[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