[Federal Register Volume 68, Number 40 (Friday, February 28, 2003)]
[Notices]
[Pages 9636-9637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4792]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-847]


Persulfates From the People's Republic of China: Notice of 
Initiation of Changed Circumstances Review

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

ACTION: Notice of initiation of changed circumstances review.

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SUMMARY: In accordance with 19 CFR 351.216(b), FMC Corporation, a U.S. 
producer of persulfates and an interested party in this proceeding, 
filed a request for a changed circumstances review of the antidumping 
duty order on persulfates from the People's Republic of China, as 
described below. In response to this request, the Department of 
Commerce is initiating a changed circumstances review of the 
antidumping duty order on persulfates from the People's Republic of 
China.

EFFECTIVE DATE: February 28, 2003.

FOR FURTHER INFORMATION CONTACT: Mike Strollo or Robin Moore, Office 2, 
AD/CVD Enforcement Group I, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0629 or (202) 482-3773, respectively.

SUPPLEMENTARY INFORMATION: On July 7, 1997, the Department published in 
the Federal Register the antidumping duty order on persulfates from the 
People's Republic of China (PRC). See Notice of Antidumping Duty Order 
and Amended Final Determination of Sales at Less Than Fair Value: 
Persulfates From the People's Republic of China, 62 FR 36259 (July 7, 
1997). In addition, on August 27, 2002, the Department initiated an 
administrative review of the antidumping duty order on persulfates 
covering one PRC exporter, Shanghai Ai Jian Import and Export 
Corporation (Ai Jian), and its wholly-owned subsidiary, Shanghai Ai 
Jian Reagent Factory (AJ Works). See Initiation of Antidumping and 
Countervailing Duty Administrative Reviews and Requests for Revocation 
in Part, 67 FR 55000 (Aug. 27, 2002). As part of this review, the 
Department is considering whether it is appropriate to revoke the 
antidumping order with respect to Ai Jian and AJ Works.
    On January 7, 2003, FMC Corporation (FMC), a U.S. producer of 
persulfates, notified the Department that Degussa AG (Degussa) had 
purchased seventy percent of AJ Works and that, as a result, the name 
of AJ Works changed to Degussa-AJ (Shanghai) Initiators Co., Ltd. 
(Degussa-AJ). FMC requested that the Department initiate a changed 
circumstances review to determine whether Degussa-AJ is, in fact, the 
successor-in-interest to AJ Works, and hence, whether it should be 
considered the same entity with regards to the pending revocation 
request. In addition, FMC requested that the Department issue the 
preliminary results of the changed circumstances review in conjunction 
with the notice of initiation, in accordance with 19 CFR 
351.221(c)(3)(ii).

Scope of Review

    The products covered by this review are persulfates, including 
ammonium, potassium, and sodium persulfates. The chemical formula for 
these persulfates are, respectively, 
(NH4)2S2O8, 
K2S2O8, and 
Na2S2O8. Potassium persulfates are 
currently classifiable under subheading 2833.40.10 of the Harmonized 
Tariff

[[Page 9637]]

Schedule of the United States (HTSUS). Sodium persulfates are 
classifiable under HTSUS subheading 2833.40.20. Ammonium and other 
persulfates are classifiable under HTSUS subheadings 2833.40.50 and 
2833.40.60. Although the HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of this 
review is dispositive.

Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended 
(the Act), the Department will conduct a changed circumstances review 
upon receipt of information concerning, or a request from an interested 
party for a review of, an antidumping duty order which shows changed 
circumstances sufficient to warrant a review of the order. The 
information submitted by FMC shows changed circumstances sufficient to 
warrant a review. See 19 CFR 351.216(c).
    Concerning FMC's request that the Department issue the preliminary 
results of the changed circumstances review in conjunction with the 
notice of initiation, FMC has not provided sufficient evidence to 
support a preliminary finding. FMC requested this changed circumstances 
review for the purpose of determining whether Degussa-AJ is the 
successor-in-interest to AJ Works. In making successor-in-interest 
determinations, the Department examines several factors including, but 
not limited to, changes in: (1) Management; (2) production facilities; 
(3) supplier relationships; and (4) customer base. See, e.g., Brass 
Sheet and Strip from Canada; Final Results of Antidumping Duty 
Administrative Review, 57 FR 20460, 20461 (May 13, 1992). While no 
single factor, or combination of factors, will necessarily be 
dispositive, the Department will generally consider the new company to 
be the successor to its predecessor company if the resulting operations 
are essentially the same as the predecessor company. See, e.g., id. and 
Industrial Phosphoric Acid from Israel; Final Results of Changed 
Circumstances Review, 59 FR 6944, 6945 (Feb. 14, 1994). Thus, if the 
evidence demonstrates that, with respect to the production and sale of 
the subject merchandise, the new company does not operate as the same 
business entity as its predecessor, the Department will not treat the 
new company as the successor-in-interest to the predecessor. In this 
instance, while FMC has stated for the record that the AJ Works' 
owners, management structure, supplier relationships and customer base 
have changed, it has not provided evidence supporting these statements.
    We note that the circumstances here involve a change in ownership 
of a producer in a nonmarket economy country. Consequently, the 
analysis applied and the relevant facts may differ from successor-in-
interest determinations in other situations. Nonetheless, we find that 
a changed circumstances review is warranted, and we will examine such 
questions in the course of this review.
    Therefore, in accordance with section 751(b)(1) of the Act and 
sections 19 CFR 351.216(b) and 351.221(b)(1), we are initiating a 
changed circumstances administrative review.
    Interested parties may submit comments for consideration in the 
Department's preliminary results not later than May 1, 2003. Responses 
to those comments may be submitted not later than 10 days following 
submission of the comments. All written comments must be submitted in 
accordance with 19 CFR 351.303, and must be served on all interested 
parties on the Department's service list in accordance with 19 CFR 
351.303.
    The Department will publish in the Federal Register a notice of 
preliminary results of changed circumstances review, in accordance with 
19 CFR 351.221(c)(3)(i), which will set forth the factual and legal 
conclusions upon which our preliminary results are based, and a 
description of any action proposed based on those results. The 
Department will also issue its final results of review within 270 days 
after the date on which the changed circumstances review is initiated, 
in accordance with 19 CFR 351.216(e), and will publish these results in 
the Federal Register.
    While the changed circumstances review is under way, the current 
requirement for a cash deposit of estimated antidumping duties on all 
subject merchandise, including the merchandise that is the subject of 
this changed circumstances review, will continue unless and until it is 
modified pursuant to the final results of this changed circumstances 
review or the ongoing 2001-2002 administrative review.
    This notice is in accordance with sections 751(b)(1) of the Act and 
19 CFR 351.216 and 351.222.

    Dated: February 21, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 03-4792 Filed 2-27-03; 8:45 am]
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