[Federal Register Volume 59, Number 120 (Thursday, June 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15330]


[[Page Unknown]]

[Federal Register: June 23, 1994]


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COMMISSION ON CIVIL RIGHTS
[A-580-823]

 

Notice of Preliminary Determination of Sales at Not Less Than 
Fair Value: Saccharin From Korea

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

EFFECTIVE DATE: June 23, 1994.

FOR FURTHER INFORMATION CONTACT: Thomas McGinty or Susan Strumbel, 
Office of Countervailing Investigations, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW., Washington, DC 20230; telephone 
(202) 482-5055 and 482-1442, respectively.

Preliminary Determination

    We have preliminarily determined that saccharin from Korea is not 
being, nor is likely to be, sold in the United States at less than fair 
value, as provided in section 733 of the Tariff Act of 1930, as amended 
(the ``Act''). We calculated a preliminary less than fair value margin 
of zero percent for Korean saccharin sold in the United States during 
the period of investigation.

Case History

    Since the initiation of this investigation on December 8, 1993 (58 
FR 65335; December 14, 1993), the following events have occurred:
    On January 3, 1994, the United States International Trade 
Commission (``ITC'') issued an affirmative preliminary injury 
determination (see ITC Investigation No. 731-TA-676).
    On January 11, 1994, in accordance with 19 CFR 353.42(b), the 
Department issued its antidumping duty questionnaire to Jeil Moolsan 
Co. Inc. (``JMC''), the major Korean producer and exporter of the 
subject merchandise during the period of investigation, because JMC 
accounted for more than 60 percent of Korean saccharin sold in the 
United States during the period of investigation.
    On March 21, 1994, PMC Specialties Group (``PMC''), the petitioner 
in this investigation, requested a postponement of the preliminary 
determination in this investigation. We granted the postponement until 
June 16, 1994 (59 FR 15705, April 4, 1994). Also, on March 21, 1994, 
petitioner submitted to the Department an allegation that JMC's 
reported third-country sales to the United Kingdom (``U.K.'') were made 
at prices below the cost of production. On May 11, 1994, in accordance 
with section 772(b) of the Act, the Department initiated an 
investigation of whether those third-country sales were made at prices 
below the cost of production during the period of investigation. On May 
24, 1994, we issued a COP and constructed value questionnaire to JMC. 
JMC's response to the questionnaire is due June 29, 1994. Therefore, 
information relating to whether JMC made sales below cost in the U.K. 
has not been considered in this preliminary determination, but will be 
considered for purposes of the final determination.

Scope of the Investigation

    The product covered by this investigation is saccharin. Saccharin 
is a non-nutritive sweetener used in beverages and foods, personal care 
products such as toothpaste, table-top sweeteners, animal feeds, and 
metalworking fluids. Three forms of saccharin are typically available 
as referenced in the American Chemical Society's Chemical Abstract 
Service (``CAS''). These forms are sodium saccharin (CAS #128-44-9), 
calcium saccharin (CAS #6485-34-3), and acid (or insoluble) saccharin 
(CAS #81-07-2). Saccharin is classified under subheading 2925.11.00 of 
the Harmonized Tariff Schedule of the United States (``HTS''). The 
scope of this investigation includes all types of saccharin imported 
under this HTS subheading including research and specialized grades. 
The HTS subheading is provided for convenience and customs purposes. 
Our written description of the scope of this investigation is 
dispositive.

Period of Investigation

    The period of investigation (``POI'') is June 1, 1993, through 
November 30, 1993.

Product Comparisons

    We have determined that the class or kind of merchandise subject to 
this investigation constitutes a single such or similar category. In 
making our fair value comparisons, in accordance with the Department's 
standard methodology, we first compared merchandise identical in all 
respects. If no identical merchandise was sold, we compared the most 
similar merchandise, as determined by the model-matching criteria 
contained in Appendix V of the questionnaire (``Appendix V'') (on file 
in Room B-099 of the main building of the Department of Commerce 
(``Public File'')).
    Regarding level of trade, JMC reported that it sells only to 
distributors in the United States and to both distributors and trading 
companies in the U.K. However, JMC reported that there is no difference 
between prices or conditions of sale made at the distributor and 
trading company levels of trade. Therefore, in keeping with past 
practice (see, e.g., Final Results of Administrative Review: 
Antifriction Bearings and Parts Thereof from the Federal Republic of 
Germany, et al. (56 FR 31692, 31709-11; July 11, 1991), and in 
accordance with 19 CFR 353.58, we have compared JMC's U.S. sales to 
distributors to U.K. sales to either distributors or trading companies, 
without distinction, in determining whether or not JMC made sales at 
less than fair value.

Fair Value Comparisons

    To determine whether JMC's sales for export to the United States 
were made at less than fair value, we compared the United States price 
(``USP'') to the foreign market value (``FMV''), as specified in the 
``United States Price'' and ``Foreign Market Value'' sections of this 
notice. With the exception of one sale to the United States, all 
comparisons of U.S. and third country sales involved identical 
merchandise. For the U.S. sale compared to a sale of similar 
merchandise, we made an adjustment, pursuant to 19 CFR 353.57, for 
physical differences in merchandise.

United States Price

    Because JMC's U.S. sales of saccharin were made to unrelated 
purchasers prior to importation into the United States, and the 
exporter's sales price methodology was not indicated by other 
circumstances, in accordance with section 772(b) of the Act, we based 
USP on the purchase price (``PP'') sales methodology.
    We calculated JMC's PP sales based on packed and delivered prices 
to unrelated customers in the United States. We made deductions to the 
U.S. price, where appropriate, for foreign brokerage and handling, 
containerization, marine insurance, and freight expenses and charges. 
In accordance with Section 772(d)(1)(B) of the Act, we made an addition 
to the U.S. price for the amount of import duties imposed on inputs 
which were subsequently rebated upon exportation of the finished 
merchandise to the United States.

Foreign Market Value

    In order to determine whether there was a sufficient volume of 
sales in the home market to serve as a viable basis for calculating 
FMV, we compared the volume of home market sales of subject merchandise 
to the volume of third country sales of subject merchandise, in 
accordance with section 773(a)(1)(B) of the Act. As a result, we 
determined that the home market was not viable. Therefore, we have 
based FMV on JMC's sales to the largest third country market by volume, 
the U.K., in accordance with 19 CFR 353.49(b).
    We calculated FMV based on delivered prices, inclusive of packing, 
to customers in the U.K. From the delivered price, we deducted third 
country packing and added U.S. packing costs. Pursuant to section 
773(a)(4)(B) of the Act and 19 CFR 353.56(a)(2), we made circumstance-
of-sale-adjustments for differences in movement charges between 
shipments to the United States and shipments to the U.K. We also made 
circumstance-of-sale-adjustments for differences in quality inspection 
charges and expenses related to securing credit including: advise 
charges, postage, bank charges, outside bank charges, and expenses 
associated with obtaining letters of credit. For sales with unreported 
shipment or payment dates, we used JMC's reported credit expense based 
on the average number of days outstanding between shipment and payment 
for JMC's third country sales. In addition, we added the amount of 
import duties imposed on inputs which were subsequently rebated upon 
exportation of the finished merchandise to the U.K.

Currency Conversion

    We made currency conversions based on the official exchange rates 
in effect on the dates of the U.S. sales as certified by the Federal 
Reserve Bank of New York.

Preliminary Margin Calculation

    Based on the calculation methodology outlined above, we 
preliminarily calculate a margin of zero percent for U.S. sales of 
saccharin from Korea.

Verification

    As provided in section 776(b) of the Act, we will verify 
information used in making our final determination.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. If our final determination is affirmative, 
the ITC will determine whether these imports are materially injuring, 
or threaten material injury to, the U.S. industry within 75 days after 
our final determination.

Public Comment

    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Import Administration, 
U.S. Department of Commerce, Room B-099, within ten days of the 
publication of this notice. Requests should contain: (1) The party's 
name, address, and telephone number; (2) the number of participants; 
and (3) a list of the issues to be discussed.
    In accordance with 19 CFR 353.38, case briefs or other written 
comments in at least ten copies must be submitted to the Assistant 
Secretary no later than August 5, 1994, and rebuttal briefs no later 
than August 10, 1994. A hearing, if requested, will be held on August 
12, 1994, at 1:00 pm at the U.S. Department of Commerce in Room 1815. 
Parties should confirm by telephone the time, date, and place of the 
hearing 48 hours prior to the scheduled time. In accordance with 19 CFR 
353.38(b), oral presentations will be limited to issues raised in the 
briefs.
    We will make our final determination not later than 75 days after 
of this preliminary determination.
    This determination is published pursuant to section 733(f) of the 
Act and 19 CFR 353.15(a)(4).

    Date: June 16, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-15330 Filed 6-22-94; 8:45 am]
BILLING CODE 3510-DS-P