[Federal Register Volume 69, Number 150 (Thursday, August 5, 2004)]
[Notices]
[Pages 47405-47407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17917]


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DEPARTMENT OF COMMERCE

International Trade Administration

[Docket No. A-570-836]


Glycine From The People's Republic of China: Rescission of 
Antidumping Duty New Shipper Review of Hebei New Donghua Amino Acid 
Co., Ltd.

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 6, 2003, the Department published the notice of 
initiation of the new shipper review of the antidumping duty order on 
glycine

[[Page 47406]]

from The People's Republic of China (PRC) covering the period March 1, 
2002, through February 28, 2003. The new shipper review covered exports 
by Hebei New Donghua Amino Acid Co., Ltd. (New Donghua). See Glycine 
from The People's Republic of China: Initiation of Antidumping New 
Shipper Review, 68 FR 23962 (May 6, 2003) (New Shipper Initiation). For 
the reasons discussed below, we are rescinding the review of New 
Donghua.

EFFECTIVE DATE: August 5, 2004.

FOR FURTHER INFORMATION CONTACT: Scot Fullerton or Matthew Renkey at 
(202) 482-1386 and (202) 482-2312, respectively; Office of AD/CVD 
Enforcement VII, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

Background

    We issued the preliminary results of this new shipper review on 
February 24, 2004. See Notice of Preliminary Results of Antidumping 
Duty New Shipper Review: Glycine from The People's Republic of China, 
69 FR 9804 (March 2, 2004) (Preliminary Results). Previously, on 
February 5, 2004, we sent New Donghua a third supplemental 
questionnaire, which also included a request for information from its 
U.S. importer. We received the response to the supplemental 
questionnaire on February 12, 2004. In the Preliminary Results, we 
noted that the response to the third supplemental questionnaire would 
be evaluated for the purposes of the final results of this review. In 
the memorandum entitled Bona Fide Nature of the Sale in the New Shipper 
Review of Hebei New Donghua Amino Acid Co., Ltd., dated February 24, 
2004, and accompanying the Preliminary Results, we stated that, 
although questions remained about New Donghua's sale, we preliminarily 
concluded that its sale was bona fide, and that we would continue to 
examine the issue.
    On May 3, 2004, we sent New Donghua a fourth supplemental 
questionnaire, which again included a request for information from its 
U.S. importer. We received New Donghua's response to this supplemental 
questionnaire in two submissions, one dated May 13, 2004, and the other 
dated May 20, 2004. On May 20, 2004, the Department extended the due 
date for the final results to July 23, 2004. See Notice of Extension of 
Time Limit of Final Results of New Shipper Review: Glycine from The 
People's Republic of China, 69 FR 29922 (May 26, 2004) (Final Extension 
Notice). In the Final Extension Notice, one of the reasons stated for 
extending the final results was the issue of the bona fide nature of 
New Donghua's sale.
    We received case briefs from petitions (Dow Chemical Company and 
Chattem Chemicals, Inc.) and New Donghua on June 17, 2004, and on June 
22, 2004, both parties filed rebuttal briefs. On June 30, 2004, we sent 
a letter to New Donghua stating that we were rejecting its case brief 
on the basis that is contained new factual information. On July 16, 
2004, after evaluating comments from New Donghua and petitioners on the 
rejection issue, we confirmed our decision to reject New Donghua's case 
brief. New Donghua re-filed its case brief, minus the new factual 
information, on July 19, 2004.
    In addition to commenting on the bona fide nature of New Donghua's 
U.S. sale, parties' briefs also addressed several other issues: (1) 
Whether the Department should continue to apply partial adverse facts 
available (AFA) to New Donghua as it did in the Preliminary Results, 
(2) whether the Department should apply total AFA to New Donghua, (3) 
what the Department should use as the surrogate value for 
monochloroacetic acid, (4) what the Department should use as the 
surrogate for the financial ratios, and (5) whether or not to include 
foremen in New Donghua's labor factor calculation. Since, as discussed 
below, we are rescinding this review, we need not address the parties' 
comments on these issues.

Scope of the Antidumping Duty Order

    The product covered by this antidumping duty order is glycine, 
which is a free-flowing crystalline material, like salt or sugar. 
Glycine is produced at varying levels of purity and is used as a 
sweetener/taste enhancer, a buffering agent, reabsorbable amino acid, 
chemical intermediate, and a metal complexing agent. Glycine is 
currently classifiable under subheading 2922.49.4020 of the Harmonized 
Tariff Schedule of the United States (HTSUS). This order covers glycine 
of all purity levels. Although the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the scope 
of this order is dispositive.

Rescission of Review

    The Department takes its responsibility to review the bona fides of 
new shipper sales very seriously. Therefore, we examine a number of 
factors, all of which may speak to the commercial realities surrounding 
the sale of subject merchandise. Our analysis of the bona fides of New 
Donghua's U.S. sale and our decision to rescind the new shipper review 
are based on the totality of the circumstances surrounding this single 
sale. Because much of the information necessary to our analysis of bona 
fides is business proprietary, we have addressed the bona fide issue 
and all of the parties' comments on bona fides in the Memorandum from 
Gary Taverman to James J. Jochum; The Bona Fides Analysis for Hebei New 
Donghua Amino Acid Co., Ltd.'s Sale in the New Shipper Review of 
Glycine from The People's Republic of China (Rescission Memo), issued 
concurrently with this notice. The Department has determined that the 
new shipper sale made by New Donghua was not bona fide because (1) the 
price for New Donghua's sale of glycine was not commercially reasonable 
when compared to the prices of other imports of glycine from the PRC 
and global market prices, (2) the quantity of New Donghua's glycine 
sale is low in comparison with other U.S. glycine imports from the PRC, 
and (3) the sale was not consistent with the normal business practices 
between a buyer and seller and was otherwise not commercially 
reasonable. Id. at 20-21. Taken as a whole, these facts lead the 
Department to conclude that the sale was not commercially reasonable or 
bona fide. As a result, we are rescinding this new shipper review.

Call Deposit Requirements

    The Department will notify U.S. Customs and Border Protection (CBP) 
that bonding is no longer permitted to fulfill security requirements 
for shipments from New Donghua of glycine from the PRC entered, or 
withdrawn from warehouse, for consumption in the United States on or 
after the publication of this notice of rescission of antidumping duty 
new shipper review in the Federal Register. Further, effective upon 
publication of this notice for all shipments of the subject merchandise 
exported by New Donghua and entered, or withdrawn from warehouse, for 
consumption, the cash deposit rate will be the PRC-wide rate of 155.89 
percent ad valorem.

Assessment of Antidumping Duties

    The Department shall instruct CBP to assess antidumping duties on 
all appropriate entries. Since we are rescinding this antidumping duty 
new shipper review with respect to New Donghua, the PRC-wise rate of 
155.89 percent in effect at the time of entry applies to all exports of 
glycine from the PRC by New Donghua entered or withdrawn from warehouse 
for

[[Page 47407]]

consumption during the period of review (March 1, 2002, through 
February 28, 2003). The Department will issue appropriate assessment 
instructions directly to CBP within 15 days of publication of this 
notice of rescission of antidumping duty new shipper review.

Notification to Importers

    This notice also serves as a reminder to importers of their 
responsibility under Sec.  351.402(f) of the Department regulations 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 a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with section 351.305(a)(3) of the Department 
regulations. Timely written notification of the return/destruction of 
APO material or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanctions.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(2)(B) and 777(i)(1) of the Tariff Act 
of 1930, as amended.

    Dated: July 23, 2004.
Holly A. Kuga,
Acting Assistant Secretary for Import Administration.
[FR Doc. 04-17917 Filed 8-4-04; 8:45 am]
BILLING CODE 3510-DS-M