[Federal Register Volume 59, Number 220 (Wednesday, November 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28306]


[[Page Unknown]]

[Federal Register: November 16, 1994]


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DEPARTMENT OF COMMERCE
[A-570-836]

 

Preliminary Determination of Sales at Less than Fair Value: 
Glycine from the People's Republic of China

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

EFFECTIVE DATE: November 16, 1994.

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

PRELIMINARY DETERMINATION: We preliminarily determine that imports of 
glycine from the PRC are being, or are 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). The estimated margins are 
shown in the ``Suspension of Liquidation'' section of this notice.

Case History

    Since the initiation of this investigation on July 28, 1994 (59 FR 
38435), the following events have occurred.
    On August 15, 1994, the U.S. International Trade Commission (ITC) 
issued an affirmative preliminary injury determination in this case.
    On August 18, 1994, the China Chamber of Commerce for Metals, 
Minerals, and Chemicals (CCCMMC) was given a questionnaire 
presentation. At this time, the DOC requested CCCMMC to provide a list 
of the producers and exporters of glycine in the PRC.
    On September 7, 1994, the CCCMMC requested an extension of the 
questionnaire responses until September 23, 1994. Counsel on behalf of 
Sinochem Shanghai Pudong Trading Corporation (Sinochem) and Dastech 
Inc. (Dastech) requested a further extension until October 3, 1994. On 
October 3, 1994, the Department once again requested that CCCMMC 
identify the universe of glycine producers and exporters in the PRC.
    On October 5, 1994, the Department contacted counsel for Sinochem 
and Dastech and was informed that these companies no longer intended to 
participate. On October 6, 1994, counsel for the petitioners requested 
that the Department issue an expedited preliminary determination. On 
October 17, 1994, the Department sent a letter to the CCCMMC requesting 
confirmation of the glycine producers' and exporters' intention not to 
participate in this investigation. On October 18, 1994, we received a 
letter in response to the Department's October 3, 1994 letter, stating 
that ``until now nobody wanted to defend the case.'' The letter did not 
provide any information with regard to the universe of glycine 
producers and exporters in the PRC. We have received no response to our 
October 17, 1994, letter.

Scope of Investigation

    The product covered by this investigation is glycine which is a 
free-flowing crystalline material, like salt or sugar. Glycine is 
produced at varying levels of purity and is used as a sweetnener/taste 
enhancer, a buffering agent, reabsorbable amino acid, chemical 
intermediate, and a metal complexing agent. Glycine is currently 
classified under subheading 2922.49.4020 of the Harmonized Tariff 
schedule of the United States (``HTSUS''). The scope of this 
investigation includes glycine of all purity levels.
    Although the HTSUS subheading is provided for convenience and 
Customs purposes, our written description of the scope of this 
proceeding is dispositive.

Period of Investigation

    The period of investigation is February 1994, through July 1994.

Best Information Available

    Because no producers or exporters of glycine responded to our 
questionnaire, we are basing our determination on best information 
available (BIA) pursuant to section 776(c) of the Act, which provides 
that the Department shall use BIA when a company identified by the 
Department as a respondent refuses to provide requested information.
    In determining what rate to use as BIA, the Department follows a 
two-tiered methodology, whereby the Department normally assigns lower 
margins to those respondents who cooperated in an investigation and 
margins based on more adverse assumptions for those respondents who did 
not cooperate in an investigation. According to this methodology, as 
outlined in the Final Determination of Sales at Less Than Fair Value: 
Certain Hot-Rolled Carbon Steel Flat Products, Certain Cold-Rolled 
Carbon Steel Flat Products, and Certain Cut-to-Length Carbon Steel 
Plate from Belgium, 58 FR 37083 (July 9, 1993), when a company refuses 
to provide the information requested in the form required, or otherwise 
significantly impedes the Department's investigation, it is appropriate 
for the Department to assign to that company the higher of 1) the 
highest margin alleged in the petition, or 2) the highest calculated 
rate of any respondent in the investigation. (See Allied Signal 
Aerospace Co. v. United States, 996 F. 2d 1185, 1191-92 (Fed. Cir. 
1993).) Because there were no cooperative respondents in this 
investigation, we are assigning to all exporters, as BIA, a margin of 
155.89 percent, the highest margin calculated in the petition, adjusted 
for methodological errors as explained in the Department's initiation 
notice.

Suspension of Liquidation

    In accordance with section 733(d)(1) of the Act, we are directing 
the Customs Service to suspend liquidation of all entries of glycine 
from the PRC that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. The Customs Service shall require a cash deposit or 
posting of a bond equal to the estimated preliminary dumping margin, as 
shown below. The suspension of liquidation will remain in effect until 
further notice.

------------------------------------------------------------------------
                                                                Margin  
               Manufacturer/producer/exporter                 percentage
------------------------------------------------------------------------
All Companies..............................................       155.89
------------------------------------------------------------------------

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 before the later of 
120 days after the date of this preliminary determination or 45 days 
after our final determination.

Public Comment

    In accordance with 19 CFR 353.38(b), we will hold a public hearing, 
if requested, to afford interested parties an opportunity to comment on 
arguments raised in case or rebuttal briefs. 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 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. If this 
investigation proceeds normally, we will make our final determination 
within 75 days of the signing of this preliminary determination.
    This determination is published pursuant to section 733(f) of the 
Act and 19 CFR 353.15(a)(4).

    Dated: November 8, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-28306 Filed 11-15-94; 8:45 am]
BILLING CODE 3510-DS-P