[Federal Register Volume 68, Number 177 (Friday, September 12, 2003)]
[Notices]
[Pages 53711-53712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23317]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-856]


Synthetic Indigo From the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review

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

ACTION: Notice of final results of antidumping duty administrative 
review.

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SUMMARY: On March 10, 2003, the Department of Commerce (the Department) 
published the preliminary results of the administrative review of the 
antidumping duty order on synthetic indigo from the People's Republic 
of China with respect to Liyang Skyblue Chemical Co., Ltd. Based on our 
analysis of the comments received since the preliminary results, we 
have made changes in the margin calculation. Therefore, the final 
results differ from the preliminary results. The final margin is listed 
below in the ``Final Results of Review'' section of this notice.

EFFECTIVE DATE: September 12, 2003.

FOR FURTHER INFORMATION CONTACT: David J. Goldberger or Margarita 
Panayi, 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) 482-4136 or (202) 482-0049, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This review covers the exporter Liyang Skyblue Chemical Co., Ltd. 
(Liyang).
    On March 10, 2003, the Department published in the Federal Register 
the preliminary results of administrative review of the antidumping 
duty order on synthetic indigo from the People's Republic of China 
(PRC) (68 FR 11371) (Preliminary Results). On April 9, 2003, Liyang 
requested a public hearing, but withdrew that request on May 7, 2003. 
Liyang submitted additional surrogate value data on April 14, 2003. We 
received case briefs from the petitioner, Buffalo Color Corporation, 
and Liyang on April 25, 2003. We received rebuttal briefs from these 
parties on April 30, 2003. The Department placed additional information 
on the record on May 19, 2003, and both the petitioner and Liyang 
submitted comments on this information on May 29, 2003. On July 7, 
2003, the Department placed on the record import statistics from 
various countries relevant to certain surrogate values. On July 10, 
2003, the Department published in the Federal Register the postponement 
of the final results of the administrative review of the antidumping 
duty order on synthetic indigo from the PRC (68 FR 41113). Liyang 
submitted comments on the Department's July 7, 2003, import statistic 
data. Liyang submitted additional comments in an August 14, 2003, 
letter. The Department has conducted this administrative review in 
accordance with section 751 of the Act.

Scope of Order

    The products subject to this order are the deep blue synthetic vat 
dye known as synthetic indigo and those of its derivatives designated 
commercially as ``Vat Blue 1.'' Included are Vat Blue 1 (synthetic 
indigo), Color Index No. 73000, and its derivatives, pre-reduced indigo 
or indigo white ( Color Index No. 73001) and solubilized indigo (Color 
Index No. 73002). The subject merchandise may be sold in any form 
(e.g., powder, granular, paste, liquid, or solution) and in any 
strength. Synthetic indigo and its derivatives subject to this order 
are currently classifiable under subheadings 3204.15.10.00, 
3204.15.40.00 or 3204.15.80.00 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Although the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
merchandise under the order is dispositive.

Period of Review

    The period of review (POR) covers the period June 1, 2001, through 
May 31, 2002.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this antidumping duty administrative review are addressed in the 
``Issues and Decision Memorandum'' (Decision Memo) from Jeffrey May, 
Deputy Assistant Secretary for Import Administration, to James J. 
Jochum, Assistant Secretary for Import Administration, dated September 
5, 2003, which is hereby adopted by this notice. A list of the issues 
which parties have raised and to which we have responded, all of which 
are in the Decision Memo, is attached to this notice as an Appendix. 
Parties can find a complete discussion of all issues raised in this 
review and the corresponding recommendations in this public memorandum 
which is on file in

[[Page 53712]]

the Central Records Unit, room B-099 of the main Department building. 
In addition, a complete version of the Decision Memo can be accessed 
directly on the Web at http://ia.ita.doc.gov/. The paper copy and 
electronic version of the Decision Memo are identical in content.

Changes From the Preliminary Results

    Based on our analysis of comments received and a review of the 
available information on the record, we have made certain changes to 
the margin calculations, including:
    [sbull] We corrected the valuation of the ``auxiliary agent'' and 
the ``wetting agent,'' which Liyang obtained from market economy 
sources and paid for in market economy currencies, by converting the 
per-kilogram prices for these inputs to per-metric ton prices for 
purposes of calculating Liyang's normal value.
    [sbull] We revised the valuation of solid potassium hydroxide to 
rely on the average of the Chemical Weekly POR average price and the 
Indian import weighted-average value during the POR for this chemical.
    [sbull] We corrected the valuation of liquid potassium hydroxide by 
adjusting the surrogate value for solid potassium hydroxide to reflect 
the concentration of the liquid input consumed by Liyang.
    [sbull] We revised the valuation of liquid sodium hydroxide, also 
known as lye, to rely on the average of the Chemical Weekly POR average 
price and Indian import POR average value for this chemical, adjusted 
for the concentration consumed by Liyang. To calculate the Indian 
import portion of the value, we excluded imports from countries on 
which India has issued an antidumping duty order.
    [sbull] We revised the valuation of solid sodium hydroxide, which 
was based on the average of the Chemical Weekly POR average price and 
the Indian import POR average value, to exclude imports of liquid 
sodium hydroxide and imports from countries on which India has issued 
an antidumping duty order from the import value portion of the 
calculation
    [sbull] We revised the surrogate value for inland freight to apply 
the average of the Indian freight rate information derived from the 
February through May 2002 editions of Chemical Weekly.
    [sbull] We revised the valuation of international freight to rely 
on the arrival notices submitted by Liyang.
    [sbull] We revised the valuation of the foreign brokerage and 
handling expense to include an amount for terminal handling charges, 
which were considered part of the surrogate ocean freight value applied 
in the preliminary results.
    [sbull] We revised the valuation of marine insurance to apply the 
surrogate value rate on a percentage basis, rather than a per-unit 
basis.
    For a discussion of these changes, see the ``Margin Calculations'' 
section of the Decision Memo, the Decision Memo comments, and the 
September 5, 2003, Final Results Valuation Memorandum.

Final Results of the Review

    We determine that the following margin percentage exists:

------------------------------------------------------------------------
                                                                 Margin
                Manufacturer/producer/exporter                   percent
------------------------------------------------------------------------
Liyang Skyblue Chemical Co., Ltd..............................     4.60
------------------------------------------------------------------------

Assessment Rates

    The Department shall determine, and the U.S. Bureau of Customs and 
Border Protection (BCBP) shall assess, antidumping duties on all 
appropriate entries. Pursuant to 19 CFR 351.212(b)(1), we calculated 
importer-specific ad valorem duty assessment rates based on the ratio 
of the total amount of the dumping margins calculated for the examined 
sales to the total entered value of those same sales. The Department 
will issue appropriate assessment instructions directly to BCBP within 
15 days of publication of these final results of review. For entries of 
the subject merchandise during the POR from companies not subject to 
this review, we will instruct the BCBP to liquidate them at the cash 
deposit rate in effect at the time of entry.

Cash Deposit Requirements

    The cash deposit rate for all shipments by Liyang of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the publication date, will be the rate of 4.60 percent, as 
provided for by section 751(a)(1) of the Act. The cash deposit rate for 
PRC exporters who received a separate rate in a prior segment of the 
proceeding for which there was no request for administrative review 
will continue to be the rate assigned in that segment of the 
proceeding. The cash deposit rate for the PRC NME entity will continue 
to be 129.60 percent, and the cash deposit rate for non-PRC exporters 
of subject merchandise from the PRC will continue to be the rate 
applicable to the PRC exporter that supplied that exporter. These 
deposit requirements shall remain in effect until publication of the 
final results of the next administrative review.
    This notice serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f) to file a certificate regarding 
the reimbursement of antidumping duties prior to liquidation of the 
relevant entries during this review period. Failure to comply with this 
requirement could result in the Secretary's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.
    This notice also serves as the only 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(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulation and the terms of an APO is a sanctionable violation.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.213.

    Dated: September 5, 2003.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix--List of Issues

Comment 1: Valuation of Phenylglycinonitrile
Comment 2: Normal Value Based on Different Production Processes
Comment 3: Surrogate Value for Castor Oil
Comment 4: Valuation of Solid Potassium Hydroxide
Comment 5: Adjustment for Concentration Levels of Liquid Sodium 
Hydroxide and Liquid Potassium Hydroxide
Comment 6: Adjustment for Concentration Levels of Other Chemicals
Comment 7: Valuation of Liquid Ammonia
Comment 8: Valuation of Aniline
Comment 9: Valuation of Ocean Freight
Comment 10: Valuation of Auxiliary and Wetting Agents
Comment 11: Valuation of Plastic Bags

[FR Doc. 03-23317 Filed 9-11-03; 8:45 am]
BILLING CODE 3510-DS-P