petitioner, at the request of the Department, relied on the 2013
financial statements of a producer of comparable merchandise (i.e.,
methanol) to determine the SG&A and profit ratios, which is consistent
with the Department's practice. Petitioner calculated the overhead
ratio based on its own production experience.\55\
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\55\ Id.
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Petitioner contends that that a third-country market (i.e., Italy)
is a viable comparison market for determining normal value and provided
a price quote for melamine produced in Trinidad and Tobago and sold in
this third-country market.\56\ In order to calculate an ``ex-factory''
third-country net price, Petitioner made an adjustment for foreign
inland freight costs, foreign brokerage and handling costs, and ocean
freight costs.\57\
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\56\ See Trinidad and Tobago AD Checklist and Volume III of the
Petition, at 4.
\57\ Id., at 4, at 5-6 and Exhibits III-11 through III-17; see
also Trinidad and Tobago AD Supplement, at 1-2 and Exhibits III-S1
through III-S5.
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Based upon a comparison of the net price of the foreign like
product in the third-country market to the COP of the product, we find
reasonable grounds to believe or suspect that sales of the foreign like
product in the comparison market were made below the COP, within the
meaning of section 773(b)(2)(A)(i) of the Act.\58\ Accordingly, the
Department is initiating a country-wide cost investigation relating to
sales of melamine sold in Trinidad and Tobago's third-country market,
Italy.
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\58\ See Trinidad and Tobago AD Supplement, at 3-4 and Exhibit
III-S7 at 5 and Exhibit III-S9.
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Normal Value Based on Constructed Value
Because Trinidad and Tobago does not have a viable home market and
certain third-country prices fell below COP, pursuant to sections
773(a)(4), 773(b) and 773(e) of the Act, Petitioner based NV on CV.\59\
Petitioner calculated CV using the same average COM, SG&A, overhead,
and financial expenses used to compute COP, as discussed above. That
is, Petitioner constructed CV based on its own consumption rates during
the proposed POI and generally valued inputs using recent trade data
for all countries exporting to Trinidad and Tobago, along with other
Trinidadian pricing information, as appropriate.\60\ Petitioner, at the
request of the Department, relied on the 2013 financial statements of a
producer of comparable merchandise (i.e., methanol) to determine the
SG&A and profit ratios. Petitioner calculated the overhead ratio based
on its own production experience.\61\
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\59\ See Trinidad and Tobago AD Initiation Checklist.
\60\ Id.
\61\ Id.
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Fair Value Comparisons
Based on the data provided by Petitioner, there is reason to
believe that imports of melamine from the PRC and Trinidad and Tobago
are being, or are likely to be, sold in the United States at less than
fair value. Based on comparisons of export price to NV in accordance
with section 773(a) of the Act, the estimated AD margins for PRC range
from 255.44 to 336.31 percent.\62\ Based on comparisons of export price
to CV, the estimated AD margin for Trinidad and Tobago range from 166.9
to 189.1 percent.\63\
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\62\ See PRC AD Initiation Checklist.
\63\ See Trinidad and Tobago AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigations
Based upon the examination of the AD Petitions on melamine from PRC
and Trinidad and Tobago, we find that the Petitions meet the
requirements of section 732 of the Act. Therefore, we are initiating AD
investigations to determine whether imports of melamine from the PRC
and Trinidad and Tobago are being, or are likely to be, sold in the
United States at less than fair value. In accordance with section
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we
will make our preliminary determinations no later than 140 days after
the date of this initiation.
Respondent Selection
Although the Department normally relies on import data from CBP to
select a limited number of producers/exporters for individual
examination in AD investigations, if appropriate, these Petitions name
only one company as a producer/exporter of melamine in Trinidad and
Tobago: Methanol Holdings (Trinidad) Ltd., and Petitioner provided
information from an independent third party source as support.\64\
Furthermore, we currently know of no additional producers/exporters of
subject merchandise from Trinidad and Tobago. Accordingly, the
Department intends to examine all known producers/exporters in this
investigation (i.e., the company cited above). We invite interested
parties to comment on this issue. Parties wishing to comment must do so
within five days of the publication of this notice in the Federal
Register. Comments must be filed electronically using ACCESS. An
electronically-filed document must be received successfully in its
entirety by the Department's electronic records system, ACCESS, by 5
p.m. EST by the date noted above.
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\64\ See Volume III of the Petition at 1 and Exhibit III-1.
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With respect to the PRC, Petitioner identified 54 potential
respondents.\65\ In accordance with our standard practice for
respondent selection in AD investigations involving NME countries, we
intend to issue quantity and value questionnaires to each potential
respondent named in the Petition,\66\ and will base respondent
selection on the responses received. In addition, the Department will
post the quantity and value questionnaire along with the filing
instructions on the Enforcement and Compliance Web site (http://trade.gov/enforcement/news.asp). Exporters and producers of melamine
from the PRC that do not receive quantity and value questionnaires via
mail may still submit a quantity and value response, and can obtain a
copy from the Enforcement and Compliance Web site. The quantity and
value questionnaire response must be submitted by all PRC exporters/
[[Page 73042]]
producers no later than 5:00 p.m. EST on December 17, 2014. All
quantity and value questionnaire responses must be filed electronically
using ACCESS.
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\65\ See Volume I of the Petition at Exhibit I-5.
\66\ Id.
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Separate Rates
In order to obtain separate rate status in an NME AD investigation,
exporters and producers must submit a separate rate application.\67\
The specific requirements for submitting the separate rate application
in the PRC investigation are outlined in detail in the application
itself, which will be available on the Department's Web site at http://enforcement.trade.gov/nme/nme-sep-rate.html on the date of publication
of this initiation notice in the Federal Register. The separate rate
application will be due 60 days after the publication of this
initiation notice no later than 5:00 p.m. EST. For exporters and
producers who submit a separate rate status application and have been
selected as mandatory respondents, these exporters and producers will
no longer be eligible for consideration for separate rate status unless
they respond to all parts of the Department's AD questionnaire as
mandatory respondents. The Department requires that the PRC respondents
submit a response to both the quantity-and-value questionnaire and the
separate rate application by their respective deadlines referenced
above in order to receive consideration for separate rate status.
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\67\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005) (``Separate
Rates and Combination Rates Bulletin''), available on the
Department's Web site at http://enforcement.trade.gov/policy/.
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Use of Combination Rates
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in an NME
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME investigations will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\68\
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\68\ See Separate Rates and Combination Rates Bulletin, at 6
(emphasis added).
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the governments of the PRC and Trinidad and Tobago via
ACCESS. To the extent practicable, we will attempt to provide a copy of
the public version of the Petitions to each exporter named in the
Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of melamine from the PRC and Trinidad and
Tobago are materially injuring or threatening material injury to a U.S.
industry.\69\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country;
\70\ otherwise, these investigations will proceed according to
statutory and regulatory time limits.
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\69\ See section 733(a) of the Act.
\70\ Id.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: the definition of
factual information (19 CFR 351.102(b)(21)), and the time limits for
the submission of factual information (19 CFR 351.301). The final rule
identifies five categories of factual information in 19 CFR
351.102(b)(21), which are summarized as follows: (i) Evidence submitted
in response to questionnaires; (ii) evidence submitted in support of
allegations; (iii) publicly available information to value factors
under 19 CFR 351.408(c) or to measure the adequacy of remuneration
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the
Department; and (v) evidence other than factual information described
in (i)-(iv). The final rule requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted and, if the information is submitted
to rebut, clarify, or correct factual information already on the
record, to provide an explanation identifying the information already
on the record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all proceeding segments initiated on or
after May 10, 2013, and thus are applicable to these investigations.
Interested parties should review the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt prior to
submitting factual information in these investigations.
Revised Extension of Time Limits Regulation
On September 20, 2013, the Department modified its regulation
concerning the extension of time limits for submissions in AD and CVD
proceedings.\71\ The modification clarifies that parties may request an
extension of time limits before a time limit established under 19 CFR
351 expires, or as otherwise specified by the Secretary. In general, an
extension request will be considered untimely if it is filed after the
time limit established under Part 351 expires. For submissions which
are due from multiple parties simultaneously, an extension request will
be considered untimely if it is filed after 10:00 a.m. on the due date.
Examples include but are not limited to: (1) Case and rebuttal briefs,
filed pursuant to 19 CFR 351.309; (2) factual information to value
factors under 19 CFR 351.408(c), or to measure the adequacy of
remuneration under 19 CFR 351.511(a)(2) filed pursuant to 19 CFR
351.301(c)(3) and rebuttal, clarification and correction information
filed pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the
selection of a surrogate country and surrogate values and rebuttal; (4)
comments concerning CBP data; and (5) quantity and value
questionnaires. Under certain circumstances, the Department may elect
to specify a different time limit by which extension requests will be
considered untimely for submissions which are due from multiple parties
[[Page 73043]]
simultaneously. In such a case, the Department will inform parties in
the letter or memorandum setting forth the deadline (including a
specified time) by which extension requests must be filed to be
considered timely. This modification also requires that an extension
request must be made in a separate, stand-alone submission, and
clarifies the circumstances under which the Department will grant
untimely-filed requests for the extension of time limits. These
modifications are effective for all segments initiated on or after
October 21, 2013, and thus are applicable to these investigations.
Interested parties should review Extension of Time Limits; Final Rule,
available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in these
investigations.
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\71\ See Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013).
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\72\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials, as well as their
representatives. Investigations initiated on the basis of petitions
filed on or after August 16, 2013, and other segments of any AD or CVD
proceedings initiated on or after August 16, 2013, should use the
formats for the revised certifications provided at the end of the Final
Rule.\73\ The Department intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
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\72\ See section 782(b) of the Act.
\73\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in these investigations
should ensure that they meet the requirements of these procedures
(e.g., the filing of letters of appearance as discussed in 19 CFR
351.103(d)).
This notice is issued and published pursuant to section 777(i) of
the Act and 19 CFR 351.203(c).
Dated: December 2, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigations
The merchandise subject to these investigations is melamine
(Chemical Abstracts Service (``CAS'') registry number 108-78-01,
molecular formula C3H6N6).\1\
Melamine is a crystalline powder or granule typically (but not
exclusively) used to manufacture melamine formaldehyde resins. All
melamine is covered by the scope of these investigations
irrespective of purity, particle size, or physical form. Melamine
that has been blended with other products is included within this
scope when such blends include constituent parts that have been
intermingled, but that have not been chemically reacted with each
other to produce a different product. For such blends, only the
melamine component of the mixture is covered by the scope of these
investigations. Melamine that is otherwise subject to these
investigations is not excluded when commingled with melamine from
sources not subject to these investigations. Only the subject
component of such commingled products is covered by the scope of
these investigations.
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\1\ Melamine is also known as 2,4,6-triamino-s-triazine; l,3,5-
Triazine-2,4,6-triamine; Cyanurotriamide; Cyanurotriamine;
Cyanuramide; and by various brand names.
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The subject merchandise is provided for in subheading
2933.61.0000 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Although the HTSUS subheading and CAS registry number
are provided for convenience and customs purposes, the written
description of the scope is dispositive.
[FR Doc. 2014-28840 Filed 12-8-14; 8:45 am]
BILLING CODE 3510-DS-P