[Federal Register Volume 68, Number 96 (Monday, May 19, 2003)]
[Notices]
[Pages 27015-27016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12463]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-412-803]


Notice of Initiation of Antidumping Duty Changed Circumstances 
Review: Industrial Nitrocellulose from the United Kingdom

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: In accordance with 19 CFR 351.216 (2002), Troon Investments 
Limited (Troon) requested that the Department of Commerce (the 
Department) conduct a changed circumstances review of the antidumping 
duty order on industrial nitrocellulose (INC) from the United Kingdom. 
In response to this request, the Department is initiating a changed 
circumstances review of the above-referenced order.

EFFECTIVE DATE:  May 19, 2003.

FOR FURTHER INFORMATION CONTACT: Howard Smith or Michele Mire, Office 
of AD/CVD Enforcement, Office 4, Group II, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230; telephone 
(202) 482-5193 or (202) 482-4711, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 28, 2003, Troon requested that the Department conduct an 
expedited changed circumstances review of the antidumping duty order on 
INC from the United Kingdom pursuant to section 751(b)(1) of the Tariff 
Act of 1930, as amended (the Act), and 19 CFR 351.221(c)(3)(ii). Troon 
claims to be the successor-in-interest to Imperial Chemical Industries 
PLC (ICI) based on its December 31, 2002, purchase of the 
nitrocellulose business division of Nobel's Explosives Company, Ltd. 
(NEC), a subsidiary of ICI. The signatories of the agreement for the 
sale of this division are Troon's parent company, Inabata & Co., Ltd. 
(Inabata) of Japan, and NEC's parent company, ICI. See Troon's March 
28, 2003, request at Exhibit 1.
    On April 11, 2003, Green Tree Chemical Technologies, Inc. (Green 
Tree), the sole U.S. producer of INC and the petitioner to this 
proceeding, notified the Department that it opposes Troon's request to 
be considered the successor-in-interest to ICI. In particular, Green 
Tree argues that differences between the management, cost of capital, 
distribution channels, and corporate interests and strategy of ICI/NEC 
and Inabata/Troon preclude Troon from being considered the successor-
in-interest to ICI.

Scope of Review

    Imports covered by this review are shipments of INC from the United 
Kingdom. INC is a dry, white amorphous synthetic chemical with a 
nitrogen content between 10.8 and 12.2 percent, and is produced from 
the

[[Page 27016]]

reaction of cellulose with nitric acid. INC is used as a film-former in 
coatings, lacquers, furniture finishes, and printing inks. The scope of 
this order does not include explosive grade nitrocellulose, which has a 
nitrogen content of greater than 12.2percent.
    INC is currently classified under Harmonized Tariff Schedule of the 
United States (HTS) item number 3912.20.0000. While the HTS 
classification number is provided for convenience and Customs purposes, 
the written description remains dispositive as to the scope of the 
product coverage.

Initiation of Antidumping Duty Changed Circumstances Review

    Pursuant to section 751(b)(1) of 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 Inabata/
Troon regarding a change in ownership of the nitrocellulose business 
division of NEC shows changed circumstances sufficient to warrant a 
review. See 19 CFR 351.216(c).
    In antidumping duty changed circumstances reviews involving a 
successor-in-interest determination, the Department typically examines 
several factors including, but not limited to, changes in: (1) 
management; (2) production facilities; (3) supplier relationships; and 
(4) customer base. See Brass Sheet and Strip from Canada: Notice of 
Final Results of Antidumping Administrative Review, 57 FR 20460, 20462 
(May 13, 1992) (Canadian Brass). While no single factor or combination 
of factors will necessarily be dispositive, the Department generally 
will consider the new company to be the successor to the predecessor 
company if the resulting operations are essentially the same as those 
of the predecessor company. See, e.g., Industrial Phosphoric Acid from 
Israel: Final Results of Changed Circumstances Review, 59 FR 6944, 6945 
(February 14, 1994), and Canadian Brass, 57 FR 20460. Thus, if the 
record evidence demonstrates that, with respect to the production and 
sale of the subject merchandise, the new company operates as the same 
business entity as the predecessor company, the Department may assign 
the new company the cash deposit rate of its predecessor. See, e.g., 
Fresh and Chilled Atlantic Salmon from Norway: Final Results of Changes 
Circumstances Antidumping Duty Administrative Review, 64 FR 9979, 9980 
(March 1, 1999). Although Inabata/Troon submitted information 
indicating that, with respect to subject merchandise, it operates in 
the same manner as its predecessor, Green Tree argues that the 
operations of Inabata/Troon and its predecessor differ in a number of 
respects, and the differences affect the production cost and sales 
price of subject merchandise.
    Concerning Inabata/Troon's request that the Department conduct an 
expedited antidumping duty changed circumstances review, the Department 
has determined that it would be inappropriate to expedite this action 
by combining the preliminary results of review with this notice of 
initiation, as permitted under 19 CFR 351.221(c)(3)(ii). Because of the 
parties' differing views and the Department's need for additional 
information, which we will address in a questionnaire to be issued in 
the near future to Inabata/Troon, the Department finds that expedited 
action is impracticable. Therefore, the Department is not issuing the 
preliminary results of its antidumping duty changed circumstances 
review at this time.
    The Department will publish in the Federal Register a notice of 
preliminary results of antidumping duty changed circumstances review, 
in accordance with 19 CFR 351.221(b)(4) and 19 CFR 351.221(c)(3)(i). 
This notice 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. Pursuant to 19 CFR 351.221(b)(4)(ii), 
interested parties will have an opportunity to comment on the 
preliminary results of review. In accordance with 19 CFR 351.216(e), 
the Department will issue the final results of its antidumping duty 
changed circumstances review not later than 270 days after the date on 
which the review is initiated.
    During the course of this antidumping duty changed circumstances 
review, we will not change the cash deposit requirements for the 
merchandise subject to review, unless a change is determined to be 
warranted pursuant to the final results of this review.
    This notice of initiation is in accordance with sections 751(b)(1) 
of the Act and 19 CFR 351.221(b)(1) of the Department's regulations.

    Dated: May 8, 2003.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 03-12463 Filed 5-16-03; 8:45 am]
BILLING CODE 3510-DS-S