[Federal Register Volume 65, Number 9 (Thursday, January 13, 2000)]
[Notices]
[Pages 2115-2116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-874]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-805]
Final Results of Changed Circumstances Antidumping Duty
Administrative Review: Industrial Nitrocellulose From Korea
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
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SUMMARY: On October 26, 1999, the Department of Commerce (``the
Department'') published the notice of initiation and preliminary
results of its changed circumstances administrative review concerning
whether Korea CNC Ltd. (``KCNC'') is the successor firm to Daesang
Corporation (``Daesang'') under the order covering industrial
nitrocellulose (``INC'') from Korea. We have now completed that review.
We have determined that KCNC is the successor firm to Daesang.
EFFECTIVE DATE: January 13, 2000.
FOR FURTHER INFORMATION CONTACT: Ron Trentham or Thomas Futtner, Office
of AD/CVD Enforcement, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone (202) 482-6320
or (202) 482-3814, respectively.
SUPPLEMENTARY INFORMATION:
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 Agreement Act. In addition, unless otherwise
indicated, all citations to the Department's regulations are to the
regulations codified at 19 CFR part 351 (1999).
Background
In a letter dated August 25, 1999, KCNC advised the Department that
on April 1, 1999, China Nitrocellulose Co. (``CNC'') purchased
Daesang's INC business, including Daesang's only manufacturing and
research and development (``R&D'') facility for subject merchandise
(``the Chonju factory'').
[[Page 2116]]
KCNC stated that CNC transferred Daesang's INC business to KCNC, which
CNC had newly established for that purpose. KCNC requested that the
Department conduct a changed circumstances administrative review
pursuant to section 751(b) of the Act to determine whether KCNC should
properly be considered the successor firm to Daesang. KCNC stated that
it operates the Chonju factory without change. Production continues
with the same equipment, the same workers, the same raw materials
purchased from the same suppliers, and the same production process.
KCNC stated that it continues to sell the same products to the same
customers to which Daesang previously sold. Further, the organizational
and management structure of Daesang's INC business has essentially
remained intact, except that KCNC has appointed a new president. All
management and employees at the plant manager level and below are the
same as when the factory was managed by Daesang, while the managing
director was formerly employed by Daesang in another capacity. In
addition, KCNC provided a copy of the Closing of the Asset Purchase and
Sale Agreement. KCNC also submitted a copy of the relevant schedules to
the sales agreement between Daesang and CNC, showing the transfer to
KCNC of Daesang's INC assets, contracts, customers, and suppliers.
On October 26, 1999, the Department published in the Federal
Register (63 FR 57628) the notice of initiation and preliminary results
of its changed circumstances antidumping duty administrative review of
INC from Korea. We have now completed this changed circumstances review
in accordance with section 751(b) of the Act.
On November 26, 1999, KCNC submitted comments with regard to the
Department's October 26, 1999, preliminary results. KCNC stated that it
believes that the Department's preliminary results are correct in all
respects. No comments were filed by the petitioner or any other
interested party.
Scope of the Review
Imports covered by this review are shipments of INC from Korea. INC
is a dry, white amorphous synthetic chemical with a nitrogen content
between 10.8 and 12.2 percent, and is produced from the reaction of
cellulose with nitric acid. INC is used as a film-former in coatings,
lacquers, furniture finishes, and printing inks. The scope of this
order does not include explosive grade nitrocellulose, which has a
nitrogen content of greater than 12.2 percent.
INC is currently classified under Harmonized Tariff System
(``HTS'') subheading 3912.20.00. While the HTS item number is provided
for convenience and Customs purposes, the written description remains
dispositive as to the scope of the product coverage.
Successorship
In considering questions involving successorship, the Department
examines several factors including, but not limited to, changes in (1)
management, (2) production facilities, (3) supplier relationships, and
(4) customer base. See, e.g., Brass Sheet and Strip from Canada; Final
Results of Antidumping Duty Administrative Review, 57 FR 20460 (1992).
While no one or several of these factors will necessarily provide a
dispositive indication, the Department will generally consider the new
company to be the successor to the previous company if its resulting
operation is essentially the same as its predecessor. See, e.g.,
Industrial Phosphoric Acid from Israel; Final Results of Changed
Circumstances Review, 59 FR 6944 (February 14, 1994). Thus, if evidence
demonstrates that, with respect to the production and sale of the
subject merchandise, the new company operates as the same entity as the
former company, the Department will treat the successor company the
same as the predecessor for antidumping purposes, e.g., assign the same
cash deposit rate or, if appropriate, apply any relevant revocation.
We have examined the information provided by KCNC in its August 25,
1999, letter and determined that KCNC is the successor-in-interest to
Daesang. The management and organizational structure of the former
Daesang have essentially remained intact under KCNC, and there have
been no changes in the production facilities, supplier relationships,
or customer base. Therefore, we determine that KCNC has maintained
essentially the same management, production facilities, supplier
relationships, and customer bases as did Daesang.
Final Results of Changed Circumstances Review
We determine that KCNC is the successor-in-interest to Daesang for
antidumping duty cash deposit purposes. KCNC, therefore, will be
assigned Daesang's antidumping duty cash deposit rate of 2.10 percent.
This deposit requirement will be effective upon publication of this
notice of final results of administrative review for all shipments of
the subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the publication date as provided by section
751(a)(2)(c) of the Act. This deposit rate shall remain in effect until
publication of the final results of the next administrative review.
This changed circumstances review and notice are in accordance with
section 751(b) of the Act, as amended (19 U.S.C. 1675(b)), and 19 CFR
351.216.
Dated: January 7, 2000.
Robert S. LaRussa,
Assistant Secretary, Import Administration.
[FR Doc. 00-874 Filed 1-12-00; 8:45 am]
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