[Federal Register Volume 66, Number 46 (Thursday, March 8, 2001)]
[Notices]
[Pages 13895-13896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5771]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-001]


Potassium Permanganate From the People's Republic of China: 
Initiation of Antidumping New Shipper Review

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

ACTION: Notice of Initiation of Antidumping New Shipper Review.

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SUMMARY: The Department of Commerce (``the Department'') has received a 
request from Groupstars Chemical Co. Ltd. (``Shandong'') 
(``Groupstars'') to conduct a new shipper review of the antidumping 
duty order on potassium permanganate from the People's Republic of 
China (``PRC''). In accordance with 19 CFR 351.214(d) of the 
Department's regulations, we are initiating this new shipper review.

EFFECTIVE DATE: March 8, 2001.

FOR FURTHER INFORMATION CONTACT: Paul Stolz or Howard Smith, AD/CVD 
Enforcement, Office 4, Group II, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4474 or (202) 482-5193 respectively.

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. In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
current regulations, codified at 19 CFR part 351 (2000).

Background

    On January 30, 2001 the Department received a request, in 
accordance with section 751(a)(2)(B) of the Act and 19 CFR 351.214(c), 
for a new shipper review of the antidumping duty order on potassium 
permanganate.
    On February 7, 2001 the Department received comments from Carus 
Chemical Company (``petitioner'') in response to Groupstars' request 
for a new shipper review. Petitioner argued that the Department should 
reject Groupstars' request based on errors in Groupstars' 
certifications and alleged that Groupstars is affiliated with a company 
that exported potassium permanganate to the United States during the 
period of investigation (``POI''). On February 20, 2001 the Department 
sent a letter to Groupstars requesting that it clarify inconsistencies 
with respect to, among other things, its certifications. On February 
22, 2001, Groupstars responded to the Department's letter by clarifying 
and correcting these inconsistencies. Also on February 22, 2001, 
petitioner objected to the Department providing Groupstars with an 
opportunity to correct its request for review and restated its argument 
that respondent's request for review is deficient and thus, a review 
should not be initiated. On February 27, 2001, Groupstars clarified 
that it was requesting the review on behalf of Groupstars Chemical Co., 
Ltd.

[[Page 13896]]

(Shandong) People's Republic of China, the producer/exporter of the 
merchandise.
    Pursuant to 19 CFR 351.214(b)(2)(i) and 19 CFR 
351.214(b)(2)(iii)(A), Groupstars' January 30, 2001 request for review, 
as corrected in its February 22, 2001 submission, certified that it did 
not export the subject merchandise to the United States during the POI 
and that it is not affiliated with any company which exported subject 
merchandise to the United States during the POI. Pursuant to 19 CFR 
351.214(b)(2)(iii)(B), Groupstars' corrected request certified that its 
export activities are not controlled by the central government of the 
PRC.
    In addition, pursuant to 19 CFR 351.214(b)(2)(iv), Groupstars' 
request contained documentation establishing: the date after the POI on 
which Groupstars first shipped the subject merchandise for export to 
the United States, the volume of that shipment, and the date of the 
first sale to an unaffiliated customer in the United States.
    It is the Department's usual practice in cases involving non-market 
economies to require that a company seeking to establish eligibility 
for an antidumping duty rate separate from the country-wide rate 
provide de jure and de facto evidence of an absence of government 
control over the company's export activities. See Certain Preserved 
Mushrooms from the People's Republic of China: Initiation of New 
Shipper Antidumping Duty Review, 65 FR 17257 (March 31, 2000). 
Accordingly, we will issue a separate rates questionnaire to the above-
named respondent. If the respondent provides sufficient evidence that 
it is not subject to either de jure or de facto government control with 
respect to its exports of potassium permanganate, this review will 
proceed. If, on the other hand, Groupstars does not meet its burden to 
demonstrate its eligibility for a separate rate, then Groupstars will 
be deemed to be affiliated with other companies that exported during 
the POI. This review will then be terminated due to failure of the 
exporter or producer to meet the requirements of section 
751(a)(2)(B)(i)(II) of the Act and 19 CFR 351.214(b)(2)(iii)(B).

Initiation of Review

    The antidumping duty order on potassium permanganate from the PRC 
has a January anniversary month. See Antidumping Duty Order: Potassium 
Permanganate From the People's Republic of China, 49 FR 3897 (January 
31, 1984). The Department received Groupstars' request for review on 
January 30, 2001. The Department's regulations provide that it will 
initiate a new shipper review in the calendar month immediately 
following the anniversary month if the request for the review is made 
during the six-month period ending with the end of the anniversary 
month. See 19 CFR 351.214(d)(1).
    Although Groupstars' request may have been deficient in some 
respects, at the Department's request, Groupstars promptly clarified 
and corrected the deficiencies in its request prior to the Department's 
deadline for initiating this review, i.e. prior to the end of the month 
immediately following the anniversary month (February). With respect to 
petitioner's allegation of affiliation, the Department will examine 
this issue during the course of this review.
    In accordance with section 751(a)(2)(B) of the Act and 19 CFR 
351.214(d), we are initiating a new shipper review of the antidumping 
duty order on potassium permanganate from the PRC. We intend to issue 
the preliminary results of this review not later than 180 days after 
the date on which the review is initiated.
    Pursuant to 19 CFR 351.214(g)(1)(i)(A) of the Department's 
regulations, the period of review (``POR'') for a new shipper review 
initiated in the month immediately following the anniversary month will 
be the twelve-month period immediately preceding the anniversary month. 
Therefore, the POR for this new shipper is:

------------------------------------------------------------------------
                                                          Period to be
             Antidumping duty  proceeding                   reviewed
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Potassium Permanganate from the PRC, A-570-001:
    Groupstars Chemical, Co. Ltd. (``Shandong'').....    1/1/00-12/31/00
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    Subject to receipt of an adequate separate rates questionnaire 
response from the respondent, we will instruct the U.S. Customs Service 
to suspend liquidation of unliquidated entries of subject merchandise 
from the above company and allow, at the option of the importer, the 
posting of a bond or security in lieu of a cash deposit for each entry 
of the merchandise exported by the company listed above, until the 
completion of the review.
    Interested parties must submit applications for disclosure under 
administrative protective order in accordance with 19 CFR 351.305 and 
351.306.
    This initiation and notice are in accordance with section 751(a) of 
the Act (19 U.S.C. 1675(a)) and 19 CFR 351.214.

    Dated: February 28, 2001.
Holly A. Kuga,
Acting Deputy Assistant Secretary, For Import Administration.
[FR Doc. 01-5771 Filed 3-7-01; 8:45 am]
BILLING CODE 3510-DS-P