[Federal Register Volume 69, Number 116 (Thursday, June 17, 2004)]
[Notices]
[Pages 33884-33886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13713]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-351-804, A-427-009, A-428-803, A-580-805, A-588-812, and A-570-802]


Industrial Nitrocellulose From Brazil, France, Germany, Korea, 
Japan, the People's Republic of China, and the United Kingdom: Notice 
of Preliminary Results of Changed Circumstances Review and Intent To 
Revoke Antidumping Duty Orders

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

ACTION: Notice of preliminary results of changed circumstances reviews 
and intent to revoke antidumping duty orders.

-----------------------------------------------------------------------

SUMMARY: The Department of Commerce is conducting changed circumstances 
reviews of the antidumping orders of industrial nitrocellulose from 
Brazil, France, Germany, Korea, Japan, the People's Republic of China, 
and the United Kingdom. The preliminary results of these reviews 
indicate that Green Tree Chemical Technologies (Green Tree), the sole 
U.S. producer of industrial nitrocellulose in the United States, has 
ceased production. Consequently, we have preliminarily determined to 
revoke the orders of industrial nitrocellulose from Brazil, Germany, 
Korea, Japan, the People's Republic of China, and the United Kingdom on 
July 1, 2003, which is the earliest date for which there are entries 
which have been subject to these administrative reviews. We have 
preliminarily determined to revoke the orders of industrial 
nitrocellulose from France effective August 1, 2003, which is the 
earliest date for which there are entries subject to that 
administrative review.
    Interested parties are invited to comment on these preliminary 
results.

DATES: Effective Date: June 17, 2004.

FOR FURTHER INFORMATION CONTACT: Michael J. Heaney or Robert James, AD/
CVD Enforcement Group III, Import Administration, International Trade

[[Page 33885]]

Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4475 or (202) 482-0649, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 31, 2003, Nitro Quimica Brasileira (Nitro Quimica), 
requested that the Department revoke the antidumping duty order on 
industrial nitrocellulose from Brazil through a changed circumstances 
review. According to Nitro Quimica, revocation is warranted because of 
``lack of interest'' on behalf of the U.S. industry. Specifically, 
Nitro Quimica asserts that no domestic producer of industrial 
nitrocellulose currently exists. Nitro Quimica contends that Hercules 
Incorporated, the only petitioner in the original investigation and the 
only U.S. producer at the time in which this order was issued, sold its 
nitrocellulose business to Green Tree on June 16, 2001. Nitro Quimica 
further contends that Green Tree closed its U.S. production facility on 
or about November 26, 2003. (See Nitro Quimica December 31, 2003 letter 
at Attachment 3.)
    On February 12, 2004, Wolff Cellulosics GmbH (Wolff) asserted that 
the Department should revoke the order of industrial nitrocellulose 
from Germany because there is no U.S. producer of industrial 
nitrocellulose. Wolff argued that the Department should make revocation 
of the order of industrial nitrocellulose from Germany effective July 
1, 2003, which is earliest date for which there are entries that have 
not yet been the subject of a completed administrative review. Wolff 
contended that Green Tree, the sole producer of the domestic like 
product, has ceased production and no longer maintains the capacity to 
produce industrial nitrocellulose. (See Wolff's February 12, 2004 
letter at Exhibits A and B.) On February 25, 2004, the Department 
initiated a changed circumstances review with respect to the order of 
industrial nitrocellulose from Brazil (69 FR 8626, February 25, 2004).
    On March 9, 2004, the Valspar Corporation (Valspar) requested that 
the Department revoke the antidumping duty orders on industrial 
nitrocellulose from France, Germany, Korea, Japan, the People's 
Republic of China, and the United Kingdom. Valspar asserts that 
cessation of production of the domestic like product constitutes ``lack 
of interest'' by the domestic industry in the continuation of the 
antidumping duty orders. (See Valspar's March 9, 2004 letter, at pages 
1-2.)
    On March 23, 2004, Bergerac N.C. and its affiliated U.S. importer 
SNPF North America, L.L.C. (collectively BNC) requested that the 
Department revoke the order on industrial nitrocellulose from France. 
BNC asserts that the cessation of production of the domestic like 
product constitutes ``lack of interest'' by the domestic industry in 
the order of industrial nitrocellulose from France.
    On March 29, 2004, the Department initiated changed circumstances 
reviews of the antidumping orders of industrial nitrocellulose from 
France, Germany, Korea, Japan, the People's Republic of China, and the 
United Kingdom (69 FR 17643, April 5, 2004). On April 23, 2004, Wolff 
filed additional comments supporting its request for revocation of the 
order of industrial nitrocellulose from Germany.
    On May 3, 2004, counsel for petitioner informed the Department that 
(1) Green Tree had located no buyer for its nitrocellulose production 
facility, (2) Green Tree did not anticipate finding such a buyer within 
the foreseeable future, and (3) Green Tree did not anticipate that 
either Green Tree or a successor-in-interest to Green Tree would resume 
production of industrial nitrocellulose within a determinable time 
frame. Accordingly, Green Tree acknowledged that it is no longer in a 
position to oppose revocation of the antidumping orders of industrial 
nitrocellulose from Brazil, France, Germany, Korea, Japan, the PRC, and 
United Kingdom. (See May 3, 2004 memorandum from Michael J. Heaney to 
the File.)
    Based upon the information provided in Nitro Quimica's December 31, 
2003 letter, Wolff's February 12, 2004 letter, Valspar's March 9, 2004 
letter, and by counsel for Green Tree to the Department on May 3, 2004, 
the Department has preliminarily determined that changed circumstances 
exist which warrant revocation of the orders on industrial 
nitrocellulose from Brazil, France, Germany, Korea, Japan, the People's 
Republic of China, and the United Kingdom. If these preliminary results 
are confirmed in the final results of review, the Department intends to 
revoke the orders of industrial nitrocellulose from Brazil, Germany, 
Korea, Japan, the People's Republic of China, and the United Kingdom 
effective July 1, 2003. The Department further intends to revoke the 
order of industrial nitrocellulose from France effective August 1, 
2003.

Scope of the Review

    The product covered by this review is industrial nitrocellulose, 
currently classifiable under HTS subheading 3912.20.00. The HTS item 
number is provided for convenience and Customs purposes. The written 
description remains dispositive as to the scope of the product 
coverage.
    Industrial nitrocellulose is a dry, white, amorphous synthetic 
chemical with a nitrogen content between 10.8 and 12.2 percent. 
Industrial nitrocellulose 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 12.2 percent.

Preliminary Results of Changed Circumstances Antidumping Duty 
Administrative Reviews

    We have examined the information provided by Nitro Quimica, Wolff, 
Valspar, and counsel for Green Tree, and preliminarily determine that 
the sole U.S. producer of industrial nitrocellulose lacks interest in 
the relief provided by the orders, and thus, sufficient changed 
circumstances exist to warrant revocation of the orders. Pursuant to 
section 782(h)(2) of the Act, the Department may revoke an antidumping 
or countervailing duty order if it determines that producers accounting 
for substantially all production of the domestic like product have 
expressed a lack of interest in the order. Pursuant to Section 
751(b)(1) of the Act and Section 351.222(g) of the regulations, the 
Department will conduct a changed circumstances review, and may revoke 
an order (in whole or in part), if it determines that producers 
accounting for substantially all of the production of the domestic like 
product to which the order (or the part of the order to be revoked) 
pertains have expressed a lack of interest in the relief provided by 
the order, in whole or in part, or if other changed circumstances exist 
sufficient to warrant revocation. The Department's practice in cases 
where the only U.S. producers have ceased production is to make the 
date of the revocation effective with respect to any entries that have 
not yet been subject to an administrative review. See, e.g., Coumarin 
from the People's Republic of China: Notice of Final Results of Changed 
Circumstances Review and Revocation of the Antidumping Order (69 FR 
24122, May 3, 2004), Carbon-Quality Steel Plate Products from Japan: 
Notice of Final Results of Changed Circumstances Antidumping 
Administrative Review, and Determination to Revoke in Part (68 FR 9975, 
March 3, 2003), Large Newspaper Printing Presses and Components 
Thereof, Whether

[[Page 33886]]

Assembled or Unassembled, from Germany: Notice of Final Results of 
Changed Circumstances Review, Revocation of the Antidumping Order, and 
Rescission of Administrative Reviews (67 FR 19551, April 22, 2002), and 
Calcium Aluminate Flux from France: Notice of Final Results of Changed 
Circumstances Antidumping Duty Administrative Review, Revocation of the 
Order, and Rescission of Antidumping Duty Review, 63 FR 16966 (April 7, 
1998). Based upon the foregoing, we preliminarily intend to revoke the 
antidumping orders on industrial nitrocellulose from Brazil, Germany, 
Korea, Japan, the People's Republic of China, and the United Kingdom 
effective July 1, 2003. The Department further intends to preliminarily 
revoke the order of industrial nitrocellulose from France effective 
August 1, 2003. ( For the orders on industrial nitrocellulose from 
Brazil, Germany, Korea, Japan, the People's Republic of China, and the 
United Kingdom, July 1, 2003 is the earliest date with respect to which 
there are no entries subject to a completed administrative review. 
August 1, 2003 is the earliest date with respect to which there are no 
entries subject to a completed administrative review for industrial 
nitrocellulose from France.)
    Interested parties may submit case briefs and/or written case 
briefs no later than 30 days after publication of these preliminary 
results. Rebuttal briefs and rebuttals to written comments, limited to 
issues raised in such briefs or comments, may be filed no later than 5 
days after the deadline for filing case briefs. The Department will 
publish the final results of this changed circumstances review, which 
will include the results of its analysis to raised in issues raised in 
any such written comments, no later than four months following the date 
of publication of this notice. Also, if our final results do not differ 
from our preliminary results with respect to revocation, in accordance 
with 19 CFR 351.222, we will instruct the U.S. Customs and Border 
Protection to terminate the suspension of liquidation and to liquidate 
without regard to antidumping duties all entries of industrial 
nitrocellulose from Brazil, Germany, Korea, Japan, the People's 
Republic of China, and the United Kingdom effective July 1, 2003, and 
all entires of industrial nitrocellulose from France effective August 
1, 2003. This notice and intent to revoke are in accordance with 
section 751(b) of the Tariff Act of 1930, as amended (19 U.S.C. 
1675(b)(1)), and 19 CFR 351.216, 351.221, and 351.222.

    Dated: June 4, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.
[FR Doc. 04-13713 Filed 6-16-04; 8:45 am]
BILLING CODE 3510-DS-P