[Federal Register Volume 69, Number 119 (Tuesday, June 22, 2004)]
[Notices]
[Pages 34644-34646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13991]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-853]


Bulk Aspirin From the People's Republic of China: Final Results 
of 2002/2003 Antidumping Duty Administrative Review and Final 
Determination To Revoke the Order In Part

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

ACTION: Notice of final results of antidumping duty administrative 
review and revocation of the order in part.

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SUMMARY: On April 8, 2004, the Department of Commerce published the 
preliminary results of the 2002/2003 administrative review of the 
antidumping duty order on bulk aspirin from the People's Republic of 
China with respect to Shandong Xinhua Pharmaceutical Co., Ltd. This 
review covers sales of bulk aspirin to the United States during the 
period July 1, 2002, through June 30, 2003. Based on our analysis of 
comments received, we conclude that the final results do not differ 
from the preliminary results of review, in which we found that the 
respondent made sales in the United States at prices not below normal 
value. We also find that the antidumping duty order with respect to 
Shandong Xinhua Pharmaceutical Co., Ltd. should be revoked.

DATES: Effective Date: June 22, 2004.

FOR FURTHER INFORMATION CONTACT: Julie Santoboni or Scott Holland, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th and Constitution Avenue, NW., Washington, 
DC 20230; telephone (202) 482-4194 or (202) 482-1279, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Since the publication of the preliminary results of this review 
(Bulk Aspirin from the People's Republic of China: Preliminary Results 
of 2002/2003 Antidumping Duty Administrative Review And Notice Of 
Intent To Revoke Order In Part, 69 FR 18520 (April 8, 2004) 
(``Preliminary Results'')), the following events have occurred:
    On May 10, 2004, the Department of Commerce (``the Department'') 
issued the verification report for Shandong Xinhua Pharmaceutical Co., 
Ltd. (``Shandong''). See Memorandum to the File, ``Shandong Xinhua 
Pharmaceutical Co., Ltd. Verification Report,'' dated May 10, 2004. 
This report is on file in the Central Records Unit, Room B-099 of the 
main Department Building (``CRU'').
    On May 10, 2004, Perrigo Company (``Perrigo''), an interested 
party, and Shandong submitted case briefs. No rebuttal briefs were 
submitted, nor was a public hearing held.

Scope of the Order

    The product covered by the order is bulk acetylsalicylic acid, 
commonly referred to as bulk aspirin, whether or not in pharmaceutical 
or compound form, not put up in dosage form (tablet, capsule, powders 
or similar form for direct human consumption). Bulk aspirin may be 
imported in two forms, as pure ortho-acetylsalicylic acid or as mixed 
ortho-acetylsalicylic acid. Pure ortho-acetylsalicylic acid can be 
either in crystal form or granulated into a fine powder (pharmaceutical 
form). This product has the chemical formula 
(C9H8O4. It is defined by the official 
monograph of the United States Pharmacopoeia 23 (``USP''). It is 
currently classifiable under the Harmonized Tariff Schedule of the 
United States (``HTSUS'') subheading 2918.22.1000.

[[Page 34645]]

    Mixed ortho-acetylsalicylic acid consists of ortho-acetylsalicylic 
acid combined with other inactive substances such as starch, lactose, 
cellulose, or coloring materials and/or other active substances. The 
presence of other active substances must be in concentrations less than 
that specified for particular nonprescription drug combinations of 
aspirin and active substances as published in the Handbook of 
Nonprescription Drugs, eighth edition, American Pharmaceutical 
Association. This product is currently classifiable under HTSUS 
subheading 3003.90.0000.
    Although the HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the merchandise under 
review is dispositive.

Period of Review

    The period of review (``POR'') is July 1, 2002, through June 30, 
2003.

Verification

    As stated in the Preliminary Results and provided in section 782(i) 
of the Act, we verified information submitted by Shandong using 
standard verification procedures, including on-site inspection of the 
manufacturer's facility and examination of the relevant sales, cost, 
and financial records.

Determination To Revoke

    The Department ``may revoke, in whole or in part'' an antidumping 
duty order upon completion of a review under section 751(d)(1) of the 
Tariff Act of 1930, as amended (``the Act''). While Congress has not 
specified the procedures that the Department must follow in revoking an 
order, the Department has developed a procedure for revocation that is 
described in 19 CFR 351.222. Under 351.222(b), the Department may 
revoke an antidumping duty order in part if it concludes that (i) an 
exporter or producer has sold the merchandise at not less than normal 
value for a period of at least three consecutive years, (ii) the 
exporter or producer has agreed in writing to its immediate 
reinstatement in the order if the Secretary concludes that the exporter 
or producer, subsequent to the revocation, sold the subject merchandise 
at less than normal value, and (iii) the continued application of the 
antidumping duty order is no longer necessary to offset dumping. 
Section 351.222(b)(3) states that, in the case of an exporter that is 
not the producer of subject merchandise, the Department normally will 
revoke an order in part under section 351.222(b)(2) only with respect 
to subject merchandise produced or supplied by those companies that 
supplied the exporter during the time period that formed the basis for 
revocation.
    A request for revocation of an order in part must address three 
elements. The company requesting the revocation must do so in writing 
and submit the following statements with the request: (1) The company's 
certification that it sold the subject merchandise at lot less than 
normal value during the current review period and that, in the future, 
it will not sell at less than normal value; (2) the company's 
certification that, during each of the consecutive years forming the 
basis of the request, it sold the subject merchandise to he United 
States in commercial quantities; and (3) the agreement to reinstatement 
in the order if the Department concludes that the company, subsequent 
to revocation, has sold the subject merchandise at less than normal 
value. See 19 CFR 351.222(e)(1).
    Consistent with the Preliminary Results, we continue to find that 
the request from Shandong meets all of the criteria under 19 CFR 
351.222(e)(1). Shandong's revocation request includes the necessary 
certifications in accordance with section 351.222(e) of the 
Department's regulations. Shandong has also agreed in writing to the 
immediate reinstatement in the order, as long as any exporter or 
producer is subject to the order, if the Department concludes that 
Shandong, subsequent to the revocation, has sold the subject 
merchandise at less than normal value. With regard to the criteria of 
section 351.222(b)(2) of the Department's regulations, our final margin 
calculations show that Shandong sold bulk aspirin at not less than 
normal value during the current review period. See Final Results 
section below. In addition, Shandong sold bulk aspirin at not less than 
normal value in the two previous administrative reviews in which it was 
involved. See Notice of Amended Final Results of Antidumping Duty 
Administrative Review: Bulk Aspirin from the People's Republic of 
China, 68 FR 12036 (March 13, 2003), covering the period July 6, 2000, 
through June 30, 2001, and Notice of Amended Final Results of 
Antidumping Duty Administrative Review: Bulk Aspirin from the People's 
Republic of China. 68 FR 54890 (September 19, 2003), covering the 
period July 1, 2001, through June 30, 2002. Based on our examination of 
the sales data submitted by Shandong, we determine that Shandong sold 
the subject merchandise in the United States in commercial quantities 
in each of the consecutive years cited by Shandong to support its 
request for revocation. See Final Results Calculation Memorandum 
Shandong Xinhua Pharmaceutical Co., dated June XX, 2004, which is on 
file in the Department's CRU. Also we determine that application of the 
antidumping order to Shandong is no longer necessary for the following 
reasons: (1) The company had zero or de minimis margins for a period of 
at least three consecutive years; (2) the company has agreed to 
immediate reinstatement of the order if the Department finds that it 
has resumed making sales at less than normal value; and (3) the 
continues application of the order is not otherwise necessary to offset 
dumping.
    Therefore, we determine that Shandong qualifies for revocation of 
the order on bulk aspirin from the PRC pursuant to 19 CFR 351.222(b)(2) 
and that the order with respect to merchandise produced and exported by 
Shandong should be revoked. In accordance with 19 CFR 351.222(f)(3), we 
will terminate the suspension of liquidation for bulk aspirin produced 
and exported by Shandong that was entered, or withdrawn from warehouse, 
for consumption on or after July 1, 2003, and will instruct the U.S. 
Customs and Border Protection (``CBP'') to refund with interest any 
cash deposits for such entries.

Analysis of Comments Received

    In the May 10, 2004, submissions by Perrigo and Shandong, both 
parties agreed with the Department's findings in the Preliminary 
Results and asserted that the order should be revoked with respect to 
Shandong. Furthermore, Perrigo and Shandong also requested that the 
Department issue the final results on an expedited basis.
    We received no other comments on the Preliminary Results.

Fair Value Comparisons

    We calculated export price (``EP''), and normal value (``NV'') 
based on the same methodologies used in the Preliminary Results.

Final Results of the Review

    We have determined that no changes to our analysis are warranted 
for purposes of these final results. As a result of this review, we 
find that the following dumping margin exists for the period July 1, 
2002, through June 30, 2003:

------------------------------------------------------------------------
                                                       Weighted-average
               Exporter/Manufacturer                  margin percentage
------------------------------------------------------------------------
Shandong Zinhua Pharmaceutical Co., Ltd............                 0.00
------------------------------------------------------------------------


[[Page 34646]]

Assessment Rates

    The Department will determine, and CBP shall assess, antidumping 
duties on all appropriate entries. In accordance with 19 CFR 
351.212(b)(1), we have calculated importer (or customer)-specific 
assessment rates for merchandise subject to this review. To determine 
whether the duty assessment rates were de minimis, in accordance with 
the requirement set forth in 19 CFR 351.106(c)(1), we calculated 
importer (or customer)-specific ad valorem rates by aggregating the 
dumping margins calculated for all U.S. sales to that importer (or 
customer) and dividing this amount by the total value of the sales to 
that importer (or customer). Where an importer (or customer)-specific 
ad valorem rate was greater than de minimis, we calculated a per-unit 
assessment rate by aggregating the dumping margins calculated for all 
U.S. sales to that importer (or customer) and dividing this amount by 
the total quantity sold to that importer (or customer).
    All other entries of the subject merchandise during the POR will be 
liquidated at the antidumping duty rate in place at the time of entry.
    The Department will issue appropriate assessment instructions 
directly to CBP within 15 days of publication of this notice of final 
results of review.

Cash Deposit Rates

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of bulk aspirin from the PRC entered, or withdrawn 
from warehouse, for consumption on or after the publication date, as 
provided for by section 751(a)(1) of the Act: (1) Because Shandong is 
excluded from the antidumping duty order, no cash deposit shall be 
required; (2) for a company previously found to be entitled to a 
separate rate and for which no review was requested, the cash deposit 
rate will be the rate established in the most recent review of that 
company; (3) for all other PRC exporters of subject merchandise, the 
rate will be the PRC country-wide rate, which is 144.02 percent, the 
PRC-wide rate established in the less-than-fair-value (``LTFV'') 
investigation. See Notice of Antidumping Duty Order: Bulk Aspirin from 
the People's Republic of China, 65 FR 42673 (July 11, 2000); and (4) 
for non-PRC exporters of subject merchandise from the PRC, the cash 
deposit rate will be the rate applicable to the PRC exporter that 
supplied that exporter.

Notification to Importers

    This notice also 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.

Notification Regarding APOs

    This notice also serves as a 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), which continues to govern 
business proprietary information in this segment of the proceeding. 
Timely written notification of the return/destruction of APO materials 
or conversion to judicial protective order is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: June 14, 2004.
James J. Jochum
Assistant Secretary for Import Administration.
[FR Doc. 04-13991 Filed 6-21-04; 8:45 am]
BILLING CODE 3510-DS-M