[Federal Register Volume 67, Number 186 (Wednesday, September 25, 2002)]
[Notices]
[Pages 60221-60223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24357]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-437-804]


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

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 on sulfanilic acid from Hungary. We determine that 
sulfanilic acid from Hungary is being, or is likely to be, sold in the 
United States at less than fair value, as provided in section 731 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 Hungary. 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: John Brinkmann or Audrey Twyman, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230; telephone: (202) 482-4126 or (202) 482-3534, 
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's (``the Department's'') regulations are to the regulations as 
codified at 19 CFR Part 351 (April 2001).

Petitioner

    The petitioner in this investigation is Nation Ford Chemical 
Company.

[[Page 60222]]

Case History

    Since the publication of the preliminary determination in this 
investigation (see Notice of Preliminary Determination of Sales at Less 
Than Fair Value: Sulfanilic Acid from Hungary, 67 FR 30358 (May 6, 
2002) (``Preliminary Determination'')), the following events have 
occurred:
    Nitrokemia 2000 (the ``respondent'') requested a postponement of 
the final determination on May 13, 2002. See Sulfanilic Acid from 
Hungary: Postponement of Final Determination and Extension of 
Provisional Measures of Antidumping Duty Investigation, 67 FR 36151 
(May 23, 2002).
    We verified the questionnaire responses submitted by Nitrokemia 
2000 between June 3 and 11, 2002. We issued the verification report on 
July 1, 2002.
    The petitioner and the respondent submitted case briefs on July 31, 
2002, and August 1, 2002, respectively. Neither party submitted 
rebuttal briefs. No public hearing was held because none was requested.

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 Hungary 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 Nitrokemia 2000's September 11, 2002, calculation 
memorandum which is on file in the Import Administration's Central 
Records Unit (``CRU''), Room B-099 of the main Department of Commerce 
building. See Memorandum from Team to the file ``Final Determination 
Calculation Memorandum for Nitrokemia 2000'' (``Calculation 
Memorandum'') dated September 18, 2002.

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 based on our findings at verification. We did not deduct 
certain expenses reported by Nitrokemia 2000 as ``direct expenses'' as 
we determined that these expenses had been separately reported by 
Nitrokemia 2000 and already had been deducted from EP. We revised 
credit to reflect the verified short-term interest rate. We have also 
determined that the contract date is the appropriate date of sale for 
U.S. sales. Accordingly, we have excluded from our calculation of EP, 
those reported sales with a contract date prior to the POI. We have 
added to our calculation of EP, certain sales with contract dates 
during the POI that were not shipped by Nitrokemia 2000 until after the 
POI. For a detailed description of all U.S. sales changes made to 
Nitrokemia 2000'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:
1. Cost of Production Analysis
    We based fixed and variable overhead, and general and 
administrative expenses, on Nitrokemia 2000's costs obtained during 
verification for 2001. We based interest expense on information 
obtained from Nitrokemia 2000's financial statement for 2001. For a 
detailed description of changes made to Nitrokemia 2000's cost of 
production calculation, see Calculation Memorandum.
2. Calculation of NV
    We have made changes to NV based on our findings at verification. 
We did not deduct certain expenses reported by Nitrokemia 2000 as 
``direct expenses'' as we determined that these expenses had been 
separately reported by Nitrokemia 2000 and already deducted from NV. We 
revised credit and inventory expenses to reflect the verified short-
term interest rate.

Verification

    As provided in section 782(i)(1) of the Act, we verified all 
information relied upon in making our final determination.

Analysis of Comments Received

    All issues raised in the case briefs by parties to this 
investigation are addressed in the ``Issues and Decision Memorandum for 
the Antidumping Duty Investigation of Sulfanilic Acid from Hungary: 
Final Determination'' from Richard W. Moreland, Deputy Assistant 
Secretary, Import Administration to Faryar Shirzad, Assistant 
Secretary, Import Administration, dated 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

[[Page 60223]]

the U.S. Customs Service to continue to suspend liquidation of all 
imports of sulfanilic acid from Hungary 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 continue to 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
------------------------------------------------------------------------
Nitrokemia 2000......................................      20.98 percent
All Others...........................................      20.98 percent
------------------------------------------------------------------------

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

List of Comments in the Issues and Decision Memorandum
Comment 1: Use of adverse facts available for the entire response
Comment 2: Use of the verified cost of manufacture for the cost test
Comment 3: Use of adverse facts available for G&A and interest expenses
Comment 4: Use of adverse facts available in the COP analysis for the 
unreported adjustments to comparison market sales
Comment 5: Calculation of NV based on comparison market sales after 
disregarding sales below COP
Comment 6: Inclusion in the dumping margin calculation of certain sales 
to the United States
[FR Doc. 02-24357 Filed 9-24-02; 8:45 am]
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