[Federal Register Volume 67, Number 186 (Wednesday, September 25, 2002)]
[Notices]
[Pages 60219-60221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24356]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-471-806]


Notice of Final Determination of Sales at Less Than Fair Value: 
Sulfanilic Acid from Portugal

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

ACTION: Notice of Final Determination of Sales at Less Than Fair Value.

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SUMMARY: The Department of Commerce is conducting an antidumping duty 
investigation of sulfanilic acid from Portugal. We determine that 
sulfanilic acid from Portugal is being, or is likely to be, sold in the 
United States at less than fair value, as provided in section 735(a) of 
the Tariff Act of 1930, as amended. On May 6, 2002, the Department of 
Commerce published its preliminary determination of sales at less than 
fair value of sulfanilic acid from Portugal. Based on the results of 
verification and our analysis of the comments received, we have made 
changes in the margin calculations. Therefore, this final determination 
differs from the preliminary determination. The final weighted-average 
dumping margins are listed below in the section entitled ``Continuation 
of Suspension of Liquidation.''

EFFECTIVE DATE: September 25, 2002.

FOR FURTHER INFORMATION CONTACT: S. Anthony Grasso and Andrew Smith, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-3853, (202) 482-1276, 
respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the Tariff Act of 
1930, as amended (``the Act''), are references to the provisions 
effective January 1, 1995, the effective date of the amendments made to 
the Act by the Uruguay Round Agreements Act (``URAA''). In addition, 
unless otherwise indicated, all citations to the Department of Commerce 
(``Department'') regulations are to the

[[Page 60220]]

regulations as codified at 19 CFR Part 351 (April 2001).

Petitioner

    The petitioner in this investigation is Nation Ford Chemical 
Company.

Case History

    Since the publication of the preliminary determination in this 
investigation (see Notice of Preliminary Determination of Sales at Less 
Than Fair Value and Postponement of Final Determination: Sulfanilic 
Acid From Portugal, 67 FR 30362 (May 6, 2002) (``Preliminary 
Determination'')), the following events have occurred:
    On July 22 through July 31, 2002, we conducted a verification of 
the questionnaire responses submitted by Quimigal - Quimical de 
Portugal, S.A. (``Quimigal'' or ``the respondent''). We issued the 
verification report on August 13, 2002.
    The petitioner and respondent filed case and rebuttal briefs, 
respectively, on August 21, 2002 and August 27, 2002. A public hearing 
was not held because none was requested within a timely manner.

Scope of Investigation

    Imports covered by this investigation 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 and 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, currently classifiable under the 
subheading 2921.42.22 of the 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 currently classifiable under 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), currently 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, the written description of the scope of this 
investigation is dispositive.

Period of Investigation

    The period of investigation (``POI'') for this investigation is 
July 1, 2000, through June 30, 2001.

Fair Value Comparisons

    To determine whether sales of sulfanilic acid from Portugal to the 
United States were made at less than fair value, we compared the export 
price (``EP'') to the normal value (``NV''). Our calculations followed 
the methodologies described in the Preliminary Determination, except as 
noted below and in Quimigal's calculation memorandum, which is on file 
in the Import Administration's Central Records Unit (``CRU'') Room B-
099 of the main Department building. See Memorandum from team to the 
file, ``Final Determination Calculation Memorandum for Quimigal - 
Quimica de Portugal, S.A.'' (``Calculation Memorandum''), dated 
September 18, 2002.

Date of Sale

    At the Preliminary Determination, we used Quimigal's invoice date 
as the date of sale. Based on our review of Quimigal's submissions to 
the Department and the information examined at verification, we used 
for this final determination Quimigal's contractual agreements as the 
date of sale in making our final determination. For more discussion 
about this decision, see the Memorandum from Richard Moreland to Faryar 
Shirzad: ``Issues and Decision Memorandum for the Antidumping Duty 
Investigation of Sulfanilic Acid from Portugal; Final Determination,'' 
dated September 19, 2002, (``Decision Memorandum'') at Comment 1.

Export Price

    We calculated EP in accordance with section 772(a) of the Act. We 
calculated EP based on the same methodologies described in the 
Preliminary Determination, with the following exceptions. We have made 
changes to EP for certain clerical errors noted at verification. See 
Memorandum from Case Analysts to File: ``Verification of the 
Questionnaire Responses of Quimigal-Quimica de Portugal, S.A.'' 
(``Verification Report''). Additionally, we made adjustments to EP for 
the few instances where U.S. sales were invoiced in a currency other 
than Portuguese Escudos. For a detailed description of all U.S. sales 
changes made to Quimigal's margin calculations for the final 
determination, see Calculation Memorandum.
    As noted above, we have determined that the sales contract date, 
rather than the invoice date used in the Preliminary Determination, is 
the appropriate date of sale for U.S sales. Accordingly, we have 
excluded from our calculation of EP those reported sales with a date of 
sale prior to the POI. We have added to our calculation of EP certain 
sales with date of sale during the POI that were not shipped by 
Quimigal until after the POI. For a detailed description of all U.S. 
sales changes made to Quimigal's margin calculations for the final 
determination, see Calculation Memorandum.

Normal Value

    We used the same methodology as that described in the Preliminary 
Determination to determine the cost of production (``COP''), whether 
comparison market sales were at prices below the COP, and the NV, with 
the following exceptions:
a. Comparison Market Sales
    Because we have determined that the sales contract date is the 
appropriate date of sale, we have excluded from our calculation of NV 
those reported sales with a date of sale prior to the POI. 
Additionally, we have made changes to the third-country sales database 
in accordance with certain clerical errors noted at verification.
b. Cost of Production Analysis
    We continued to use the reported COP amounts as adjusted by the 
Department in the Preliminary Determination to compute a weighted-
average COP during the POI, except in the following instances in which 
the costs were not appropriately quantified or valued. Specifically, we 
adjusted Quimigal's reported fixed overhead and reported general and 
administrative (``G&A'') expenses based on findings made during 
verification. For further information about these adjustments, see the 
Decision Memorandum at Comments 2 and 4, respectively, and the 
Calculation Memorandum.
c. Calculation of Normal Value Based on Constructed Value
    We calculated constructed value (``CV'') in accordance with section 
773(a)(4) of the Act. We calculated CV based on the same methodologies 
described in the Preliminary

[[Page 60221]]

Determination, with the following exceptions. Specifically, we 
recalculated Quimigal's short-term interest rate and subsequently the 
credit expense ratio. Also, we recalculated the CV profit in accordance 
with section 773(e)(2)(B) of the Act. For more discussion about this 
revision, see the Decision Memorandum at Comment 5. For a detailed 
description of all recalculations made to Quimigal's margin 
calculations for the final determination, see Calculation Memorandum.

Currency Conversions

    We made currency conversions in accordance with section 773A of the 
Act in the same manner as in the Preliminary Determination.

Verification

    As provided in section 782(i)(1) of the Act, we verified the 
information submitted by Quimigal for our final determination.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the September 18, 2002, Decision 
Memorandum, which is hereby adopted by this notice. Attached to this 
notice as Appendix I is a list of the issues which parties have raised 
and to which we have responded in the Decision Memorandum. Parties can 
find a complete discussion of all issues raised in this investigation 
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 Web at http://ia.ita.doc.gov/frn/frnhome.htm. The paper copy and electronic version 
of the Decision Memorandum are identical in content.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing the U.S. Customs Service to continue to suspend liquidation 
of all imports of sulfanilic acid from Portugal that are entered, or 
withdrawn from warehouse, for consumption on or after May 6, 2002, the 
date of publication of the Preliminary Determination in the Federal 
Register. The Customs Service shall require a cash deposit or the 
posting of a bond equal to the weighted-average amount by which the NV 
exceeds the EP, as indicated in the chart below. These suspension of 
liquidation instructions will remain in effect until further notice.
    The weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                        Weighted-average
                Exporter/manufacturer                    [chyph]margin
                                                       [chyph]percentage
------------------------------------------------------------------------
Quimigal - Quimica de Portugal S.A...................              74.14
All Others...........................................              74.14
------------------------------------------------------------------------

ITC Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our determination. As our 
final determination is affirmative, the ITC will, within 45 days, 
determine whether these imports are materially injuring, or threaten 
material injury to, the U.S. industry. If the ITC determines that 
material injury, or threat of material injury does not exist, the 
proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, the Department will issue an antidumping duty order.

Return or Destruction of Proprietary Information

    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 19 CFR 351.305. Timely notification of return or 
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 determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: September 18, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.

APPENDIX I

List of Comments in the Issues and Decision Memorandum
Comment 1: Date of Sale: Contract Date versus Invoice Date
Comment 2: Overhead: Straight Line Depreciation versus Accelerated 
Depreciation
Comment 3: Net Interest Expense Ratio
Comment 4: Selling, General, and Administrative Expense Ratio
Comment 5: Constructed Value Profit Ratio
Comment 6: Corrections and Clarifications to the Verification Report
[FR Doc. 02-24356 Filed 9-24-02; 8:45 am]
BILLING CODE 3510-DS-S