[Federal Register Volume 72, Number 233 (Wednesday, December 5, 2007)]
[Notices]
[Pages 68563-68568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23489]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-841, A-570-925]


Sodium Nitrite from the Federal Republic of Germany and the 
People's Republic of China: Initiation of Antidumping Duty 
Investigations

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

EFFECTIVE DATE: December 5, 2007.

FOR FURTHER INFORMATION CONTACT: Brian Smith (Federal Republic of 
Germany) or Magd Zalok (People's Republic of China), AD/CVD Operations, 
Offices 2 and 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
1766 or (202) 482-4162, respectively.

SUPPLEMENTARY INFORMATION:

The Petitions

    On November 8, 2007, the Department of Commerce (the Department) 
received petitions concerning imports of sodium nitrite from the 
Federal Republic of Germany (Germany) (German petition) and the 
People's Republic of China (PRC) (PRC petition) filed in proper form by 
General Chemical LLC (petitioner). See the Petitions on Sodium Nitrite 
from the Federal Republic of Germany and the People's Republic of China 
submitted on November 8, 2007. On November 14, 2007, the Department 
issued a request for additional information and clarification of 
certain areas of the petitions. Based on the Department's requests, the 
petitioner filed additional information on November 19, 2007 (three 
distinct submissions on General, Germany-only and PRC-only material). 
The period of investigation (POI) for Germany is October 1, 2006, 
through September 30, 2007. The POI for the PRC is April 1, 2007, 
through September 30, 2007. See 19 CFR 351.204(b)(i).
    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of sodium 
nitrite from Germany and the PRC are being, or are likely to be, sold 
in the United States at less than fair value, within the meaning of 
section 731 of the Act, and that such imports are materially injuring, 
or threatening material injury to, an industry in the United States.
    The Department finds that the petitioner filed these petitions on 
behalf of the domestic industry because the

[[Page 68564]]

petitioner is an interested party as defined in section 771(9)(C) of 
the Act, and has demonstrated sufficient industry support with respect 
to the antidumping duty investigations that the petitioner is 
requesting that the Department initiate (see ``Determination of 
Industry Support for the Petitions'' section below).

Scope of Investigations

    The merchandise covered by each of these investigations is sodium 
nitrite in any form, at any purity level. In addition, the sodium 
nitrite covered by these investigations may or may not contain an anti-
caking agent. Examples of names commonly used to reference sodium 
nitrite are nitrous acid, sodium salt, anti-rust, diazotizing salts, 
erinitrit, and filmerine. The chemical composition of sodium nitrite is 
NaNO2 and it is generally classified under subheading 2834.10.1000 of 
the Harmonized Tariff Schedule of the United States (HTSUS). The 
American Chemical Society Chemical Abstract Service (CAS) has assigned 
the name ``sodium nitrite'' to sodium nitrite. The CAS registry number 
is 7632-00-0.
    While the HTSUS subheading, CAS registry number, and CAS name are 
provided for convenience and customs purposes, the written description 
of the scope of these investigations is dispositive.

Comments on Scope of Investigations

    During our review of the petitions, we discussed the scope with the 
petitioner to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Moreover, as 
discussed in the preamble to the regulations (Antidumping Duties; 
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997)), 
we are setting aside a period for interested parties to raise issues 
regarding product coverage. The Department encourages all interested 
parties to submit such comments within 20 calendar days of signature of 
this notice. Comments should be addressed to Import Administration's 
Central Records Unit (CRU), Room 1870, U.S. Department of Commerce, 
14th Street and Constitution Avenue, NW, Washington, DC 20230. The 
period of scope consultations is intended to provide the Department 
with ample opportunity to consider all comments and to consult with 
parties prior to the issuance of the preliminary determinations.

Comments on Product Characteristics for Antidumping Duty Questionnaires

    We are requesting comments from interested parties regarding the 
appropriate physical characteristics of sodium nitrite to be reported 
in response to the Department's antidumping questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to more accurately report the 
relevant factors and costs of production, as well as to develop 
appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate listing of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as 1) general product 
characteristics and 2) the product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, while there may 
be some physical product characteristics utilized by manufacturers to 
describe sodium nitrite, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in product 
matching. Generally, the Department attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the antidumping duty questionnaires, we must 
receive comments at the above-referenced address by December 18, 2007. 
Additionally, rebuttal comments must be received by December 28, 2007.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A), or (ii) determine industry support using a 
statistically valid sampling method.
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (section 771(10) of the Act), they do so for different 
purposes and pursuant to a separate and distinct authority. In 
addition, the Department's determination is subject to limitations of 
time and information. Although this may result in different definitions 
of the like product, such differences do not render the decision of 
either agency contrary to law. See USEC, Inc. v. United States, 132 F. 
Supp. 2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. v. United 
States, 688 F. Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 
1989), cert. denied 492 U.S. 919 (1989).
    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this subtitle.'' Thus, the reference point from which the 
domestic like product analysis begins is ``the article subject to an 
investigation,'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of domestic like product distinct from the scope of 
the investigation. Based on our analysis of the information submitted 
on the record, we have determined that sodium nitrite constitutes a 
single domestic like product and we have analyzed industry support in 
terms of that domestic like product. For a discussion of the domestic 
like product analysis in this case, see the Antidumping Investigation 
Initiation Checklist: Sodium Nitrite from the Federal Republic of 
Germany, Industry Support at Attachment II (Germany Initiation 
Checklist) and the

[[Page 68565]]

Antidumping Investigation Initiation Checklist: Sodium Nitrite from the 
People's Republic of China (PRC), Industry Support at Attachment II 
(PRC Initiation Checklist) on file in the CRU, Room B-099 of the main 
Department of Commerce building.
    Our review of the data provided in the petitions, supplemental 
submissions, and other information readily available to the Department 
indicates that the petitioner has established industry support. To 
establish industry support, the petitioner demonstrated that it was the 
sole producer of the domestic like product in 2006. Therefore, the 
petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, the Department is not required to 
take further action in order to evaluate industry support (e.g., 
polling). See Section 732(c)(4)(D) of the Act. In addition, the 
domestic producers have met the statutory criterion for industry 
support under section 732(c)(4)(A)(i) of the Act because the domestic 
producers (or workers) who support the petitions account for at least 
25 percent of the total production of the domestic like product. 
Finally, the domestic producers have met the statutory criterion for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the petitions account for 
more than 50 percent of the production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the petitions. Accordingly, the Department determines 
that the petitions were filed on behalf of the domestic industry within 
the meaning of section 732(b)(1) of the Act. See Germany Initiation 
Checklist at Attachment II (Industry Support) and PRC Initiation 
Checklist at Attachment II (Industry Support).
    The Department finds that the petitioner filed the petitions on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(C) of the Act and it has demonstrated 
sufficient industry support with respect to the antidumping 
investigations that it is requesting the Department initiate. See 
Germany Initiation Checklist at Attachment II (Industry Support) and 
PRC Initiation Checklist at Attachment II (Industry Support).

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). The petitioner 
contends that the industry's injured condition is illustrated by 
reduced market share, lost sales, reduced production, capacity and 
capacity utilization rate, reduced shipments, underselling and price 
depressing and suppressing effects, lost revenue, reduced employment, 
decline in financial performance, and an increase in import 
penetration. We have assessed the allegations and supporting evidence 
regarding material injury and causation, and we have determined that 
these allegations are properly supported by adequate evidence and meet 
the statutory requirements for initiation. See Germany Initiation 
Checklist at Attachment III (Injury) and PRC Initiation Checklist at 
Attachment III (Injury).

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which the Department based its decision to 
initiate these investigations of imports of sodium nitrite from Germany 
and the PRC. The sources of data for the deductions and adjustments 
relating to the U.S. price, constructed value (CV) (for Germany), and 
the factors of production (for the PRC) are also discussed in the 
country-specific initiation checklists. See Germany Initiation 
Checklist and PRC Initiation Checklist. Should the need arise to use 
any of this information as facts available under section 776 of the Act 
in our preliminary or final determinations, we will reexamine the 
information and revise the margin calculations, if appropriate.

Germany

Constructed Export Price (CEP) and Export Price (EP)

    The petitioner calculated three CEPs based on price quotes during 
the POI obtained from U.S. distributors for German-produced sodium 
nitrite. The petitioner also calculated an EP using the average unit 
customs value (AUV) of imports of subject merchandise from Germany 
during the POI derived from U.S. Census Bureau import statistics. 
Specifically, for CEPs based on price quotes, the petitioner made 
adjustments to the starting price, where applicable, for discounts, 
foreign inland freight, ocean freight, marine insurance, U.S. inland 
freight and trans-loading fees, U.S. customs and port fees, and 
warehousing expenses. The petitioner calculated foreign inland freight, 
ocean freight, marine insurance, U.S. inland freight and trans-loading 
fees, and warehousing expenses based on price quotes obtained from 
custom brokers, freight forwarders, and other service providers. U.S. 
customs and port fees (i.e., U.S. duty, harbor maintenance and 
processing fees) were based on standard U.S. government percentages, as 
applied to the petitioner's estimate of entered value. Because the 
petitioner's calculation of entered value incorrectly excluded foreign 
inland freight and included U.S. inland freight and trans-loading fees, 
we have recalculated U.S. customs and port fees based on entered value 
exclusive of all movement expenses except foreign inland freight. The 
petitioner also made an adjustment for CEP profit. To calculate CEP 
profit, the petitioner derived the profit margin from U.S. chemical-
industry-wide statistical gross-margin data from the U.S. Census Bureau 
and applied this profit ratio to gross unit price. However, the 
petitioner's CEP profit calculation methodology is not in accordance 
with the Department's practice (i.e., the petitioner applied the profit 
ratio to gross unit price rather than to CEP selling expenses) (see, 
e.g., Policy Bulletin 97.1: Calculation of Profit for Constructed 
Export Price Transactions (September 4, 1997)). The petitioner's 
methodology overstates the amount of profit included in CEP. The 
Department requested that the petitioner provide the information 
necessary to make the proper calculation, but the petitioner stated 
that this information was not reasonably available to it. Therefore, to 
be conservative, we have disallowed this adjustment and have 
recalculated the CEP-to-NV margins exclusive of the CEP profit 
adjustment for purposes of initiating this investigation. For EP based 
on AUV, the petitioner made an adjustment only for foreign inland 
freight, as the AUV is based on FOB foreign port price. See Germany 
Initiation Checklist and ``Fair Value Comparisons'' section below for 
the revised CEP-to-NV margins.

NV Based on CV

    With respect to NV, the petitioner states that neither home-market 
prices nor third-country prices of German-produced sodium nitrite were 
reasonably available. According to the petitioner, it was unsuccessful 
in obtaining such pricing information, despite its best efforts. See 
German petition at page 10 and the November 19, 2007, supplement to the 
German petition at pages 4-5. Therefore, the petitioner based NV on CV.
    Pursuant to section 773(e) of the Act, CV consists of the cost of 
manufacture

[[Page 68566]]

(COM); selling, general and administrative (SG&A) expenses; packing 
expenses; and profit. In calculating COM and packing, the petitioner 
based the quantity of each of the inputs used to manufacture and pack 
sodium nitrite in Germany on its own production experience during the 
POI. The petitioner then multiplied the usage quantities by the value 
of the inputs used to manufacture and pack sodium nitrite in Germany 
based on publicly available data, data obtained from market research, 
or its own costs. See Volume I of the German petition at pages 10-13.
    Raw material (i.e., ammonia and caustic soda) is the most 
significant input used in the production of sodium nitrite. The 
petitioner determined the usage of ammonia and caustic soda based on 
the quantities it used to produce a short ton of sodium nitrite (i.e., 
technical and food grades). The values of ammonia and caustic soda were 
based on price data obtained from market research. The price data from 
market research were contemporaneous with the POI. The values for other 
raw material inputs and packing material inputs (e.g., silicon dioxide, 
bags) were based either on a price quote from market research (silicon 
dioxide) or on the petitioner's own experience (packing materials). See 
Volume I of the German petition at pages 12-13 and 15, and the November 
19, 2007, supplement to the German petition at pages 7-9.
    The petitioner determined labor costs using the labor inputs 
derived from its own experience which it valued using an industrial 
German wage rate obtained from the International Labour Organization's 
``Laborsta'' database at http://laborsta.ilo.org. See Volume I of the 
German petition at page 15.
    The petitioner determined energy costs (i.e., electricity, natural 
gas, steam, cooling water, and city water) using German price data from 
market research. See Volume I of the German petition at pages 13-14.
    To calculate factory overhead, the petitioner relied on its own 
experience (excluding depreciation) and on a German sodium nitrite 
producer's parent company's consolidated financial data (for 
depreciation). See Volume I of the German petition at pages 15-16.
    To calculate SG&A expenses and profit, the petitioner relied on a 
German sodium nitrite producer's parent company's consolidated 
financial data, for the fiscal year ending December 31, 2006, the 
period most contemporaneous with the POI for which the petitioner was 
able to obtain such information. See Volume I of the German petition at 
pages 16-17.

PRC

EP

    The petitioner calculated three EPs from price quotes for sodium 
nitrite manufactured in the PRC\1\ and one EP from the AUVs of imports 
from the PRC that were classified under HTSUS number 2834.10.1000 for 
the period April 2007 through September 2007, as reported by the U.S. 
Census Bureau. Specifically, the petitioner calculated EPs from the 
price quotes by deducting from the prices, where applicable, the costs 
associated with exporting and delivering the product, including foreign 
inland freight, ocean freight and marine insurance, U.S. inland 
freight, U.S. warehousing expenses, and U.S. duties and port charges. 
See PRC Initiation Checklist. The petitioner calculated foreign inland 
freight expense using the Indian truck freight rate used by the 
Department in the investigation of certain lined paper products from 
the PRC,\2\ and information it obtained regarding distances between 
sodium nitrite producers and the likely port of exportation. See 
Exhibit III-2 of the PRC petition, and Exhibit 2 of the November 19, 
2007, supplement to the PRC petition. The petitioner based ocean 
freight and marine insurance expenses, U.S. warehousing, and rail and 
truck expenses on price quotes obtained from service providers. See 
Exhibits III-2-5 of the PRC petition. The petitioner based U.S. duties 
and port charges (i.e., U.S. duty, harbor maintenance and processing 
fees) on standard charges and duties applicable to sodium nitrite 
imported under HTSUS number 2834.10.1000. The petitioner calculated an 
EP from import data by deducting from the AUV of April through 
September 2007 PRC imports under HTSUS number 2834.10.1000 the expenses 
for transporting the product from the PRC factory to the port of 
exportation (the AUV is based on an FOB foreign port price). See 
Exhibit 3 of the November 19, 2007, supplement to the PRC petition. We 
recalculated the EPs to correct certain errors in the petitioner's 
calculations. See PRC Initiation Checklist.
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    \1\ The prices quotes are for three different types of sodium 
nitrite falling within the scope of these investigations, for 
delivery to the U.S. customer within the POI.
    \2\ See Preliminary Determination of Sales at Less Than Fair 
Value, Affirmative Critical Circumstances, In Part, and Postponement 
of Final Determination: Certain Lined Paper Products from the 
People's Republic of China, 71 FR 19695 (April 17, 2006).
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NV

    The petitioner stated that the PRC is a non-market economy (NME) 
country and no determination to the contrary has been made by the 
Department. Recently, the Department examined the PRC's status and 
determined that NME status should continue for the PRC. See the 
memorandum to David Spooner, Assistant Secretary for Import 
Administration, regarding ``The People's Republic of China (PRC) Status 
as a Non-Market Economy (NME),'' dated May 15, 2006 (this document is 
available online at http://ia.ita.doc.gov/download /prc-nme-status/prc-
nme-status-memo.pdf). In addition, in two recent antidumping duty 
investigations, the Department determined that the PRC is an NME 
country. See Final Determination of Sales at Less Than Fair Value: 
Certain Activated Carbon from the People's Republic of China, 72 FR 
9508 (March 2, 2007); see also Final Determination of Sales at Less 
Than Fair Value and Partial Affirmative Determination of Critical 
Circumstances: Certain Polyester Staple Fiber from the People's 
Republic of China, 72 FR 19690 (April 19, 2007). In accordance with 
section 771(18)(C)(i) of the Act, the presumption of NME status remains 
in effect until revoked by the Department. Because the presumption of 
NME status for the PRC has not been revoked by the Department, it 
remains in effect for purposes of this initiation. Accordingly, the NV 
of the product is appropriately based on factors of production valued 
in a surrogate market economy country in accordance with section 773(c) 
of the Act. After initiation, all parties will have the opportunity to 
provide relevant information regarding the PRC's NME status and whether 
separate rates should be granted to individual exporters.
    The petitioner selected India as the surrogate market economy 
country. The petitioner claimed, pursuant to section 773(c)(4) of the 
Act, that India is an appropriate surrogate country because it is at a 
level of economic development comparable to that of the PRC and is a 
significant producer of sodium nitrite. See Volume I of the PRC 
petition at pages 21-23. Based on the information provided by the 
petitioner, we believe that it is appropriate to use India as a 
surrogate country for initiation purposes. After initiation, we will 
solicit comments regarding surrogate country selection.
    The petitioner calculated NVs for each U.S. price discussed above 
using the NME methodology required by 19 CFR 351.202(b)(7)(i)(C) and 19 
CFR 351.408. Because the quantities of

[[Page 68567]]

factors of production consumed by Chinese producers in manufacturing 
sodium nitrite are not available to the petitioner, the petitioner 
calculated NVs using its own consumption rates for producing sodium 
nitrite during the last two completed quarters. See the PRC petition at 
page 23, Exhibit III-9 in Volume I of the PRC petition, and the 
November 19, 2007, supplement to the PRC petition at Exhibit 9. The 
petitioner adjusted its NV calculation to account for certain 
differences between its own manufacturing process and the prilling 
process used by PRC producers. See the PRC petition at page 27, and 
Exhibit 9 of the November 19, 2007, supplement to the PRC petition. One 
adjustment involved the number of labor hours required to produce a 
unit of output. Specifically, the petitioner stated that the production 
and packing of subject merchandise is more labor intensive in the PRC 
than in the United States, requiring twice as much labor to produce the 
same amount of finished product. The petitioner explained that this 
adjustment is based on its employees' commercial knowledge, 
observations of production in the PRC, and company resources. See 
Exhibit III-9 of the PRC petition, and the November 19, 2007, 
supplement to the PRC petition at page 8.
    The petitioner based the value of material inputs on official 
Indian trade statistics from the Indian Department of Commerce's 
Export-Import Data Bank and prices in the periodical, ICIS Chemical 
Bulletin, dated September 10, 2007. See the PRC petition at Exhibits 
III-12 and III-13. In calculating surrogate values from Indian import 
data, the petitioner excluded the values of imports from unspecified 
countries, NME countries, and countries which the Department has found 
to maintain broadly available, non-industry-specific export subsidies 
(i.e., Indonesia, the Republic of Korea and Thailand). See Hand Trucks 
and Certain Parts Thereof From the People's Republic of China: Final 
Results of Administrative Review and Final Results of New Shipper 
Review, 72 FR 27287 (May 15, 2007), and accompanying Issues and 
Decision Memorandum at Comment 23. The surrogate values used by the 
petitioner for material and packing inputs consist of information 
reasonably available to the petitioner and are, therefore, acceptable 
for purposes of initiation.
    The petitioner was unable to obtain surrogate values that were 
contemporaneous with the POI for all material inputs and, accordingly, 
it relied upon the most recently available information. Where a 
surrogate value was in effect during a period preceding the POI, the 
petitioner adjusted it using the Indian wholesale price index in the 
publication, International Financial Statistics, which is published by 
the International Monetary Fund. However, because the petitioner 
incorrectly calculated these adjustments, the Department has revised 
them. See the PRC Initiation Checklist.
    The petitioner based factory overhead expenses, SG&A expenses, and 
profit on data from an Indian sodium nitrite producer, Deepak Nitrite 
Limited. The data comes from Deepak Nitrite Limited's most recently 
available financial statement which covers the period April 1, 2006, 
through March 31, 2007. See the November 19, 2007, supplement to the 
PRC petition at Exhibit 16. We find the petitioner's use of Deepak 
Nitrite Limited's data is appropriate for purposes of this initiation. 
See the NV calculation in the November 19, 2007, supplement to the PRC 
petition at Exhibit 10.

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of sodium nitrite from Germany and the PRC are 
being, or are likely to be, sold in the United States at less than fair 
value. Based on a comparison of CEP and CV, calculated in accordance 
with section 773(a)(4) of the Act, the revised estimated dumping 
margins for sodium nitrite from Germany range from 65.58 to 151.98 
percent. Based on a comparison of EP and CV, calculated in accordance 
with section 773(a)(4) of the Act, the estimated dumping margin for 
sodium nitrite from Germany is 237 percent. See Germany Initiation 
Checklist. Based on comparisons of EP to NV, calculated in accordance 
with section 773(c) of the Act, the revised estimated dumping margins 
for sodium nitrite from the PRC range from 131.72 percent to 190.74 
percent. See PRC Initiation Checklist.

Initiation of Antidumping Investigations

    Based upon the examination of the petitions on sodium nitrite from 
Germany and the PRC, the Department finds that the petitions meet the 
requirements of section 732 of the Act. Therefore, we are initiating 
antidumping duty investigations to determine whether imports of sodium 
nitrite from Germany and the PRC are being, or are likely to be, sold 
in the United States at less than fair value. In accordance with 
section 733(b)(1)(A) of the Act, unless postponed, we will make our 
preliminary determinations no later than 140 days after the date of 
this initiation.

Separate Rates

    In order to obtain separate-rate status in NME investigations, 
exporters and producers must submit a separate-rate status application. 
See Policy Bulletin 05.1: Separate-Rates Practice and Application of 
Combination Rates in Antidumping Investigations involving Non-Market 
Economy Countries (April 5, 2005) (Separate Rates and Combination Rates 
Bulletin), available on the Department's website at http://ia.ita.doc.gov/policy/bull05-1.pdf. Based on our experience in 
processing the separate-rate applications in previous antidumping duty 
investigations, we have modified the application for this investigation 
to make it more administrable and easier for applicants to complete. 
See, e.g., Initiation of Antidumping Duty Investigation: Certain New 
Pneumatic Off-the-Road Tires From the People's Republic of China, 72 FR 
43591, 43594-95 (August 6, 2007). The specific requirements for 
submitting the separate-rate application in this investigation are 
outlined in detail in the application itself, which will be available 
on the Department's website at http://ia.ita.doc.gov/ia-highlights-and-news.html on the date of publication of this initiation notice in the 
Federal Register. The separate-rate application will be due 60 days 
after publication of this initiation notice.

Respondent Selection

    For these investigations, the Department intends to select 
respondents based on U.S. Customs and Border Protection (CBP) data for 
U.S. imports under HTSUS number 2834.10.1000 during the POI. We intend 
to make our decisions regarding respondent selection within 20 days of 
publication of this Federal Register notice. The Department invites 
comments regarding the CBP data and respondent selection within seven 
days of publication of this Federal Register notice.

Use of Combination Rates in an NME Investigation

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in this 
investigation. The Separate Rates and Combination Rates Bulletin, 
states:
    {w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of

[[Page 68568]]

investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise to 
it during the period of investigation. This practice applies both to 
mandatory respondents receiving an individually calculated separate 
rate as well as the pool of non-investigated firms receiving the 
weighted-average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and produced 
by a firm that supplied the exporter during the period of 
investigation. (Emphasis added.)
Separate Rates and Combination Rates Bulletin, at page 6.

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public versions of the petitions have been 
provided to the representatives of the Governments of Germany and the 
PRC. We will attempt to provide a copy of the public version of the 
petitions to the foreign producers/exporters, consistent with 19 CFR 
351.203(c)(2).

International Trade Commission Notification

    We have notified the ITC of our initiations, as required by section 
732(d) of the Act.

Preliminary Determinations by the International Trade Commission

    The ITC will preliminarily determine, no later than December 24, 
2007, whether there is a reasonable indication that imports of sodium 
nitrite from Germany and the PRC are materially injuring, or 
threatening material injury to, a U.S. industry. A negative ITC 
determination with respect to either of the investigations will result 
in that investigation being terminated; otherwise, these investigations 
will proceed according to statutory and regulatory time limits.
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: November 28, 2007.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E7-23489 Filed 12-4-07; 8:45 am]
BILLING CODE 3510-DS-S