[Federal Register Volume 69, Number 221 (Wednesday, November 17, 2004)]
[Notices]
[Pages 67304-67306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3197]



[[Page 67304]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-892]


Notice of Final Determination of Sales at Less Than Fair Value: 
Carbazole Violet Pigment 23 from the People's Republic of China

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

ACTION: Notice of final determination of sales at less than fair value.

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EFFECTIVE DATE: November 17, 2004.
SUMMARY: We determine that carbazole violet pigment 23 (CVP-23) from 
the People's Republic of China (PRC) is being sold, or is likely to be 
sold, in the United States at less than fair value (LTFV), as provided 
in section 735 of the Tariff Act of 1930, as amended (the Act). The 
estimated margins of sales at LTFV are shown in the Final Determination 
of Investigation section of this notice.

FOR FURTHER INFORMATION CONTACT: Tisha Loeper-Viti or Marin Weaver at 
(202) (202) 482-7425 or (202) 482-2336, respectively; AD/CVD 
Operations, Office 8, China/NME Unit, Import Administration, Room 1870, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Case History

    The preliminary determination in this investigation was published 
on June 24, 2004. See Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: Carbazole 
Violet Pigment 23 from the People's Republic of China, 69 FR 35287 
(June 24, 2004) (Preliminary Determination). Since the preliminary 
determination, the following events have occurred.
    We conducted verification of the questionnaire responses of 
GoldLink Industries Co., Ltd. (GoldLink), Nantong Haidi Chemical Co., 
Ltd. (Haidi), Trust Chem Co., Ltd. (Trust Chem) and Tianjin Hanchem 
Int'l Trading Co., Ltd. (Hanchem)\1\ from August 2 through August 24, 
2004. The petitioners \2\ filed surrogate value information and data on 
August 10, 2004, and the respondents collectively filed surrogate value 
information and data on August 17, 2004.
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    \1\ Hanchem was established subsequent to the period of 
investigation (POI) out of the U.S. sales department of a company 
named Tianjin Heng An Trading Co., Ltd. (Heng An). During the POI, 
sales of subject merchandise to the United States were made by Heng 
An. We have determined that it is appropriate to treat Heng An and 
Hanchem as a single entity for the purposes of the margin 
calculations for this antidumping duty investigation and for the 
application of the antidumping law.
    \2\ The petitioners are Sun Chemical Corporation and Nation Ford 
Chemical Company.
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    On October 8, 2004, the respondents, the petitioners, Clariant 
Corporation (Clariant) and Colors LLC (Colors), domestic interested 
parties, filed case briefs. The respondents, the petitioners, and 
Clariant filed rebuttal briefs on October 13, 2004. Colors requested a 
public hearing on July 26, 2004. It retracted its request for a public 
hearing on October 13, 2004.

Scope of Investigation

    The merchandise covered by this investigation is carbazole violet 
pigment 23 identified as Color Index No. 51319 and Chemical Abstract 
No. 6358-30-1, with the chemical name of diindolo [3,2-b:3',2'-
m]triphenodioxazine, 8,18-dichloro-5, 15-diethy-5,15-dihydro-, and 
molecular formula of 
C[bdi3][bdi4]H[bdi2][bdi2]C[bdi1][bdi2]N[bdi4]O[bdi2].\3\ The subject 
merchandise includes the crude pigment in any form (e.g., dry powder, 
paste, wet cake) and finished pigment in the form of presscake and dry 
color. Pigment dispersions in any form (e.g., pigments dispersed in 
oleoresins, flammable solvents, water) are not included within the 
scope of the investigation.
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    \3\ Please note that the bracketed section of the product 
description, [3,2-b:3',2'-m], is not business proprietary 
information. In this case, the brackets are simply part of the 
chemical nomenclature. See December 4, 2003, amendment to petition 
at 8.
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    The merchandise subject to this investigation is classifiable under 
subheading 3204.17.9040 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 investigation is dispositive.

Period of Investigation

    The POI is April 1, 2003, through September 30, 2003. This period 
corresponds to the two most recent fiscal quarters prior to the month 
of the filing of the petition (i.e., November 2003). See 19 CFR 
351.204(b)(1).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this proceeding and to which we have responded are listed in the 
Appendix to this notice and addressed in the Issues and Decision 
Memorandum, which is hereby adopted by this notice. Parties can find a 
complete discussion of the issues raised in this investigation and the 
corresponding recommendations in this public memorandum which is on 
file in the Central Records Unit (CRU), room B-099 of the main 
Department building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly on the internet at http://ia.ita.doc.gov. The paper copy and electronic version of the Issues and 
Decision Memorandum are identical in content.

Non-Market Economy

    The Department has treated the PRC as a non-market economy (NME) 
country in all its previous antidumping investigations. See, e.g., 
Notice of Final Determination of Sales at Less Than Fair Value: Non-
Malleable Cast Iron Pipe Fittings from the People's Republic of China, 
68 FR 7765 (February 18, 2003); and Notice of Final Determination of 
Sales at Less Than Fair Value: Barium Carbonate From the People's 
Republic of China, 68 FR 46577 (August 6, 2003). In accordance with 
section 771(18)(C) of the Act, any determination that a foreign country 
is an NME country shall remain in effect until revoked. No party in 
this investigation has sought revocation of the NME status of the PRC. 
Therefore, pursuant to section 771(18)(C) of the Act, the Department 
will continue to treat the PRC as an NME country.
    When the Department is investigating imports from an NME country, 
section 773(c)(1) of the Act directs the Department to base normal 
value (NV) on the NME producer's factors of production, valued in a 
market economy at a comparable level of development that is a 
significant producer of comparable merchandise. The sources of 
individual factor prices are discussed under the Normal Value section, 
below. For further details, see the Preliminary Determination.

Separate Rates

    In our Preliminary Determination, we found that GoldLink, Haidi, 
and Trust Chem met the criteria for the application of a separate, 
company-specific antidumping duty rate. We have not received any other 
information since the preliminary determination which would warrant 
reconsideration of our separates rates determination with respect to 
these companies. For a complete discussion of the Department's 
determination that the respondents are

[[Page 67305]]

entitled to a separate rate, see the Preliminary Determination.

The PRC-Wide Rate

    In the Preliminary Determination, we found that the use of the PRC-
wide rate was appropriate for other exporters in the PRC based on our 
presumption that those exporters who did not submit a response to the 
Department's questionnaire, and hence failed to demonstrate entitlement 
to a separate rate, constitute a single enterprise under common control 
by the Chinese government. We applied adverse facts available to 
determine the single antidumping duty rate, the PRC-wide rate, 
applicable to the PRC exporters that comprise this single enterprise. 
See, e.g., Final Determination of Sales at Less Than Fair Value: 
Synthetic Indigo from the People's Republic of China, 65 FR 25706, 
25707 (May 3, 2000). In addition, while information provided by Hanchem 
and verified by the Department supports Hanchem's claim that it is not 
part of the PRC entity, we applied as adverse facts available to 
Hanchem the same rate as that applied to the PRC entity due to 
Hanchem's verification failure. To calculate the PRC-wide rate, we 
relied on information in the petition, as amended, which we were able 
to corroborate.
    Since the preliminary determination, we have obtained new 
information regarding several surrogate values and the respondents' 
consumption factors. Based on this new information, we find we are no 
longer able to corroborate the petition margin. See Memorandum to 
Laurie Parkhill, Antidumping Duty Investigation of Carbazole Violet 
Pigment 23 from the People's Republic of China (PRC) Recalculated PRC-
Wide Rate (November 8, 2004). Instead, we have recalculated the PRC-
wide rate using information otherwise available. The PRC-wide rate is, 
for the final determination, 217.94 percent.

Surrogate Country

    For purposes of the final determination, we continue to find that 
India remains the appropriate primary surrogate country for the PRC. 
For further discussion and analysis regarding the surrogate country 
selection for the PRC, see the Preliminary Determination.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by the respondents for use in our final 
determination. We used standard verification procedures including 
examination of relevant accounting and production records, and original 
source documents provided by the respondents. For changes from the 
Preliminary Determination as a result of verification, see the Changes 
Since the Preliminary Determination section, below. See also Memorandum 
from Marin Weaver and Christopher Welty, International Trade Compliance 
Analysts to the File: Antidumping Investigation of Carbazole Violet 
Pigment 23 from the PRC - Verification of Nantong Haidi Chemical Co., 
Ltd., dated September 30, 2004; Memorandum from Marin Weaver and 
Christopher Welty, International Trade Compliance Analysts to the File: 
Antidumping Investigation of Carbazole Violet Pigment 23 from the 
People's Republic of China - GoldLink Industries, Inc., dated September 
29, 2004; Memorandum from Marin Weaver and Christopher Welty, 
International Trade Compliance Analysts to the File: Antidumping 
Investigation of Carbazole Violet Pigment 23 from the People's Republic 
of China - Verification of Tianjin Hanchem International Trading Co., 
Ltd., dated September 28, 2004; Memorandum from Marin Weaver and 
Christopher Welty, International Trade Compliance Analysts to the File: 
Antidumping Investigation of Carbazole Violet Pigment 23 from the PRC - 
Verification of Nantong Longteng Chemical Co., Ltd., dated September 
29, 2004; Memorandum from Marin Weaver and Christopher Welty, 
International Trade Compliance Analysts to the File: Antidumping 
Investigation of Carbazole Violet Pigment 23 from the PRC - 
Verification of Jiangsu Multicolor Fine Chemical Co., Ltd., dated 
October 1, 2004; Memorandum from Marin Weaver and Christopher Welty, 
International Trade Compliance Analysts to the File: Antidumping 
Investigation of Carbazole Violet Pigment 23 from the People's Republic 
of China - Verification of Trust Chem Co., Ltd., dated September 28, 
2004; Memorandum from Marin Weaver and Christopher Welty, International 
Trade Compliance Analysts to the File: Antidumping Investigation of 
Carbazole Violet Pigment 23 from the PRC - Calculation of Jiangsu 
Multicolor Fine Chemical Co., Ltd.'s Utility and Labor Factors of 
Production, dated September 30, 2004.

Changes Since the Preliminary Determination

    Based on our findings at verification and on our analysis of the 
comments received, we have made certain adjustments to the calculation 
methodologies used in the preliminary determination. These adjustments 
are discussed in detail in the Issues and Decision Memorandum and in 
the Memorandum to Laurie Parkhill, Director, China/NME Group, Office 8, 
from Tisha Loeper-Viti, International Trade Compliance Analyst, Re: 
Factors of Production Valuation for Final Determination, dated November 
8, 2004 (Factors of Production Memorandum).

Critical Circumstances

    On June 18, 2004, at the Preliminary Determination, we made a 
preliminary finding of critical circumstances with respect to Haidi, 
and Hanchem on the basis of massive imports of the subject merchandise 
over a relatively short period. We received comments from interested 
parties on this issue, and they are discussed in detail in the 
accompanying Issues and Decision Memorandum at Comment 2. Based on our 
final determination of sales at less than fair value, pursuant to 
section 735(a)(3)(A)(i) and (B), we determine that critical 
circumstances exist with respect to Haidi and Hanchem. See Memo from 
Jeffrey A. May, Deputy Assistant Secretary for Import Administration to 
James J. Jochum, Assistant Secretary for Import Administration, 
Antidumping Duty Investigation of Carbazole Violet Pigment 23 from the 
People's Republic of China Final Determination on Critical 
Circumstances.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B)(ii) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to continue the 
suspension of liquidation of entries of subject merchandise from the 
PRC, that are entered, or withdrawn from warehouse, for consumption on 
or after June 24, 2004, (the date of publication of the Preliminary 
Determination in the Federal Register). For Haidi and Hanchem, we will 
instruct CBP to suspend liquidation of unliquidated entries that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date that is 90 days prior to the date publication of the preliminary 
determination. We will instruct CBP to require a cash deposit or the 
posting of a bond equal to the weighted-average amount by which NV 
exceeds the U.S. price, as indicated in the chart below. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Final Determination of Investigation

    We determine that the following weighted-average percentage margins 
exist for the period April 1, 2003, through September 30, 2003:

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------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/exporter                       Margin
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GoldLink Industries Co.,Ltd.........................               5.51%
Nantong Haidi Chemical Co., Ltd.....................              44.50%
Trust Chem Co., Ltd.................................              27.19%
Tianjin Hanchem International Trading Co............             217.94%
PRC-Wide Rate.......................................             217.94%
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    The PRC-wide rate applies to all entries of the merchandise under 
investigation except for entries from the four exporters listed above.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (ITC) of our determination. As our final 
determination is affirmative, the ITC will determine, within 45 days, 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry. If the ITC determines that material 
injury, or threat of material injury does not exist, the proceeding 
will be terminated and all securities posted will be refunded or 
cancelled. If the ITC determines that such injury does exist, the 
Department will issue an antidumping duty order directing CBP officials 
to assess antidumping duties on all imports of subject merchandise 
entered for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Order (APO)

    This notice also serves as a reminder to parties subject to APO of 
their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 351.305. 
Timely notification of 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.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: November 8, 2004.
James J. Jochum,
Assistant Secretary for Import Administration.

Appendix Decision Memorandum

I. ISSUES RELATED TO MULTIPLE RESPONDENTS

Comment 1: Financial Ratios
Comment 2: Critical Circumstances
Comment 3: Surrogate Value Sources
Comment 4: HTS Classification
Comment 5: Chemical Concentration Levels
Comment 6: Ethyl Alcohol
Comment 7: Hydrochloric Acid and Nitric Acid
Comment 8: Calcium Chloride
Comment 9: Ethyl Bromide
Comment 10: Ethanolamine Solvent
Comment 11: Steam
Comment 12: Electricity
Comment 13: Import Brokerage and Terminal Charges

II. ISSUES SPECIFIC TO INDIVIDUAL RESPONDENTS

Comment 14: Multicolor Tolling
Comment 15: Application of Adverse Facts Available to Multicolor
Comment 16: Application of Adverse Facts Available to Haidi
Comment 17: Haidi Factors of production
Comment 18: Application of Adverse Facts Available to Trust Chem
Comment 19: Application of Adverse Facts Available to Hanchem
Comment 20: Application of Adverse Facts Available to Longteng
Comment 21: General Issues Raised by Colors LLC
[FR Doc. E4-3197 Filed 11-16-04; 8:45 am]
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