[Federal Register Volume 70, Number 36 (Thursday, February 24, 2005)]
[Notices]
[Pages 9035-9037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-3688]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-898]


Notice of Amended Preliminary Antidumping Duty Determination of 
Sales at Less Than Fair Value: Chlorinated Isocyanurates From the 
People's Republic of China

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

EFFECTIVE DATE: February 24, 2005.

FOR FURTHER INFORMATION CONTACT: Cindy Robinson or Brian C. Smith, AD/
CVD Operations, Office 9, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3797, or (202) 482-1766, respectively.
SUMMARY: The Department of Commerce (``the Department'') is amending 
the weighted-average dumping margin listed in the Preliminary 
Determination for the mandatory respondent Hebei Jiheng Chemical Co., 
Ltd. (``Jiheng'') and for the Section A Respondents.\1\ See Notice of 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination: Chlorinated Isocyanurates from the 
People's Republic of China, 69 FR 75293 (December 16, 2004) 
(``Preliminary Determination''). The Department finds that it made 
ministerial errors in the calculations for Jiheng, and that the 
correction of all errors alleged by Jiheng fulfills the requirement of 
a significant ministerial error within the meaning of 19 CFR 
351.224(e). Therefore, the rate assigned to the Section A respondents 
also changes.
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    \1\ The Section A Respondents include the following companies: 
Liaocheng Huaao Chemical Industry Co., Ltd. (``Huaao''); Shanghai 
Tian Yuan International Trading Co., Ltd., (``Tian Yuan''); and 
Changzhou Clean Chemical Co., Ltd. (``Clean Chemical''); Sinochem 
Hebei Import & Export Corporation (``Sinochem Hebei''); and Sinochem 
Shanghai Import & Export Corporation (``Sinochem Shanghai'').
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Scope of the Investigation

    The products covered by this investigation are chlorinated 
isocyanurates. Chlorinated isocyanurates are derivatives of cyanuric 
acid, described as chlorinated s-triazine triones. There are three 
primary chemical compositions of chlorinated isocyanurates: (1) 
trichloroisocyanuric acid (Cl3 (NCO)3), (2) 
sodium dichloroisocyanurate (dihydrate) 
(NaCl2(NCO)3 2H2O), and (3) 
sodium dichloroisocyanurate (anhydrous) 
(NaCl2(NCO)3). Chlorinated isocyanurates are 
available in powder, granular, and tableted forms. This investigation 
covers all chlorinated isocyanurates.
    Chlorinated isocyanurates are currently classifiable under 
subheadings 2933.69.6015 and 2933.69.6021 of the Harmonized Tariff 
Schedule of the United States (``HTSUS'').\2\ This tariff 
classification represent a basket category that includes chlorinated 
isocyanurates and other compounds including an unfused triazine ring. 
Although the HTSUS subheading is provided for convenience and customs 
purposes, the written description of the scope of this investigation is 
dispositive.
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    \2\ In the scope section of the Department's initiation and in 
its preliminary determination notices, chlorinated isocyanurates 
were classified under subheading 2933.69.6050 of the HTSUS. (See 
Initiation of Antidumping Duty Investigations: Chlorinated 
Isocyanurates From the People's Republic of China and Spain, 69 FR 
32,488 (June 10, 2004), and Preliminary Determination. Effective 
January 1, 2005, chlorinated isocyanurates are currently 
classifiable under subheadings 2933.69.6015 and 2933.69.6021 of the 
HTSUS. The new subheading 2933.69.6015 covers sodium 
dichloroisocyanurates (anhydrous & dihydrate forms) and 
trichloroisocyanuric acid, and subheading 2933.69.6021 covers all 
other chlorinated isos used as pesticides (bactericides). The old 
subheading 2933.69.6050 covers all other chlorinated isos not used 
as pesticides. See Memorandum to James Doyle, Office 9, dated 
February 16, 2005, from Tom Futtner, Liaison w/Customs, Customs 
Unit, regarding Request for HTS Number Update(s) to AD/CVD Module 
Chlorinated Isos (A-570-898).
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    Arch's patented chlorinated isocyanurates tablet is also included 
in the scope of this investigation. See Preliminary Determination.

Background

    On December 10, 2004, the Department preliminarily determined that 
chlorinated isocyanurates from the People's Republic of China (``PRC'') 
are being, or are likely to be, sold in the United States at less than 
fair value (``LTFV''), as provided in section 733(a) of the Tariff Act 
of 1930, as amended (``the Act''). See Preliminary Determination, 69 FR 
at 75293.
    On December 20, 2004, Jiheng and Nanning Chemical Industry Co., 
Ltd. Corporation (``Nanning'') (collectively referred to as the 
``mandatory respondents'') timely filed allegations that the Department 
made ministerial errors in its Preliminary Determination.
    The petitioners, Clearon Corporation and Occidental Chemical 
Corporation, did not file ministerial error allegations.
    On January 24, 2005, the Department, after a review of the 
allegations filed by Jiheng and Nanning, determined that Jiheng's 
alleged clerical errors, when corrected, were not significant in

[[Page 9036]]

accordance with 19 CFR 352.224(e), and that Nanning's allegation was 
methodological, rather than clerical, in nature. See Memorandum to the 
File, dated January 24, 2005, from the team to James C. Doyle, Office 
Director, Regarding Antidumping Duty Investigation of Chlorinated 
Isocyanurates from the People's Republic of China (``China''): Analysis 
of Allegations of Ministerial Errors (``Clerical Error Memo'').
    On January 27, 2005, Jiheng alleged that of the four clerical error 
allegations, which the Department stated in its Clerical Error Memo it 
intended to correct, the Department did not correct one of the clerical 
errors (i.e., removing two by-products--ammonia gas and hydrogen gas--
from its direct materials cost calculation) in the SAS program attached 
to the Clerical Error Memo. Consequently, Jiheng alleges that the 
Department erroneously concluded in its Clerical Error Memo that the 
combined corrections to all four errors made with respect to its margin 
calculation in the Preliminary Determination were not significant in 
accordance with 19 CFR 351.224(e). Jiheng further alleges that 
correcting the error at issue requires the Department to amend its 
preliminary determination because the combination of errors is 
significant in accordance with 19 CFR 351.224(e).
    On January 31, 2005, the petitioners submitted rebuttal comments 
contesting the Department's treatment of the two by-products discussed 
in the Clerical Error Memo, and requested that the Department defer its 
decision on whether to treat these two products as by-products until 
the final determination. They also allege that the Department made an 
error in its margin program with respect to packing labor where 
unskilled packing labor was double-counted while skilled packing labor 
was uncounted.
    On February 4, 2005, Jiheng submitted rebuttal comments requesting 
that the Department strike from the record the petitioners' January 31, 
2005, comments.

Significant Ministerial Error

    A ministerial error is defined in 19 CFR 351.224(f) as ``an error 
in addition, subtraction, or other arithmetic function, clerical error 
resulting from inaccurate copying, duplication, or the like, and any 
other similar type of unintentional error which the Secretary considers 
ministerial.'' With respect to preliminary determinations, section 
351.224(e) of the Department's regulations provides that the Department 
``will analyze any comments received and, if appropriate, correct any 
significant ministerial error by amending the preliminary 
determination. * * *'' (emphasis added).
    A significant ministerial error is defined as an error, the 
correction of which, singly or in combination with other errors, would 
result in (1) a change of at least five absolute percentage points in, 
but not less than 25 percent of, the weighted-average dumping margin 
calculated in the original (erroneous) preliminary determination; or 
(2) a difference between a weighted-average dumping margin of zero or 
de minimis and a weighted-average dumping margin of greater than de 
minimis or vice versa. See 19 CFR 351.224(g). As explained below, we 
have determined that the preliminary determination contains a 
``significant'' ministerial error with respect to Jiheng that requires 
correction. As a result, the Department is publishing this amendment to 
its Preliminary Determination pursuant to 19 CFR 351.224(e).

Amended Preliminary Determination

    After re-examining the corrections which we stated we made with 
respect to Jiheng in the Clerical Error Memo, we agree with Jiheng that 
we inadvertently did not make full correction to one of the four 
clerical errors alleged by Jiheng in its December 20, 2004, clerical 
error allegation submission. Specifically, the Department treated 
hydrogen gas and ammonia gas as by-products, but inadvertently did not 
remove the two by-products from Jiheng's direct materials cost 
calculation as stated in our Clerical Error Memo. This error has been 
corrected by removing the two by-products from Jiheng's direct material 
cost calculation. This correction along with the other three 
corrections, which we agree are clerical errors with respect to 
Jiheng's preliminary determination margin calculation, results in a 
significant error in accordance with 19 CFR 351.224(e). See Memorandum 
to the File, dated February 11, 2005, from the team to James C. Doyle, 
Office Director, Regarding Antidumping Duty Investigation of 
Chlorinated Isocyanurates from the People's Republic of China 
(``China''): Re-Analysis of Allegations of Ministerial Errors Made By 
Hebei Jiheng Chemical Co., Ltd. (``Jiheng'') (``Clerical Error Re-
Analysis Memo'').
    In addition, because the errors alleged by Jiheng were in fact 
significant, the Department has also amended the weighted-average 
dumping margin listed in the Preliminary Determination for the Section 
A Respondents (see also Clerical Error Re-Analysis Memo).
    Pursuant to 19 CFR 351.224(c)(3), for purposes of this amended 
preliminary determination, we will not consider the petitioners' 
rebuttal comments on the Department's treatment of hydrogen gas and 
ammonia gas as by-products, and the SAS programing error with respect 
to packing labor hours. However, we will consider those comments in the 
final determination.
    For purposes of this amended preliminary determination, we are not 
changing any findings in the Preliminary Determination with respect to 
Nanning's clerical error allegation because we find that Nanning's 
allegation is methodological, rather than clerical, in nature (see 
Clerical Error Memo for further discussion). Nanning will, however, 
have the opportunity to address the clerical error issue in its case 
brief, which will be considered by the Department at the final 
determination. As a result, the PRC-wide rate remains unchanged because 
the PRC-wide rate in the Preliminary Determination is based on 
Nanning's margin (which is the higher of the recalculated petition 
margin or highest margin calculated for any respondent in this 
investigation).
    As a result of our correction of ministerial errors in the 
Preliminary Determination, the Department has determined that the 
following weighted-average dumping margins apply:

      Chlorinated Isocyanurates from the PRC Mandatory Respondents
------------------------------------------------------------------------
                                         Original           Amended
       Manufacturer/exporter           preliminary        preliminary
                                    margin  (percent)  margin  (percent)
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Hebei Jiheng Chemical Co., Ltd....             125.97              86.79
Nanning Chemical Industry Co.,                 179.48             179.48
 Ltd..............................
PRC-Wide Rate.....................             179.48             179.48
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[[Page 9037]]


      Chlorinated Isocyanurates from the PRC Section A Respondents
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                                         Original           Amended
       Manufacturer/exporter           preliminary        preliminary
                                     margin (percent)   margin (percent)
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Changzhou Clean Chemical Co., Ltd.             140.27             111.03
Liaocheng Huaao Chemical Industry              140.27             111.03
 Co., Ltd.........................
Shanghai Tian Yuan International               140.27             111.03
 Trading Co., Ltd.................
Sinochem Hebei Import & Export                 140.27             111.03
 Corporation......................
Sinochem Shanghai Import & Export              140.27             111.03
 Corporation......................
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    The collection of bonds or cash deposits and suspension of 
liquidation will be revised accordingly and parties will be notified of 
this determination, in accordance with section 733(d) and (f) of the 
Act.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we have notified the 
International Trade Commission (``ITC'') of our amended preliminary 
determination. If our final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of the 
Preliminary Determination or 45 days after our final determination 
whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports, or 
sales (or the likelihood of sales) for importation, of the subject 
merchandise.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.224(e).

    Dated: February 17, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. 05-3688 Filed 2-23-05; 8:45 am]
BILLING CODE 3510-DS-P