[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10545-10548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5237]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-934]


1-Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's 
Republic of China: Final Determination of Sales at Less Than Fair Value

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

EFFECTIVE DATE: March 11, 2009.
SUMMARY: The Department of Commerce (the ``Department'') has determined 
that 1-hydroxyethylidene-1, 1-diphosphonic acid (``HEDP'') from the 
People's Republic of China (``PRC'') is being, or is likely to be, sold 
in the United States at less than fair value (``LTFV''), as provided in 
section 733 of the Tariff Act of 1930, as amended (``the Act''). The 
final dumping margins for this investigation are listed in the ``Final 
Determination Margins'' section of this notice.

FOR FURTHER INFORMATION CONTACT: Maisha Cryor or Shawn Higgins, AD/CVD 
Operations, Office 4, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
5831 and (202) 482-0679, respectively.

SUPPLEMENTARY INFORMATION:

Case History

    On October 21, 2008, the Department published its preliminary 
determination that HEDP from the PRC is being, or is likely to be, sold 
in the United States at LTFV, as provided in the Act. See 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid From the People's Republic of 
China: Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, 73 FR 62470 (October 21, 2008) 
(``Preliminary Determination''). For the Preliminary Determination, the 
Department calculated a 24.30 percent dumping margin for Nanjing 
University of Chemical Technology Changzhou Wujin Water Quality 
Stabilizer Factory Ltd. (``Wujin Water''). The Department assigned a 
72.42 percent dumping margin to the PRC-wide entity including Changzhou 
Kewei Fine Chemical Factory (``Kewei'') and a 24.30 percent dumping 
margin to separate rate applicants Changzhou Wujin Fine Chemical 
Factory Co., Ltd. (``Wujin Fine Chemical'') and Jiangsu Jianghai 
Chemical Group Co., Ltd. (``Jiangsu Jianghai''). On December 3, 2008, 
Wujin Water provided the Department with its final submission of 
surrogate values. In December 2008, Compass Chemical International LLC 
(``Petitioner''), Wujin Water, Wujin Fine Chemical, and Jiangsu 
Jianghai submitted case briefs and rebuttal briefs.\1\ On January 14, 
2009, the Department held a public hearing.
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    \1\ Wujin Water, Wujin Fine Chemical, and Jiangsu Jianghai 
submitted case briefs and rebuttal briefs jointly.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by the parties to 
this investigation are addressed in the ``Issues and Decision 
Memorandum for the Final Determination in the Less-Than-Fair-Value 
Investigation of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from the 
People's Republic of China'' (``Issues and Decision Memorandum''), 
dated concurrently with this notice, which is hereby adopted by this 
notice in its entirety. A list of the issues which parties raised and 
to which we respond in the Issues and Decision Memorandum is attached 
to this notice as an Appendix. The Issues and Decision Memorandum is a 
public document and is on file in the Central Records Unit (``CRU''), 
Main Commerce Building, Room 1117, and is accessible on the internet at 
http://www.trade.gov/ia. The paper copy and electronic version of the 
memorandum are identical in content.

Verification

    As provided in section 782(i) of the Act, we verified the 
information submitted by Wujin Water 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 respondent.

Changes Since the Preliminary Determination

    Based on our analysis of comments received, we have made certain 
adjustments to the margin calculations used in the Preliminary 
Determination. These adjustments are discussed in detail in the Issues 
and Decision Memorandum and are listed below:
1. We recalculated the financial ratios using the April 2005 through 
March 2006 financial statement of Rencal Chemicals (India) Limited 
(``Rencal Chemicals'').
2. We recalculated the surrogate value for phosphorus trichloride using 
the April 2004 through March 2005 and April 2005 through March 2006 
financial statements of Rencal Chemicals.
3. We recalculated the surrogate value for steam using the April 2007 
through March 2008 financial statement of Hindalco Industries Ltd.
4. We revised the transportation distance of chemical drums.

Period of Investigation

    The period of investigation (``POI'') is July 1, 2007, through 
December 31, 2007. This period corresponds to the two most recent 
fiscal quarters prior to the month of the filing of the petition, i.e., 
March 2008. See 19 CFR 351.204(b)(1).

Scope of the Investigation

    The merchandise covered by this investigation includes all grades 
of aqueous, acidic (non-neutralized) concentrations of 1-
hydroxyethylidene-1, 1-diphosphonic acid\2\, also referred to as 
hydroxethlylidenediphosphonic acid, hydroxyethanediphosphonic acid, 
acetodiphosphonic acid, and etidronic acid. The CAS (Chemical Abstract 
Service) registry number for HEDP is 2809-21-4. The merchandise subject 
to this investigation is currently classified in the Harmonized Tariff 
Schedule of the United States (``HTSUS'') at subheading 2931.00.9043. 
It may also enter under HTSUS subheading 2811.19.6090. While HTSUS 
subheadings are provided for convenience and customs purposes

[[Page 10546]]

only, the written description of the scope of this investigation is 
dispositive.
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    \2\ C[bdi2]H[bdi8]O[bdi7]P[bdi2] or 
C(CH[bdi3])(OH)(PO[bdi3]H[bdi2])[bdi2].
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Scope Comments

    The Department received no comments regarding the scope of this 
investigation.

Non-Market Economy Treatment

    In the Preliminary Determination, the Department considered the PRC 
to be a non-market economy (``NME'') country. In accordance with 
section 771(18)(C)(i) of the Act, any determination that a country is 
an NME country shall remain in effect until revoked by the 
administering authority. See Tapered Roller Bearings and Parts Thereof, 
Finished and Unfinished, From the People's Republic of China: 
Preliminary Results of 2001-2002 Administrative Review and Partial 
Rescission of Review, 68 FR 7500 (February 14, 2003), unchanged in 
Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, 
from the People's Republic of China: Final Results of 2001-2002 
Administrative Review and Partial Rescission of Review, 68 FR 70488 
(December 18, 2003). No party has commented on the Department's 
classification of the PRC as an NME. Therefore, for the final 
determination, we continue to consider the PRC to be an NME.

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 an investigation 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. See 
Final Determination of Sales at Less Than Fair Value: Sparklers from 
the People's Republic of China, 56 FR 20588 (May 6, 1991), as amplified 
by Notice of Final Determination of Sales at Less Than Fair Value: 
Silicon Carbide from the People's Republic of China, 59 FR 22585 (May 
2, 1994), and 19 CFR 351.107(d).
    In the Preliminary Determination, we found that Wujin Fine Chemical 
and Jiangsu Jianghai demonstrated eligibility for separate-rate status. 
Since the publication of the Preliminary Determination, no party has 
commented on the eligibility of Wujin Fine Chemical and Jiangsu 
Jianghai for separate-rate status. For the final determination, we 
continue to find that the evidence placed on the record of this 
investigation by Wujin Fine Chemical and Jiangsu Jianghai demonstrates 
both de jure and de facto absence of government control with respect to 
each company's respective exports of the merchandise under 
investigation. Thus, we continue to find that Wujin Fine Chemical and 
Jiangsu Jianghai are eligible for separate-rate status. Normally the 
separate rate is determined based on the estimated weighted-average 
dumping margins established for exporters and producers individually 
investigated, excluding zero and de minimis margins or margins based 
entirely on adverse facts available (``AFA''). See section 735(c)(5)(A) 
of the Act. In this case, because there are no rates other than de 
minimis or those based on AFA, we have determined to take a simple 
average of the AFA and the de minimis rate calculated for Wujin Water 
as a reasonable method for purposes of determining the rate assigned to 
Wujin Fine Chemical and Jiangsu Jianghai. See section 735(c)(5)(B) of 
the Act. We note that this methodology is consistent with the 
Department's past practice. See Notice of Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final Determination; 
Light-Walled Rectangular Pipe and Tube From the Republic of Korea, 73 
FR 5794, 5800 (January 31, 2008) (``Preliminary Determination of Light-
Walled Pipe''), unchanged in Final Determination of Sales at Less Than 
Fair Value: Light-Walled Rectangular Pipe and Tube from the Republic of 
Korea, 73 FR 35655 (June 24, 2008) (``Final Determination of Light-
Walled Pipe''); see also ``Corroboration'' section below.
    We determined in the Preliminary Determination that because Kewei 
withdrew from the investigation, thus preventing the Department from 
asking additional questions on its separate rate status and preventing 
the Department from verifying its responses, the Department has no 
basis upon which to grant Kewei a separate rate. We received no 
comments on this denial of a separate rate. Although Kewei remains a 
mandatory respondent, the Department will continue to consider Kewei 
part of the PRC-wide entity because it failed to demonstrate that it 
qualifies for a separate rate.

The PRC-Wide Rate

    In the Preliminary Determination, the Department found that certain 
companies did not respond to our requests for information. See 
Preliminary Determination, 73 FR at 62473-74. We treated these PRC 
producers/exporters as part of the PRC-wide entity because they did not 
demonstrate that they operate free of government control over their 
export activities. Id. In addition, in the Preliminary Determination, 
the Department applied total AFA to Kewei. We determined, as AFA, that 
Kewei was not eligible for a separate rate and we would treat Kewei as 
part of the PRC-wide entity. Id. No additional information was placed 
on the record with respect to any of these companies after the 
Preliminary Determination. Therefore, pursuant to section 776(a)(2)(A) 
of the Act, the Department continues to find that the use of facts 
available is appropriate to determine the PRC-wide rate.
    Section 776(b) of the Act provides that, in selecting from among 
the facts otherwise available, the Department may employ an adverse 
inference if an interested party fails to cooperate by not acting to 
the best of its ability to comply with requests for information. See 
Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, from 
the People's Republic of China: Preliminary Results of Antidumping Duty 
Administrative Review and Notice of Rescission in Part and Intent to 
Rescind in Part, 72 FR 14078, 14079 (March 26, 2007) (``Preliminary 
Results of TRBs''), unchanged in Tapered Roller Bearings and Parts 
Thereof, Finished or Unfinished, from the People's Republic of China: 
Final Results of 2005-2006 Administrative Review and Partial Rescission 
of Review, 72 FR 56724 (October 4, 2007) and Tapered Roller Bearings 
and Parts Thereof, Finished and Unfinished, From the People's Republic 
of China: Amended Final Results of 2005-2006 Administrative Review, 72 
FR 70302 (December 11, 2007) (``Final Results of TRBs''). See also 
Statement of Administrative Action accompanying the Uruguay Round 
Agreements Act (``SAA''), H.R. Doc. No. 103-316, Vol. 1 (1994), at 870. 
We determine that, because the PRC-wide entity, including Kewei, did 
not respond to our requests for information, the PRC-wide entity has 
failed to cooperate to the best of its ability. See id. Therefore, the 
Department finds that, in selecting from among the facts otherwise 
available, an adverse inference is appropriate for the PRC-wide entity.
    Because we begin with the presumption that all companies within an 
NME country are subject to government control, and because only Wujin 
Water, Wujin Fine Chemical, and Jiangsu Jianghai have overcome that 
presumption, we are applying a single antidumping rate (i.e., the PRC-
wide entity rate) to all other exporters of

[[Page 10547]]

subject merchandise from the PRC. Such companies did not demonstrate 
entitlement to a separate rate. See, e.g., Synthetic Indigo From the 
People's Republic of China; Notice of Final Determination of Sales at 
Less Than Fair Value, 65 FR 25706 (May 3, 2000). The PRC-wide entity 
rate applies to all entries of subject merchandise except for entries 
from Wujin Water, Wujin Fine Chemical, and Jiangsu Jianghai.
    In the Preliminary Determination, we assigned to the PRC-wide 
entity the margin alleged in the petition, i.e., 72.42 percent. See 
Preliminary Determination, 73 FR at 22331. For the final determination, 
we have continued to assign to the PRC-wide entity the rate of 72.42 
percent.

Corroboration

    Section 776(c) of the Act provides that, when the Department relies 
on secondary information in using the facts otherwise available, it 
must, to the extent practicable, corroborate that information from 
independent sources that are reasonably at its disposal. We have 
interpreted ``corroborate'' to mean that we will, to the extent 
practicable, examine the reliability and relevance of the information 
submitted. See Preliminary Determination of TRBs, 72 FR at 14080 
(unchanged in Final Results of TRBs).
    Because there are no respondents receiving rates other than de 
minimis or those based on AFA, we relied upon our pre-initiation 
analysis of the adequacy and accuracy of the information in the 
petition to corroborate the 72.42 percent petition margin selected as 
AFA for the PRC-wide entity. This corroborated margin was then used in 
the calculation of the rate assigned to Wujin Fine Chemical and Jiangsu 
Jianghai pursuant to section 735(c)(5)(B) of the Act. See ``Import 
Administration Antidumping Investigation Initiation Checklist: 1-
Hydroxyethylidene-1, 1-Diphosphonic Acid from the People's Republic of 
China,'' (April 8, 2008). We note that this practice is consistent with 
the Department's past practice in instances where the only rates on the 
record are either de minimis or based entirely upon AFA. See 
Preliminary Determination of Light-Walled Pipe, 73 FR at 5797 
(unchanged in Final Determination of Light-Walled Pipe). During the 
initiation stage, we examined evidence supporting the calculations in 
the petition and the supplemental information provided by Petitioner to 
determine the probative value of the margins alleged in the petition. 
During our pre-initiation analysis, we examined the information used as 
the basis of export price (``EP'') and normal value (``NV'') in the 
petition, and the calculations used to derive the alleged margins. Also 
during our pre-initiation analysis, we examined information from 
various independent sources provided either in the petition or, based 
on our requests, in supplements to the petition, which corroborated key 
elements of the EP and NV calculations. Id. Therefore, for the final 
determination, the Department finds that the rate derived from the 
petition for purposes of initiation has probative value for the purpose 
of being selected as the AFA rate assigned to the PRC-wide entity, 
including Kewei, and used in the calculation of the rate assigned to 
Wujin Fine Chemical and Jiangsu Jianghai pursuant to 735(c)(5)(B) of 
the Act.

Final Determination Margins

    We determine that the following percentage dumping margins exist 
for the POI:

------------------------------------------------------------------------
                                                       Weighted-Average
                Manufacturer/Exporter                  Margin (Percent)
------------------------------------------------------------------------
Nanjing University of Chemical Technology...........                0.00
        Changzhou Wujin Water Quality Stabilizer
         Factory Ltd.\3\............................
Changzhou Wujin Fine Chemical Factory Co., Ltd.\4\..               36.21
Jiangsu Jianghai Chemical Group Co., Ltd.\5\........               36.21
PRC-wide Entity (including Kewei)...................               72.42
------------------------------------------------------------------------
\3\ Nanjing University of Chemical Technology Changzhou Wujin Water
  Quality Stabilizer Factory Ltd. manufactures and exports subject
  merchandise.
\4\ Changzhou Wujin Fine Chemical Factory Co., Ltd. manufactures and
  exports subject merchandise.
\5\ Jiangsu Jianghai Chemical Group Co., Ltd. manufactures and exports
  subject merchandise.

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (``CBP'') to continue to 
suspend liquidation of all entries of HEDP from the PRC, except those 
produced and exported by Wujin Water, as described in the ``Scope of 
Investigation'' section, entered, or withdrawn from warehouse, for 
consumption on or after October 21, 2008, the date of publication of 
the Preliminary Determination in the Federal Register. We will instruct 
CBP to require a cash deposit or the posting of a bond equal to the 
weighted-average dumping margin amount by which the NV exceeds U.S. 
price, as follows: (1) The rate for the manufacturer/exporter 
combinations listed in the chart above will be the rate we have 
determined in this final determination; (2) for all PRC exporters of 
subject merchandise which have not received their own rate, the cash-
deposit rate will be the PRC-wide entity rate; and (3) for all non-PRC 
exporters of subject merchandise which have not received their own 
rate, the cash-deposit rate will be the rate applicable to the PRC 
exporter/producer combination that supplied that non-PRC exporter. We 
are directing CBP not to suspend liquidation of imports of HEDP from 
the PRC produced and exported by Wujin Water, and entered, or withdrawn 
from warehouse, for consumption on or after October 21, 2008, the date 
of publication of the Preliminary Determination in the Federal 
Register. CBP shall not require a cash deposit or the posting of a bond 
for Wujin Water because we have calculated a margin of zero percent for 
Wujin Water. These suspension-of-liquidation instructions will remain 
in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission (``ITC'') of our final determination of 
sales at LTFV. As our final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, within 45 days the ITC will 
determine 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. 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 canceled. If 
the ITC determines that such injury does exist, the Department will 
issue an antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding APO

    This notice also serves as a reminder to the parties subject to 
administrative

[[Page 10548]]

protective order (``APO'') of their responsibility concerning the 
disposition of proprietary information disclosed under APO in 
accordance with 19 CFR 351.305. Timely notification of return or 
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: March 5, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix:

Issues in Decision Memorandum

Comment 1: Financial Ratios
Comment 2: Surrogate Value for Phosphorus Trichloride
Comment 3: Surrogate Value for Chemical Drums
Comment 4: Surrogate Value for Steam
Comment 5: Treatment of Acetyl Chloride
Comment 6: Separate Rates for Wujin Fine Chemical and Jiangsu Jianghai
Comment 7: Combination Rate for Hong Kong Exporter

[FR Doc. E9-5237 Filed 3-10-09; 8:45 am]
BILLING CODE 3510-DS-S