[Federal Register Volume 59, Number 18 (Thursday, January 27, 1994)]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1780]
[Federal Register: January 27, 1994]
DEPARTMENT OF COMMERCE
International Trade Administration
Initiation of Antidumping Duty Investigation: Coumarin From the
People's Republic of China
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 27, 1994.
FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Michelle
Frederick, Office of Antidumping Investigations, Import Administration,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC, 20230; telephone
(202) 482-4136 or 482-0186, respectively.
INITIATION OF INVESTIGATION:
On December 30, 1993, we received a petition filed in proper form
by Rhone-Poulenc Specialty Chemicals Co. (petitioner). Petitioner
submitted amendments to the petition on January 13 and 14, 1994. In
accordance with 19 CFR 353.12, petitioner alleges that imports of
coumarin from the People's Republic of China (PRC) are being, or are
likely to be, sold in the United States at less than fair value within
the meaning of section 731 of the Tariff Act of 1930, as amended (the
Act), and that such imports are materially injuring, or threatening
material injury to, a U.S. industry.
Petitioner stated that it has standing to file the petition because
it is an interested party, as defined under section 771(9)(C) of the
Act, and the petition is filed on behalf of the U.S. industry producing
the product subject to this investigation. If any interested party, as
described under paragraphs (C), (D), (E), or (F) of section 771(9) of
the Act, wishes to register support for, or opposition to, this
petition, it should file a written notification with the Assistant
Secretary for Import Administration.
Scope of Investigation
The product covered by this investigation is coumarin. Coumarin is
an aroma chemical with the chemical formula C9H6O2 that
is also known by other names, including 2H-1-benzopyran-2-one, 1,2-
benzopyrone, cis-o-coumaric acid lactone, coumarinic anhydride, 2-Oxo-
1,2-benzopyran, 5,6-benzo-alpha-pyrone, ortho-hydroxyc innamic acid
lactone, cis-ortho-coumaric acid anhydride, and tonka bean camphor.
All forms and variations of coumarin are included within the scope
of the petition, such as coumarin in crystal, flake, or powder form,
and ``crude'' or unrefined coumarin (i.e. prior to purification or
crystallization). Excluded from the scope are ethylcoumarins
(C11H10O2) and methylcoumarins (C10H8O2).
Coumarin is classifiable under subheading 2932.21.0000 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although the
HTSUS subheading is provided for convenience and customs purposes, our
written description of the scope of this investigation is dispositive.
United States Price and Foreign Market Value
Petitioner based United States price (USP) on average unit prices
derived from U.S. Census import statistics, and on price lists from
U.S. importers of coumarin.
Petitioner contends that the foreign market value (FMV) of PRC-
produced imports subject to this investigation must be determined in
accordance with section 773(c) of the Act, which concerns non-market
economy (NME) countries. The PRC is presumed to be an NME within the
meaning of section 771(18)(C) of the Act, and the Department has
treated it as such in previous investigations (see, e.g., Final
Determination of Sales at Less Than Fair Value: Certain Compact Ductile
Iron Waterworks Fittings and Accessories Thereof from the PRC, 58 FR
37908 (July 14, 1993)). In the course of this investigation, parties
will have the opportunity to address this NME presumption and provide
relevant information and argument on this issue. In addition, parties
will have the opportunity in this investigation to submit comments on
whether FMV should be based on prices or costs in the NME (see
Amendment to Final Determination of Sales at Less Than Fair Value and
Amendment to Antidumping Duty Order: Chrome-Plated Lug Nuts from the
People's Republic of China, 57 FR 15052 (April 24, 1992)).
Because of the extent of central control in an NME, the Department
further considers that a single antidumping margin, should there be
one, is appropriate for all exporters from the NME. Only if individual
NME exporters are free of central government ownership and can
demonstrate an absence of central governmental control with respect to
the pricing of exports, both in law and in fact, will they be
considered eligible for separate, owner-specific deposit rates. (See
Final Determination of Sales at Less Than Fair Value: Helical Spring
Lock Washers from the People's Republic of China, September 20, 1993,
(58 FR 48833) for a discussion of the information the Department
considers appropriate to warrant calculation of separate rates.)
In accordance with section 773(c) of the Act, FMV in NME cases is
based on NME producers' factors of production (valued in a market
economy country). Absent evidence that the PRC government determines
which factories shall produce for export to the United States, we
intend, for purposes of this investigation, to base FMV only on those
factories in the PRC which are known to produce coumarin for export to
the United States.
Petitioner calculated FMV on the basis of the valuation of the
factors of production. The factors of production used by petitioner
were based on petitioner's experience at its manufacturing facility,
which it states is comparable to the PRC production process.
In valuing the factors of production, petitioner used India as the
surrogate country. For purposes of this initiation, we have, pursuant
to section 773(c)(4) of the Act, accepted India as an appropriate
surrogate country because its economy is comparable to the PRC's.
Petitioner's FMV consisted of the sum of materials, labor, energy,
utilities, overhead, general expenses, profit, and packing. In
accordance with the hierarchy preferred for valuing factors (set forth
in the notice of Final Determination of Sales at Less Than Fair Value:
Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic
of China, 57 FR 21058 (May 18, 1992) (Comment 4)), petitioner relied
where possible on publicly available information. Where such
information was unavailable, petitioner relied on its own cost or
Pursuant to section 773(c)(1) of the Act, petitioner added to the
labor and material costs the statutory minima of 10 percent for general
expenses and eight percent for profit, as well as an amount for packing
based on import statistics from India.
Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that the merchandise is being, or is likely to be, sold at less
than fair value. Based on our analysis of information submitted in the
petition amendment, we found it necessary to conduct further research
regarding the pricing of certain factors of production upon which FMV
was based. Subsequent to that research, petitioners submitted
amendments to the petition including additional price information. The
comparison of USP and FMV in the petition, as amended, indicates
margins of 33.59% to 444.37%. If it becomes necessary at a later date
to consider the petition as a source of best information available
(BIA), we may review all of the bases for USP and FMV in determining
Initiation of Investigation
We have examined the petition on coumarin and have found that it
meets the requirements of section 732(b) of the Act. Therefore, we are
initiating an antidumping duty investigation to determine whether
imports of coumarin from the PRC are being, or are likely to be, sold
in the United States at less than fair value.
Section 732(d) of the Act requires us to notify the International
Trade Commission (ITC) of this action, and we have done so.
Preliminary Determination by the ITC
The ITC will determine by February 14, 1994, whether there is a
reasonable indication that imports of coumarin from the PRC are
materially injuring, or threaten material injury to, a U.S. industry.
Any ITC determination which is negative will result in this
investigation being terminated; otherwise, this investigation will
proceed according to statutory and regulatory time limits.
This notice is published pursuant to section 732(c)(2) of the Act
and 19 CFR 353.13(b).
Dated: January 19, 1994.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 94-1780 Filed 1-26-94; 8:45 am]
BILLING CODE 3510-DS-P