[Federal Register Volume 71, Number 93 (Monday, May 15, 2006)]
[Notices]
[Pages 27991-27994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7358]


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DEPARTMENT OF COMMERCE

International Trade Administration

A-570-879


Polyvinyl Alcohol From the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review

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

SUMMARY: The Department of Commerce (``the Department'') published its 
preliminary results of administrative review of the antidumping duty 
order on polyvinyl alcohol (``PVA'') from the

[[Page 27992]]

People's Republic of China (``PRC'') on November 7, 2005. See Polyvinyl 
Alcohol from the People's Republic of China: Preliminary Results of 
Antidumping Duty Administrative Review, 70 FR 67434 (November 7, 2005) 
(``Preliminary Results''). The period of review (``POR'') is August 11, 
2003, through September 30, 2004. We invited interested parties to 
comment on our preliminary results. Based on our analysis of the 
comments received, we have made certain changes to our calculations. 
The final dumping margins for this review are listed in the ``Final 
Results of Review'' section below.

EFFECTIVE DATE: May 15, 2006.

FOR FURTHER INFORMATION CONTACT: Lilit Astvatsatrian, AD/CVD 
Operations, Office 8, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
6412.

SUPPLEMENTARY INFORMATION:

Background

    We invited parties to comment on our Preliminary Results. On 
December 7, 2005, the Department received case briefs from Petitioners 
\1\ and the respondent, Sinopec Sichuan Vinylon Works (``SVW''). On 
December 16, 2005, we received rebuttal comments from Petitioners, SVW, 
and Solutia, Inc. (``Solutia''), a domestic producer of PVA. On 
February 7, 2006, the Department issued a fifth Section D supplemental 
questionnaire to SVW, to which SVW responded on February 14, 2006. In 
addition, on February 7, 2006, we issued a memorandum to all interested 
parties requesting comments regarding a change in the Department's 
calculated regression-based wage rate methodology and in the allocation 
of the labor benefits in the financial ratio calculation. See Letter 
from Wendy Frankel, Director, Office 8, to All Interested Parties, 
dated February 7, 2006. Petitioners provided comments on February 14, 
2006. No other interested party provided comments. We have conducted 
this administrative review in accordance with Section 751 of the Tariff 
Act of 1930, as amended (``the Act''), and 19 CFR 351.213.
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    \1\ Celanese Chemicals, Ltd. and E.I. DuPont de Nemours and Co. 
(collectively ``Petitioners'').
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Period of Review

    The POR is August 11, 2003, through September 30, 2004.

Scope of the Order

    The merchandise covered by this order is PVA. This product consists 
of all PVA hydrolyzed in excess of 80 percent, whether or not mixed or 
diluted with commercial levels of defoamer or boric acid, except as 
noted below.
    The following products are specifically excluded from the scope of 
this investigation:

    1) PVA in fiber form.
    2) PVA with hydrolysis less than 83 mole percent and certified not 
for use in the production of textiles.
    3) PVA with hydrolysis greater than 85 percent and viscosity 
greater than or equal to 90 cps.
    4) PVA with a hydrolysis greater than 85 percent, viscosity greater 
than or equal to 80 cps but less than 90 cps, certified for use in an 
ink jet application.
    5) PVA for use in the manufacture of an excipient or as an 
excipient in the manufacture of film coating systems which are 
components of a drug or dietary supplement, and accompanied by an end-
use certification.
    6) PVA covalently bonded with cationic monomer uniformly present on 
all polymer chains in a concentration equal to or greater than one mole 
percent.
    7) PVA covalently bonded with carboxylic acid uniformly present on 
all polymer chains in a concentration equal to or greater than two mole 
percent, certified for use in a paper application.
    8) PVA covalently bonded with thiol uniformly present on all 
polymer chains, certified for use in emulsion polymerization of non-
vinyl acetic material.
    9) PVA covalently bonded with paraffin uniformly present on all 
polymer chains in a concentration equal to or greater than one mole 
percent.
    10) PVA covalently bonded with silan uniformly present on all 
polymer chains certified for use in paper coating applications.
    11) PVA covalently bonded with sulfonic acid uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    12) PVA covalently bonded with acetoacetylate uniformly present on 
all polymer chains in a concentration level equal to or greater than 
one mole percent.
    13) PVA covalently bonded with polyethylene oxide uniformly present 
on all polymer chains in a concentration level equal to or greater than 
one mole percent.
    14) PVA covalently bonded with quaternary amine uniformly present 
on all polymer chains in a concentration level equal to or greater than 
one mole percent.
    15) PVA covalently bonded with diacetoneacrylamide uniformly 
present on all polymer chains in a concentration level greater than 
three mole percent, certified for use in a paper application.

    The merchandise subject to this order is currently classifiable 
under subheading 3905.30.00 of the Harmonized Tariff Schedule of the 
United States (``HTSUS''). Although the HTSUS subheading is provided 
for convenience and customs purposes, the written description of the 
scope of this order is dispositive.

Analysis of Comments Received

    All issues raised in the post-preliminary comments by parties in 
this review are addressed in the memorandum from Stephen J. Claeys, 
Deputy Assistant Secretary for Import Administration, to David M. 
Spooner, Assistant Secretary for Import Administration, ``Issues and 
Decision Memorandum for the Final Results of the First Administrative 
Review of the Antidumping Duty Order on Polyvinyl Alcohol from the 
People's Republic of China,'' dated May 8, 2006 (``Issues and Decision 
Memorandum''), which is hereby adopted by this notice. A list of the 
issues which parties raised and to which we responded in the Issues and 
Decision Memorandum is attached to this notice as an appendix. The 
Issues and Decision Memorandum is a public document which is on file in 
the Central Records Unit (``CRU'') in room B-099 in the main Department 
building, and is accessible on the Web at http://ia.ita.doc.gov/frn. 
The paper copy and electronic version of the memorandum are identical 
in content.

Changes Since the Preliminary Results

    Based on our analysis of comments received, we have made changes in 
the margin calculations for SVW.

 We changed our surrogate value labor rate to the rate issued 
by the Department in November 2005. See Issues and Decision Memorandum 
at Comment 9.
 We moved employee benefits of the surrogate company from the 
direct labor calculation into manufacturing overhead. See Issues and 
Decision Memorandum at Comment 8.
 For the preliminary results, we did not value freon. However, 
for the final results, we valued freon for our margin calculations. See 
Issues and Decision Memorandum at Comment 6.

[[Page 27993]]

 In the preliminary results, we used a heat-of-combustion 
methodology to allocate costs to acetylene and acetylene tail gas. For 
the final results, we utilized a value-based allocation methodology. 
See Issues and Decision Memorandum at Comment 1.
 In the preliminary results, we inadvertently added the value 
of the steam by-product to acetylene and acetylene tail gas. For the 
final results, we revised the surrogate value for steam to apply the 
intended by-product credit. See Issues and Decision Memorandum at 
Comment 1.
 For the preliminary results, we inadvertently included a 
waterway supplier distance in calculating the weighted-average supplier 
distance for coal. For the final results, we removed this distance. See 
Final Results of Administrative Review of the Order on Polyvinyl 
Alcohol from the People's Republic of China: Sinopec Sichuan Vinylon 
Works Program Analysis for the Final Results of Review from Lilit 
Astvatsatrian, Case Analyst, through Robert Bolling, Program Manager, 
to the File, dated May 8, 2006 (``Final Analysis Memorandum.'').
 We adjusted the calculation of self-produced electricity as an 
input into self-produced tap water, steam and compressed air, and the 
calculation of self-produced steam as an input into self-produced 12 
degree circulation water, power generation boiler water, de-oxygen 
water, methanol, vinyl acetate monomer, and acetylene/acetylene tail 
gas. See Issues and Decision Memorandum at Comments 12 - 14.
 In the preliminary results, we inadvertently applied the 
surrogate value of pure water to the factor of 33 degree circulation 
water. For the final results, we applied the surrogate value of 33 
degree circulation water to the factor of 33 degree circulation water. 
See Issues and Decision Memorandum at Comment 15.
 In the preliminary results, we intended to increase SVW's 
direct labor hours to account for unreported engineering and production 
management but inadvertently applied the increase only to the last 
stage of PVA production: the production of finished PVA. For the final 
results, we increased the direct labor hours for the full PVA 
production cycle. See Attachment 6 of Preliminary Results of Review of 
the Order on Polyvinyl Alcohol from the People's Republic of China: 
Sinopec Sichuan Vinylon Works Program Analysis for the Preliminary 
Results of Review from Lilit Astvatsatrian, Case Analyst, through 
Robert Bolling, Program Manager, to the File, dated October 31, 2005, 
and Exhibit 1 of Final Analysis Memorandum at page 4.

Surrogate Country

    In the Preliminary Results, we stated that we treat the PRC as a 
non-market economy (``NME'') country, and, therefore, we calculated 
normal value in accordance with section 773(c) of the Act, which 
applies to NME countries. Also, we stated that we had selected India as 
the appropriate surrogate country to use in this review for the 
following reasons: (1) it is a significant producer of comparable 
merchandise; and (2) it is at a similar level of economic development, 
pursuant to 773(c)(4) of the Act. See Preliminary Results, 70 FR 67436. 
For the final results, we made no changes to our findings with respect 
to the selection of a surrogate country.

Separate Rates

    In proceedings involving NME countries, the Department begins with 
a rebuttable presumption that all companies within the country are 
subject to government control and, thus, should be assigned a single 
antidumping duty deposit rate. It is the Department's policy to assign 
all exporters of merchandise subject to review in an NME country this 
single rate unless an exporter can demonstrate that it is sufficiently 
independent so as to be entitled to a separate rate.
    In the Preliminary Results, we found that SVW demonstrated its 
eligibility for separate-rate status. For the final results, we 
continue to find that the evidence placed on the record of this review 
by SVW demonstrates an absence of government control, both in law and 
in fact, with respect to its exports of the merchandise under review, 
and, thus determine SVW is eligible for separate-rate status.

Weighted-Average Dumping Margin

    The weighted-average dumping margin is as follows:

                     Polyvinyl Alcohol from the PRC
------------------------------------------------------------------------
                                                       Weighted-Average
           Producer/Manufacturer/Exporter              Margin (Percent)
------------------------------------------------------------------------
SVW*................................................              0.04 %
------------------------------------------------------------------------
 * This rate is de minimis.

Assessment Rates

    The Department will issue appraisement instructions directly to 
U.S. Customs and Border Protection (``CBP'') within 15 days of 
publication of these final results of administrative review. In 
accordance with 19 CFR 351.212(b)(1), we have calculated importer-
specific assessment rates for merchandise subject to this review. For 
SVW, we divided the total dumping margins of its reviewed sales by the 
total entered value of its reviewed sales for each applicable importer 
to calculate ad valorem assessment rates. We will direct CBP to assess 
the resulting assessment rates against the entered customs values for 
the subject merchandise on SVW's entries under the relevant order 
during the POR.
    To determine whether the duty assessment rates were de minimis, in 
accordance with the requirement set forth in 19 CFR 351.106(c)(2), we 
calculated importer-specific ad valorem rates. For SVW, we aggregated 
the dumping margins calculated for all U.S. sales to each importer and 
divided this amount by the entered value of the sales to each importer. 
For further details see Final Analysis Memorandum. Where an importer-
specific ad valorem rate is de minimis, we will order CBP to liquidate 
appropriate entries without regard to antidumping duties.

Cash-Deposit Requirements

    The following deposit requirements will be effective upon 
publication of this notice of final results of administrative review 
for all shipments of PVA from the PRC entered, or withdrawn from 
warehouse, for consumption on or after the date of publication, as 
provided by section 751(a)(1) of the Act: (1) Because the cash deposit 
rates for SVW is de minimis, no cash deposit shall be required for SVW; 
(2) for previously reviewed or investigated companies not listed above 
that have a separate rate, the cash deposit rate will continue to be 
the company-specific rate published for the most recent period; (3) the 
cash deposit rate for all other PRC exporters will be 97.86 percent, 
the current PRC-wide rate; and (4) the cash deposit rate for all non-
PRC exporters will be the rate applicable to the PRC exporter that 
supplied that exporter. These deposit requirements, when imposed, shall 
remain in effect until publication of the final results of the next 
administrative review.

Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) 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

[[Page 27994]]

this requirement could result in the Secretary's presumption that 
reimbursement of the 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 
(``APOs'') of their responsibility concerning the return or destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305. 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 terms of an APO 
is a violation which is subject to sanction.
    We are issuing and publishing this determination and notice in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: May 8, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1: Cost Allocation Methodology of Acetylene and Acetylene Tail 
Gas Co-Products
Comment 2: Surrogate Value for Natural Gas
Comment 3: Surrogate Value for Coal
Comment 4: Surrogate Value Purity Adjustment for Purchased Inputs 
Sourced from Chemical Weekly
Comment 5: Surrogate Value for Methanol
Comment 6: Valuation of Surrogate Value for Freon
Comment 7: Inclusion of Excise Duty in Surrogate Company's Profit
Comment 8: Inclusion of Labor Benefits in Factory Overhead
Comment 9: Surrogate Value for Wages
Comment 10: Treatment of By-Product Offsets
Comment 11: Surrogate Value for Brokerage and Handling
Comment 12: Use of Self-Produced Electricity in the Production of 
Certain Self-Produced Inputs
Comment 13: Use of Different Value of Self-Produced Steam as an Input 
to Other Self-Produced Inputs
Comment 14: Use of Self-Produced Electricity in Calculation of the Cost 
of 33 Degree Circulation Water
Comment 15: Calculation of 33 Degree Circulation Water in Margin 
Calculation Program
Comment 16: Correction of the Calculation of Train Freight

[FR Doc. E6-7358 Filed 06-12-06; 8:45 am]
BILLING CODE 3510-DS-S