[Federal Register Volume 69, Number 148 (Tuesday, August 3, 2004)]
[Notices]
[Pages 46509-46510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17560]


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DEPARTMENT OF COMMERCE

International Trade Administration

(A-570-504)


Petroleum Wax Candles From the People's Republic of China: 
Preliminary Intent To Rescind the Antidumping New Shipper Review of 
Shanghai R&R Import/Export Co. Ltd.

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On September 30, 2003 the Department of Commerce (the 
Department) initiated three new shipper reviews of the antidumping duty 
order on petroleum wax candles from the People's Republic of China 
(PRC) covering the period August 1, 2002, through July 31, 2003. See 
Petroleum Wax Candles from the People's Republic of China: Initiation 
of Antidumping Duty New Shipper Reviews, 68 FR 57876 (October 7, 2004) 
(Initiation Notice). These new shipper reviews covered three exporters: 
Shanghai R&R Imp./Exp. Co., Ltd. (Shanghai R&R); Changshan Import/
Export Co., Ltd. (Changshan); and Shandong Huihe., Ltd (Shandong). For 
the reasons discussed below, we preliminarily intend to rescind the new 
shipper review of Shanghai R&R. The Department is addressing the 
preliminary determination for Changshan and Shandong in separate 
notices.

EFFECTIVE DATE: August 3, 2004.

FOR FURTHER INFORMATION CONTACT: Scott Lindsay or Dana Mermelstein at 
(202) 482-0780 and (202) 482-1391, respectively; Office of AD/CVD 
Enforcement 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On August 28, 1986, the Department issued an antidumping duty order 
on petroleum wax candles from the PRC. See Antidumping Duty Order: 
Petroleum Wax Candles From the People's Republic of China, 51 FR 30686 
(February 14, 1986) On August 14, 2003, the Department received a 
timely request for a new shipper review of the antidumping duty order 
on petroleum wax candles from the PRC from Shanghai R&R, an exporter of 
subject merchandise to the United States. Pursuant to section 
351.214(b)(2)(iv) of the Department's regulations, this request 
included documentation establishing the volume of Shanghai R&R's first 
shipment to the United States and the date of the first sale to an 
unaffiliated customer in the United States. On September 30, 2003, the 
Department initiated this new shipper review covering the period August 
1, 2002, through July 31, 2003. See Initiation Notice. On January 7, 
2004, we received Shanghai R&R's response to the Department's initial 
questionnaire. On April 26, 2004, the Department received Shanghai 
R&R's response to the Department's supplemental questionnaire. On June 
14, 2004, we received Shanghai R&R's response to the Department's 
second supplemental questionnaire.

[[Page 46510]]

    On March 17, 2004, the Department extended the time limit for the 
completion of the preliminary results to July 26, 2004, in accordance 
with section 751(a)(2)(B)(iv) of the Tariff Act of 1930, as amended 
(the Act), and section 351.214(i)(2) of the Department's regulations. 
See Petroleum Wax Candles from the People's Republic of China: Notice 
of Extension of Time Limit for Preliminary Results of Antidumping Duty 
New Shipper Reviews, 69 FR 12641 (March 17, 2004).
    On July 21, 2004, the National Candle Association, petitioner, 
submitted comments regarding the sales under review. We received these 
comments too late for them to be considered for these preliminary 
results. These comments will be fully considered and addressed for the 
final results of this new shipper review.

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the questionnaire responses of Shanghai R&R. We used standard 
verification procedures, including on-site inspection of the production 
and sales facilities, and an examination of relevant sales and 
financial records. Our verification results are outlined in the New 
Shipper Review of Petroleum Wax Candles from the People's Republic of 
China: Sales Verification Report for Shanghai R&R Import/Export Co., 
Ltd., dated July 15, 2004. A public version of this report is on file 
in the Central Records Unit located in room B-099 of the Main Commerce 
Building.

Intent to Rescind Review

    With every new shipper review request, the Department has an 
obligation to analyze the documentation and certifications to establish 
that they meet the conditions of section 351.214(b)(2)(iv) of the 
Department's regulations. At the time Shanghai R&R requested this new 
shipper review, we determined that the regulatory requirements were met 
and we initiated the new shipper review. At verification, the 
Department found documentation which brings into question that this 
sale was in fact made to the importer identified in Shanghai R&R's 
initial request for review and in all subsequent questionnaire 
responses. Shanghai R&R's explanation that mistakes were made in 
identifying the importer in certain sales and accounting records does 
not persuade us to find that the importer documented in the initial 
request was correctly identified. As such, we find that our initiation 
of this new shipper review was based on documents that failed to 
establish the date of the first sale to an unaffiliated customer in the 
United States. Therefore, pursuant to section 351.214(b)(2)(iv)(C) of 
the Department's regulations, the requirements for initiation have not 
been satisfied.
    Accordingly, we preliminarily intend to rescind this new shipper 
review. Because much of the information pertinent to our preliminary 
decision to rescind this review is business proprietary, we have set 
forth our complete analysis in a separate memorandum. See Memorandum 
from Scott Lindsay, Case Analyst, through Barbara E. Tillman, Director 
of Office of AD/CVD Enforcement VII, to Gary Taverman, Acting Deputy 
Assistant Secretary for Import Administration, Group I, ``Petroleum Wax 
Candles from the People's Republic of China (PRC): Preliminary Intent 
to Rescind the New Shipper Review for Shanghai R&R Import/Export Co., 
Ltd. (8/1/02 - 7/31/03),'' dated July 23, 2004.

Notification

    At the completion of this new shipper review, either with a final 
rescission or a notice of final results, the Department will notify 
U.S. Customs and Border Protection that bonding is no longer permitted 
to fulfill security requirements of shipments with the exporter/
producer combination of Shanghai R&R/Qingyuan County Artistic and 
Candle Factory of petroleum wax candles from the PRC entered, or 
withdrawn from warehouse, for consumption in the United States on or 
after the date of publication of the final rescission or results notice 
in the Federal Register. After the publication of the final rescission 
notice, a cash deposit of 108.30 percent ad valorem shall be collected 
for any entries exported by Shanghai R&R. Should the Department reach a 
final result other than a rescission, an appropriate antidumping duty 
rate will be calculated for both assessment and cash deposit purposes.

Schedule for Final Results of Review

    Pursuant to section 351.309 of the Department's regulations, 
interested parties may submit written comments in response to these 
preliminary results. Normally, case briefs are to be submitted within 
30 days after the date of publication of this notice, and rebuttal 
briefs, limited to arguments raised in case briefs, are to be submitted 
no later than five days after the time limit for filing case briefs. 
Parties who submit arguments in this proceeding are requested to submit 
with the argument: (1) a statement of the issues, and (2) a brief 
summary of the argument. Case and rebuttal briefs must be served on 
interested parties in accordance with section 351.303(f) of the 
Department's regulations.
    Also, pursuant to section 351.310 of the Department's regulations, 
within 30 days of the date of publication of this notice, interested 
parties may request a public hearing on arguments to be raised in the 
case and rebuttal briefs. Unless the Secretary specifies otherwise, the 
hearing, if requested, will be held two days after the date for 
submission of rebuttal briefs. Parties will be notified of the time and 
location. The Department will issue the final results of this new 
shipper review, which will include the results of its analysis of 
issues raised in the briefs, within 90 days from the date of the 
preliminary results, unless the time limit is extended.
    We are issuing and publishing this determination is accordance with 
sections 751(a)(2)(B) and 777(i) of the Act.

    Dated: July 26, 2004.
Jeffrey A. May,
Acting Assistant Secretary for Import Administration.
[FR Doc. 04-17560 Filed 8-2-04; 8:45 am]
BILLING CODE 3510-DS-S