[Federal Register Volume 64, Number 214 (Friday, November 5, 1999)]
[Notices]
[Pages 60422-60424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29062]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-821-811]


Preliminary Determination of Critical Circumstances: Solid 
Fertilizer Grade Ammonium Nitrate From the Russian Federation

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

EFFECTIVE DATE: November 5, 1999.

FOR FURTHER INFORMATION CONTACT: Doreen Chen at (202) 482-0408 or Rick 
Johnson at (202) 482-3818, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230.

Preliminary Determination of Critical Circumstances

The Applicable Statute and Regulations

    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). In addition, unless otherwise 
indicated, all citations to the Department's regulations are references 
to the provisions codified at 19 CFR Part 351 (1999).

Critical Circumstances

    On August 12, 1999, the Department of Commerce (``the Department'') 
initiated an investigation to determine whether imports of solid 
fertilizer grade ammonium nitrate from the Russian Federation 
(``Russia'') are being, or are likely to be, sold in the United States 
at less than fair value. In the petition filed on July 23, 1999, 
petitioner alleged that there is a reasonable basis to believe or 
suspect that critical circumstances exist with respect to imports of 
solid fertilizer grade ammonium nitrate from Russia. On September 3, 
1999, the International Trade Commission (``ITC'') determined that 
there was threat of material injury to the domestic industry from 
imports of solid fertilizer grade ammonium nitrate from Russia.
    In accordance with 19 CFR 351.206(c)(2)(i), because petitioner 
submitted a critical circumstances

[[Page 60423]]

allegation more than 20 days before the scheduled date of the 
preliminary determination, the Department must issue a preliminary 
critical circumstances determination no later than the date of the 
preliminary determination. In a policy bulletin issued on October 8, 
1998 (Policy Bulletin Number 98.4), the Department stated that it may 
issue a preliminary critical circumstances determination prior to the 
date of the preliminary LTFV determination, assuming adequate evidence 
of critical circumstances exists (see Change in Policy Regarding Timing 
of Issuance of Critical Circumstances Determinations, 63 FR 55364 
(October 15, 1998)). In accordance with this policy, we are issuing a 
preliminary critical circumstances decision in the investigation of 
imports of solid fertilizer grade ammonium nitrate from Russia.
    Section 733(e)(1) of the Act provides that the Department will 
determine that critical circumstances exist if there is a reasonable 
basis to believe or suspect that: (A)(i) there is a history of dumping 
and material injury by reason of dumped imports in the United States or 
elsewhere of the subject merchandise, or (ii) the person by whom, or 
for whose account, the merchandise was imported knew or should have 
known that the exporter was selling the subject merchandise at less 
than its fair value and that there was likely to be material injury by 
reason of such sales, and (B) there have been massive imports of the 
subject merchandise over a relatively short period.

History of Dumping and Importer Knowledge

    To determine whether there is a history of injurious dumping of the 
merchandise under investigation, in accordance with section 
733(e)(1)(A)(i), the Department considers evidence of existing 
antidumping orders on solid fertilizer grade ammonium nitrate from 
Russia in the United States or elsewhere to be sufficient. To support a 
finding of history of injurious dumping of Russian ammonium nitrate, 
the petition states that the European Community (``EC'') issued an 
antidumping order in 1995 on imports of ammonium nitrate from Russia. 
This order remains in effect today. The existence of an antidumping 
order on Russian ammonium nitrate in the EC is sufficient evidence of a 
history of injurious dumping. Accordingly, there is no need to examine 
importer knowledge.

Massive Imports

    In determining whether there are ``massive imports'' over a 
``relatively short time period,'' the Department ordinarily bases its 
analysis on import data for at least the three months preceding (the 
``base period'') and following (the ``comparison period'') the filing 
of the petition. Imports normally will be considered massive when 
imports during the comparison period have increased by 15 percent or 
more compared to imports during the base period. However, as stated in 
the Department's regulations at section 351.206(i), if the Secretary 
finds that importers, exporters, or producers had reason to believe, at 
some time prior to the beginning of the proceeding, that a proceeding 
was likely, then the Secretary may consider a time period of not less 
than three months from that earlier time.
    In this case, petitioner argues that importers, exporters, or 
producers of Russian solid fertilizer grade ammonium nitrate had reason 
to believe that an antidumping proceeding was likely before the filing 
of the petition. The Department examined whether conditions in the 
industry and published reports and statements provide a basis for 
inferring knowledge that an antidumping investigation on the subject 
merchandise was likely. The Department found that, as a result of an 
investigation on Russian ammonium nitrate imports by the International 
Trade Commission under section 332(g) of the Tariff Act of 1930, as 
amended (published on May 6, 1998), there was considerable press 
coverage discussing concerns of ammonium nitrate producers, among 
others, concerning the influx of imports of subject merchandise and the 
likelihood of a remedial trade action, including the filing of an 
antidumping petition. On December 3, 1998, a coalition of U.S. 
producers of solid fertilizer grade ammonium nitrate formed the 
Committee for Fair Ammonium Nitrate Trade (``COFANT''), to monitor 
developments with respect to the importation of ammonium nitrate and to 
pursue available remedies, should unfair trade practices be identified. 
On December 7, 1998, the formation of this coalition was reported in a 
trade publication. Significantly, this trade publication also reported 
in the same article that ``some of the committee members already have 
been active in trying to get federal officials to find evidence of 
Russian AN dumping.'' See Petition for the Imposition of Antidumping 
Duties: Solid Agricultural Grade Ammonium Nitrate from the Russian 
Federation (July 23, 1999) at Exhibit 37, p. 5.
    The press coverage leading up to the formation of COFANT and the 
announcement thereof in early December 1998, including the explicit 
reference to a dumping action against imports of ammonium nitrate from 
Russia, are sufficient evidence that the Russian producers and 
importers were on notice that an antidumping proceeding concerning the 
subject merchandise was likely. Thus, we preliminarily determine that 
by early December 1998, importers, exporters, or producers knew or 
should have known that a proceeding was likely concerning solid 
fertilizer grade ammonium nitrate from Russia (see discussion in the 
Determination of Critical Circumstances Memorandum, November 1, 1999).
    Therefore, we examined the increase in import volumes during the 
period of December 1998 through May 1999 as compared to June 1998 
through November 1998. The Department found that imports of subject 
merchandise escalated by over 257.88 percent (see Attachment 1 to the 
Determination of Critical Circumstances Memorandum). Furthermore, while 
the record indicated that seasonality might account for some of that 
increase, we preliminary determine that the 257.88 percent increase is 
not simply a function of seasonality, as the actual volume increase 
from the period December to May compared to the same period in the 
previous two years indicates an actual volume increase of 88.31 percent 
(see Attachment 2 to the Determination of Critical Circumstances 
Memorandum). Therefore, pursuant to section 733(e) of the Act and 
section 351.206(h) of the Department's regulations, we preliminarily 
determine that there have been massive imports of solid fertilizer 
grade ammonium nitrate from Russia over a relatively short time.

Conclusion

    We preliminarily determine that there is a reasonable basis to 
believe or suspect that critical circumstances exist for imports of 
solid fertilizer grade ammonium nitrate from Russia.

Suspension of Liquidation

    In accordance with section 733(e)(2) of the Act, upon issuance of 
an affirmative preliminary determination of sales at less than fair 
value in the investigation, the Department will direct the U.S. Customs 
Service to suspend liquidation of all entries of solid fertilizer grade 
ammonium nitrate from Russia, as appropriate, that are entered, or 
withdrawn from warehouse, for consumption on or after 90 days prior to 
the date of publication in the Federal Register of our preliminary 
determination of sales at less than fair value. The Customs Service 
shall

[[Page 60424]]

require a cash deposit or posting of a bond equal to the estimated 
preliminary dumping margin reflected in the preliminary determination 
of sales at less than fair value published in the Federal Register. 
This suspension of liquidation will remain in effect until further 
notice.

Final Critical Circumstances Determination

    We will make a final determination concerning critical 
circumstances for Russia when we make our final determination regarding 
sales at less than fair value in this investigation, which will be 75 
days after the preliminary determination regarding sales at less than 
fair value, unless this investigation is extended.

ITC Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our determination. This notice is published pursuant to section 
777(i) of the Act.

    Dated: November 1, 1999.
Robert S. LaRussa,
Assistant Secretary for Import Administration.
[FR Doc. 99-29062 Filed 11-4-99; 8:45 am]
BILLING CODE 3510-DS-P