[Federal Register Volume 67, Number 10 (Tuesday, January 15, 2002)]
[Notices]
[Pages 1962-1964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-971]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-815]


Sulfanilic Acid From the People's Republic of China; Final 
Results and Final Partial Rescission of Antidumping Duty Administrative 
Review

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

EFFECTIVE DATE: January 15, 2002.
SUMMARY: On September 10, 2001, the Department of Commerce (the 
Department) published the preliminary results of its administrative 
review of the antidumping duty order on sulfanilic acid from the 
People's Republic of China. The review covers exports of this 
merchandise to the United States for the period August 1, 1999, through 
July 31, 2000, and three firms: Zhenxing Chemical Industry Company 
(Zhenxing), Yude Chemical Industry Company (Yude), and Baoding Chemical 
Industry Import and Export Corporation (Baoding). The final results of 
this review indicate that there are dumping margins only for Zhenxing 
and the ``PRC enterprise.''
    We find that Baoding acted as Zhenxing's shipping agent in 
preparing Zhenxing's export documents and coordinating its shipments of 
subject merchandise to the United States during the POR. Therefore, we 
are rescinding the review of Baoding since we did not find Baoding to 
be involved in any sales of sulfanilic acid to the United States other 
than those reported by Zhenxing. In addition, we are rescinding the 
review with respect to Yude because Yude did not export the subject 
merchandise to the United States during the period of review (POR). We 
have made changes in the margin calculations for these final results 
which are listed below in the ``Final Results of the Review'' section 
of this notice.

FOR FURTHER INFORMATION CONTACT: Sean Carey or Dana Mermelstein, Import 
Administration, International Trade Administration, U.S. Department of 
Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230 
at (202) 482-3964 or (202) 482-1391, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the Tariff Act of 1930 (the Act), as amended. In 
addition, unless otherwise indicated, all citations to the Department's 
regulations are to the regulations codified at 19 CFR part 351 (2001).

Background

    On September 10, 2001, the Department published the preliminary 
results of the administrative review of the antidumping duty order on 
sulfanilic acid. See Sulfanilic Acid from the People's Republic of 
China; Preliminary Results of Antidumping Duty Administrative Review 
(Preliminary Results), 66 FR 47003 (September 10, 2001). Petitioner 
filed a supplemental submission on September 28, 2001, of additional 
publicly available information (PAI) to value factors of production. On 
October 1, 2001, respondents also submitted, on a timely basis, PAI for 
the Department's consideration in the instant administrative review. 
Petitioner filed additional factual information in rebuttal to 
respondents PAI on October 10, 2001. On November 2, 2001, the 
Department issued the verification report discussing our on-site 
inspection of relevant sales and financial records. Respondents filed a 
case brief with the Department on November 16, 2001, and petitioner 
submitted a rebuttal brief to the Department on November 21, 2001. 
Finally, at respondents' request, a hearing was held at the Department 
on November 29, 2001. The hearing was attended by both respondents and 
petitioner.

Scope of Review

    Imports covered by this review are all grades of sulfanilic acid, 
which include technical (or crude) sulfanilic acid, refined (or 
purified) sulfanilic acid and sodium salt of sulfanilic acid.
    Sulfanilic acid is a synthetic organic chemical produced from the 
direct sulfonation of aniline with sulfuric acid. Sulfanilic acid is 
used as a raw material in the production of optical brighteners, food 
colors, specialty dyes, and concrete additives. The principal 
differences between the grades are the undesirable quantities of 
residual aniline and alkali insoluble materials present in the 
sulfanilic acid. All grades are available as dry, free flowing powders.
    Technical sulfanilic acid, classifiable under the subheading 
2921.42.22 of the

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Harmonized Tariff Schedule (HTS), contains 96 percent minimum 
sulfanilic acid, 1.0 percent maximum aniline, and 1.0 percent maximum 
alkali insoluble materials. Refined sulfanilic acid, also classifiable 
under the subheading 2921.42.22 of the HTS, contains 98 percent minimum 
sulfanilic acid, 0.5 percent maximum aniline and 0.25 percent maximum 
alkali insoluble materials.
    Sodium salt (sodium sulfanilate), classifiable under the HTS 
subheading 2921.42.90, is a powder, granular or crystalline material 
which contains 75 percent minimum equivalent sulfanilic acid, 0.5 
percent maximum aniline based on the equivalent sulfanilic acid 
content, and 0.25 percent maximum alkali insoluble materials based on 
the equivalent sulfanilic acid content.
    Although the HTS subheadings are provided for convenience and 
customs purposes, our written description of the scope of this 
proceeding is dispositive.

Period of Review

    The review period is August 1, 1999 through July 31, 2000.

Verification

    As provided in section 782(i) of the Act, we verified information 
provided by the respondents using standard verification procedures, 
including on-site inspection of the manufacturer's facilities, and the 
examination of relevant sales and financial records. The results of our 
verification are discussed in the verification report, a public version 
of which is on file in the Central Records Unit (CRU), room B-099 of 
the Main Commerce Building.

Final Rescission of Review with Respect to Yude

    In the last administrative review, the Department did not reach the 
issue of whether to collapse Zhenxing and Yude due to our determination 
to assign the PRC-wide rate to Yude and Zhenxing as adverse facts 
available. See Sulfanilic Acid from the People's Republic of China; 
Final Results of Administrative Review, 66 FR 15837 (March 21, 2001) 
and accompanying Decision Memo at Comment 10, on file in the CRU. For 
purposes of this review, the Department did not analyze the issue of 
whether to collapse Yude and Zhenxing because we are rescinding the 
review with respect to Yude, as Yude did not export the subject 
merchandise to the United States during the POR.

Separate Rate Analysis for Zhenxing

    It is the Department's standard policy to assign to all exporters 
of the merchandise subject to review in non-market economy countries a 
single rate, unless an exporter can affirmatively demonstrate an 
absence of government control, both in law (de jure) and in fact (de 
facto), with respect to exports. See Mitsubishi Heavy Industries, Ltd., 
v. U.S., 54 F.Supp 2d 1183, (CIT 1999). Based on our findings at 
verification and our analysis of comments received from the interested 
parties, we continue to find an absence of government control, both in 
law and in fact, over Zhenxing's export activities, and determine that 
a separate rate should be applied to Zhenxing. For further discussion 
of the Department's preliminary determination regarding the issuance of 
separate rates, see Separate Rates Decision Memorandum for Barbara 
Tillman, Director, Office of AD/CVD Enforcement VII, dated August 31, 
2001. A public version of this memorandum is on file in the CRU.

Analysis of Comments Received

    As noted above, specific issues and comments raised in the 
respondents' case brief and petitioner's rebuttal brief are addressed 
in the Decision Memorandum, which is hereby adopted by this notice. A 
list of issues which parties have raised and to which we have 
responded, all of which are in the Decision Memorandum, is attached to 
this notice as Appendix I. Parties can find a complete discussion of 
all issues raised in this review and the corresponding recommendations 
in this public memorandum which is on file in the Department's CRU. In 
addition, a complete version of the Decision Memorandum can be accessed 
directly on the Internet at http://ia.ita.doc.gov.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made certain 
changes in the margin calculations. For a discussion of the issues and 
changes in the margin calculation for Zhenxing, refer to the Decision 
Memorandum and the Department's Final Results Analysis Memorandum for 
Barbara Tillman, Director, Office of AD/CVD Enforcement VII, dated 
January 8, 2002. A public version of these memoranda are on file in the 
CRU.

Final Results of Review

    We determine the weighted average dumping margin for Zhenxing for 
the period August 1, 1999 through July 31, 2000 to be 54.40 percent. 
Pursuant to 19 CFR 351.224(b), the Department will disclose to parties 
to the proceeding any calculations performed in connection with these 
final results within five days after the date of publication of this 
notice.

Duty Assessments and Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of sulfanilic acid from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(2)(C) of the Act: (1) The cash deposit rate 
for the reviewed company listed above will be the rate for that firm 
established in the final results of this review; (2) for companies 
previously found to be entitled to a separate rate and for which no 
review was requested, the cash deposit rate will be the rate 
established in the most recent review of that company; (3) for all 
other PRC exporters of subject merchandise, the cash deposit rate will 
be the PRC-wide rate of 85.20 percent; and (4) the cash deposit rate 
for non-PRC exporters of subject merchandise from the PRC will be the 
rate applicable to the PRC supplier of that exporter. These deposit 
requirements, when imposed, shall remain in effect until publication of 
the final results of the next administrative review.

Notification of Interested Parties

    This notice serves as a final reminder to importers of their 
responsibility under section 351.402(f)(2) of the Department's 
regulations to file a certificate regarding the reimbursement of 
antidumping duties prior to liquidation of the relevant entries during 
this review period. Failure to comply with this requirement could 
result in the Secretary's presumption that reimbursement of antidumping 
duties occurred and the subsequent assessment of double antidumping 
duties.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with section 351.305(a)(3) of the Department's 
regulations. Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and the terms of an 
APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777 (i)(1) of the Act.


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    Dated: January 8, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.,

Appendix I: Issues Discussed in Decision Memorandum

    (See Web address http://ia.ita.doc.gov)

Comments and Responses

    1. Surrogate Value for Aniline.
    2. Calculation of Indirect Selling Expenses.
    3. Calculation of Packing Expenses.
    4. Calculation of Overhead used for the Constructed Export 
Price.
    5. Deduction of Duties from U.S. Sales Price.

[FR Doc. 02-971 Filed 1-14-02; 8:45 am]
BILLING CODE 3510-DS-P