[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31961]


[Federal Register: December 28, 1994]


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DEPARTMENT OF COMMERCE
[A-570-841]


Initiation of Antidumping Duty Investigation: Manganese Sulfate 
From the People's Republic of China

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

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT:
Mark Wells or Louis Apple, 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) 482-3003 or (202) 482-1769, respectively.

Initiation of Investigation

The Petition

    On November 30, 1994, we received a petition filed in proper form 
by American MicroTrace Corporation (the petitioner). On December 1 and 
14, 1994, the petitioner submitted additional information supporting 
their allegation. In accordance with 19 CFR 353.12, the petitioner 
alleges that manganese sulfate from the People's Republic of China 
(PRC) 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 Tariff Act of 
1930, as amended (the Act), and that these imports materially injure, 
or threaten material injury to, a United States industry.
    The petitioner also alleges that critical circumstances, as defined 
under 19 CFR 353.16, exist with respect to manganese sulfate from the 
PRC.
    The petitioner has 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 because 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 manganese sulfate, 
including manganese sulfate monohydrate (MnSO4H2O), and any 
other forms whether or not hydrated, without regard to form, shape, or 
size, the addition of other elements, the presence of other elements as 
impurities, and/or the method of manufacture. The subject merchandise 
is currently classifiable under subheading 2833.29.50 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 proceeding is dispositive.

United States Price and Foreign Market Value

United States Price

    The petitioner based United States price (USP) on f.o.b, c.i.f, and 
c.f.r. price quotes from Chinese exporters of the subject merchandise. 
In calculating USP, petitioner deducted: foreign inland freight, ocean 
freight, and marine insurance. The petitioner based inland freight on 
the distance from the PRC producers of the subject merchandise to the 
PRC port of export and valued freight transportation using Indian 
surrogate data.

Foreign Market Value

A. Non-Market Economy Determination
    The petitioner contends that the PRC is a non-market economy (NME) 
country within the meaning of section 771(18)(A) of the Act. The 
Department has determined in previous investigations that the PRC is an 
NME, and the presumption of NME status continues for purposes of 
initiation of this investigation. See e.g., Final Determination of 
Sales at Less than Fair Value: Certain Paper Clips from the PRC, 59 FR 
51168 (October 7, 1994).
    In accordance with section 773(c) of the Act, foreign market value 
(FMV) in NME cases is based on NME producers' factors of production, 
valued in a market economy country. Consistent with Department practice 
(see Initiation of Antidumping Duty Investigation: Glycine from the 
PRC, 59 FR 38435 (July 28, 1994)) absent evidence that a particular NME 
country government determines which of its factories shall produce for 
export to the United States, we intend, for purposes of this 
investigation, to base FMV only on those factories that produced 
manganese sulfate sold to the United States during the period of 
investigation (POI).
    In the course of this investigation, parties will have the 
opportunity to address this NME determination and provide relevant 
information and argument related to the issues of the PRC's NME status 
and granting of separates rates to individual exporters.
B. FMV Calculations
    The petitioner based the factors of production on the production 
process used by PRC producers of the subject merchandise and valued 
these factors with publicly available published information from the 
surrogate country, India. For purposes of this initiation, we have 
accepted India as a surrogate country because in past cases the 
Department has determined that its economy is at a level of development 
comparable to the PRC and petitioner has provided evidence that, in 
this case, it is a significant producer of comparable merchandise, as 
required by section 773(c)(4) of the Act.
    Pursuant to section 773(c)(1) of the Act, petitioner added to the 
material costs, energy, labor and a percentage for factory overhead, 
all based on published information from India. Petitioner then added a 
percentage for selling, general and administrative expenses also based 
on published information from India, as well as an amount for packing. 
Finally, petitioner added the statutory minimum of eight percent for 
profit.
    Petitioner has alleged, based on information submitted in the 
petition, dumping margins ranging from 142.25 percent to 801.26 
percent. We will carefully reexamine these margins if the use of best 
information available becomes an issue in this investigation.

Initiation of Investigation

    We have examined the petition on manganese sulfate 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 manganese sulfate from the PRC are being, or are 
likely to be, sold in the United States at less than fair value.
    Additionally, we have examined petitioner's allegation that 
critical circumstances exist with respect to manganese sulfate from the 
PRC and have determined they have met the requirements of 19 CFR 
353.16. Therefore, we are also initiating an investigation as to 
whether critical circumstances exist with respect to imports of 
manganese sulfate from the PRC.

International Trade Commission (ITC) Notification

    Section 732(d) of the Act requires us to notify the ITC of this 
action and we have done so.

Preliminary Determination by the ITC

    The ITC will determine by January 17, 1995, whether there is a 
reasonable indication that an industry in the United States is 
materially injured, or is threatened with material injury, by reason of 
imports of manganese sulfate from the PRC. A negative ITC determination 
will result in a termination of the investigation; otherwise, the 
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: December 20, 1994.
Susan G. Esserman,
Assistant Secretary for Import Administration.
[FR Doc. 94-31961 Filed 12-27-94; 8:45 am]
BILLING CODE 3510-DS-M