[Federal Register Volume 67, Number 186 (Wednesday, September 25, 2002)]
[Notices]
[Pages 60223-60224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24358]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-437-805]


Final Affirmative Countervailing Duty Determination: Sulfanilic 
Acid from Hungary

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

ACTION: Notice of final affirmative countervailing duty determination.

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SUMMARY: The Department of Commerce has made a final determination that 
countervailable subsidies are being provided to certain producers or 
exporters of sulfanilic acid from Hungary. For information on the 
estimated countervailing duty rates, see infra section on ``Suspension 
of Liquidation.''

EFFECTIVE DATE: September 25, 2002.

FOR FURTHER INFORMATION CONTACT: Melani Miller or Daniel J. Alexy, 
Office of Antidumping/Countervailing Duty Enforcement, Group 1, Import 
Administration, U.S. Department of Commerce, Room 3099, 14th Street and 
Constitution Avenue, N.W., Washington, D.C. 20230; telephone (202) 482-
0116 and (202) 482-1540, respectively.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions of the Tariff Act of 1930, as amended by 
the Uruguay Round Agreements Act effective January 1, 1995 (``the 
Act''). In addition, unless otherwise indicated, all citations to the 
Department of Commerce's (``the Department'') regulations are to the 
regulations as codified at 19 CFR Part 351 (April 2002).

Petitioner

    The petitioner in this investigation is Nation Ford Chemical 
Company (``the petitioner'').

Case History

    The following events have occurred since the publication of the 
preliminary determination in the Federal Register. See Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination: Sulfanilic Acid from Hungary, 67 FR 9696 (March 4, 2002) 
(``Preliminary Determination'').
    On March 5, 2002, we issued supplemental questionnaires to 
Nitrokemia 2000 Rt. (``Nitrokemia 2000'') and the Government of Hungary 
(``GOH''). We received responses to these supplemental questionnaires 
on March 18 and 19, 2002.
    On March 27, 2002, Nitrokemia 2000 submitted comments on the 
Preliminary Determination. On May 13, 2002, the petitioner also 
submitted comments on the Preliminary Determination, as well as on the 
upcoming verifications.
    From May 30 to June 4, 2002, we conducted a verification of the 
questionnaire responses submitted by the GOH and Nitrokemia 2000.
    On August 15 and 16, 2002, we received case briefs from Nitrokemia 
2000 and the petitioner.

Period of Investigation

    The period for which we are measuring subsidies, or the period of 
investigation, is calendar year 2000.

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

[[Page 60224]]

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.

Injury Test

    Because Hungary is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, the International Trade 
Commission (``ITC'') is required to determine whether imports of the 
subject merchandise from Hungary materially injure, or threaten 
material injury to, a U.S. industry. On November 13, 2001, the ITC made 
its preliminary determination that there is a reasonable indication 
that an industry in the United States is being materially injured by 
reason of imports from Hungary of the subject merchandise. See 
Sulfanilic Acid from Hungary and Portugal, 66 FR 57988 (November 19, 
2001).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum'' 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 Central Records Unit, room B-099 of the main Department 
building. In addition, a complete version of the Decision Memorandum 
can be accessed directly on the Internet at http://ia.ita.doc.gov/frn/ 
under the heading ``Hungary.'' The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Suspension of Liquidation

    As a result of our Preliminary Determination, we instructed the 
Customs Service (``Customs'') to suspend liquidation of all entries of 
sulfanilic acid from Hungary, which were entered or withdrawn from 
warehouse, for consumption on or after March 4, 2002, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we instructed Customs to 
discontinue the suspension of liquidation for countervailing duty 
purposes for merchandise entered on or after July 2, 2002, but to 
continue the suspension of liquidation of entries made between March 4, 
2002 and July 1, 2002.
    We have calculated an individual net subsidy rate for Nitrokemia 
2000, the only investigated manufacturer of the subject merchandise, 
pursuant to section 705(c)(1)(B)(i) of the Act. Because Nitrokemia 2000 
is the only respondent in this case, its rate serves as the ``All 
Others'' rate. We determine that the total estimated net subsidy rates 
for Nitrokemia 2000 and for all other producers and exporters of the 
subject merchandise are as follows:

------------------------------------------------------------------------
                                                           Ad Valorem
                  Producer/Exporter                      [chyph]Subsidy
                                                              Rate
------------------------------------------------------------------------
Nitrokemia 2000 Rt...................................       2.87 percent
All Others...........................................       2.87 percent
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    We will issue a countervailing duty order and instruct Customs to 
suspend liquidation under section 706(a) of the Act if the ITC issues a 
final affirmative injury determination and will require a cash deposit 
of estimated countervailing duties for such entries of merchandise in 
the amounts indicated above. If the ITC determines that material 
injury, or threat of material injury, does not exist, this proceeding 
will be terminated and all estimated duties deposited or securities 
posted as a result of the suspension of liquidation will be refunded or 
cancelled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information relating to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an Administrative Protective Order (``APO''), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: September 18, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 02-24358 Filed 9-24-02; 8:45 am]
BILLING CODE 3510-DS-S?