[Federal Register Volume 61, Number 152 (Tuesday, August 6, 1996)]
[Notices]
[Pages 40817-40818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19997]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
[A-570-847]


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

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

EFFECTIVE DATE: August 6, 1996.

FOR FURTHER INFORMATION CONTACT: James Terpstra, Irene Darzenta, or 
Howard Smith at (202) 482-3965, 482-6320, and 482-5193 respectively, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230.

Initiation of Investigation

The Applicable Statute

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (``the Act'') by 
the Uruguay Round Agreements Act (``URAA'').

The Petition

    On July 11, 1996, the Department of Commerce (``the Department'') 
received a petition filed in proper form by FMC Corporation (``FMC'' or 
``petitioner''). On July 22 and 25, 1996, the petitioner submitted a 
supplement to the petition in response to the Department's request for 
additional information. The supplement contained updated normal values 
and revised margin calculations.
    In accordance with section 732(b) of the Act, the petitioner 
alleges that imports of persulfates 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 Act, and 
that such imports are materially injuring, or threatening material 
injury to, the U.S. industry.
    Because the petitioner is an interested party, as defined under 
section 771(9)(C) of the Act, it has standing to file the petition.

[[Page 40818]]

Determination of Industry Support for the Petition

    Section 732(c)(4)(A) of the Act requires the Department to 
determine, prior to the initiation of an investigation, that a minimum 
percentage of the domestic industry supports an antidumping petition. A 
petition meets these minimum requirements if the domestic producers or 
workers who support the petition account for (1) at least 25 percent of 
the total production of the domestic like product; and (2) 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.
    The petitioner is the only known U.S. producer of persulfates. 
Accordingly, the Department determines that the petition is supported 
by the domestic industry.

Scope of Investigation

    The products covered by this petition are persulfates, including 
ammonium, potassium, and sodium persulfates. The chemical formulae for 
these persulfates are, respectively, (NH4)2S2O8, 
K2S2O8, and Na2S2O8. Ammonium and 
potassium persulfates are currently classified under subheading 
2833.40.60 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). Sodium persulfate is classified under HTSUS subheading 
2833.40.20. Although the HTSUS subheadings are provided for convenience 
and customs purposes, our written description of the scope of this 
investigation is dispositive.

Export Price

    The petitioner based export prices for ammonium, potassium, and 
sodium persulfates on price quotes obtained from U.S. importers. 
Petitioner reduced these prices to account for estimated importer mark-
ups, and for U.S. duties and customs fees, ocean freight, insurance, 
foreign inland freight and foreign handling fees.

Normal Value

    In previous investigations, the Department has determined that the 
PRC is a nonmarket economy (``NME'') country within the meaning of 
section 771(18) of the Act. See, e.g., Final Determination of Sales at 
Less Than Fair Value: Manganese Metal from the People's Republic of 
China (60 FR 56045, 56047 (November 6, 1995)). In accordance with 
section 771(18)(C), the presumption of NME status for the PRC shall 
continue for purposes of the initiation of this investigation. In the 
course of this investigation, all parties will have the opportunity to 
provide relevant information related to the NME status of the PRC and 
the assignment of separate rates to individual exporters. (See, e.g., 
Final Determination of Sales at Less Than Fair Value: Silicon Carbide 
from the PRC (59 FR 22585 (May 2, 1994))).
    In antidumping investigations in which the comparison market is not 
a market economy, section 773(c) of the Act requires that the normal 
value of the foreign like product be based on the producer's factors of 
production valued in a surrogate market economy country or countries 
that is/are a significant producer of comparable merchandise and at a 
level of economic development comparable to the NME country. Publicly 
available published information from India was used by the petitioner 
to value the factors of production because India is the only persulfate 
producer among surrogate countries that the Department typically uses 
for the PRC. The petitioner based the fixed factory overhead, selling, 
general and administrative, and profit elements of its normal value 
calculation on data from an annual report of an Indian producer of 
hydrogen peroxide. According to the petitioner, it relied on data from 
a producer of hydrogen peroxide because public financial data for 
Indian persulfate producers was not available, and the production 
processes for hydrogen peroxide and persulfates are comparable.
    The petitioner based the quantities of factors (i.e., raw 
materials, labor, and energy) used in production of ammonium, 
potassium, and sodium persulfates on the experience of certain PRC 
producers. The petitioner relied on its own production experience where 
PRC usage factors were not available. See, Initiation of Antidumping 
Duty Investigation: Certain Brake Drums and Certain Brake Rotors from 
the People's Republic of China (61 FR 14740 (April 3, 1996)). The 
petitioner maintains that it is reasonable to use its own production 
experience because the production process is the same whether the 
persulfates are produced in the United States or in the PRC.
    Based on comparisons of the export prices with normal values 
constructed from factors of production, the calculated dumping margins 
range from 15.87 percent to 182.37 percent. If it becomes necessary at 
a later date to consider the petition as a source for facts available, 
we may re-examine the information in the petition and, if necessary, 
revise the margin calculations therein.

Normal Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of persulfates from the PRC are being, or are 
likely to be, sold at less than fair value.

Initiation of Investigation

    We have examined the petition on persulfates from the PRC and have 
found that it meets the requirements of section 732 of the Act, 
including the requirements concerning allegations of material injury or 
threat of material injury to the domestic producers of domestic like 
products by reason of the complained-of imports, allegedly sold at less 
than fair value. Therefore, we are initiating an antidumping duty 
investigation to determine whether imports of persulfates from the PRC 
are being, or are likely to be, sold in the United States at less than 
fair value. Unless the investigation is extended, we will make our 
preliminary determination by December 18, 1996.

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, a copy of the 
public version of the petition has been provided to the representatives 
of the Government of the PRC.

International Trade Commission (``ITC'') Notification

    We have notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will determine by August 26, 1996, whether there is a 
reasonable indication that imports of persulfates from the PRC are 
causing material injury, or threatening to cause material injury, to a 
U.S. industry. A negative ITC determination in this investigation will 
result in the investigation being terminated; otherwise, the 
investigation will proceed according to statutory and regulatory time 
limits.

    Dated: July 31, 1996.
Robert S. LaRussa,
Acting Assistant Secretary for Import Administration.
[FR Doc. 96-19997 Filed 8-5-96; 8:45 am]
BILLING CODE 3510-DS-P